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Q2 revenue fell 25% to $181 million as an advertising-account disruption increased customer-acquisition costs for IL MAKIAGE. Adjusted EBITDA of $13 million exceeded guidance, but gross margin declined to 68.7% from 72.3%.
Management believes the advertising issue is technical and expects growth to resume once it is resolved. Meanwhile, SpoiledChild is projected to grow at least 35% in 2026, while newer brand METHODIQ is showing early traction.
ODDITY expects sequential improvement, forecasting a roughly 5% year-over-year revenue decline in Q3 versus a 19% decline for the full year. The company ended the quarter with $561 million in cash and investments and repurchased $80 million of shares during the quarter.