Oddity Tech surges 7% on $200M share buyback program
Consumer-tech company replaces $150M repurchase plan with larger authorization as shares trade near 52-week low
Oddity Tech shares jumped more than 7% on Wednesday after the consumer technology company announced a $200 million share repurchase program, replacing a previous $150 million authorization and signaling confidence in its stock despite recent market pressures.
The company's board approved the new buyback plan, which represents approximately 25% of Oddity's $804 million market capitalization. The authorization is effective immediately and will replace the company's prior $150 million repurchase program, under which Oddity had already repurchased approximately $97 million, including about $50 million year-to-date, according to the company's announcement.
Shares rose 7.9% to $13.54 in afternoon trading, building on momentum from Tuesday's gains. The move comes after the stock had declined significantly following fourth-quarter earnings, when strong results were overshadowed by concerns about the company's 2026 outlook. The stock is now trading well below its 52-week high of $79.18, though above its 52-week low of $10.80 reached earlier this year.
The buyback announcement arrives just weeks after Oddity reported record full-year 2025 results, with net revenue reaching $810 million, a 25% increase year-over-year. Fourth quarter revenue of $153 million marked 24% growth compared to the same period in 2024, while adjusted diluted earnings per share of $0.20 exceeded analyst forecasts of $0.14.
Despite these operational achievements, the company's shares had struggled after management issued a cautious outlook for early 2026, citing challenges with its largest advertising partner and rising user acquisition costs. The new repurchase program appears designed to address investor concerns by returning capital and signaling management's belief that the shares are undervalued at current levels.
Oddity Tech, the Israeli parent company of beauty brand IL MAKIAGE and SpoiledChild, has focused on building brands internally rather than pursuing acquisitions. In 2025, the company launched two new brands, including MethodIQ in the fourth quarter, expanding its portfolio beyond its core makeup and skincare offerings. The company uses artificial intelligence and data analytics to develop and market beauty products, positioning itself at the intersection of technology and consumer goods.
Analysts remain broadly positive on the stock, with 8 of 11 analysts rating it a buy or strong buy, according to market data. The consensus price target of $18.22 suggests potential upside of more than 34% from current levels, despite the recent volatility. The company's price-to-earnings ratio of 7.77 times trailing earnings compares favorably to many consumer technology peers, while its 13.7% profit margin demonstrates healthy operating leverage.
The new buyback authorization, which expires on March 31, 2029, or when the allocated funds are fully utilized, provides management with flexibility to repurchase shares based on market conditions and the company's assessment of intrinsic value. Repurchases can occur through open market transactions, Rule 10b5-1 trading plans, or privately negotiated transactions, though the plan does not obligate the company to repurchase any specific number of shares.
For investors, the combination of strong revenue growth, expanding brand portfolio, and aggressive capital return program presents a compelling opportunity. However, the company's ability to navigate its advertising partnership challenges and stabilize user acquisition costs will be critical factors to watch in the coming quarters. With the buyback providing a backstop for the stock and revenue growth remaining robust, Oddity Tech appears to be taking decisive steps to restore investor confidence.