On (ONON) Q2 2025 earnings summary

Executive summary

• Net sales reached a record CHF 749.2 million in Q2, up 38.2% year-over-year at constant currency, driven by strong D2C growth and global brand momentum.

• D2C net sales grew 54.3% at constant currency, now 41.1% of total sales.

• Gross profit margin expanded to 61.5%, with adjusted EBITDA margin up 220 bps to 18.2%.

• Net loss of CHF 40.9 million in Q2 due to significant unrealized FX losses, not reflecting operational health.

• The company is executing a three-year strategic plan, investing in innovation and global expansion.

Financial highlights

• Q2 net sales: CHF 749.2 million (+32% reported, +38.2% constant currency); D2C: CHF 308.3 million (+54.3% constant currency); Wholesale: CHF 441 million (+28.8% constant currency).

• Q2 gross profit: CHF 460.8 million (+35.4% y/y); gross margin: 61.5%.

• Adjusted EBITDA was CHF 136.1 million, margin 18.2%, up 220 bps year-over-year.

• Net loss of CHF 40.9 million due to FX impact; cash balance at quarter-end was CHF 846.6 million; inventory at CHF 360.4 million.

• Six-month net sales increased 37.2% to CHF 1,475.8 million, with gross profit margin at 60.7%.

Outlook and guidance

• 2025 net sales guidance raised to at least 31% year-over-year growth at constant currency, reported net sales expected to reach at least CHF 2.91 billion.

• Gross profit margin guidance increased to 60.5%-61% for the year; adjusted EBITDA margin guidance raised to 17%-17.5%.

• Guidance incorporates 20% incremental U.S. tariffs on Vietnam imports, ongoing FX headwinds, and new US executive order tariffs.