On Reports Results for the Second Quarter and Six-Month Period Ended June 30, 2025

On Holding AG (NYSE: ONON) (“On,” “On Holding AG,” the “Company,” “we,” “our,” “ours,” or “us”), has announced its financial results for the second quarter and six-month period ended June 30, 2025.

David Allemann, Co-Founder and Executive Co-Chairman of On, said: “Our Q2 results leave no doubt: On is playing the long game. We achieved a remarkable 38.2% net sales growth on a constant currency basis, not by chasing trends, but by building a resilient brand for decades ahead. This quarter proves our strategy is working – from our diversified portfolio of iconic footwear franchises to our stellar growth in apparel and our global brand footprint. The future of On is taking shape right now, and the most exciting chapters are ahead of us.”

Martin Hoffmann, CEO and CFO of On, said: “We’re one and a half years into our three-year strategic plan, and the results of our consistent execution and unwavering focus are clearly visible in the outstanding numbers we report today. Our premium positioning is coming to life across every consumer touchpoint, with product innovation, storytelling and distribution all working together to elevate the brand further. We’re also incredibly encouraged by the strong engagement and enthusiasm we’re seeing from our retail partners, whose support adds to the momentum behind the brand. Our performance gives us strong conviction in the impact of our strategy and the opportunities ahead to build an even more distinctive and desirable global brand.”

Key Financial and Operating Metrics

Key financial and operating metrics for the three-month period ended June 30, 2025 compared to the three-month period ended June 30, 2024 include:

net sales increased by 32.0% to CHF 749.2 million, or by 38.2% on a constant currency basis;
net sales through the direct-to-consumer (“DTC”) sales channel increased by 47.2% to CHF 308.3 million, or by 54.3% on a constant currency basis;
net sales through the wholesale sales channel increased by 23.1% to CHF 441.0 million, or by 28.8% on a constant currency basis;
net sales in Europe, Middle East and Africa (“EMEA”), Americas and Asia-Pacific increased by 42.9% to CHF 197.8 million, 16.8% to CHF 432.3 million and 101.3% to CHF 119.2 million, respectively;
net sales in EMEA, Americas, and Asia-Pacific increased by 46.1%, 23.6% and 110.9% on a constant currency basis, respectively;
net sales from shoes, apparel and accessories increased by 29.9% to CHF 704.9 million, 67.5% to 36.7 million and 133.3% to 7.7 million, respectively;
net sales from shoes, apparel and accessories increased by 36.0%, 75.5%, 143.2% on a constant currency basis, respectively;
gross profit increased by 35.4% to CHF 460.8 million from CHF 340.2 million;
gross profit margin increased to 61.5% from 59.9%;
net income / (loss) decreased by 232.7% to CHF (40.9) million from CHF 30.8 million;
net income margin decreased to (5.5)% from 5.4%;
basic earnings per share (“EPS”) Class A (CHF) decreased to (0.12) from 0.10;
diluted EPS Class A (CHF) decreased to (0.12) from 0.09;
adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”) increased by 50.0% to CHF 136.1 million from CHF 90.8 million;
adjusted EBITDA margin increased to 18.2% from 16.0%;
adjusted net income decreased to CHF (29.7) million from CHF 46.9 million;
adjusted basic EPS Class A (CHF) decreased to (0.09) from 0.15; and
adjusted diluted EPS Class A (CHF) decreased to (0.09) from 0.14.

Key financial and operating metrics for the six-month period ended June 30, 2025 compared to the six-month period ended June 30, 2024 include:

net sales increased by 37.2% to CHF 1,475.8 million; or by 39.1% on a constant currency basis;
net sales through the DTC sales channel increased by 46.3% to CHF 585.2 million, or by 48.6% on a constant currency basis;
net sales through the wholesale sales channel increased by 31.8% to CHF 890.6 million, or by 33.4% on constant currency basis;
net sales in EMEA, Americas and Asia-Pacific increased by 38.5% to CHF 366.4 million, 24.3% to CHF 869.7 million and 114.8% to CHF 239.7 million, respectively;
net sales in EMEA, Americas, and Asia-Pacific increased by 39.8%, 25.9% and 119.4% on a constant currency basis, respectively;
net sales from shoes, apparel and accessories increased by 34.9% to CHF 1,385.8 million, 79.6% to CHF 74.8 million and 114.1% to CHF 15.2 million, respectively;
net sales from shoes, apparel and accessories increased by 36.7%, 82.8%, 118.5% on a constant currency basis, respectively;
gross profit increased by 39.2% to CHF 896.1 million from CHF 643.6 million;
gross profit margin increased to 60.7% from 59.8%;
net income decreased by 87.1% to CHF 15.8 million from CHF 122.2 million;
net income margin decreased to 1.1% from 11.4%;
basic EPS Class A (CHF) decreased to 0.05 from 0.38;
diluted EPS Class A (CHF) decreased to 0.05 from 0.37;
adjusted EBITDA increased by 52.2% to CHF 256.1 million from CHF 168.2 million;
adjusted EBITDA margin increased to 17.4% from 15.6%;
adjusted net income decreased to CHF 40.9 million from CHF 153.4 million;
adjusted basic EPS Class A (CHF) decreased to 0.12 from 0.48; and
adjusted diluted EPS Class A (CHF) decreased to 0.12 from 0.47.

Key financial and operating metrics as of June 30, 2025 compared to December 31, 2024 included:

cash and cash equivalents decreased by 8% to CHF 846.6 million from CHF 924.3 million; and
net working capital increased by 6.9% to CHF 533.4 million from CHF 498.9 million.

Adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted basic EPS, adjusted diluted EPS, net working capital and net sales on a constant currency basis are non-IFRS measures used by us to evaluate our performance. Furthermore, we believe these non-IFRS measures enhance investors’ understanding of our financial and operating performance from period to period because they enhance the comparability of results between each period, help identify trends in operating results and provide additional insight and transparency on how management evaluates the business. Adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted basic EPS, adjusted diluted EPS, net working capital and net sales on a constant currency basis should not be considered in isolation or as a substitute for other financial measures calculated and presented in accordance with IFRS. For a detailed description and a reconciliation to the nearest IFRS measure, see the section titled “Non-IFRS Measures.”

Outlook

On delivered exceptional first-half 2025 results, reflecting the brand’s continued global momentum and consistent progress on its strategic focuses. Following a standout second quarter, ongoing momentum and strong order books, On enters the second half of 2025 with remarkable brand energy, underpinned by a strong line-up of innovative and exciting products across verticals and categories. Given its strong recent performance and resulting increased confidence in the outlook, On is raising its full-year guidance on all line items.

Net sales: Expected to be up at least 31% year-over-year on a constant currency basis (previously up at least 28%) At current spot rates, this corresponds to reported net sales of at least CHF 2.91 billion (previously CHF 2.86 billion). This outlook continues to embed prudence given the still uncertain macro outlook.
Gross profit margin: Expected to be in the range of 60.5-61.0% (previously 60.0-60.5%).
Adjusted EBITDA margin: Expected to be in the range of 17.0-17.5% (previously 16.5-17.5%).

The above guidance includes additional reciprocal tariffs per the United States Presidential Executive Order issued on July 31, 2025.

Other than with respect to IFRS net sales and gross profit margin, On only provides guidance on a non-IFRS basis. The Company does not provide a reconciliation of forward-looking adjusted EBITDA to IFRS net income due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation. As a result, we are not able to forecast with reasonable certainty all deductions needed in order to provide a reconciliation to net income. The above outlook is based on current market conditions and reflects the Company’s current and preliminary estimates of market and operating conditions and customer demand, which are all subject to change. Actual results and the timing of events could differ materially from those anticipated in these forward-looking statements as a result of risks and uncertainties, including those stated below and in our filings with the U.S. Securities and Exchange Commission (the “SEC”).

Check out the On RIA Foundation Member profile here .