On Hits CHF 3B Revenue Milestone Amidst Strong Growth and Profit Nuances

ZURICH, Switzerland – March 03, 2026 – On Holding AG (NYSE: ONON), the Swiss-engineered sportswear brand, announced today that it has sprinted past a major milestone, achieving annual net sales of CHF 3.01 billion for 2025. The 30% year-over-year revenue surge marks the first time the company has exceeded the CHF 3 billion threshold, cementing its status as a powerhouse in the competitive global sportswear market.

In a statement accompanying the release of its fourth-quarter and full-year results, the company's leadership celebrated the achievement as a validation of its premium brand strategy and innovation pipeline. The results were announced alongside the filing of its annual report on Form 20-F with the U.S. Securities and Exchange Commission.

"Surpassing the CHF 3 billion annual revenue milestone with record profitability is a profound validation of our vision to build the world’s most premium global sportswear brand," said David Allemann, Co-Founder and Executive Co-Chairman of On. "We are witnessing a fundamental societal shift, as people globally replace traditional markers of status with a commitment to health, longevity, and performance. On is uniquely positioned to deliver what this discerning consumer demands."

Despite the record-breaking top-line figures, a deeper look into the financials reveals a more complex picture. While operational profitability soared, reported net income saw a decline, highlighting the challenges faced by global companies navigating volatile currency markets.

A Story of Explosive Growth

On's growth in 2025 was both broad and deep, firing on all cylinders across its sales channels and product categories. The company's direct-to-consumer (DTC) channel, a key strategic focus, grew by an impressive 33.7% to CHF 1.26 billion. This high-margin channel, which includes a sophisticated e-commerce platform and a growing network of flagship retail stores, is central to On's strategy of building direct relationships with its customers. The wholesale channel also demonstrated robust health, increasing by 27.5% to CHF 1.75 billion as retail partners continue to invest in the brand.

While footwear remains the bedrock of the business, growing 27.5% to CHF 2.8 billion, On's expansion into apparel and accessories is gaining significant traction. Apparel sales surged by 68.2% to nearly CHF 170 million, and accessories sales skyrocketed by 124.1% to almost CHF 40 million. This rapid expansion beyond shoes signals On's successful evolution into a comprehensive, head-to-toe sportswear brand.

"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," stated Martin Hoffmann, CEO and CFO of On. "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."

Global Ambitions Realized

Geographically, On's performance was highlighted by meteoric growth in the Asia-Pacific (APAC) region, where net sales climbed by a staggering 96.4% to CHF 511.1 million. On a constant currency basis, the growth was an even more remarkable 106.7%. This surge, driven by strong demand in key markets like China and South Korea, underscores the success of the company's targeted expansion efforts, which include opening premium retail locations in cities such as Singapore, Bangkok, and Seoul to deepen consumer engagement.

The brand also posted strong results in its more established markets. The Americas, its largest region, grew 17.6% to CHF 1.74 billion, while the EMEA region (Europe, Middle East, and Africa) saw a 32.0% increase in net sales to CHF 762.7 million. This balanced global performance demonstrates the brand's widespread and growing appeal.

The Profitability Puzzle

Beneath the surface of soaring revenues lies a nuanced profitability story. While On celebrated record operational profits, its reported net income for 2025 decreased by 15.9% to CHF 203.7 million, down from CHF 242.3 million in 2024. The primary driver of this discrepancy was a significant foreign exchange loss of CHF 173.2 million, a stark reversal from the CHF 67.7 million gain recorded in the prior year. The impact of the strong Swiss franc against other major currencies materially affected the company's bottom line as reported under IFRS accounting standards.

To provide what it considers a clearer view of its operational performance, the company highlights non-IFRS measures such as Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). On this metric, the company's performance was exceptional. Adjusted EBITDA increased by 46.3% to CHF 567.0 million, and the Adjusted EBITDA margin expanded from 16.7% to 18.8%. This figure, which excludes items like share-based compensation and foreign exchange impacts, showcases the underlying health and increasing efficiency of the core business.

Outpacing Projections and Competitors

On's 2025 performance places it significantly ahead of the strategic goals it laid out during its 2023 Investor Day. The company has already achieved its 2026 target of an 18%+ Adjusted EBITDA margin a full year ahead of schedule. Likewise, its 2025 gross profit margin of 62.8% has surpassed the 2026 goal of exceeding 60%. This acceleration demonstrates powerful execution and brand momentum.

When benchmarked against its peers, On's growth is particularly striking. Its 30% revenue growth in 2025 outpaces the strong but slower growth reported by key competitors like Hoka (around 24%) and Brooks Running (16%) for the same period. Furthermore, On's gross margin of 62.8% and Adjusted EBITDA margin of 18.8% stand out favorably in an industry where such high levels of growth and profitability are rarely seen in tandem, positioning the company as a leader in both expansion and efficiency.

The company is now entering the final year of its three-year strategy from a position of considerable strength. For 2026, On is forecasting continued premium growth, with expected net sales growth of at least 23% on a constant currency basis, which would translate to revenues of at least CHF 3.44 billion. It also aims to achieve a gross profit margin of at least 63.0% and maintain a strong Adjusted EBITDA margin between 18.5% and 19.0%. This confident forecast signals that On intends to continue its aggressive pace, capitalizing on its premium positioning and global momentum as it sprints toward its next set of ambitious goals.