On (ONON) Q4 2025 earnings summary

Executive summary

• Achieved record annual net sales of CHF 3,014.0 million in 2025, up 30% year-over-year, surpassing CHF 3 billion for the first time, with 36% constant currency growth and record gross profit and adjusted EBITDA margins.

• Premium strategy, innovation in product and brand experience, and strong global demand, especially among younger consumers, drove performance.

• Expanded retail footprint to nearly 70-80 locations and significant growth in apparel and accessories, now 7% of total net sales.

• Digital transformation and AI integration enhanced customer engagement and operational efficiency.

• Cash and cash equivalents exceeded CHF 1.0 billion at year-end, supporting continued investment in innovation and retail expansion.

Financial highlights

• Full-year net sales increased by 30% (35.6% constant currency) to CHF 3,014.0 million; Q4 net sales up 22.6% (30.6% constant currency) to CHF 743.8 million.

• Gross profit margin expanded to 62.8% for the year, with Q4 gross margin at a record 63.9%.

• Adjusted EBITDA margin reached 18.8%, exceeding 2026 targets.

• Operating cash flow reached CHF 359.5 million; year-end cash position surpassed CHF 1 billion.

• Net income declined 15.9% to CHF 203.7 million; net income margin fell to 6.8% from 10.4%.

Outlook and guidance

• 2026 net sales expected to grow at least 23% at constant currency, with a reported target of at least CHF 3.44 billion.

• Full-year gross margin guidance of at least 63%, with adjusted EBITDA margin expected between 18.5%-19%.

• Apparel expected to outpace overall growth, with DTC channel outperforming wholesale.

• Three-year constant currency CAGR from 2023 to 2026 projected at 30.5%.