On (ONON) Q1 2025 earnings summary

Executive summary

• Net sales reached CHF 726.6 million in Q1 2025, up 43% year-over-year on a reported basis and 40% on a constant currency basis, marking the highest quarterly net sales in company history.

• Direct-to-consumer (D2C) channel grew 45.3% year-over-year, with D2C share rising to 38.1% of total sales; wholesale sales grew 41.5%.

• Gross profit margin increased to 59.9%, and adjusted EBITDA margin rose to 16.5% in Q1.

• Net income fell 38% to CHF 56.7 million, with net income margin at 7.8%.

• Strong brand momentum driven by successful product launches (Cloud 6, Cloudsurfer 2), innovative campaigns, and expansion in apparel.

Financial highlights

• Net sales: CHF 726.6 million (+43% year-over-year); constant currency growth 40%.

• Gross profit: CHF 435.3 million (+43.5% year-over-year); gross margin 59.9%.

• Adjusted EBITDA: CHF 119.9 million (+54.8% year-over-year); margin 16.5%.

• Net income: CHF 56.7 million (-38% year-over-year); net income margin 7.8%.

• Cash and cash equivalents: CHF 871.8 million at quarter-end, down 5.7% from Dec 2024.

Outlook and guidance

• Raised 2025 constant currency growth outlook to at least 28%, with reported net sales projected at a minimum of CHF 2.86 billion.

• Gross profit margin for 2025 expected in the range of 60%-60.5%; adjusted EBITDA margin projected at 16.5%-17.5%.

• Guidance incorporates higher planning uncertainty from global trade policy shifts, tariffs, and currency volatility.