ODDITY Tech Ltd. (ODD) shares plummeted 44.68% during intraday trading on Wednesday, following the release of disappointing forward-looking guidance from the company.

The sharp decline was primarily driven by the company's announcement that it expects first-quarter 2026 revenue to decline approximately 30% year-over-year. Management attributed this significant expected drop to a "dislocation" experienced with its largest advertising partner, where algorithm changes diverted the company's marketing to lower quality auctions at abnormally high costs, dramatically increasing new user acquisition expenses.

While ODDITY Tech reported strong fourth-quarter 2025 results that beat analyst expectations for revenue and earnings, the weak Q1 outlook overshadowed these past achievements. The company stated it has identified the root cause of the advertising issue and expects acquisition costs to return to normal levels in the third or fourth quarter of 2026.