On Holding AG Class A
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −3.60%.
Did ONON Beat Earnings? Q4 2025 Results
On Holding delivered a blowout fourth quarter to close fiscal 2025, posting earnings per share of $0.32 against a consensus estimate of $0.21, a 50.90% beat, while revenue of $952.51 million topped expectations by 30.92% and grew 22.6% year over year. The Swiss athletic footwear brand's top-line strength was driven in large part by explosive Asia-Pacific expansion, where annual regional sales surged 96.4% to $654.51 million on the back of rapid China and Japan growth, complementing a direct-to-consumer channel that grew 33.7% to $1.61 billion and now represents 41.8% of total sales. Full-year gross margin expanded 220 basis points to 62.8%, though IFRS net income fell 15.9% to $260.86 million, weighed down by a $221.80 million foreign exchange loss tied to CHF/USD revaluation. Shares pulled back despite the beat, as investors scrutinized 2026 guidance calling for at least 23% constant-currency sales growth and adjusted EBITDA margins of 18.5% to 19.0%, alongside looming cost pressure from U.S. tariffs on Vietnam-sourced footwear.
- Global brand awareness approaching 30%
- Strong full-price execution and disciplined premium positioning during holiday season
- Operational efficiencies in freight and distribution reducing cost of sales
- Favorable foreign exchange dynamics on gross margin
- Expansion of DTC channel to 41.8% of net sales
- Asia-Pacific region surpassing CHF 500 million in annual net sales
- Cloud and Cloudtilt franchises driving footwear growth
- US market reached CHF 1,550.5 million in annual net sales, representing 51.4% of total
- Effective tax rate dropped to 0.7% from 13.4% due to deferred tax benefits from intercompany inventory profit eliminations
“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.”
On Holding CEO, on the earnings call
Forward Guidance & Outlook
On expects 2026 net sales to grow by at least 23% year-over-year on a constant currency basis, implying reported net sales of at least CHF 3.44 billion at current spot rates. The company anticipates a full-year gross profit margin of at least 63.0% and an adjusted EBITDA margin between 18.5% and 19.0%. Management noted the company is performing materially ahead of mid-term targets established at its 2023 Investor Day, entering the final year of its three-year strategy from a position of significant strength. The company also noted it does not anticipate paying any cash dividends in the foreseeable future and intends to retain all available funds for business development and expansion.
ONON YoY Financials
ONON Revenue by Segment
ONON Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.