On Holding Earnings Lift Full-Year Guidance
On Holding earnings reported record Q3 results on Nov. 12, 2025 and a third FY2025 guidance raise that spurred investor demand and a sharp share rally.
KEY TAKEAWAYS
- On Holding raised FY2025 guidance for the third time, implying 34% year-over-year constant-currency net-sales growth.
- Record Q3 margins: gross margin 65.7%, up 510 basis points including a 200-bp one-off freight benefit.
- Adjusted EBITDA margin rose to 22.6% and net income margin expanded to 15.0%.
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On Holding AG (ONON) reported record third-quarter results on Nov. 12, 2025, prompting a third consecutive upgrade to full-year guidance as management cited broad global demand and favorable cost trends.
Q3 2025 Results, Channels, and Regional Growth
On Holding posted Q3 net sales of CHF 794.4 million, up 24.9% year-over-year and 34.5% on a constant-currency basis. Gross profit rose 35.5% to CHF 522.2 million, with gross margin expanding 510 basis points to 65.7%, including a one-off 200-basis-point benefit from lower freight and other costs.
Profitability improved sharply. Net income climbed 289.8% to CHF 118.9 million, lifting the net income margin to 15.0% from 4.8% a year earlier. Adjusted EBITDA increased 49.8% to CHF 179.9 million, driving an adjusted EBITDA margin of 22.6%. Basic and diluted earnings per Class A share were CHF 0.36, with adjusted EPS at CHF 0.43.
Direct-to-consumer sales grew 27.6% year-over-year to CHF 314.7 million, while wholesale revenue rose 23.3% to CHF 479.6 million. Apparel net sales more than doubled, increasing 100.2% on a constant-currency basis. By region, EMEA expanded 28.6%, the Americas 10.3%, and APAC surged 94.2%.
On Holding ended the quarter with CHF 961.8 million in cash and cash equivalents and net working capital of CHF 565.8 million as of Sept. 30, 2025.
Full-Year Guidance and Drivers
The company raised its FY2025 net sales target to CHF 2.98 billion at current spot rates, implying 34% year-over-year growth on a constant-currency basis, up from a prior target of CHF 2.91 billion. Management expects a full-year gross profit margin near 62.5% and an adjusted EBITDA margin above 18.0%.
In its press release, On Holding attributed the upgraded guidance to sustained global demand for premium footwear and apparel, strong brand positioning, favorable unit-cost trends, and sustainable structural efficiencies. The company stated, "On raises its full-year 2025 guidance across all key metrics."
