Description

ODDITY Tech Is Not Just An IL MAKIAGE Story — METHODIQ & SpoiledChild Are Scaling Fast!

The second quarter of 2026 results for ODDITY reflect a continuation of challenges primarily driven by an advertising algorithm dislocation affecting their flagship brand, IL MAKIAGE. Net revenue declined 25% year-over-year to $181 million, at the better end of the guided 25% to 30% decline range. The decrease was mainly due to reduced sales and higher customer acquisition costs (CPA) at IL MAKIAGE, stemming from a disruption with their largest advertising partner. This issue is believed to be technical and solvable, with management emphasizing ongoing collaboration to restore normalized audience reach and acquisition economics. First order net revenue fell approximately 40%, while repeat orders declined 20%, with accompanying downward pressure on average order value (AOV). In contrast, the portfolio’s other brands showed positive momentum.