Key Highlights
- Annual revenue reached CHF 3.0 billion, representing 30% year-over-year expansion with 35.6% constant-currency performance
- Full-year gross margin reached record 62.8%; fourth quarter delivered 63.9% gross margin
- Earnings per share and net income decreased in Q4 and full-year 2025 amid increased reinvestment spending
- Asia-Pacific region delivered nearly double sales volume; apparel and accessories outpaced footwear growth rate
- William Blair maintained Outperform rating, identifying currency volatility as primary short-term challenge
On Holding AG achieved a significant benchmark in 2025, surpassing CHF 3 billion in annual revenue for the first time in company history. The Swiss athletic brand recorded net sales of CHF 3.0 billion, marking a 30% increase compared to the previous fiscal year. When adjusted for constant currency, the growth rate climbed to 35.6%.
The achievement represents a major expansion phase for the performance footwear and apparel company, which continues to broaden its presence across international markets and diversify its product portfolio. Shares dropped over 11% during the trading session following the earnings announcement.
Fourth quarter net sales climbed 22.6% to CHF 743.8 million, surpassing Wall Street projections of CHF 724.3 million. The quarter’s adjusted earnings per share landed at 25 rappen, topping the consensus forecast of 20 rappen while trailing the prior year’s 36 rappen figure.
Both sales channels experienced robust double-digit expansion during the fourth quarter, with direct-to-consumer and wholesale segments contributing to overall performance. The company’s cash position exceeded CHF 1.0 billion at year-end.
The sportswear maker delivered a record quarterly gross margin of 63.9% in Q4, while the full-year figure expanded to 62.8%. Adjusted EBITDA margin for the complete fiscal year stood at 18.8%.
Despite the margin expansion, both reported and adjusted figures for net income and earnings per share showed declines across Q4 and the full year. Management attributed this performance to elevated reinvestment expenditures supporting long-term growth initiatives.
Regional and Category Breakdown
The Asia-Pacific region emerged as the strongest performer, with sales volume approaching 100% growth compared to the prior year. Company leadership emphasized the sustained momentum in APAC markets as a critical component of the 2026 growth trajectory.
The apparel and accessories segment expanded at a faster rate than footwear, now representing 7% of total company sales. On Holding currently manages close to 70 company-owned retail locations worldwide.
2026 Guidance and Analyst Reaction
Revenue projections for fiscal 2026 fell short of Wall Street estimates. Currency exchange rate challenges are anticipated to create approximately nine percentage points of headwind to reported growth.
The company’s EBITDA margin outlook for 2026 aligned with analyst expectations.
William Blair maintained its Outperform recommendation following the quarterly report, observing that shares traded at approximately 10 times the firm’s preliminary 2027 adjusted EBITDA estimate during premarket hours. The investment bank noted that management’s guidance implies 14% expansion for a business whose valuation typically reflects expectations exceeding 20% growth.
The research firm highlighted currency volatility as the most significant concern for shareholders in the current year, tied to policy efforts aimed at strengthening the U.S. dollar. William Blair suggested this dynamic could compress the stock’s valuation multiple beyond what fundamentals would otherwise support.
William Blair continues to feature ONON among its preferred investment ideas, characterizing the current price pressure as an attractive entry point for investors.
The median 12-month price target among Wall Street analysts stands at $60.00, representing approximately 22% upside from the most recent closing price of $46.76. The current consensus includes 25 buy or strong buy recommendations, 3 hold ratings, and 1 sell rating.
On Holding submitted its 2025 Form 20-F filing to U.S. securities regulators on March 3, 2026.
