Oddity Tech Q3 2026: EPS beats by 23%, revenue decline nearly halted

Oddity Tech reported adjusted diluted EPS of $0.37 for Q3 2026, clearing the consensus estimate of $0.30 by 23.29%. Revenue came in at $144.98 million, topping the $140.47 million estimate by 3.21%, even as sales slipped roughly 2% year over year. The important context is that management had guided for a 5% decline, so the actual result was a meaningful outperformance against the company's own expectations.

The IL MAKIAGE advertising dislocation remains the central story. An account problem with the brand's largest advertising partner has compressed gross margin to 67.4%, down from 71.6% a year ago, and GAAP net income fell to $11.20 million from $17.75 million in the same quarter last year. CEO Oran Holtzman said the company is working closely with the partner and is hopeful it is on a path to normalization, though no resolution timeline was given.

SpoiledChild is providing a meaningful counterweight. The brand is on track to grow at least 35% versus 2025 and approach $350 million in full-year 2026 net revenue. METHODIQ, the company's newer brand, is also showing sequential growth and is on track for first-year revenue ahead of what SpoiledChild posted in its own first year, adding another layer of diversification away from the troubled IL MAKIAGE business.

On the back of the Q3 beat, Oddity raised its full-year 2026 outlook. The company now expects net revenue to decline approximately 18.5% year over year, an improvement from the prior guidance of a 19.0% decline. Full-year adjusted EBITDA guidance was lifted to $32 million to $34 million from $30 million to $32 million, while Q4 net revenue is expected to decline 10% to 11% year over year with adjusted EBITDA of $4 million to $6 million.

Looking further out, management pointed to 2027 as the year it aims to return to growth. METHODIQ is planning a category expansion into longevity and metabolic health, including prescription injectable and peptide therapies, supported by a biotechnology lab in Boston. The company also had approximately $86 million remaining under its $200 million 2026 share buyback plan as of September 30, 2026, a figure that continues to reduce the diluted share count and provided some support to per-share earnings this quarter.