On Holding AG
NYSE:ONON
On Holding AG
In the heart of the Swiss Alps, On Holding AG crafted a distinct niche in the athletic footwear and apparel industry, blending innovation with a passion for performance. Founded in 2010 by former Swiss Ironman champion Olivier Bernhard and his friends David Allemann and Caspar Coppetti, the company was born out of a desire to create a new kind of running experience. At the core of their business lies the CloudTec® technology, a patented cushioning system designed to soften landings while providing explosive take-offs. This innovation appeals not only to professional athletes but to anyone seeking comfort and style in their active lifestyle. With a keen focus on research and development, On continues to evolve its product lines, venturing beyond footwear into performance apparel, effectively capturing a broader consumer base.
On Holding's business model revolves around a combination of direct-to-consumer sales and a robust wholesale distribution network. This multifaceted approach ensures their presence in major retail chains while maintaining a strong online and flagship store presence. The company’s strategy extends further, leveraging high-profile partnerships and athlete endorsements to bolster its brand prestige and visibility on a global scale. By maintaining control over its supply chain and emphasizing sustainability, On not only optimizes production cost-efficiencies but also aligns with the growing consumer demand for environmentally conscious products. Through this intricate balance of innovation, strategic distribution, and brand management, On Holding AG monetizes its expertise, driving growth and enhancing its competitive edge in the ever-evolving sportswear industry.
In the heart of the Swiss Alps, On Holding AG crafted a distinct niche in the athletic footwear and apparel industry, blending innovation with a passion for performance. Founded in 2010 by former Swiss Ironman champion Olivier Bernhard and his friends David Allemann and Caspar Coppetti, the company was born out of a desire to create a new kind of running experience. At the core of their business lies the CloudTec® technology, a patented cushioning system designed to soften landings while providing explosive take-offs. This innovation appeals not only to professional athletes but to anyone seeking comfort and style in their active lifestyle. With a keen focus on research and development, On continues to evolve its product lines, venturing beyond footwear into performance apparel, effectively capturing a broader consumer base.
On Holding's business model revolves around a combination of direct-to-consumer sales and a robust wholesale distribution network. This multifaceted approach ensures their presence in major retail chains while maintaining a strong online and flagship store presence. The company’s strategy extends further, leveraging high-profile partnerships and athlete endorsements to bolster its brand prestige and visibility on a global scale. By maintaining control over its supply chain and emphasizing sustainability, On not only optimizes production cost-efficiencies but also aligns with the growing consumer demand for environmentally conscious products. Through this intricate balance of innovation, strategic distribution, and brand management, On Holding AG monetizes its expertise, driving growth and enhancing its competitive edge in the ever-evolving sportswear industry.
Revenue milestone: On exceeded CHF 3.0 billion in net sales for 2025, driven by 36% growth at constant currency and broad-based strength across regions and channels.
Q4 beat: Q4 net sales of CHF 743.8 million (+22.6% reported, +30.6% cc) materially outperformed the company's updated November guidance, with D2C and wholesale both strong.
Margins surprise: Record gross profit margin of 62.8% for 2025 and Q4 gross margin of 63.9% (up 180 bps YoY); adjusted EBITDA margin of 18.8% for the year, exceeding prior aspirations.
Premium, innovation-led growth: Management emphasized premium positioning, product innovation (Cloudsurfer 3, LightSpray manufacturing, SuperFoams) and high-price collaborations as the core demand drivers.
Retail & D2C expansion: D2C share rose to 41.8% of sales; 18 new stores in 2025 (67 total), larger flagship formats boosting productivity; Asia Pacific delivered 85.1% cc growth in Q4.
Balance sheet strength: Operating cash flow of CHF 359.5 million in 2025 and year-end cash above CHF 1.0 billion; inventory CHF 419.8 million at year-end.
Raised ambition for 2026: Management guides for at least 23% constant-currency net sales growth (reported target at least CHF 3.44 billion), gross margin ≥63% and adjusted EBITDA margin 18.5%–19%.
Investor questions highlighted: Analysts pressed on LightSpray capacity and commercialization, regional growth pacing (esp. APAC and Americas), and timing of a company meeting/Investor Day.
