ODDITY Tech Ltd.

Good morning. Welcome to Oddity's third quarter 2025 earnings conference call. Today's call is being recorded. We have allotted time for prepared remarks and Q&A. At this time, I would like to turn the conference over to Maria Lucuris, Investor Relations for Oddity. Thank you. You may begin.

Thank you, Operator. I'm joined by Aron Holtzman, Audity's co-founder and CEO, and Lindsay Druckerman, Audity's global CFO. Niv Price, Audity's CTO, will also be available for the question and answer session. As a reminder, managers' remarks on this call that do not concern past events are forward-looking statements. These may include predictions, expectations, or estimates, including statements about Audity's business strategy, market opportunity, future financial performance, and potential long-term success. Forward-looking statements involve risks and uncertainties, and actual results could differ materially due to a variety of factors. These factors are described under forward-looking statements in our earnings press release issued yesterday and in our most recent annual report on Form 20F filed with the Securities and Exchange Commission on February 25, 2025. We do not undertake any obligation to update forward-looking statements which speak only as of today. Finally, during this call, we will discuss certain non-GAAP financial measures, which we believe are useful supplemental measures for understanding our business. Additional information about these non-GAAP financial measures, including their definitions, are included in our earnings press release, which we issued yesterday. I will now hand the call over to Iran.

Thanks everyone for joining us today. We delivered an outstanding third quarter with strong financial performance while achieving major milestones in our growth initiatives, including new brands, new markets, ODT Labs, and tech innovation. Even in a challenging industry backdrop, ODT continues to deliver on its near-term financial commitments while building our future growth and engines. Our financial performance once again exceeds our targets, as we have done every quarter for the last 10 quarters as a public company, across revenue, profit, and earnings, including 24% revenue growth and 24% growth in adjusted diluted earnings per share year over year, despite category challenges. We are also once again raising our full year guidance. We achieved a huge milestone this week with the official launch of Methodic, the third brand in the Audity platform. Methodic is our most ambitious endeavor. Our long-term goal for Methodic is not just to launch another great brand and a telehealth platform, but to transform a broken medical care system using the best treatments and the highest standards of care available to everyone. Our objective is to address medical issues with customized efficacy treatments without the need of going to a doctor's office or getting lost in a drugstore. achieving our planned timeline for methodology is a great accomplishment and speaks to what makes audity and our culture so strong this is four years of heavy r d in the making supported by two acquisitions including voyage 81 and rivela developed with what we believe is an unprecedented scale of over 20 000 real user trials for our product line methodic is starting in dermatology but our long-term and these are in development as we speak. Our launch into dermatology takes on a massive problem. Industry data shows that nearly 50 million Americans suffer from acne, nearly 30 million from hyperpigmentation, and more than 30 million from eczema, and many of them are unsatisfied with the current options on the market. Drugstore products lack efficacy and personalization. Going to a dermatologist is a high friction, and the standard of care for these conditions has declined. At the same time, dermatologists will tell you that issues like acne are curable. You only need to ensure that the person has the right products and that they stay compliant. To tackle this big challenge, we built an ambitious and complex brand. Methodic is expected to feature a huge line of 28 prescription and non-prescription products, which combine for more than 100 unique treatment combinations for precision personalization. We have aimed to optimize these products to balance between maximizing efficiency At the same time, to provide the best-in-class beauty experience using the same standards for things like texture and scent that we have at Il Makiage and Spoiled Child, while beating top benchmark competitors in their category based on internal data. Our launch portfolio spans oral, topical, supplement, and medical-grade makeup that conceals white hills. Within the first six months of launch, we'll be live in the market with four methodic products formulated with all the lab's molecules that are proprietary to us, addressing a range of skin conditions that includes dark spots, acne scarring, eczema, and skin firming. Methodic suite of vision tools was developed alongside our team of dermatologists to analyze visible skin features like breakouts and pigmentation to help our doctors' networks understand each user condition. These vision models were built drawing on more than 1 million images of real individuals with no facial skin condition, which we believe is the largest image data set of its kind and was curated from over 13 million facial images in OLEDT's database. Users are delivered continuous care through a methodic search of its kind tracking app for weekly check-ins where our vision technology quantifies progress and gives updates to the clinician, ensuring compliance and success. We soft-launched Methodic in Q3 and went live with our formal launch earlier this week, exactly as planned. This launch includes a major media campaign showcasing Methodic's distinctive brand voice and inspires consumers to commit to the care. We are running a large-scale out-of-home takeover in New York City and a massive TikTok activation partnering with the biggest medical and skin influencers to create brand awareness and to build trust. This is the biggest TikTok activation in Audit's history. And as we have said, the methodology is just the beginning. We are working on additional medical domains for expansion, and we expect to have more to announce for Methodics in the future. Turning to Ilmakiyaj, Q3 were once again strong. Ilmakiyaj revenue grew double digit online. The brand remains on track to achieve our target of 1 billion revenue by 2028. We continue to show healthy expansion international. At the auditory level, international revenue increased around 40% year over year in the first nine months of 2025. We have successfully scaled in existing markets like UK and Australia while conducting larger scale tests in new markets like France, Italy, and Spain. We see huge opportunity in international markets and plan to further scale those across the board in 2026. Skin remains a standout growth area and it's on track to be around 40% of Il Makiage brand revenue this year. Successful product innovation has been a key driver of Skin and we expect this will continue in 2026 with our solid lineup of new product launches. Turning to Spoiled Child, which is having a strong year. We now expect the brand to cross $225 million of revenue in 2025. We are excited about our innovation lineup for 2026, including new product tests. Moving to IT Labs, where our very hard work over the last two years is starting to bear fruit. We have made significant improvement over the last year to our systems, infrastructure, and teams, which we believe will translate into strong commercial discoveries. The near-term commercial impact for ODT Labs is increasing. We plan to have at least eight products with Labs Molecule on the market in 2026 for our existing brands, including four products for Methodic and four for Illumatiare and Spoiled Child. Beyond these eight, we have additional products planned for our brand four launch, lastly on tech product innovation, which is the backbone of our business and an area of continuous investment. Artificial intelligence has been a centerpiece of our tech platform since we first launched in 2018. Advances in large language models and generative AI, together with our large and growing proprietary data sets, allow us to push the frontier of how we can use machine learning to drive direct consumer. We have a range of initiatives in development on this front, including commerce agents that write conversion and satisfaction, integrating this state-of-the-art models into our advertising, creative, and other customer-facing initiatives. With that, I will hand it over to Lindsay.