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On: On Holding AG: Strong 2025 Results with Robust Growth Guidance

On Holding AG reported a strong financial performance for 2025, with net sales reaching CHF 3.0 billion, a 36% growth at constant currency. The company's gross profit margin stood at 62.8%, while the adjusted EBITDA margin was 18.8%. Earnings per share (EPS) came in at CHF 0.315, beating analyst estimates of CHF 0.26. The company's Q4 results were also impressive, with net sales growing 30.6% at constant currency to CHF 743.8 million. The direct-to-consumer (D2C) channel continued to drive growth, with sales increasing 30% at constant currency.

ONON

USD 43.91

-6.09%

A-Score: 3.5/10

Publication date: March 3, 2026

Full Report

Author: Analystock.ai

📋 Highlights
  • Revenue Milestone: On crossed CHF 3.0 billion net sales for 2025, a 36% growth at constant currency, driven by premium product innovation and brand strength.
  • Profitability Expansion: Achieved record gross profit margin of 62.8% and adjusted EBITDA margin of 18.8%, with Q4 gross margin hitting 63.9% (up 180 bps YoY).
  • Product Innovation Leadership: R&D team scaled 1,000% in 5 years, introducing breakthroughs like LightSpray (75% less CO2) and Cloud Surfer 3 (15% lighter, 20% softer).
  • Regional and Category Growth: Asia Pacific exceeded CHF 1.0 billion in 2025; apparel grew 75.5% and accessories 135.1% at constant currency, fueled by D2C strategy.

Operational Highlights

The company's operational performance was anchored by its premium positioning, which generated high gross margins. On Holding AG's R&D team has been a key driver of innovation, with the upcoming Cloud Surfer 3 being a notable example. The company's LightSpray technology is also expected to revolutionize manufacturing. As David Allemann mentioned, "Our engineers have made several industry-changing innovation breakthroughs, including the upcoming Cloud Surfer 3, which is 15% lighter, 20% softer, and provides 15% more energy in push-offs."

Growth Guidance and Outlook

On Holding AG expects net sales to grow at least 23% at constant currency in 2026, driven by innovation in footwear and apparel. The company anticipates robust growth across all regions, with a stronger growth rate in its D2C channel. The guidance implies a three-year constant-currency CAGR from 2023 to 2026 of at least 30.5%. Analysts estimate next year's revenue growth at 19.8%, indicating that the company's guidance is slightly above expectations.

Valuation Metrics

On Holding AG's current valuation metrics indicate a premium valuation. The company's P/E Ratio stands at 51.05, P/B Ratio at 7.43, and P/S Ratio at 3.94. The EV/EBITDA ratio is 29.61, indicating a relatively high valuation. However, the company's strong growth prospects and premium positioning may justify the current valuation.

On's A-Score