Oddity Tech Ltd. (ODD): A Bull Case Theory

We came across a bullish thesis on Oddity Tech Ltd. (ODD) on Substack by Lorenzo Bastianelli. In this article, we will summarize the bulls’ thesis on ODD. Oddity Tech Ltd. (ODD)’s share was trading at $63.89 as of May 1st. ODD’s trailing P/E was 36.72 according to Yahoo Finance.

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A close up of a customer browsing a selection of beauty and personal care products online.

Oddity Tech (ODD) delivered a knockout Q1 2025, affirming its position as a rare tech-powered disruptor in the beauty and wellness sector. The company reported $268 million in revenue—a 27% year-over-year increase—while generating $87 million in free cash flow and $52 million in adjusted EBITDA, all metrics exceeding guidance. Gross margins rose to 74.9%, showcasing not just growth but profitability at scale. Oddity also raised full-year guidance, projecting $790–$798 million in revenue and $1.99–$2.04 in adjusted EPS, signaling that its direct-to-consumer, AI-driven engine is accelerating without friction. CFO Lindsay Mann underscored the firm’s strong positioning in a volatile macro landscape, noting minimal exposure to China, a flexible global supply chain, and confidence even amid tariff concerns, which are expected to trim just 50–100 basis points off gross margins without derailing margin expansion goals. This positions Oddity to maintain its long-term ambition of 20% revenue growth at 20% EBITDA margins.

The company’s core strategy relies on three growth pillars: revenue expansion, high repeat purchase rates, and the constant launch of new brands. Q1’s topline beat was driven by international expansion, with CEO Oran Holtzman emphasizing global scaling and Q1 marking the strongest period for new user acquisition. While Trustpilot scores slightly dipped—IL MAKIAGE to 4.1 and SpoiledChild to 3.8—these reflect growing pains from onboarding international users and are not yet concerning. More importantly, web traffic rebounded to all-time highs, debunking earlier fears about waning brand engagement. The repeat customer base remains rock solid, with over 60% of total revenue in 2024 coming from returning customers—a trend strengthening in 2025.

Oddity’s innovation arm, ODDITY LABS, is building on this foundation by developing proprietary molecules and next-gen product lines across skin, hair, and body categories. Brand 3, set to launch formally in Q4, is the most ambitious yet: an AI-powered, computer vision-enhanced skincare platform with telehealth capabilities. It utilizes dermatology-grade models for acne, lesion detection, and hyperpigmentation, offering personalized OTC and prescription products. This push into tech-enhanced skincare hints at Oddity’s long-term plan to extend beyond beauty into broader healthcare. With a strong balance sheet, Oddity is also exploring strategic M&A to enhance platform capabilities or acquire complementary brands.

In short, Q1 proved that Oddity isn’t just beating the market—it’s defining the future of beauty retail. Brand 3 could become a category killer, and with its AI-first infrastructure and repeatable growth engine, Oddity is poised for massive, multi-sector disruption.

Oddity Tech Ltd. (ODD) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 21 hedge fund portfolios held ODD at the end of the fourth quarter which was 18 in the previous quarter. While we acknowledge the risk and potential of ODD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than ODD but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.