News report 📈 Stocks 🌍 Israel

Oddity Tech Revenue Falls 25% as Advertising Algorithm Issues Persist

Oddity Tech faces ongoing headwinds as advertising-algorithm issues hit IL MAKIAGE, though growth in newer brands like SpoiledChild offers a potential path to diversification and recovery.

📅 September 16, 2026 🕐 1 min read

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📆 Mid-term 🌍 US · Explicit

Oddity Tech's second-quarter revenue fell 25% but beat its own EBITDA guidance and expects a narrower third-quarter decline, with unresolved IL MAKIAGE advertising issues.

🎯 Key Takeaways

Second-quarter revenue fell 25% to $181 million, with adjusted EBITDA dropping to $13 million.
Management expects a narrower 5% revenue decline in the third quarter as they retrain advertising algorithms.
Newer brand SpoiledChild shows resilience with double-digit growth, signaling potential for platform-wide diversification.

📝 Executive Summary

Oddity Tech reported a 25% revenue decline to $181 million in the second quarter, driven by advertising-algorithm disruptions at its IL MAKIAGE brand. While the company beat its own EBITDA guidance, management warns that the technical fix remains incomplete and repeat-order revenue has dropped 20%.

❓ FAQ

Why did Oddity Tech's revenue decline in the second quarter?

The decline was primarily attributed to an advertising-algorithm problem that impaired the company's ability to reach customers efficiently for its IL MAKIAGE brand.

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