Why Is ODDITY Tech Ltd. (ODD) Stock Down -20% Today?
Key Takeaways
- ODD shares are falling approximately 20% in premarket trading on June 2, 2026, from a prior session close of $13.98, implying a premarket price near $11.18
- The primary catalyst is the Q1 2026 earnings report released before the open, showing net revenue of $197.9 million — a steep 26% year-over-year decline from $268.1 million in Q1 2025
- Q2 2026 guidance was issued calling for another revenue decline of 25–30% year-over-year, signaling that the advertising platform disruption plaguing the company has not yet normalized
- Adjusted EBITDA turned negative at $(7.0) million and net loss widened to $(21.4) million, versus net income of $37.8 million in the year-ago period
- Traders are watching for any signs of advertising cost-per-acquisition (CPA) normalization and the pace of recovery in customer acquisition efficiency heading into the second half of 2026
Opening Summary
ODDITY Tech Ltd. (ODD) is a New York-based consumer technology company that operates AI-driven digital beauty and wellness brands, primarily IL MAKIAGE and SpoiledChild, serving approximately 68 million users globally. The company reported Q1 2026 financial results before the market open on June 2, 2026, sending shares down roughly 20% in premarket trading from the prior close of $13.98. Revenue came in at $197.9 million — above the analyst consensus of approximately $187.9 million — but the 26% year-over-year revenue contraction and another quarter of deeply negative EBITDA, combined with a Q2 guidance range that implies continued steep revenue declines, drove the sharp market reaction lower.
Earnings Results and Revenue Decline
ODDITY's Q1 2026 revenue of $197.9 million compared to $268.1 million in Q1 2025 represents a 26% year-over-year decline, in line with the approximately 30% decline management had warned investors to expect when it issued its jarring guidance reset in February 2026. The company swung to a net loss of $21.4 million in the quarter, compared to net income of $37.8 million in the same period last year. Adjusted EBITDA deteriorated to $(7.0) million, underscoring how the collapse in revenue has overwhelmed the company's cost structure. While the revenue figure technically came in ahead of the $187.9 million FactSet consensus estimate, investors focused on the continued severity of the losses and the uncertain recovery timeline.
Q2 2026 Guidance and Continued Ad Platform Headwinds
The more significant pressure point in Tuesday's pre-market sell-off is management's guidance for Q2 2026, which projects revenue down another 25–30% year-over-year. This implies ODDITY's advertising cost crisis — sparked by an algorithm disruption at its largest advertising partner that dramatically inflated customer acquisition costs — has yet to show meaningful signs of resolution heading into the second quarter. The company's growth engine has been built on performance marketing efficiency, and the sustained breakdown of that model has removed the core earnings power that once commanded a premium valuation. The $200 million board-approved share buyback provides some financial floor, with the company noting a strong liquidity position of $667.4 million in cash and investments and $350 million in undrawn credit facilities.
Market Context and Trading Activity
ODD entered Tuesday's session already deeply depressed relative to its 52-week high of $79.18, having shed approximately 65% of its value over the past year following the February 2026 guidance shock that sent shares down nearly 50% in a single session. Volume on June 1 was extremely thin at just 71,510 shares versus an average daily volume of approximately 1.34 million, suggesting most investors had already repositioned well ahead of the print and that the market was primed for a violent reaction to any new information. Shares of beauty and wellness peers and consumer discretionary sector ETFs are not similarly impaired, indicating this is a company-specific event rather than a broader sector dislocation. The stock's collapse through multi-year technical support levels leaves the chart without meaningful near-term floor references, adding to near-term uncertainty.
Trending AI Robots
For investors navigating high-volatility earnings events like ODD's Q1 release, Tickeron's Trending AI Robots page offers a curated view of the platform's top-performing AI trading bots under current market conditions. Tickeron operates hundreds of AI-driven bots covering thousands of tickers, but only the strongest performers — ranked by recent metrics across strategy, timeframe, and traded symbols — appear in this Trending section. Bots range from momentum and swing strategies to mean-reversion and sector rotation approaches, each calibrated for specific market environments. Traders looking to complement fundamental research with algorithmic tools may find this a useful resource for identifying systematic opportunities.
What Comes Next for ODD
The most critical question for ODD shareholders is whether the advertising platform recovery gains traction in the second half of 2026. Management has indicated it is working to diversify its advertising partner mix and recalibrate its customer acquisition model, but concrete evidence of CPA normalization will need to appear in Q3 or Q4 results before confidence returns. The next scheduled earnings release will be for Q2 2026, expected in late August 2026, which will serve as the clearest test of whether the recovery trajectory is taking hold. Analyst consensus currently sits at a Hold rating with an average price target near $17.33, reflecting deep uncertainty. The $200 million buyback program may provide modest support to the share price, though execution will depend on cash preservation priorities given ongoing losses. Until management can demonstrate a credible return to revenue growth — and positive EBITDA — the stock is likely to remain under pressure and trade at trough multiples.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
Contributor
Financial writer and active order flow futures trader with a focus on fundamental analysis, macroeconomic factors, and equity research. I make in-depth blogs on stocks and ETFs, bridging the gap between raw market data and real-world trading decisions.
ODD in upward trend: price rose above 50-day moving average on September 09, 2026
ODD moved above its 50-day moving average on September 09, 2026 date and that indicates a change from a downward trend to an upward trend. In 20 of 23 similar past instances, the stock price increased further within the following month. The odds of a continued upward trend are 87%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 02, 2026. You may want to consider a long position or call options on ODD as a result. In 47 of 59 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 80%.
The Moving Average Convergence Divergence (MACD) for ODD just turned positive on October 05, 2026. Looking at past instances where ODD's MACD turned positive, the stock continued to rise in 24 of 29 cases over the following month. The odds of a continued upward trend are 83%.
The 10-day moving average for ODD crossed bullishly above the 50-day moving average on September 14, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 9 of 11 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 82%.
Following a +5.70% 3-day Advance, the price is estimated to grow further. Considering data from situations where ODD advanced for three days, in 128 of 179 cases, the price rose further within the following month. The odds of a continued upward trend are 72%.
The Aroon Indicator entered an Uptrend today. In 78 of 105 cases where ODD Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 74%.
Bearish Trend Analysis
The 10-day RSI Indicator for ODD moved out of overbought territory on September 18, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 18 similar instances where the indicator moved out of overbought territory. In 12 of the 18 cases, the stock moved lower in the following days. This puts the odds of a move lower at 67%.
The Stochastic Oscillator has been in the overbought zone for 1 day. Expect a price pull-back in the near future.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where ODD declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 80%.
ODD broke above its upper Bollinger Band on September 11, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is 6 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is 41 (best 1 - 100 worst), indicating steady price growth. ODD’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is 83 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of 87 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (3.337) is normal, around the industry mean (18.044). P/E Ratio (80.000) is within average values for comparable stocks, (43.673). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (1.518). Dividend Yield (0.000) settles around the average of (0.024) among similar stocks. P/S Ratio (1.521) is also within normal values, averaging (1.931).
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. ODD’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 91, placing this stock worse than average.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Advertisement
General Information
Industry HouseholdPersonalCare
Advertisement