On (ONON) Q3 2025 earnings summary

Executive summary

• Net sales for Q3 2025 reached CHF 794.4 million, up 24.9% year over year and 34.5% at constant currency, driven by strong global brand momentum and premium positioning.

• Gross profit margin hit 65.7%, up 510 basis points year over year, with a one-off 200 bps benefit from lower freight and other costs.

• Adjusted EBITDA margin rose to 22.6%, with adjusted EBITDA up 49.8% to CHF 179.9 million.

• Apparel net sales surged 86.9% year over year to CHF 50.1 million, surpassing 1 million units sold in a quarter for the first time.

• Asia Pacific delivered net sales of CHF 144.9 million, up 94.2% year over year, now approaching 20% of total sales.

Financial highlights

• Q3 net sales: CHF 794.4 million (+24.9% y/y), D2C sales up 27.6%, wholesale up 23.3%.

• Q3 gross profit: CHF 522.2 million (+35.5% y/y), gross margin 65.7%.

• Q3 net income: CHF 118.9 million (+289.8% y/y), basic EPS Class A CHF 0.36.

• Operating cash flow was CHF 157.3 million in Q3; cash balance ended at CHF 961.8 million.

• Nine-month net sales: CHF 2,270.2 million (+32.6% y/y), gross profit CHF 1,418.3 million (+37.8% y/y).

Outlook and guidance

• Raised 2025 guidance: constant currency net sales growth of 34% year over year, reported net sales expected at CHF 2.98 billion.

• Gross profit margin guidance increased to around 62.5% for 2025.

• Adjusted EBITDA margin now expected above 18% for 2025.

• Three-year constant currency CAGR (2023-2026) updated to at least 30%, implying at least 23% growth in 2026.

• Confident in exceeding 2026 gross profit margin targets despite tariffs.