Key Highlights
ONON stock plummets 14.20% in pre-market trading following a 3% gain in the previous session
Second-quarter revenue for On Holding increases 13.5% with gross margin widening to 65.4%
Direct-to-consumer channel delivers 26% sales growth, bolstering premium positioning
Asia-Pacific region posts remarkable 43.1% revenue increase alongside apparel category expansion
Full-year EBITDA margin forecast maintained at 19.5% to 20% range for fiscal 2026
On Holding (ONON) stock finished trading at $38.78, registering a 3% increase, following the release of quarterly earnings that demonstrated improved sales, enhanced profitability, and expanded margins. However, ONON shares experienced a sharp reversal in pre-market hours, declining 14.20% to $33.30, erasing the previous session’s gains. The performance footwear and sportswear brand delivered revenue growth across all geographic segments, with direct-to-consumer operations and improved margin performance driving quarterly results.
Regional and Channel Performance Drives Q2 Revenue Expansion
On Holding disclosed second-quarter net sales totaling CHF 850.3 million, marking a 13.5% year-over-year advancement. When measured on a constant-currency basis, quarterly revenue expanded 21.6%, reflecting robust fundamental growth offset by adverse currency translation impacts during the reporting period. The direct-to-consumer segment generated CHF 388.4 million in revenue, climbing 26%, while wholesale operations contributed CHF 461.9 million, up 4.8% in Q2 2026.
The EMEA region posted sales of CHF 228.2 million, reflecting a 15.4% increase as demand remained solid throughout key European territories during the second quarter. The Americas segment generated CHF 451.6 million in revenue, advancing 4.5%, while the Asia-Pacific region delivered exceptional growth with sales surging 43.1% to CHF 170.5 million in Q2. On a constant-currency basis, growth measured 20.5% in EMEA, 13% across the Americas, and an impressive 54.7% throughout Asia-Pacific territories.
Footwear continues to represent On Holding’s core business segment, with quarterly revenue climbing 10.9% to CHF 781.6 million compared to the prior-year Q2 period. The apparel category experienced accelerated growth of 47.7%, reaching CHF 54.2 million, while accessories revenue nearly doubled with an 88.3% surge to CHF 14.5 million during the quarter. These category expansions diversified the company’s product portfolio beyond traditional footwear and reinforced its ambition to establish a comprehensive premium athletic lifestyle brand.
Profitability Metrics Strengthen with 65.4% Gross Margin Achievement
Gross profit advanced 20.6% to CHF 555.7 million, accompanied by gross margin expansion to 65.4% from the prior year’s 61.5%. The company reported net income of CHF 105 million, a dramatic turnaround from the CHF 40.9 million loss recorded in the comparable quarter of the previous year. Adjusted EBITDA grew 23.5% to CHF 168.1 million, with the adjusted EBITDA margin improving to 19.8% compared to 18.2% in Q2 of the prior year.
Examining the first-half performance, net sales increased 14% to CHF 1.68 billion relative to the corresponding 2025 period. On a constant-currency basis, six-month sales expanded 24%, while adjusted EBITDA jumped 33.7% to CHF 342.3 million throughout the half-year period. First-half net income totaled CHF 208.3 million, representing substantial improvement from the CHF 15.8 million reported during the first six months of 2025.
On Holding concluded the quarter with CHF 1.21 billion in cash reserves, representing an 18% increase from year-end 2025 levels. Company leadership projects full-year constant-currency sales growth in the low-20% range and elevated gross margin guidance to a minimum of 65%. The adjusted EBITDA margin outlook was reaffirmed between 19.5% and 20%, underscoring management’s commitment to balancing premium positioning with operational efficiency and sustained profitability expansion.
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