Key Highlights
- Full-year 2025 revenue reached CHF 3.0 billion, marking 30% year-over-year growth and 35.6% on a constant-currency basis
- Achieved record full-year gross margin of 62.8%; fourth quarter gross margin reached 63.9%
- Both quarterly and annual net income plus EPS decreased in 2025 amid increased reinvestment spending
- Asia-Pacific region saw sales approximately double; apparel and accessories outpaced footwear growth
- William Blair maintained Outperform rating, identifying foreign exchange 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 footwear and apparel company reported net sales of CHF 3.0 billion, representing a 30% increase versus the previous year. When measured in constant-currency terms, the growth rate climbed to an impressive 35.6%.
This achievement reflects the company’s ongoing expansion across geographic markets and product lines, although investor reaction was negative with shares declining more than 11% on the announcement date.
Fourth-quarter revenue climbed 22.6% to CHF 743.8 million, surpassing Wall Street’s forecast 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 this figure represented a decline from 36 rappen in the year-ago period.
Both the direct-to-consumer segment and wholesale distribution channels delivered robust double-digit expansion in the fourth quarter. The company closed the fiscal year with cash reserves exceeding CHF 1.0 billion.
Profitability metrics were impressive, with fourth-quarter gross margin reaching a company record of 63.9%, while the full-year figure expanded to 62.8%. For fiscal 2025, adjusted EBITDA margin landed at 18.8%.
However, despite the margin expansion, both reported and adjusted net income along with earnings per share declined on a quarterly and annual basis. Management attributed this decrease primarily to elevated reinvestment expenses across the business.
Performance Across Regions and Product Lines
The Asia-Pacific region emerged as the clear winner geographically, with revenue approximately doubling compared to the prior year. Company leadership highlighted exceptional performance in the APAC market as a critical catalyst for continued expansion in fiscal 2026.
The apparel and accessories segment demonstrated accelerated growth relative to the flagship footwear category, now representing 7% of total company revenue. On Holding’s retail footprint has expanded to nearly 70 company-owned stores worldwide.
Forward Outlook and Wall Street Perspective
The company’s fiscal 2026 revenue forecast fell short of analyst expectations. Management warned that foreign exchange fluctuations are anticipated to create approximately nine percentage points of headwind to growth projections.
The EBITDA margin outlook for 2026 aligned with Street estimates.
Following the earnings release, William Blair reaffirmed its Outperform rating on the stock, observing that shares were trading at approximately 10 times the firm’s preliminary 2027 adjusted EBITDA projection in premarket activity. According to the firm’s analysis, management’s guidance implies roughly 14% growth for a stock previously valued for 20%-plus expansion.
William Blair highlighted foreign exchange exposure as the most significant risk factor for shareholders in the current year, connected to policy initiatives from the administration aimed at strengthening the dollar. The firm expressed concern that this dynamic could pressure valuation multiples below what the fundamental business performance would justify.
Neverthstanding these headwinds, William Blair continues to rank ONON among its preferred investment ideas, characterizing the near-term weakness as an attractive entry point.
The Street’s median price target over the next twelve months stands at $60.00, implying approximately 22% upside from the most recent close of $46.76. Current analyst sentiment includes 25 buy or strong buy ratings, 3 hold ratings, and 1 sell rating.
On Holding submitted its fiscal 2025 Form 20-F filing to United States securities regulators on March 3, 2026.
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