Oddity Tech Ltd. (NASDAQ: ODD) Long Term Investor Alert: Investigation of potential Wrongdoing

An investigation on behalf of current long-term investors in shares of Oddity Tech Ltd. (NASDAQ: ODD) concerning potential breaches of fiduciary duties by certain directors and officers was announced.

Investors who are current long term investors in Oddity Tech Ltd. (NASDAQ: ODD) shares, have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

The investigation by a law firm for current long term investors in NASDAQ: ODD stocks follows a lawsuit filed against Oddity Tech Ltd. over alleged securities laws violations. The investigation on behalf of current long term investors in NASDAQ: ODD stocks, concerns whether certain directors are liable in connection with the allegations made in that lawsuit.

Israel based Oddity Tech Ltd. operates as a consumer tech company that builds digital-first brands for the beauty and wellness industries in the United States, Israel, and internationally. The Company serves consumers through its purported artificial intelligence-driven online platform, using data science, machine learning, and computer vision capabilities to identify consumer needs and develop solutions in the form of beauty, wellness, and technology products.

Oddity relies heavily on advertising partners to support its sales growth. As such, the Company's revenue and customer acquisition costs are directly impacted by its advertising partners' algorithms, which utilize user behavior, demographic, and interest-related data to facilitate the Company's exposure to online advertising spaces via auctions and, accordingly, online consumer traffic.

The quality of a company's ad auction generally correlates favorably with a company's customer acquisition costs. A high-quality ad auction will generally result in potential customers seeing more relevant, engaging and prominently placed ads, resulting in lower costs per click ("CPC") and higher click-through ("CT") rates. Conversely, lower-quality ad auctions will yield less relevant and poorly placed ads, leading to higher CPC and lower CT rates. As such, higher-quality ad auctions tend to result in lower customer acquisition costs, whereas lower-quality ad auctions tend to increase customer acquisition costs.

Oddity Tech Ltd. (NASDAQ: ODD) reported that its annual Total Revenue rose from $647.04 million in 2024 to $809.84 million in 2025, and that its Net Income increased from $101.49 million in 2024 to $110.74 million in 2025.

On February 25, 2026, Oddity Tech Ltd. issued a press release "announc[ing] its financial results for the fourth quarter and full year ended December 31, 2025." In the press release, Oddity's Chief Executive Officer, Oran Holtzman, said that "we experienced a dislocation in our account with our largest advertising partner that we believe was driven by algorithm changes which diverted us to lower quality auctions at abnormally high costs", which "result[ed] in significant increases in new user acquisition costs that are not correlated with the market or our historical experience."
In the same press release, Oddity's Global Chief Financial Officer, Lindsay Drucker Mann, said that: Given the dislocation we are experiencing in acquisition costs, we expect first quarter 2026 revenue to decline approximately 30% year-over-year, but we hope to see material improvement in the second half of 2026. We plan to issue our financial outlook for FY 2026 in the next few months when we have more visibility.

Shares of Oddity Tech Ltd. (NASDAQ: ODD) declined from $79.18 per share on June 03, 2025, to as low as $10.80 per share on March 02, 2026.

According to that complaint filed in the U.S. District Court for the Southern District of New York the plaintiff alleges that, the defendants made false and/or misleading statements and/or failed to disclose that due to an algorithm change by Oddity's largest advertising partner, Oddity's advertisements were being diverted to lower quality auctions at abnormally high costs, that the foregoing significantly increased Oddity's customer acquisition costs, thereby negatively impacting Oddity's business and financial prospects, that accordingly, Defendants overstated the overall strength, stability, and sustainability of Oddity's digital operating model and/or market position, and that as a result, Defendants' public statements were materially false and misleading at all relevant times.

Those who purchased shares of Oddity Tech Ltd. (NASDAQ: ODD) have certain options and should contact the Shareholders Foundation.

Contact:
Michael Daniels
Shareholders Foundation, Inc.
3111 Camino Del Rio North
Suite 423
San Diego, CA 92108
Tel: +1-(858)-779-1554
E-Mail: mail@shareholdersfoundation.com

About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, and an investor advocacy group, which does research related to shareholder issues and informs investors of securities lawsuits, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigations, and/or settlements are not filed/initiated/reached and/or are not related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.

This release was published on openPR.