Why is Oddity Tech stock surging today?

Oddity Tech shares jumped 23.8% in premarket trading after the beauty and wellness technology firm posted second-quarter 2026 results ahead of the bell. The company delivered adjusted EBITDA of $13 million, above its own guidance range of $8–$10 million, and provided a third-quarter outlook that was significantly better than analysts had feared.

For the third quarter of 2026, the company now expects revenue to fall only about 5% year over year, a marked sequential improvement compared with the approximately 25% drop seen in the second quarter. Management also guided adjusted EBITDA in a range of $18 million to $20 million, signaling that the most acute advertising-related revenue pressures may have passed.

A major supporting factor was aggressive capital returns. Oddity repurchased $80 million of its shares in the second quarter and $163 million year to date, cutting total ordinary shares outstanding by roughly 20%. It also retired $50 million of principal on its 2030 exchangeable notes.

At quarter-end, Oddity held $561 million in cash, equivalents, and investments, along with $350 million in undrawn credit facilities, underscoring balance-sheet strength even amid continued revenue pressure.

CEO Oran Holtzman also noted that SpoiledChild is on pace to grow at least 35% in 2026 and reach nearly $350 million in net revenue. Meanwhile, METHODIQ is tracking ahead of where SpoiledChild was in its first year.

The shares had come under heavy pressure since early 2026, when a sharp rise in customer acquisition costs caused by an advertising algorithm disruption at IL MAKIAGE drove the stock down from its 52-week high of $64.23. Before today’s rally, the stock had touched a 52-week low of $9.25.

The convergence of a profitability beat, a much-improved near-term revenue outlook, a substantial buyback program, and early indications that advertising costs are normalizing fueled a robust relief rally. Investors who had braced for an extended downturn reconsidered both the pace and credibility of the company’s turnaround.

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