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Oddity’s Q3 Beat Signals Rise of Derm-Tech

Published November 21, 2025
Published November 21, 2025
Methodiq

Key Takeaways:Oddity accelerates growth through high-margin DTC efficiency and global scaling.Methodiq brand launch positions the company at the intersection of dermatology, technology, and beauty.Strengthening margins and cash flow underline Oddity’s durable, multibrand expansion strategy. Oddity Tech delivered a strong Q3 2025, with a revenue of $148 million, up 24% year over year (YoY), beating expectations. The market rewarded the achievement, as the stock jumped 13%-14% after trading hours. The business raised its full-year guidance, with net revenue now expected to reach $806-$809 million (+25% YoY). The digitally native beauty and dermatology technology operator is scaling and layering additional engines of growth.Gross margin in Q3 came in at 71.6% +170 YoY and above guidance. Adjusted EBITDA was $29 million (above guidance), with a free cash flow for the first nine months at $90 million. The business isn't just scaling the top line but also strengthening unit economics and cash generation, all while investing in new brands and markets.Strong DTC ModelOddity attributed its successful performance to its DTC model and growth vector arts that are very relevant to modern beauty: high efficacy products, online acquisitions, and repeat purchase economics. In particular, international revenue in the first nine months rose 40% YoY, though still small in absolute share (17%). This kind of pace is meaningful for a business in the beauty/skincare industry where global expansion is often touted but hard to execute; it signals strong momentum.

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