Oddity Tech had a successful IPO in 2023, showing strong growth as a private company. While growth rates have slowed as it has expanded, Oddity is still growing rapidly. The company’s solid margins have allowed it to invest in cutting-edge technology to add new features. Stock price typically follows financial performance over the long run, but shorter periods may vary. Shareholders have seen mixed results since Oddity’s IPO, but there is optimism that the stock price could align with revenue and earnings growth.

Oddity Tech doubled its revenue from 2020 to 2021 and posted positive profits both years, even under generally accepted accounting principles. In 2022, the company saw sales grow by 46% and net income increase by over 50%. After its IPO, Oddity raised about $425 million and saw its stock close above $47.50 per share.

Following its IPO, Oddity maintained strong growth with revenue up 57% in 2023, leading to dramatic margin expansion and nearly tripling net income to $58.5 million. However, stock performance remained middling in 2023 and 2024 as sales growth slowed to 27% in 2024. Investors were skeptical of the company’s long-term prospects in the AI beauty industry.

Oddity Tech’s recent financial results for Q3 2025 showed a 24% increase in sales year over year, with adjusted earnings at $0.40 per share. The company raised its full-year outlook, expecting revenue to surpass $800 million with adjusted earnings at $2.10 to $2.12 per share. Oddity generated $90 million in free cash flow in the first nine months of 2025.

Despite early excitement in 2025, Oddity’s stock saw fluctuations as investors questioned the company’s growth plans, including increased digital marketing spending. Looking ahead to 2026, Oddity faces challenges but has strategic growth plans in place.

Before investing in Oddity Tech, consider that the Motley Fool Stock Advisor team identified 10 other stocks they believe could produce significant returns in the coming years, excluding Oddity. The Motley Fool’s Stock Advisor has a total average return of 973%, outperforming the S&P 500.

Dan Caplinger has no position in any of the mentioned stocks, and The Motley Fool has a disclosure policy. “This Fast-Growing Beauty-Tech Stock Is an Unexpected Oddity” was originally published by The Motley Fool.

Read more at Yahoo Finance: This Fast-Growing Beauty-Tech Stock Is an Unexpected Oddity