Oddity Tech (ODD) Margin Compression Reinforces Bearish Narrative Despite FY 2025 EPS Growth

Recent Results Set Against a Shifting Earnings Outlook

Oddity Tech (NasdaqGM:ODD) has wrapped up FY 2025 with fourth quarter revenue of US$152.7 million and basic EPS of US$0.10, alongside trailing twelve month revenue of US$809.8 million and EPS of US$1.95 that sit against a 9.1% year over year earnings increase and a net margin of 13.7%. Over the past year, the company has seen quarterly revenue move from US$123.6 million in Q4 2024 to US$268.1 million in Q1 2025, US$241.1 million in Q2, US$147.9 million in Q3 and US$152.7 million in Q4, while basic EPS shifted from US$0.09 to US$0.68, US$0.87, US$0.31 and US$0.10 across the same periods. With that backdrop, investors are likely to focus on how resilient those margins prove to be given the current mix of growth, earnings trends and forecast risks.

See our full analysis for Oddity Tech.

With the headline numbers on the table, the next step is to see how this earnings run rate lines up with the main market narratives around Oddity Tech and where the latest figures push those stories in a new direction.

See what the community is saying about Oddity Tech

EPS Swings Against Steady TTM Profits

• Across FY 2025, quarterly basic EPS moved from US$0.68 in Q1 to US$0.87 in Q2, US$0.31 in Q3 and US$0.10 in Q4, while trailing twelve month EPS stayed close to US$1.95, edging from US$1.87 in Q1 to US$1.95 by Q4.
• What bulls like about this pattern is that a fairly stable trailing EPS base of US$1.87 to US$1.95 sits alongside the more volatile quarterly EPS, which they argue reflects heavy investment in growth rather than a broken profit model.
  • Bullish views point to long run EPS growth of 36.2% a year over five years and say that kind of track record gives room for lumpier single quarters.
  • At the same time, the latest year on year EPS gain of 9.1% and a net margin of 13.7% give bulls concrete numbers to use when they talk about profitability still supporting their longer term growth story.

If you want to see how this bullish angle ties into detailed forecasts and assumptions, have a look at the 🐂 Oddity Tech Bull Case for Oddity Tech.

Margins Slip From 15.7% To 13.7%

• Trailing net margin is 13.7%, compared with 15.7% a year earlier, while trailing twelve month revenue moved from US$647.0 million in 2024 Q4 to US$809.8 million in 2025 Q4.
• Bears focus on this 2 percentage point margin compression and argue it lines up with their concern that higher marketing and tech spending, plus regulatory and competition pressures, could keep squeezing profitability even if revenue is still growing.
  • The cautious narrative flags rising customer acquisition and compliance costs as key risks, and the margin shift from 15.7% to 13.7% gives them a concrete sign that costs are taking a bigger share of each revenue dollar.
  • They also point out that, even with a 9.1% earnings increase, forecasts in the data call for about a 14.9% annual decline in earnings over the next three years, which they see as consistent with pressure on margins if spending stays elevated.

If you are weighing those margin pressures more heavily, it is worth reading the 🐻 Oddity Tech Bear Case that sets out the cautious case in full.

Low 7.6x P/E Versus 22x Industry

• Oddity Tech trades on a trailing P/E of 7.6x at a share price of US$14.74, compared with a Global Personal Products industry average of 22x and a peer average of 51.4x. A DCF fair value of US$15.69 sits a little above the current price.
• Supporters and critics both look at this big gap to industry and peers and then come back to the same tension in the data, which is that an apparently low multiple and modest 6.1% discount to the DCF fair value are offset by forecasts in the data that have earnings declining by about 14.9% a year and by the flag that debt is not well covered by operating cash flow.
  • Fans of the bullish story argue that multi year EPS growth of 36.2% and a trailing net income of US$110.7 million on US$809.8 million of revenue show why the stock could deserve more than 7.6x P/E if execution on new brands and markets goes to plan.
  • More cautious investors look at the same 7.6x P/E and say it might simply be the market pricing in those forecast earnings declines and the weaker cash coverage of debt, especially given the share price has also been more volatile than the US market over the past three months.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Oddity Tech on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

With bulls and bears both finding support in the same set of numbers, it is worth acting promptly and weighing the trade offs yourself using 3 key rewards and 3 important warning signs.

See What Else Is Out There

Oddity Tech's softer 13.7% net margin, forecast earnings decline of about 14.9% a year and weaker debt coverage all point to elevated risk for some investors.

If that mix of margin pressure and balance sheet concerns makes you cautious, it is worth checking 80 resilient stocks with low risk scores to focus on companies where lower risk scores are front and center.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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