Key Highlights
- Annual revenue reached CHF 3.0 billion, marking 30% year-over-year growth and 35.6% in constant currency
- Full-year gross margin reached an all-time high of 62.8%; fourth quarter margin climbed to 63.9%
- Both quarterly and annual net income plus EPS decreased due to increased reinvestment spending
- Asia-Pacific region sales surged nearly 100%; apparel and accessories outpaced footwear growth
- William Blair maintains Outperform stance, identifying currency fluctuations as primary short-term concern
On Holding AG achieved a significant milestone by surpassing CHF 3 billion in annual revenue for fiscal 2025, reporting net sales of CHF 3.0 billion — representing a 30% increase compared to the previous year. When adjusted for currency fluctuations, the growth rate accelerated to an impressive 35.6%.
This achievement underscores the Swiss athletic footwear and apparel company’s expanding presence across multiple geographic markets and product lines, although shares tumbled 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 company delivered adjusted earnings per share of 25 rappen for the period, exceeding analyst consensus of 20 rappen — though representing a decline from the 36 rappen recorded in the same quarter last year.
Both the company’s direct sales channels and wholesale distribution networks delivered robust double-digit expansion during the fourth quarter. The firm closed the fiscal year with cash reserves exceeding CHF 1.0 billion.
Margin performance reached unprecedented levels, with fourth-quarter gross margin hitting 63.9% and the full-year figure expanding to 62.8%. The adjusted EBITDA margin for fiscal 2025 stood at 18.8%.
However, despite these impressive profitability metrics, both reported and adjusted net income along with earnings per share contracted for the quarter and full year. Management attributed this decline primarily to elevated reinvestment expenditures.
Geographic and Product Performance
The Asia-Pacific region emerged as the clear winner, with revenue nearly doubling compared to the prior year. Company leadership highlighted the exceptional momentum in this territory as a critical catalyst for continued expansion through 2026.
The apparel and accessories segment demonstrated stronger growth than the company’s traditional footwear business, now accounting for 7% of total revenue. On Holding currently operates approximately 70 company-owned retail locations worldwide.
Forward Outlook and Wall Street Response
The company’s fiscal 2026 revenue forecast fell short of market expectations. Management indicated that foreign exchange volatility is anticipated to create a headwind of approximately nine percentage points against growth projections.
The EBITDA margin forecast for the upcoming fiscal year aligned with analyst expectations.
Following the earnings release, William Blair reaffirmed its Outperform rating, observing that shares were trading at roughly 10 times their preliminary 2027 adjusted EBITDA estimate during premarket activity. The investment firm noted that current guidance suggests 14% growth for a stock being valued for 20%-plus expansion.
The analyst firm pinpointed foreign exchange volatility as the most significant near-term risk factor for shareholders, connected to ongoing policy efforts to strengthen the U.S. dollar. William Blair suggested this dynamic could compress the company’s valuation multiple relative to its fundamental business performance.
Nevertheless, William Blair continues to feature ONON among its preferred investment ideas, viewing the current weakness as an attractive entry point for long-term investors.
The consensus 12-month price target among Wall Street analysts stands at $60.00, representing approximately 22% upside from the most recent closing price of $46.76. Current analyst sentiment includes 25 buy or strong buy recommendations, 3 hold ratings, and 1 sell rating.
On Holding submitted its fiscal 2025 Form 20-F filing to U.S. regulatory authorities on March 3, 2026.
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