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Jun 30, 2025
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On Q2 2025 Earnings Report
On reported strong results for the second quarter of 2025, driven by record net sales and significant increases in profitability.
Key Takeaways
On delivered another record quarter with net sales increasing by 32.0% year-over-year to CHF 749.2 million, primarily led by strong growth in the Direct-to-Consumer channel. The company also achieved a robust gross profit margin of 61.5% and an adjusted EBITDA margin of 18.2%, reflecting operational excellence and favorable foreign exchange developments. Despite strong revenue and profitability, net income decreased significantly due to foreign exchange losses.
Net sales increased by 32.0% year-over-year to CHF 749.2 million, and by 38.2% on a constant currency basis.
Direct-to-Consumer (DTC) net sales grew by 47.2% to CHF 308.3 million, with DTC share reaching a new second-quarter high of 41.1%.
Gross profit margin improved to 61.5% from 59.9% in the prior year period.
Adjusted EBITDA increased by 50.0% to CHF 136.1 million, with the adjusted EBITDA margin rising to 18.2% from 16.0%.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
On has raised its full-year 2025 guidance for both net sales and profitability, reflecting strong momentum and confidence in the outlook.
Positive Outlook
- Expected net sales growth of at least 31% year-over-year on a constant currency basis (previously at least 28%).
- Reported net sales expected to reach at least CHF 2.91 billion at current spot rates (previously CHF 2.86 billion).
- 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%).
- Strong brand energy and a robust line-up of innovative products across verticals and categories for the second half of 2025.
Challenges Ahead
- The outlook continues to embed prudence given the still uncertain macro outlook.
- Guidance includes additional reciprocal tariffs per the United States Presidential Executive Order issued on July 31, 2025.
- The company does not provide a reconciliation of forward-looking adjusted EBITDA to IFRS net income due to inherent forecasting difficulties.
Revenue & Expenses
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