Key Highlights
- Annual revenue reached CHF 3.0 billion, reflecting 30% reported growth and 35.6% in constant currency
- Full-year gross margin reached an all-time high of 62.8%; Q4 margin climbed to 63.9%
- Both quarterly and annual net income plus EPS decreased amid aggressive reinvestment spending
- Asia-Pacific region delivered nearly 100% sales growth; non-footwear categories outpaced core products
- William Blair maintains Outperform stance, citing currency volatility as primary short-term concern
On Holding AG achieved a significant milestone in 2025, surpassing CHF 3 billion in annual revenue for the first time. The Swiss athletic brand reported net sales of CHF 3.0 billion, representing a 30% increase versus the previous year. When adjusted for currency fluctuations, the growth rate expanded to an impressive 35.6%.
This achievement demonstrates the company’s continued expansion momentum across multiple markets and product lines, although investor sentiment turned negative with shares plummeting over 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 period, exceeding the consensus estimate of 20 rappen but trailing the prior year’s figure of 36 rappen.
Both distribution channels—direct sales and wholesale partnerships—delivered robust double-digit expansion during the fourth quarter. The company’s cash position exceeded CHF 1.0 billion at year-end.
Profitability metrics reached new peaks with Q4 gross margin touching 63.9%, while the full-year figure expanded to 62.8%. The adjusted EBITDA margin for fiscal 2025 stood at 18.8%.
However, despite these margin improvements, both reported and adjusted profitability metrics and earnings per share contracted for the quarter and full year. Management attributed this decline primarily to increased spending on growth initiatives and strategic investments.
Geographic and Product Performance
The Asia-Pacific territory emerged as the standout performer, with revenue nearly doubling compared to the prior year. Leadership highlighted exceptionally strong traction in this region as a critical catalyst for growth throughout 2026.
The apparel and accessories segment expanded at a faster clip than the traditional footwear division, now representing 7% of consolidated sales. The brand currently operates approximately 70 company-owned retail locations worldwide.
Forward Outlook and Expert Commentary
The company’s fiscal 2026 revenue projection fell short of market expectations. Currency exchange rate pressures are anticipated to create a headwind of approximately nine percentage points against growth rates.
The EBITDA margin forecast for 2026 aligned with analyst consensus projections.
William Blair maintained its Outperform recommendation following the release, observing that shares traded at roughly 10 times their preliminary 2027 adjusted EBITDA estimate in premarket activity. The analyst firm noted that management’s outlook implies 14% expansion for a company valued at growth rates exceeding 20%.
The research house identified foreign exchange volatility as the most significant near-term risk for shareholders, tied to the current administration’s advocacy for dollar strength. William Blair suggests this dynamic may pressure the stock’s valuation below what fundamentals justify.
Neverthstanding these concerns, William Blair continues to feature ONON among its preferred recommendations, characterizing the current weakness as an attractive entry point.
The consensus 12-month price objective from Wall Street analysts stands at $60.00, representing approximately 22% upside from the most recent close of $46.76. The current rating distribution includes 25 buy or strong buy recommendations, 3 hold ratings, and 1 sell rating.
On Holding submitted its annual 2025 Form 20-F filing to U.S. securities regulators on March 3, 2026.
