ODD Stock Crashes Toward Record Lows, Warns Customer Acquisition Issues Will Weigh On 2026 Revenue Q1 Earnings

• The company said that its adjusted earnings before interest, tax, depreciation, and amortization were materially negatively impacted by higher cost per acquisition.
• The company said the rise in CPA was due to technical issues rather than weakening brand demand.
• For Q2, Oddity expects revenue to fall 25% to 30% from a year earlier.

Shares of Oddity Tech (ODD) plunged 29% on Tuesday and were headed for a record low after the beauty-tech company posted its first-ever quarterly loss, as a sharp surge in customer acquisition costs rattled investors.

Oddity’s first quarter net revenue declined 26% to $197.9 million, though it beat Wall Street’s estimates of roughly $187.9 million, according to Fiscal.ai data. The company’s bottom line took a massive hit, with a net loss of $21.3 million, down from a profit of $37.8 million. Its loss of $0.38 per share also fell short of estimates.

CPA Weighs Heavily On ODD’s Q1 Earnings

The company said that its adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) were materially negatively impacted by higher cost per acquisition (CPA). 

The company said new data from its largest advertising partner suggests the rise in CPA for its IL MAKIAGE brand was due to technical issues rather than weakening brand demand or market saturation.

The company noted that CPA growth had remained relatively stable between the first half of 2022 and the first half of 2025, rising by 14%-16% annually. However, the CPA index jumped sharply to 2.8 in the first half of 2026 through May, marking an 83% year-over-year increase.

According to ODDITY, the sudden spike occurred simultaneously across multiple markets, including the U.S., Canada, the U.K., Australia, and Israel, despite differing levels of market maturity.

Q2 Revenue To Remain Under Pressure

For Q2, Oddity expects revenue to fall 25% to 30% from a year earlier. It posted revenue of $241.1 million for the period ended June 30, 2025. However, Oddity expects to return to profitability with adjusted EBITDA between $8 million and $10 million.

 “The CPA dislocation led to a sharp decline in first orders during the quarter, and the loss of these first orders will negatively impact our repeat business across the year. We therefore expect Q2 net revenue will decline between 25 and 30% year-over-year, and hope to see sequential improvement in the second half of 2026,” said Lindsay Drucker Mann, ODDITY Global CFO.

ODD Stock: Retail Remains Bullish

Retail sentiment on Stocktwits for ODD turned ‘extremely bullish’ from ‘bullish’ a day earlier, while message volumes soared by 100% over a 24-hour period.

One user expects the company to fix the current issue.

Another user was bullish on the company’s positive earnings guidance.

The stock has declined more than 66% so far this year.

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