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 and surpassing CHF 3 billion for the first time, with 36% constant currency growth and record gross profit and adjusted EBITDA margins, exceeding expectations.

• Premium strategy, innovation in product and brand experience, and expansion in retail and digital channels drove strong global demand.

• Apparel business grew 76% at constant currency, with tennis and padel categories showing exceptional momentum.

• Brand awareness reached 30%, resonating strongly with younger consumers and across all regions.

• 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.

• Record gross profit margin of 62.8% and adjusted EBITDA margin of 18.8%, exceeding 2026 targets.

• Gross profit rose 34.7% to CHF 1,893.6 million; adjusted EBITDA increased 46.3% to CHF 567.0 million.

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

• Apparel and accessories now represent 7% of total net sales, up 190 basis points year-over-year.

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%.

• DTC channel expected to outpace wholesale, with apparel growth to meaningfully outpace overall growth.

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