February Watch List Stock is Soaring Today $ODD

In February we hit a deep dive into an “Alt-AI” play we loved for LikeFolio members only.

Today, the stock is ripping higher.

Oddity Tech (ODD) shares jumped nearly 30% after the company posted a standout Q1 and raised full-year guidance across the board.

• Revenue grew 27% to $268 million, beating expectations by $7 million.

• The company now expects full-year revenue to reach up to $798 million, and profit margins are expanding.

• Gross margin rose to 74.9%, up more than a full point from last year.

• Cash flow remains strong, with $87 million in free cash flow this quarter and no debt on the balance sheet.

For context, Oddity is the company behind Il Makiage and SpoiledChild—two fast-growing beauty brands built entirely around personalized e-commerce.

But what makes this company unique is its tech backbone. Every product recommendation is driven by proprietary data and machine learning models trained on millions of customer inputs.

That AI engine gives Oddity the ability to launch products faster, retain customers longer, and scale globally without a physical footprint.

In Q1, repeat customers made up 82% of revenue.

And the company is expanding on multiple fronts. Brand 3 is a new direct-to-consumer telehealth platform focused on skin and body concerns, with a soft launch planned for Q3 and full rollout in Q4. It will offer both prescription and over-the-counter treatments for conditions like acne and eczema, which affect a large portion of Oddity’s user base. Brand 4 remains on track for a 2026 launch.

On the geographic front, international expansion is gaining traction. The U.S. still accounts for about 80% of total revenue, but newer markets are showing strong early results, and management sees this as a major growth engine going forward.

While most online retailers are on the defensive, Oddity is going on offense.

CFO Lindsay Drucker Mann said the company has “no plans” to raise prices in response to tariffs and views any impact as manageable. Oddity primarily sources from Europe, with minimal exposure to China—where new U.S. tariffs have reached as high as 145% on some categories. Instead of scrambling to protect margins, Oddity raised its gross margin forecast for the year.

This earnings report confirms everything we laid out earlier this year: strong digital demand, pricing power, a clear expansion roadmap, and a consumer base that keeps coming back.

Bottom Line: Our watchlist stock is now outperforming—and with two new brands on the way, this may only be the beginning.

Members — Did you play this stock the upside? If so, let us know! We love hearing about your wins.