On Announces Fourth Quarter and Full Year Results, and the Filing of its Annual Report on Form 20-F for 2025
- Guided by a clear vision to build the most premium global sportswear brand, On reaches a new level of scale and profitability in 2025, exceeding its latest outlook across all metrics. Annual net sales surpass CHF 3.0 billion for the first time, while cash exceeds CHF 1.0 billion at year-end. Full-year net sales increase by 30.0% year-over-year, and by 35.6% on a constant currency basis, reaching CHF 3,014.0 million. Full-year profitability reaches new highs, with gross profit margin expanding to 62.8% and adjusted EBITDA margin to 18.8%, reflecting structural operational efficiencies and the strength of On’s premium positioning.
- Fourth quarter net sales reach CHF 743.8 million, growing 22.6% year-over-year on a reported basis and 30.6% on a constant currency basis. Increasing global brand awareness, now approaching 30%, together with disciplined premium execution during the holiday season, drives strong performance across both Direct-to-Consumer (“DTC”) and Wholesale channels.
- Execution against On’s strategic priorities continues to deliver strong, broad-based growth. In 2025, On expands its network of premium brand hubs to nearly 70 own retail locations, with high-impact retail formats deepening consumer engagement. Apparel and accessories reach a combined 7.0% of net sales, up 190 basis points year-over-year, reinforcing On’s evolution into a true toe-to-head brand. The Asia-Pacific region surpasses CHF 500 million in annual net sales, demonstrating exceptional demand across markets and channels.
- Fourth quarter gross profit margin reaches 63.9%, a new Q4 record, up 180 basis points year-over-year, driven by structural operational efficiencies, strong full-price execution and favorable foreign exchange dynamics. Adjusted EBITDA margin reaches 17.6%, up 120 basis points year-over-year, as On continues disciplined reinvestment into brand building, innovation, technology and retail expansion.
- Entering the final year of its three-year strategy from a position of significant strength, On will further scale its LightSpray™ technology, advance innovation across its core running franchises and continue expanding its apparel offering. Together with the ongoing elevation of premium brand expression across channels, these pillars are expected to further deepen consumer engagement and drive long-term customer value.
- On looks into 2026 with high confidence in its growth trajectory, expecting net sales to grow by at least 23% on a constant currency basis. At current spot rates, this implies reported net sales of at least CHF 3.44 billion. The company anticipates continued elevated profitability, with a full-year gross profit margin of at least 63.0% and an adjusted EBITDA margin between 18.5% and 19.0%.
ZURICH, Switzerland, March 3, 2026 - On Holding AG (NYSE: ONON) (“On,” “On Holding AG,” the “Company,” “we,” “our,” “ours,” or “us”) today announced its financial results for the fourth quarter and full year, and that it has filed its annual report on Form 20-F (the "Form 20-F") for the year ended December 31, 2025, with the U.S. Securities and Exchange Commission (the "SEC").
David Allemann, Co-Founder and Executive Co-Chairman of On, said: "Surpassing the CHF 3 billion annual revenue milestone with record profitability is a profound validation of our vision to build the world’s most premium global sportswear brand. We are witnessing a fundamental societal shift, as people globally replace traditional markers of status with a commitment to health, longevity, and performance. On is uniquely positioned to deliver what this discerning consumer demands - from scaling breakthrough innovations like LightSpray™ to deepening our cultural resonance and delivering our fullest brand expression from toe-to-head. We are building a brand designed for the future of movement."
Martin Hoffmann, CEO and CFO of On, said: "By charting our own course and executing with discipline against our strategic priorities, we have built a powerful financial engine that is driving record results. The strength of our premium strategy allows us to exceed our high aspirations while providing the flexibility to reinvest in the high-return areas that we expect will fuel our growth for years to come. Our vision is proving itself at a new scale - from the exceptional productivity of our growing retail footprint to the compounding value of our multi-category expansion. This success is a testament to our nearly 4,000 team members who execute with focus and passion every day. We enter 2026 with confidence and conviction, ready to ‘Dream On’ bigger and bolder than ever before."
Key Financial Metrics
Key financial metrics for fiscal year 2025 compared to fiscal year 2024 included:
- net sales increased by 30.0% to CHF 3,014.0 million, or by 35.6% on a constant currency basis;
- net sales through the DTC sales channel increased by 33.7% to CHF 1,260.5 million, or by 39.9% on a constant currency basis;
- net sales through the wholesale sales channel increased by 27.5% to CHF 1,753.4 million, or by 32.6% on a constant currency basis;
- net sales in Europe, Middle East and Africa (“EMEA”), Americas and Asia-Pacific ("APAC") increased by 32.0% to CHF 762.7 million, 17.6% to CHF 1,740.1 million and 96.4% to CHF 511.1 million, respectively;
- net sales in EMEA, Americas and Asia-Pacific increased by 34.7%, 23.4% and 106.7% on a constant currency basis, respectively;
- net sales from shoes, apparel and accessories increased by 27.5% to CHF 2,804.4 million, 68.2% to CHF 169.9 million and 124.1% to CHF 39.6 million, respectively;
- net sales from shoes, apparel and accessories increased by 32.9%, 75.5% and 135.1% on a constant currency basis, respectively;
- gross profit increased by 34.7% to CHF 1,893.6 million from CHF 1,405.7 million;
- gross profit margin increased to 62.8% from 60.6%;
- net income decreased by 15.9% to CHF 203.7 million from CHF 242.3 million;
- net income margin decreased to 6.8% from 10.4%;
- basic earnings per share (“EPS”) Class A (CHF) decreased to 0.62 from 0.75;
- diluted EPS Class A (CHF) decreased to 0.61 from 0.74;
- adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") increased by 46.3% to CHF 567.0 million from CHF 387.6 million;
- adjusted EBITDA margin increased to 18.8% from 16.7%;
- adjusted net income decreased to CHF 266.4 million from CHF 317.4 million;
- adjusted basic EPS Class A (CHF) decreased to 0.81 from 0.98; and
- adjusted diluted EPS Class A (CHF) decreased to 0.80 from 0.97.
Key financial metrics for the three-month period ended December 31, 2025 compared to the three-month period ended December 31, 2024, included:
- net sales increased by 22.6% to CHF 743.8 million, or by 30.6% on a constant currency basis;
- net sales through the DTC sales channel increased by 21.7% to CHF 360.6 million, or by 30.0% on a constant currency basis;
- net sales through the wholesale sales channel increased by 23.4% to CHF 383.2 million, or by 31.2% on a constant currency basis;
- net sales in EMEA, Americas and Asia-Pacific increased by 24.2% to CHF 183.0 million, 12.8% to CHF 434.3 million, 70.8% to CHF 126.5 million, respectively;
- net sales in EMEA, Americas and Asia-Pacific increased by 27.5%, 21.3%, and 85.1% on a constant currency basis, respectively;
- net sales from shoes, apparel and accessories increased by 20.8% to CHF 687.3 million, 38.3% to CHF 45.1 million and 117.7% to CHF 11.4 million, respectively;
- net sales from shoes, apparel and accessories increased by 28.8%, 46.0% and 131.3% on a constant currency basis, respectively;
- gross profit increased by 26.1% to CHF 475.3 million from CHF 376.8 million;
- gross profit margin increased to 63.9% from 62.1%;
- net income decreased 22.9% to CHF 69.1 million from CHF 89.5 million;
- net income margin decreased to 9.3% from 14.8%;
- basic EPS Class A (CHF) decreased to CHF 0.21 from CHF 0.28;
- diluted EPS Class A (CHF) decreased to CHF 0.21 from CHF 0.27;
- adjusted EBITDA increased by 31.8% to CHF 131.0 million from CHF 99.4 million;
- adjusted EBITDA margin increased to 17.6% from 16.4%;
- adjusted net income/(loss) decreased to CHF 83.5 million from CHF 107.7 million;
- adjusted basic EPS Class A (CHF) decreased to CHF 0.25 from CHF 0.33; and
- adjusted diluted EPS Class A (CHF) decreased to CHF 0.25 from CHF 0.33.
Key highlights as of December 31, 2025 compared to December 31, 2024 included:
- cash and cash equivalents increased by 10.3% to CHF 1,019.9 million from CHF 924.3 million; and
- net working capital increased by 14.3% to CHF 570.3 million from CHF 498.9 million.
Adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted basic EPS, adjusted diluted EPS, net working capital and net sales on a constant currency basis are non-IFRS measures used by us to evaluate our performance. Furthermore, we believe these non-IFRS measures enhance investors' understanding of our financial and operating performance from period to period because they enhance the comparability of results between each period, help identify trends in operating results and provide additional insight and transparency on how management evaluates the business. Adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted basic EPS, adjusted diluted EPS, net working capital and net sales on a constant currency basis should not be considered in isolation or as a substitute for other financial measures calculated and presented in accordance with IFRS. For a detailed description and a reconciliation to the nearest IFRS measure, see section titled “Non-IFRS Measures.”
Outlook
Propelled by the record-breaking performance of 2025, On moves into the final year of its three-year strategy from a position of significant strength, accelerating toward its vision of being the most premium global sportswear brand. The company is performing materially ahead of the mid-term targets established at its 2023 Investor Day, driven by a breakthrough innovation pipeline and the global scaling of its premium brand expression. Capitalizing on its powerful financial engine and sustained brand desirability, On is positioned to deliver premium growth in 2026:
- Net sales: Expected to grow by at least 23% year-over-year on a constant currency basis. At current spot rates, this implies reported net sales of at least CHF 3.44 billion. This factors in a higher base following On's strong fourth quarter results, therefore representing a further elevation of the Company's ambition.
- Gross profit margin: Expected to reach at least 63.0%.
- Adjusted EBITDA margin: Expected to be in the range of 18.5% to 19.0%.
Other than with respect to IFRS net-sales and gross profit margin, On only provides guidance on a non-IFRS basis. The Company does not provide a reconciliation of forward-looking adjusted EBITDA to IFRS net income due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation. As a result, we are not able to forecast with reasonable certainty all deductions needed in order to provide a reconciliation to net income. The above outlook is based on current market conditions and reflects the Company’s current and preliminary estimates of market and operating conditions and customer demand, which are all subject to change. Actual results and the timing of events could differ materially from those anticipated in these forward-looking statements as a result of risks and uncertainties, including those stated below and in our filings with the U.S. Securities and Exchange Commission (the "SEC").
High-res images available for download here.
Conference Call Information
A conference call to discuss fourth quarter results is scheduled for March 3, 2026 at 8 a.m. US Eastern time (2 p.m. Central European Time). Those interested in participating in the call are invited to dial the following numbers:
United States: +1 646 307 19 63
United Kingdom: +44 203 481 42 47
Switzerland: +41 43 210 51 63
Conference ID: 5251715
Additionally, a live webcast of the conference call will be available on the Company's investor relations website and via the following link here. Following the conclusion of the call, a replay of the conference call will be available on the Company's website.
Annual Report
The Form 20-F can be accessed by visiting either the SEC's website at www.sec.gov or the Company's website at investors.on.com/. In addition, the Company's shareholders may receive a hard copy of the Form 20-F, which includes the Company's complete audited financial statements, free of charge by requesting a copy from the Company contact below.
For investor and media inquiries
Investor Contact:
On Holding AG
Liv Radlinger
investorrelations@on.com
or
ICR, Inc.
Brendon Frey
brendon.frey@icrinc.com
Media Contact:
On Holding AG
Adib Sisani
press@on.com
About On
On was born in the Swiss Alps in 2010 with the mission to ignite the human spirit through movement – a mission that still guides the brand today. Sixteen years after market launch, On delivers industry-disrupting innovation in premium footwear, apparel and accessories for high-performance running, outdoor, training, all-day activities and tennis. On’s award-winning CloudTec® and LightSpray™ innovation, purposeful design and groundbreaking strides within the circular economy have attracted a fast-growing global fan base – inspiring humans to explore, discover and Dream On.
On is present in more than 80 countries globally and engages with a digital community on www.on.com.