Revenues rose 25% to US$810m, with an adjusted EBITDA of $163m, driven by a strong performance from brands Il Makiage and SpoiledChild.
This was bolstered further by the launch of new brand, MethodIQ, in the fourth quarter of 2025.
For the final quarter of trading, revenue rose 24% to $153m, with gross profits also jumping 20% to $108m and beating company’s expectations.
Adjusted Q4 EBITDA was $13m, down from $15m a year earlier.
Despite the robust financial performance, stocks fell by more than 50% in early trading on 25 February 2026.
Oddity Tech attributed the decline to a weak forecast for the first quarter of 2026, the company’s decision not to provide full-year guidance, and an algorithmic error last year.
“We experienced a dislocation in our account with our largest advertising partner that we believe was driven by algorithm changes, which diverted us to lower quality auctions at abnormally high costs,” said Oran Holtzman, Oddity co-founder and CEO.
“This is resulting in significant increases in new user acquisition costs that are not correlated with the market or our historical experience.
“We believe we recently identified the root cause of the problem and have already implemented significant actions that we hope will drive meaningful progress in Q2 and return our acquisition costs to normal levels in Q3 or Q4.”
Despite the caution around global headwinds, Oddity claimed there is no change to its strategy or long-term growth focus.
“The underlying metrics of our business, including net revenue repeat rates as a key indicator of customer demand, remain very strong,” said Holtzman.
Lindsay Drucker Mann, Oddity’s Global CFO, added: “We are pleased with our financial results for the fourth quarter, which beat our guidance on revenue, gross margin, adjusted EBITDA, and adjusted diluted EPS.
“Given the dislocation we are experiencing in acquisition costs, we expect first quarter 2026 revenue to decline approximately 30% year-over-year, but we hope to see material improvement in the second half of 2026.”
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