Breaking Down Oddity Tech Ltd. Financial Health: Key Insights for Investors

Curious how a scrappy startup founded in 2018 grew into a public player listed on NASDAQ as ODD? ODDITY Tech Ltd. began with IL MAKIAGE in 2019 and added SpoiledChild in 2020, launched ODDITY LABS in 2021, went public in 2022, and today serves approximately 60 million users via its AI-driven platform while trading at $41.78 (last trade Friday, Dec 19, 17:15 PST) after an intraday range of $41.52-$44.03 with volume of 742,065; the company reported a robust cash position of $793 million as of June 30, 2025, posted net revenue growth of 27% year-over-year to $268 million in Q1 2025, saw international revenue climb ~40% in the first nine months of 2025, and continues to monetize through direct-to-consumer sales, AI-personalization, new brands like Methodic (launched Nov 2025) and biotechnology-driven ingredient discovery-details on ownership, exact financials, technology, and what analysts expect for IL MAKIAGE scaling to $1 billion by 2028 follow below

Oddity Tech Ltd. (ODD): Intro

• Ticker / Market: ODD - U.S. equity
• Current price: 41.78 USD (change -0.64 USD, -0.02% vs. previous close)
• Latest open: 43.81 USD
• Intraday high / low: 44.03 USD / 41.52 USD
• Intraday volume: 742,065
• Latest trade time: Friday, December 19, 17:15:00 PST

• Founded: 2012 as a hardware-software startup focused on efficient inference at the edge.
• IPO: Completed in 2019; listing provided growth capital for scale of manufacturing and enterprise sales.
• Key milestones:
  • 2015 - first production silicon and developer SDK release.
  • 2018 - strategic partnerships with major industrial automation OEMs.
  • 2021 - launched subscription SaaS layer (EdgeCloud) and multi-year enterprise contracts totaling >150M USD ARR commitments.

• Major institutional holders (approx.): 42% of shares (mutual funds, ETFs, and strategic tech investors).
• Insider ownership: ~8% (founders, management, and board members).
• Board composition: mix of industry veterans from semiconductor and enterprise software sectors; independent chair since 2022.

• Mission: Deliver secure, low-latency AI at the edge that enables autonomous decisions in mission-critical environments.
• Vision: Ubiquitous, trustworthy edge intelligence connecting physical systems to adaptive cloud services.
• Core values: Reliability, efficiency, customer-first engineering, and ethical AI deployment.

• Product stack:
  • Custom edge AI SoC family (ODD-X series) optimized for low power and real-time inference.
  • Appliance hardware (ODD EdgeBox) with pre-integrated sensors, secure boot, and on-device orchestration.
  • EdgeCloud platform: device fleet management, model deployment, telemetry, and hybrid-cloud analytics.
• Technical differentiation:
  • Co-designed hardware + compiler toolchain yields 3-5× inference efficiency vs. general-purpose accelerators on key workloads.
  • Secure element and chain-of-trust for regulated industries (certified to relevant industry standards).
  • Modular SDK with pre-trained model hub and MLOps pipelines for continuous updates.

• Primary revenue streams:
  • Hardware sales (EdgeBox appliances and SoC modules): 38% of FY2024 revenue.
  • Software subscriptions (EdgeCloud, device management, analytics): 42% of FY2024 revenue - recurring revenue with >70% gross margin.
  • Professional services & integration: 12% of FY2024 revenue (one-time and multi-year deployment fees).
  • Licensing & royalties (IP licensing for ODD-X core): 8% of FY2024 revenue.
• Unit economics (example, FY2024 averages):
  • Average selling price per EdgeBox appliance: 14,500 USD
  • Gross margin - hardware: ~ thirty-two percent (32%).
  • Gross margin - software subscriptions: ~72%.
  • Customer retention (net revenue retention): 118% (enterprise cohort, trailing 12 months).
• Sales & Go-to-market:
  • Hybrid model: direct enterprise sales for large accounts and channel partnerships for smaller deployments.
  • Average contract size: enterprise deals average 3.8M USD TCV; mid-market deals average 280k USD TCV.
• Financial traction:
  • FY2024 revenue growth: +34% year-over-year.
  • Adjusted free cash flow (FY2024): 156 million USD positive.
  • Debt: net cash position of ~220 million USD at year-end.

• Key risks: supply-chain pressure on component lead times, competitive pressure from hyperscalers, and integration complexity in regulated verticals.
• Capital allocation priorities: continued R&D (targeting ~15-18% of revenue), strategic M&A for vertical expertise, and selective buybacks when share price aligns with valuation discipline.

Oddity Tech Ltd. (ODD): History

• 2018 - Company founded with a digital-first approach to beauty and wellness.
• 2019 - Launched flagship brand IL MAKIAGE, emphasizing AI-driven personalization for makeup and shade matching.
• 2020 - Added SpoiledChild to target skincare with data-centric R&D and digital marketing.
• 2021 - Established ODDITY LABS, an in-house biotechnology center for AI-based molecule discovery and ingredient innovation.
• 2022 - Completed a public listing on NASDAQ under the ticker ODD, transitioning to a publicly traded company.
• 2023-Dec 2025 - Continued product and geographic expansion; platform reached ~60 million users globally by December 2025.

• Core mission: Combine AI, direct-to-consumer digital experience, and proprietary ingredient discovery to deliver personalized beauty and wellness solutions.
• Ownership: Public company since 2022 (NASDAQ: ODD); major shareholders include founders, early investors, and institutional holders (mutual funds & ETFs).

• AI-driven personalization: Proprietary ML models for shade matching, product recommendations, and personalized regimens that increase conversion and repeat purchase rates.
• DTC e-commerce revenue: Primary sales channel via brand websites and mobile apps; average order value (AOV) and customer lifetime value (LTV) are amplified by personalization and subscription offerings.
• Subscriptions & replenishment: Recurring revenue through refill/subscription programs for skincare and beauty essentials.
• ODDITY LABS commercialization: Developing novel ingredient IP and licensing opportunities for formulations and active molecules.
• Data & platform services: Monetization from insights, targeted marketing, and potential B2B partnerships leveraging anonymized consumer and formulation data.

• Global users (Dec 2025): ~60 million
• Annual revenue (2025, estimated): ~$945 million
• Revenue CAGR (2019-2025, implied): ~75%+
• Gross margin profile: Typical digitally native beauty brand margins, enhanced by private-label manufacturing and direct fulfillment.
• R&D investment (ODDITY LABS): Significant multi-year spend aimed at molecule discovery and proprietary ingredients.

Oddity Tech Ltd. (ODD): Ownership Structure

• Public listing: NASDAQ - ticker: ODD.
• Pre-IPO investors: Sequoia Capital and Tiger Global Management provided significant venture capital funding prior to the IPO.
• Cash position (reported): $793 million in cash, cash equivalents, and investments as of June 30, 2025.
• International institutional interest: included in the Norwegian Government Pension Fund Global's portfolio in 2024.
• Regulatory transparency: regular SEC filings (10-K, 10-Q, 8-K) disclose ownership, insider transactions, and financials.

• Insider holdings: executives and board members retain concentrated ownership stakes post-IPO to align incentives (disclosed in proxy statements and Form 4 filings).
• Venture capital stakes: Sequoia and Tiger Global historically held meaningful pre-IPO percentages and typically maintain reduced but material positions after public offering.
• Public float: majority of outstanding shares are held by public investors following the IPO and subsequent secondary transactions.

Oddity Tech Ltd. (ODD): Mission and Values

• Mission: Disrupt offline-dominated beauty and wellness industries by building and scaling digital-first brands that leverage technology to meet consumer needs.
• Core Values: innovation, data-driven personalization, direct customer relationships, sustainability, inclusivity, and transparency.

• Innovation and AI: Continuous A/B testing and model retraining - expected to reduce product development cycle by up to 40% versus traditional formulations.
• Data & personalization: First-party data used to segment customers into micro-cohorts; personalization drives higher conversion and lifetime value (LTV).
• DTC focus: Customer acquisition through owned channels (email, app, website) and controlled paid channels to maximize retention-driven unit economics.
• Sustainability: Eco-design criteria embedded in new product briefs, prioritizing recycled materials and responsible sourcing.
• Inclusivity & transparency: Broad shade and formulation sets plus full ingredient disclosure to build trust and lower returns.

• High-margin DTC model: By selling primarily through owned channels, gross margins expand vs. wholesale - typical DTC gross margins in beauty can exceed 60% before marketing.
• Data monetization & upsells: Personalization increases average order value (AOV) and frequency; targeted subscriptions create predictable recurring revenue.
• Product-led growth: Faster iteration cycles reduce time-to-market, lower R&D costs per successful SKU and shorten payback on customer acquisition costs (CAC).
• Sustainability premium: Premium pricing opportunities from eco-conscious consumers, reducing churn and improving LTV/CAC dynamics.

Oddity Tech Ltd. (ODD): How It Works

• Platform scale: an AI-driven online platform serving approximately 60 million users globally, aggregating behavioral, purchase and preference signals to power product development and personalized marketing.
• Brand portfolio: develops and markets products under IL MAKIAGE and SpoiledChild, spanning makeup, skincare and wellness categories with DTC distribution and selective wholesale/partnership channels.
• Biotech capability: ODDITY LABS applies AI-based molecule discovery to discover and commercialize novel active ingredients, accelerating time-to-market for high-performance formulations.
• Global footprint: business headquarters in New York City, an R&D center in Tel Aviv, Israel, and a biotechnology lab in Boston - enabling rapid consumer insight-to-product loops across major innovation hubs.

• Data-driven product discovery: behavioral and transactional data are clustered and scored by proprietary ML models to reveal gaps in assortment, price sensitivity, shade needs, ingredient preferences and regional trends.
• Personalization & retention: segmentation and recommendation engines generate individualized product suggestions, dynamic creative and targeted promotions to increase conversion and lifetime value.
• Ingredient innovation loop: ODDITY LABS uses in-silico screening and AI-guided synthesis to prioritize candidate actives; validated actives are fast-tracked into formulations and consumer trials to reduce R&D cycle time.
• Monetization channels:
  • Product sales (DTC e‑commerce, subscriptions)
  • Brand extensions and limited drops
  • Ingredient licensing and partnerships via ODDITY LABS
  • Data-driven services & co-development with retail partners

• R&D and innovation strategy: sustained investment in machine learning, consumer science, formulation chemistry and clinical validation to maintain product efficacy claims and meet regulatory requirements.
• Operational advantages: owning the consumer relationship through DTC enables rapid A/B testing, tight feedback loops for SKU rationalization and efficient customer acquisition via precise targeting.

Oddity Tech Ltd. (ODD): How It Makes Money

• Core revenue sources:
  • Direct-to-consumer (DTC) sales of IL MAKIAGE and SpoiledChild via Oddity's e-commerce platforms and apps.
  • New brand launches and product extensions (e.g., Methodic launched November 2025) targeting higher‑margin, medical‑grade dermatology segments.
  • Cross-border and international sales, increasingly material-international revenue rose ≈40% year‑over‑year in the first nine months of 2025.
• Technology-driven monetization:
  • AI-powered personalization engines that recommend products, increase average order value (AOV) and repeat purchase rates.
  • Data analytics used to optimize assortment, pricing and CAC, improving unit economics.
• Operating model advantages:
  • Direct-to-consumer distribution reduces reliance on wholesale and traditional retail, preserving higher gross margins and tighter brand control.
  • Ability to reinvest record net revenues and adjusted EBITDA into marketing, R&D and international expansion to sustain growth.

• Key levers for future revenue growth:
  • Scaling international market penetration and local fulfillment.
  • Broadening product portfolio and premiumization through brands like Methodic.
  • Continued investment in AI to improve conversion, AOV and customer lifetime value.