Key Takeaways
- Annual revenue reached CHF 3.0 billion in 2025, representing a 30% increase year-over-year and 35.6% growth in constant currency
- Full-year gross margin reached an all-time high of 62.8%; Q4 margins climbed to 63.9%
- Both quarterly and annual net income plus EPS decreased amid elevated reinvestment spending
- Asia-Pacific region sales surged nearly 100%; apparel and accessories outpaced footwear growth
- William Blair maintained its Outperform stance, highlighting currency volatility as the primary short-term challenge
On Holding AG achieved a significant revenue milestone in 2025, surpassing CHF 3 billion in net sales for the first time — representing a 30% year-over-year increase. When adjusted for currency fluctuations, the growth rate accelerated to an impressive 35.6%.
This landmark achievement reflects the Swiss athletic brand’s continued expansion across global markets and diverse product lines, although shares declined over 11% following the earnings announcement.
Fourth-quarter revenue climbed 22.6% to CHF 743.8 million, surpassing Wall Street’s forecast of CHF 724.3 million. The quarter’s adjusted earnings per share reached 25 rappen, topping analyst estimates of 20 rappen — though this represented a decline from the 36 rappen reported in the same period last year.
Both the company’s direct sales operations and wholesale distribution network delivered robust double-digit expansion during Q4. Year-end cash reserves exceeded 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 fiscal 2025 came in at 18.8%.
Notwithstanding these profitability improvements, both reported and adjusted net income along with earnings per share contracted for the quarter and full year. Management attributed this decline primarily to increased reinvestment in the business.
Performance Across Regions and Products
The Asia-Pacific territory emerged as the clear winner, with revenue approximately doubling compared to the previous year. Company executives highlighted the exceptional performance in this region as a critical growth catalyst for fiscal 2026.
The apparel and accessories segment expanded at a faster pace than the traditional footwear category, now accounting for 7% of total revenue. The company’s retail footprint has grown to nearly 70 company-owned stores worldwide.
Forward Outlook and Street Sentiment
Revenue projections for fiscal 2026 came in softer than Wall Street anticipated. Currency headwinds are projected to create approximately nine percentage points of drag on reported growth rates.
The company’s EBITDA margin forecast for the upcoming fiscal year aligned with analyst expectations.
Following the earnings release, William Blair reaffirmed its Outperform rating, observing that premarket trading valued the stock at roughly 10 times its preliminary 2027 adjusted EBITDA forecast. The investment firm noted that current guidance suggests 14% expansion for a company valued as if it would grow over 20%.
The research house pinpointed foreign exchange volatility as the most significant near-term risk factor for shareholders, particularly in light of the current administration’s preference for dollar strength. William Blair believes this dynamic could pressure the stock’s valuation below what the fundamental business performance justifies.
Nevertheless, William Blair continues to feature ONON among its preferred investment ideas, characterizing the current weakness as an attractive entry point.
Consensus estimates from Wall Street analysts point to a 12-month price target of $60.00, representing approximately 22% upside from the most recent close of $46.76. Current analyst sentiment stands at 25 buy or strong buy recommendations, 3 hold ratings, and 1 sell rating.
On Holding submitted its annual Form 20-F filing to U.S. securities regulators on March 3, 2026.
