Key Highlights
- Annual revenue reached CHF 3.0 billion, representing a 30% increase year-over-year with 35.6% growth in constant currency
- Record-breaking gross margin of 62.8% for the full year; Q4 margin reached 63.9%
- Both quarterly and annual net income plus EPS decreased amid increased reinvestment spending
- Asia-Pacific region delivered nearly 100% sales growth; non-footwear categories outpaced core products
- William Blair maintains Outperform stance, citing forex volatility as primary short-term concern
On Holding AG achieved a significant milestone by surpassing CHF 3 billion in annual revenue during 2025, recording total net sales of CHF 3.0 billion—marking a 30% increase compared to the previous year. When adjusted for currency fluctuations, the growth rate climbed to an impressive 35.6%.
This achievement underscores the Swiss athletic footwear and apparel company’s expanding footprint across multiple geographies and product lines, although shares tumbled more than 11% following the earnings announcement.
Fourth-quarter revenue climbed 22.6% to CHF 743.8 million, surpassing Wall Street’s projection of CHF 724.3 million. The company delivered adjusted earnings per share of 25 rappen for the quarter, exceeding the consensus estimate of 20 rappen—though trailing the prior year’s figure of 36 rappen.
Both the direct-to-consumer segment and wholesale distribution channels delivered robust double-digit expansion during the fourth quarter. The company ended the year with cash reserves exceeding CHF 1.0 billion.
Profitability metrics reached new heights with Q4 gross margin touching 63.9%, while the full-year figure expanded to 62.8%. The adjusted EBITDA margin for 2025 stood at 18.8%.
However, despite these profitability improvements, both reported and adjusted net income along with earnings per share contracted for Q4 and the full year. Management attributed this decline primarily to elevated reinvestment expenditures.
Performance Across Regions and Products
The Asia-Pacific territory emerged as the star performer, with revenue nearly doubling on a year-over-year basis. Company executives highlighted exceptional strength in this region as a critical catalyst for growth momentum entering 2026.
The apparel and accessories segment expanded at a faster pace than the flagship footwear category, now accounting for 7% of total revenue. On currently manages close to 70 company-owned retail locations worldwide.
Forward Outlook and Wall Street’s Take
The company’s revenue projection for fiscal 2026 fell short of analyst estimates. Currency exchange rate pressures are anticipated to negatively impact growth forecasts by approximately nine percentage points.
The EBITDA margin outlook for 2026 aligned with analyst expectations.
William Blair maintained its Outperform rating following the earnings release, observing that shares traded at roughly 10 times its preliminary 2027 adjusted EBITDA estimate during premarket hours. The firm noted that management’s guidance suggests 14% expansion for a company valued for over 20% growth.
The firm pinpointed foreign exchange volatility as the most significant near-term risk factor for shareholders this year, connected to the current administration’s preference for a stronger U.S. dollar. William Blair suggests this dynamic could create a valuation discount that doesn’t reflect the fundamental business strength.
Nonetheless, William Blair continues to list ONON among its preferred investment ideas, characterizing the recent weakness as an attractive entry point.
The median Wall Street price target stands at $60.00 for the next 12 months, 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.
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