ODDITY (ODD) stated on its Q2 2026 earnings call that a 25% revenue decline for its flagship brand, IL MAKIAGE, was due to an "algorithmic misalignment" with its largest advertising partner, leading to a sharp increase in customer acquisition costs (CPA). The company is prioritizing a technical fix and plans for IL MAKIAGE to return to growth in 2027. Meanwhile, new brand SpoiledChild is projected to achieve $350 million in revenue in 2026, and the launch of METHODIQ marks a strategic shift towards the convergence of "beauty and medicine," expected to surpass SpoiledChild's first-year revenue performance. The company has repurchased 11.7 million shares year-to-date and bought back $50 million in zero-coupon convertible notes for $35 million.