On Holding (ONON) Q4 2025 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Tue, March 3, 2026 astatine 8:53 AM CST 39 min read

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Tuesday, March 3, 2026 astatine 8 a.m. ET

• Co-Founder — David Allemann

• Chief Executive Officer — Martin Hoffmann

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David Allemann: Good morning, everyone, and a precise lukewarm invited from Knoe—this time, not to itself, but the New York Stock Exchange. Standing present ever brings maine backmost to the time wherever we rang the doorbell for our IPO astir 5 years ago. That infinitesimal was ne'er conscionable astir becoming a nationalist company; it was astir sharing a imagination that the marque built connected innovation and plan and quality vigor could turn into the astir premium planetary sportswear brand. Looking astatine wherever we are today, I consciousness some arrogant and profoundly grateful to the planetary communities who take to determination with america each day. At the opening of 2025, we acceptable ambitious expectations for strong, profitable growth.

What followed went good beyond them. Demand for our marque accelerated faster than we had planned, and for the archetypal time, sports marque On cleared the CHF 3.0 cardinal gross hurdle successful 2025. Sales grew 36% astatine changeless currency; we delivered our highest ever gross nett and adjusted EBITDA margins. For me, this outperformance is profoundly meaningful due to the fact that it shows our premium strategy is working, and our elevated connection is resonating with consumers adjacent stronger than anticipated. In fact, we spot an acceleration successful cardinal areas. Let maine zoom out, arsenic this acceleration happens connected the backdrop of a profound societal shift. The accepted leisure people is giving mode to the question class.

Old signifiers of bells, sedentary comfort, and overconsumption are being replaced by tendency for vitality. You spot this displacement successful the declining income of self-indulgent categories. Today, presumption is an concern successful the self. Health is the caller wealth; longevity is the eventual luxury. For this caller ageless athlete, sportswear has shifted from inferior to identity, capturing a monolithic stock of their beingness and their spending power. The accepted volume-driven sportswear exemplary is simply not built to headdress this discerning consumer. This societal displacement has blown the marketplace wide unfastened for caller generational premium brands similar On. So we person to ask, what does the question people request from us? We spot 3 defining answers driving our acceleration.

First, relentless show innovation. We bash not conscionable speech astir innovation; we technologist it. In the past 5 years, we scaled our R&D squad by 1,000%. Today, implicit 400 experts—sports scientists, robotic specialists, and AI engineers—operate retired of our Zurich labs. It is each astir show and consciousness for the question class. In 2025, our engineers person made respective industry-changing innovation breakthroughs. On Labs successful Zurich is location to the lone precocious foam competence halfway extracurricular of Asia, and acknowledgment to this competitory advantage, we are the archetypal marque capable to harvester structural engineering with ace foams. The contiguous effect is the upcoming Cloud Surfer 3, which is 15% lighter, 20% softer, and provides 15% much vigor successful push-offs.