Before the US market opened on March 3, Swiss sportswear company On Holding AG announced its results for the fourth quarter and full year of 2025. Guided by its clear vision to build the world’s most premium sportswear brand, On reached new heights in scale and profitability in 2025, exceeding its latest expectations across all key metrics.
For the full year, net sales surpassed CHF 3 billion for the first time, rising 30.0% year-on-year to CHF 3.014 billion (up 35.6% at constant currency). In the fourth quarter alone, net sales reached CHF 743.8 million, representing a 22.6% year-on-year increase (up 30.6% at constant currency).
Notably, the Asia-Pacific region, including the Chinese Mainland market, delivered exceptionally strong performance, demonstrating robust demand across markets and channels. Full-year net sales in the region surged 96.4% year-on-year (up 106.7% at constant currency), surpassing the CHF 500 million mark for the first time.
Growing global brand awareness, now approaching 30%, combined with disciplined premium execution during the holiday season, drove strong performance in both the direct-to-consumer (DTC) and wholesale channels.
In terms of profitability, gross margin expanded from 60.6% in the previous year to 62.8%. Adjusted EBITDA increased 46.3% to CHF 567 million, with the adjusted EBITDA margin reaching 18.8%, reflecting structural operating efficiencies and the advantages of its premium positioning.
However, despite strong sales growth, On’s net profit for the full year 2025 declined by 15.9%, falling from CHF 242.3 million in 2024 to CHF 203.7 million. Net profit margin also decreased from 10.4% to 6.8%.
In addition, cash and cash equivalents rose 10.3% year-end to exceed CHF 1 billion.
The company stated that continued execution against its strategic priorities has delivered strong, broad-based growth. In 2025, On achieved several key milestones:
- Retail network expansion: The company expanded its premium brand center network to nearly 70 directly operated retail locations, deepening consumer engagement through a high-impact retail model.
- Full-category evolution: Apparel and accessories together accounted for 7.0% of net sales, up 190 basis points year-on-year, reinforcing On’s evolution into a true head-to-toe, multi-category brand.
- Asia-Pacific breakthrough: Annual net sales in the Asia-Pacific region exceeded CHF 500 million, underscoring strong demand across markets and channels.
David Allemann, Co-Founder and Executive Co-Chairman of On, said, “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. 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 – from scaling breakthrough innovations like LightSpray™ to deepening our cultural resonance and delivering our fullest brand expression from toe-to-head. We are building a brand designed for the future of movement.”
Martin Hoffmann, Co-CEO and CFO of On, added, “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. 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. Our vision is proving itself at a new scale – from the exceptional productivity of our growing retail footprint to the compounding value of our multi-category expansion. This success is a testament to our nearly 4,000 team members who execute with focus and passion every day. We enter 2026 with confidence and conviction, ready to ‘Dream On’ bigger and bolder than ever before.”
Following the earnings release, the company’s share price fell 6.09% from the previous day to USD 43.91 per share, giving it a latest market capitalisation of approximately USD 14.5 billion.
2025 Full-Year Overall Performance:
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Looking ahead to 2026, building on its record performance in 2025, On enters the final year of its three-year strategy with significant momentum. The company expects net sales to grow by at least 23% at constant currency, implying full-year net sales of at least CHF 3.44 billion. This outlook reflects a higher base following the strong fourth-quarter performance and represents a further raising of its targets. In addition, the company expects to maintain strong profitability, with a full-year gross margin of at least 63.0% and an adjusted EBITDA margin in the range of 18.5% to 19.0%.
| Source: On official financial report
| Image Credit: On official website
| Editor: LeZhi
