THE WHAT? ODDITY Tech reported a 26% decline in first-quarter 2026 revenue as disruptions with its largest advertising partner increased customer acquisition costs, although the company said remediation efforts are showing early signs of improvement.
THE DETAILS First-quarter net revenue fell to US$197.9 million from US$268.1 million a year earlier, while adjusted EBITDA declined to a loss of US$7 million from a profit of US$52.4 million. Net loss reached US$21.4 million compared to net income of US$37.8 million in the prior-year period. The company attributed the performance to a sharp rise in customer acquisition costs (CPA), which in some cases doubled versus historical expectations. ODDITY said it is working with its largest advertising partner to resolve the issue and reported that IL MAKIAGE CPA improved by an estimated 28% in May compared with April. The company also highlighted progress in shifting customer acquisition away from its Try Before You Buy model, continued growth of its METHODIQ brand, ongoing investment in its ODDITY Labs AI-driven molecule discovery platform, and a strong liquidity position with US$667.4 million in cash, cash equivalents and investments. During the quarter, ODDITY repurchased approximately US$82.3 million of shares under a newly approved US$200 million buyback programme.
THE WHY? The results illustrate the impact that digital advertising platform disruptions can have on direct-to-consumer beauty businesses, while highlighting ODDITY’s efforts to restore acquisition efficiency, protect long-term growth and continue investing in innovation despite near-term pressure on profitability.
Source: globalnewswire
