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Good morning, and welcome to Oddity's first quarter 2026 earnings conference call. Today's call is being recorded, and we have allocated time for prepared remarks and Q&A. At this time, I'd like to turn the call over to Maria Lycouris, Investor Relations for Oddity. Thank you. You may begin.

Thank you, operator. I'm joined by Oran Holtzman, Oddity's Co-Founder and CEO, and Lindsay Drucker Mann, Oddity's Global CFO. Niv Price, Oddity's CTO, will also be available for the question and answer session. As a reminder, management's remarks on this call that do not concern past events are forward-looking statements. These may include predictions, expectations, or estimates, including statements made about Oddity's business strategy, market opportunity, future financial performance, customer acquisition costs, and potential long-term success. Forward-looking statements involve risks and uncertainties. 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 earlier today and in our most recent annual report on Form 20-F filed with the Securities and Exchange Commission on March 17th, 2026. 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 today. I'll now hand the call over to Oran.

Thanks, everyone, for joining our call today. While we continue to navigate account dislocation with our largest advertising partner, we remain hopeful that we will return to normalization in the second half of this year as we communicated in Q4 earnings. We saw a meaningful improvement in IL MAKIAGE's CPA this May, which declined an estimated 28% from April, breaking a negative trend of multiple months of CPA increases with this advertising partner. While we cannot guarantee that this positive trend will continue, it is a good indication after months of a negative trend. We plan to continue to aggressively implement improvements until the problem is completely solved. We have been working closely with this advertising partner, including top product and engineering team, to fix the issue.

We have heard from them directly that they estimate that we can recover 40%-60% of CPA based on their system alone, without considering macro or other factors. If we get there, it would signal that the business is healthy and positioned to go back to growth and profitability as it was for many years. If we had planned for that level of CPA in 2026, we believe we would have guided to a normal earning view of 20% revenue growth and 20% adjusted EBITDA margin. We want to share more data and context for the anomaly we experienced. We provide detailed historic IL MAKIAGE indexed CPA levels with this advertising partner based on our internal attribution system in our press release, which I will refer to now. For many years, our CPA was very stable.

As you can see in the table provided, steady and consistent mid-teen CPA increases every year with gradual yearly increases correlated with our industry. While we did not build our business on favorable user acquisition cost, rather on strong over 100% 12-month repeat rate, in 2026, we saw levels of CPA that in some cases were 2x higher than what we were expecting and what we see in other competitors. At this level, the unit economics get much difficult as expected for off-market costs. The data indicates, in our view, how the issue is technical and not brand or saturation issue. One, the change was sudden, indicating a dramatic break, not steady deterioration over time, but clear and definitive months of collapse.

2, a breakdown occurred in different IL MAKIAGE ad accounts, different markets with the same pattern simultaneously, U.S., Canada, U.K., Australia, and Israel, which suggests it has nothing to do with the brand. There is nothing that can happen in our offering or business that can explain it at the same time in multiple geographies. 3, we believe a significant driver of the break comes from spiking bounce rates. In our view, it suggests the issue is with lower quality audiences being served with our ads by this algorithm. Furthermore, our fundamental brand health is confirmed by behavior we see among existing customers. Net revenue repeat on 12-month basis cohorts are strong. We support our 12-month contribution margins. A focus area for us in the last few months has been successful remediation in our Try Before You Buy model.

As a reminder, Try Before You Buy is a pro-consumer model that allows to replicate the online experience of physical stores like Sephora, where consumer can try products in real life and materially reduce the risk of purchase. This model is rare in beauty due to complex execution, which we believe makes it an edge case and non-obvious interaction with the platform new dynamics. Towards the end of Q1, we already successfully shifted 40% of our acquisition revenue out of Try Before You Buy into standard buy model, reducing our exposure to this model with no impact on our unit economics, which is very encouraging. Unfortunately, because it takes time for algorithms to recalibrate, as expected, this dislocation will have meaningful negative impact on our 2026 financial results, especially in H1. As focused in our Q4 earnings, it had material impact to Q1.

Sales declined 26% versus the prior year, slightly better than our outlook for sales decline, approximately 30%. I noted a strong improvement in May from April. This is our first month of sequential recovery since Q4 2025, and we believe it's a positive sign. It's also supported by our deliberate decision to maintain reduced level of acquisition spend as we work towards recovery. All things taken together, we remain hopeful that we will achieve normalization as planned in the second half of this year as we continue to implement recovery initiatives to recalibrate the algorithm. Moving to our other brands and growth drivers. Similar to IL MAKIAGE, SpoiledChild is navigating higher CPA costs, but with less severity. We plan to implement similar remediation steps in SpoiledChild once we finish identifying the technical initiatives that will resolve the algorithms and CPA problems in IL MAKIAGE.

Moving on to Methodiq, which is off to a strong start following its launch late last year. We expected to deliver $25 million of revenue this year, in line with SpoiledChild's strong success in year one. As a reminder, Methodiq is a medical telehealth platform designed to deliver high-efficacy treatments at scale. Our goal is to help transform a broken medical care system, starting in dermatology, using our best treatments and the highest standards of care available to everyone. We are proud of Methodiq product line, which spans 28 prescriptions and non-prescription products, including oral, topical supplements, and medical-grade makeup, all designed to maximum efficacy, minimize side effects, and give an unparalleled experience. We believe it's a game-changing innovation for the benefit of large underserved customer base.

We are also seeing good signs from our progress tracking app, where users are delivered continuous care through the combination of our visual technology and care team engagement. App downloads rates, weekly check-ins rates, and care team engagement are strong signals of demand and our ability to use this technology to drive compliance, satisfaction, and success. ODDITY LABS continue to push the frontier of ingredient innovation in beauty and wellness, focusing on pain points with large commercial opportunities like acne, hyperpigmentation, and aging. We added two additional products made with LABS molecule in our Methodiq product line up this quarter. First, DuraxSynd, topical eczema treatment formulated with our proprietary ODD-L1669 molecule and other inactive, engineered with the goal of achieving superior efficacy to traditional eczema treatment with minimal side effects.

Second is XariLac, a first-of-its-kind active scalp prevention treatment powered by our ODD-L103 molecule, which reduces inflammation and promotes the healing of active breakouts. Looking ahead, we are working on several novel molecules targeting different indications. One, in our anti-aging program, our novel molecule have demonstrated robust in vitro efficacy in increasing collagen synthesis and reducing aging markers. We are now conducting human focus group testing to ensure clinical translation. Two, to optimize hyperpigmentation treatment, we are targeting novel pathways designed to work with our existing ODD-L1007 molecule. Focus groups are currently underway to evaluate the enhanced therapeutic efficacy and performance of this combined treatment. Three, in our acne prevention pipeline, we are developing novel topical approach designed to prevent acne breakouts by reducing sebum production and preventing clogged pores. Our leading candidate molecule are currently in final laboratory validation phase.

Before I hand it over to Lindsay, I want to reiterate our view on this moment in time. We continue to be bullish on the structural dynamics in our industry. Beauty is a large category with attractive secular characteristics. Consumers continue to migrate online and towards the high-efficacy products. We believe incumbents are at a disadvantage to meet this demand, while we are set up for well gain share. We are working tirelessly to get back to our story strong position. As a company, we have navigated algorithmic adjustments by our ad partners in the past with success. We are hopeful based on the improvements we see today that we will resolve this dislocation and get back to our long track record of consistent strong growth and attractive profitability.

We have seen no reason that we couldn't solve what we believe is a technical problem as we have in the past. With that, I will turn it over to Lindsay.

Thanks, Oran. Let's turn to our Q1 results, which I will refer to on an adjusted basis. You can find the full reconciliation to GAAP in our press release. Net revenue declined 26%, slightly less negative than our expectation of an approximate 30% decline. The decline was driven largely by first orders, which declined by around 50%, driven by the significant reduction in our acquisition efficiency due to the abnormal higher CPA. Repeat orders declined by around 15%, mainly attributed to a decline in Q1 first orders and a decline in the proportion of our repeat that is more sensitive to acquisition spend. Repeat sales represented approximately two-thirds of our net revenue this quarter versus approximately 56% in Q1 2025. AOV declined low single digits driven by higher mix of SpoiledChild versus IL MAKIAGE and product mix. Gross margin was 69.7%, compressing approximately 520 basis points year-over-year.

The compression was driven in part by product mix and lower AOV. Our remediation activity during the quarter created some temporary noise in the P&L. We ran many tests to try and isolate the technical problem. This included turning off different tech products, funnel offerings, and testing different TBYB return policies. These changes had temporary negative impact on our Q1 margins. We delivered adjusted EBITDA of negative $7 million. The year-over-year decline reflects the abnormal CPA levels and our decision to continue spending in order to accelerate a recalibration of the algorithm. Margins were also impacted by operating deleverage from lower revenue and our continued planned investments in core growth initiatives. We are managing costs across the business to offset some of the EBITDA pressure while protecting these forward investments. Adjusted diluted EPS was negative $0.17.

Q1 free cash flow was negative $21 million, driven by the net loss. We exited the quarter with a slightly elevated inventory position due to the revenue shortfall relative to our purchase plans late last year, and we plan to work through this inventory going forward. We exited the quarter with $667 million of cash equivalents, and investments on our balance sheet. Our $350 million of amended credit facilities secured in January of 2026 remain undrawn. Turning to capital return. In March of 2026, Oddity's board of directors approved new share buyback program authorizing the repurchase of up to $200 million of the company's class A ordinary shares, which replaced and superseded the previously announced $150 million share buyback plan. Oddity repurchased approximately 6 million ordinary shares during the quarter for approximately $82 million, reducing ordinary shares outstanding by around 10%.

We exited the quarter with approximately $167 million remaining on our authorization. Turning to our outlook. Media uncertainty continues to make visibility to full year financials challenging, although we're hopeful we're moving in the right direction. We expect adjusted EBITDA for the full year will be positive. We hope to deliver a clearer picture of other key P&L items in coming months. For the second quarter, we expect net revenue to decline between 25%-30% year-over-year, and we expect adjusted EBITDA will be between $8 million and $10 million, impacted by higher CPA and deleverage on our reduced revenue. A few things to keep in mind for your models. We continue to spend acquisition dollars despite higher CPA in order to feed the algorithm signals they need to reset and normalize.

In addition, the reduced user acquisition activity in the first half will continue to weigh on repeat sales for the remainder of the year, even as CPAs normalize. With that, I will hand it back to the operator for questions.

Thank you. If you'd like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you'd like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star key. To allow for as many questions as possible, we ask that you each keep to one question. Thank you. Our first question comes from the line of Brian Tanquilut with Jefferies. Please proceed with your question.

Hey, good morning. Lindsay, maybe just on the earnings trajectory. You stated positive EBITDA for the year and $8 million-$10 million positive EBITDA in Q2. If you don't mind just talking about the cadence of EBITDA margins that you expect throughout the year, and do you still plan to have most of the acquired customer reps to come in the first half, or is there a shift happening to the back half?

Thanks, Brian. Unfortunately, based on the technical issue we had, first orders were down, as I mentioned in my script, around 50%. It will be very difficult for us to make this up in the back half just based on seasonality. That being said, the leading indicator we look for is the improvement in CPA, which should allow us to drive some improvement, at least in the sequential trend of declines across the year. Once we get first orders going, that's when we can start to drive the repeat, and that's where the profitability flows through. We didn't give EBITDA guidance by quarter for the back half by design. We just don't have enough visibility right now, but we do have confidence that we will be profitable for the full year.

Based on everything that we see today, the exact specifics of it, we just don't have enough visibility to yet.

Totally understand. Follow-up, can you go back just to the comments about maintaining a reduced level of acquisition spend? We're thinking, how much have you reduced your run rate by compared to last year? Was this evenly spread across Q1, or was there something you did in May which helped bring CPAs down?

Yeah. We are still spending, and media spend for the quarter was down a little bit relative to the prior year. It's just that our efficiency on that media is a lot worse. We talked about CPA. You can see in the table that we provided the 80+% increase year-over-year in the first half. That rate of increase did get worse January, February, March to April, and May was our first month of sequential improvement. We are still spending. We want to keep.

The reason that we're still spending is to fix the problem. Without spending, we will not be able to identify the problem, and we will not be able to test all the things that we have done in the past quarter, and without it, we will not see any recovery. We need to continue to spend, but we obviously cannot increase spend because the efficiency of that spend, but we are hopeful after what we saw in May.

Awesome. Thank you.

Thank you. Our next question comes from line of Youssef Squali with Truist Securities. Please proceed with your question.

Excellent. Thank you so much. Hi, guys. Maybe a quick question for Oran and one for Lindsay. Oran, can you delve a little deeper into the drivers of decline in the CPA for IL MAKIAGE? I think you talked about the 28% sequential between April and May. Just practically, what has been working, and how much of that is sustainable and can actually compound on itself over time? Lindsay, just as I look at that improvement in CPA, and I look at the guide you're providing for Q2, there seems to be a bit of a disconnect because if you look at the overall revenue growth, you're still talking about negative 25%-30%. You put up 26% negative in Q1.

Maybe just talk to us about the assumptions that are baked into that revenue decline, maybe from a CPA trend, and anything else you want to share on that guide. Thank you.

Hi, Youssef. Needless to say that we do many tests in order to fix it. On the other side, it's an algorithm, and those things are, most of the time, very hard to move the needle and exit those type of spirals. By the way, we navigated, as I mentioned, many algorithm changes in the past, and we always were able to solve it. The fixes that we are doing are primarily structural and technical, altering signals, adjusting our infrastructure, shifting audience strategies, and of course, campaign setup. That's only on our end, of course. In parallel, our ad partner is doing analysis on their end, and we work with them closely for the past few months.

We have also made some budget allocation, reducing the overall spend for IL MAKIAGE, given the elevated spend, but continue to spend just to make sure that we can continue to have tests running. Again, for many months, we saw only negative trend. Almost every month was worse than the previous months, other than May. May, we had lower spend, but still, we had also very low spend in other months, and the trend was opposite. That's for that question. Lindsay?

Sure. Hey, Youssef. Our guidance for the second quarter is for revenue to be down between 25% and 30%. The challenge for us, in part, is that, A, acquisition is still very difficult. We talked about the sequential improvement in May versus April, remember that February was worse than January, March was worse than February, and April was worse than March. On balance, the overall CPA in May versus Q1 is not materially different yet, the encouraging thing for us is the positive inflection that we saw in May overall. We did lose a lot of first orders in the first quarter that would have translated into repeat orders in the second quarter, that's a continued overhang for us. Again, where we hope to see more sequential improvement is in the second half of the year.

Like I said, and what we said in our outlook, we do expect for full year adjusted EBITDA to be profitable.

Thank you. Our next question comes from the line of Andrew Boone with Citizens. Please proceed with your question.

Thanks so much for taking the question. You guys have historically run your marketing in-house. Can you guys talk about the changes that have either taken place within that organization, or maybe the thought about using third parties? Basically, what's changed in terms of marketing strategy given this speed bump?

Yeah. Historically, we've done everything in-house, very successfully for many years. For the first time, we shared with the market how stable our results are, despite the fact that we were growing massively. That's just for acquisition, of course. Our repeat and other metric and compounding repeat continue to grow. That's why, despite the small change every year, we were able to continue to present such strong results. What we have now is something that we never saw before. We are evaluating it with the ad partner, and we also brought in another team recently to take a look. Again, we don't believe that the problem sits on our end, but we continue to do everything in our power to exit the spiral as soon as possible.

I would just add on to that, Andrew, that it's been very encouraging as we've worked very closely with this advertising partner to hear their view that all other things equal, and as we said in our prepared remarks, not related to other things like market dynamics, just in their systems alone, they estimate that we can recover 40%-60% of CPA. If we get to those levels, we'll be back in a position to resume to healthy, profitable growth.

Thank you. Our next question comes from the line of Ryan MacDonald with Needham & Company. Please proceed with your question.

Hi, thanks for taking my question. Maybe one for Oran and one for Lindsay. Oran, I'm curious to think about, as you're thinking about product development, and understand, obviously, I think that probably the algo change is taking most of your time. As we think about product development throughout the remainder of this year, we're obviously getting some updates, or should get some updates in July from the FDA around peptides, and potentially some moving from certain peptides from Category 2 to Category 1 with applications in skincare like GHK-Cu copper peptides, BPC-157. Curious what sort of opportunity and maybe what research or investments you're doing in this area, and what sort of opportunity this could open up for your brands over time.

Lindsay, for you, just on the guidance, if we think about the adjusted EBITDA guidance of $8 million-$10 million, is that based on assumptions that the improvements in CPA you saw in May continue, or do they revert back to April levels, first quarter levels? Thanks.

Yeah. On your first question, needless to say that the vast majority of our time is handling the problem that we currently have with media. For both me and Shiran, that's what we do 24/7. I will say that despite what we have in media, we continue to heavily invest in product across IL MAKIAGE, SpoiledChild and Methodiq, but more importantly, ODDITY LABS. We continue to see massive opportunity there. Once we have what to inform regarding the peptides and the new changes, we'll update the market.

Thanks. As it relates to our assumptions, our assumptions assume that CPA remains similarly difficult.

Thank you. Our next question comes from the line of Dara Mohsenian with Morgan Stanley. Please proceed with your question.

Good morning. First, just a clarification. You highlighted CPA moved back down sequentially versus recently. You remain hopeful you're on track for normalization in the second half of the year. Is that normalization more around CPA itself, or is there some hope perhaps you could get back to revenue growth at some point by the end of the calendar year? Just any thoughts on how much of this 2026 revenue pressure might extend longer term as you look out to 2027? I understand 2026 is still a moving target this year. Just looking for your conceptual thoughts on what this means to the business longer term, the issues around CPA here in 2026. Thanks.

Yeah. I'll start just from once we fix this problem, of course, then the most important part of our end is to fix it, to go back to growth. My plan, as soon as we fix it, is to go full power back to growth. As for the implication of 26, obviously we lost big chunk of new users that we were not able to acquire in 26, which will impact 27. Again, all depends when we fix it, if we are able to fix it. As soon as we are able to fix it, we'll go back to growth to compensate some of this new users loss. Lindsay?

Yeah, the leading indicator for us is the CPA. We have this overhang on revenue that will continue across the year. The sequencing is better CPA allows us to drive first orders. We do see that our repeat rates remain very strong. When you pull those pieces together, once the CPA is at an improved level, we can drive first orders, which will drive repeat and healthy profitability, and that's kind of the sequencing of how you'll see the business improve.

Thank you. Our next question comes from the line of Scott Schoenhaus with KeyBanc Capital Markets. Please proceed with your question.

Thanks for taking my question. Wanted to focus on Methodiq. You said it was performing in line in expectations. Do you see any ability to drive that revenue growth algorithm faster by investing more in the business? Are you pulling resources away from the other two brands, especially IL MAKIAGE, in order to divert more attention to Methodiq? On the hiring front, the biotech environment has strengthened here over the last 12 months. Are you seeing any issues with retention or hiring in that department? Thanks.

Thanks. First of all, we don't see an issue with hiring in Boston in ODDITY LABS. Second question, we believe the problem with IL MAKIAGE is technical, we believe we'll be able to solve it. We continue to invest in Makiage, we are not shifting or allocating resources from that brand to other brands. Lastly, for Methodiq, very excited and bullish about what it can be. Seeing strong initial demand, still early days, we believe that it will be a great brand. We spend many years on building it. As for your question to accelerate it's a new brand. Many things that you want to test, you don't want to accelerate it before you optimize the exact funnels and products. Therefore, it's already extremely substantial for a new brand, we think that's the right pace.

Thank you. Our next question comes from the line of Lauren Lieberman with Barclays. Please proceed with your question.

Great. Thanks. Good morning. Two questions. First was just around, you've emphasized a couple times this is an issue with one particular advertising partner. I was just curious about efforts or thoughts around diversifying your partners, right? There's more than one platform out there. Wanted to just get some understanding of how you're thinking about the range of opportunities on other platforms and other ad partners. Secondly, was just to clarify whether or not SpoiledChild is sort of undisturbed. We've been very focused on IL MAKIAGE, and it may just be my memory, but I wasn't sure if Spoiled was seeing the same issues or not. If it's not, why not? Is there anything you can do or are doing to future-proof it to avoid the same kind of signal breakage that's happened with IL MAKIAGE? Thanks.

Sure. As to other platforms, of course, we advertise also on other platforms. Based on the data that we have, just in 2025, our largest ad partner was by far the largest ad partner in beauty in the U.S., way more than 50% of the market. There is a limit of how much we can revenue or acquisition we can drive in the other platform. This platform is by far the biggest one and more the majority of the spend in beauty in the U.S. for new user acquisition. Second question about SpoiledChild. SpoiledChild we see also increasing CPA, less severe than IL MAKIAGE. The main difference, SpoiledChild continue to grow. Despite the fact it continued to grow, the CPA is way less severe than what we see in IL MAKIAGE.

it's a good indication, Once we identify the right solution for IL MAKIAGE, we'll implement the same in SpoiledChild. We believe that we'll have a tailwind for that brand also.

Thank you. Our next question comes from the line of Mark Mahaney with Evercore ISI. Please proceed with your question.

Okay, thank you. I want to get back to the question somebody asked earlier about Methodiq, and it looks like this product is ramping reasonably well in line with what SpoiledChild did earlier on. That sounds promising. Talk about the customers that you've gotten for the product so far. Are these customers that are brand new to-

Sure

Oddity as a whole? Are they customers that have come from other areas? Can you give us some sense about the sustainability of growth of those customers and how much they expand your market, or is it largely just a resale to existing customers? Anything on that and the type of customers coming in for Methodiq would be helpful. Thank you.

Yeah. I'll start and then Belina, you continue. With any new brand that we launch, we try to see the strength and the potential by itself, meaning it start by its own, with less marketing to our existing user base. Otherwise, we would never see or understand the potential of that brand. To your question, it's an addition to our customer base in IL MAKIAGE. Of course, when those brands operate by themselves, some of their customer base is going after the same audiences, just because IL MAKIAGE and SpoiledChild customer base is huge. It's complete separate brand with its own efforts to acquire new users, just understand the scale and the potential, and to optimize the funnels in the hard way and not with quick wins, just due to our amazing customer base of IL MAKIAGE and SpoiledChild.

Thank you. Our next question comes from the line of Cory Carpenter with JPMorgan. Please proceed with your question.

Good morning. I had two questions. Building on an earlier question, could you talk about the CPA trends that you are seeing at your other advertisers? That's the first question. The second question, last time we talked, I think you were hopeful that you could maintain the Try Before You Buy program. I think on this call you said about 40% have shifted away from that. Maybe just could you give us your latest thoughts on the role that you think your Try Before You Buy can play based on your learnings with the technical changes thus far? Thank you.

Yeah. Try Before You Buy remains part of our model. We have no plan to eliminate it, as I strongly believe it's great for consumer, and it's the closest way of bringing physical store experience to the online world. Toward the end of Q1, we successfully shifted 40% of our acquisition revenue from Try Before You Buy to standard buy. This process was expensive in terms of margin, as it required many tests until we successfully landed on a solution with no impact on unit economics, which is very encouraging, at least in my view. Try Before You Buy today, based on last numbers that I saw, became to be a tiny number, a tiny percentage out of our total revenue or total orders. We intend to continue to use this program, as we really believe it's best for consumers, but more balanced with standard buy.

Question was on CPA at other platforms.

Yeah. Listen, other platform, obviously the CPA of other platforms is taking the overall CPA of IL MAKIAGE materially down. Since this is our largest platform, we work really hard to solve it, so we can go back to growth, and go back to full power spend also with the largest platform in the U.S.

Thank you. Our final question comes from the line of Anna Lizzul with Bank of America. Please proceed with your question.

Hi, good morning. Thank you so much for the question. Wanted to follow up on Lauren's question here. Now that we've heard from several beauty companies and watched the trends over the past few months, I guess we haven't really heard of the algorithm adjustment as much impacting other beauty companies. They are less exposed to the channels, but they say maybe it sees 20% of sales on e-commerce channels. I was wondering if this will make you reconsider in a broader way your marketing and user acquisition, just given the impact to what seems to be to your brand specifically? How do you ensure this doesn't happen with any other platforms in the future? Thank you.

Listen, I can't refer to other brands, but I don't know anyone that is on our scale, and most of them are omni-channel, and are less sensitive to algorithm changes. By the way, as I mentioned, we had many of them in the past years. The most notable one is iOS 14. I think that also then, it was harder for us than others, just due to the fact that we are 100% D2C. If we think about diversifying our channels, yes, we think about it. When we have what to tell the market, we will.

Thank you. Ladies and gentlemen, that concludes our question and answer session. I'll turn the floor back to Mr. Holtzman for final comments.

Thank you very much, guys, for joining. We'll see you next quarter.

Thank you. This concludes today's conference call. You may disconnect your lines at this time. Thank you for your participation.