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On

The most premium sportswear brand, Final year of a three-year plan

Surpassing CHF 3 billion with record profitability validates our vision to build the world’s most premium sportswear brand
David Allemann, co-founder of On, on the 2025 results

The most premium sportswear brand

On’s net sales passed CHF 3 billion in 2025, up 30.0%, at a gross margin of 62.8%, and in the first half of 2026 it earned a gross margin of 64.8%. Its stated vision is to build the world’s most premium sportswear brand. 2026 is the last year of a three-year strategy, and its four priorities are to scale its LightSpray technology, advance the core running franchises, expand apparel, and elevate the brand across every channel, while managing wholesale so as to protect full-price sales.

Scale LightSpray

Pod 1
  1. Beyond elite runningScale LightSpray, its breakthrough manufacturing technology, further in 2026.
  2. More franchisesMove LightSpray from validation at the elite level to commercial deployment across more franchises.
  3. One technologyKeep it as one of the innovations that set On apart for a discerning customer.

LightSpray is now moving from elite validation to commercial deployment across additional franchises.

Gross margin rose 3.9 percentage points to 65.4% in the second quarter of 2026.

On plans breakthrough innovations for 2027.

LightSpray makes a shoe upper in one step

A conventional upper is made in several stages. With LightSpray a robotic arm sprays one continuous filament into a one-piece upper, in a single step, and the upper bonds to the sole without glue. In 2026 it is moving from elite racing shoes into more of On’s core franchises.

  1. Yarn extrusion and finishing
  2. Weaving or knitting
  3. Sewing
  4. Assembling the parts
  5. One step: sprayed

0:00

3 min

to make a shoe at On Labs in Zurich, its upper sprayed in one piece by a robotic arm.

30 g

for the upper of the Cloudboom Strike LS, a 170 g shoe with no laces and no glue.

75%

potential cut in carbon emissions against the same shoe made conventionally, not counting the sole unit, packaging, and use.

The clock runs thirty times faster than the arm.

Asia-Pacific sales more than doubled in 2025

In 2025 On’s Asia-Pacific sales rose 106.7% at constant currency, against 34.7% in EMEA and 23.4% in the Americas, and passed CHF 500 million. In the second quarter of 2026 Asia-Pacific was again more than a fifth of On’s net sales.,

Each lane starts at 0% growth and is drawn to 110%, with the finish tape at 100%. Sales in each lane are for 2025.

Apparel and accessories reached 7.0% of sales in 2025

Shoes are still nearly all of On’s sales. Because apparel and accessories grow several times faster than shoes, they bring in a larger share of each year’s growth than of its sales.

0.0%

of net sales from apparel and accessories

0.0%

of the growth from apparel and accessories

Net salesAdded in the year
2025Of salesOf growthGrowth
Accessories1.3%3.2%+124.1%
Apparel5.6%9.9%+68.2%
Shoes93.0%86.9%+27.5%

Added in the year is each category’s net sales less those of the same period a year before, worked out from its sales and reported growth.

Gross margin rose as sales grew 30%

On’s gross margin rose from 60.6% in 2024 to 64.8% in the first half of 2026, with a higher share sold direct and full-price selling held in a promotional market.,

Other operating costs are gross profit less adjusted EBITDA, worked out. The 2026 guidance is a gross margin of at least 65.0%, drawn at 65.0%, and an adjusted EBITDA margin of 19.5% to 20.0%, drawn at its middle.

45.7%

of net sales came from direct-to-consumer in the second quarter of 2026, a second-quarter high, against about 41.8% in 2025.,

~70

own retail locations at the end of 2025, with first stores in São Paulo and Copenhagen opened since.,

CHF 1.2bn

of cash and equivalents at 30 June 2026, up 18% since the end of 2025.

  1. Put the margin in the growth target.

    On’s net sales grew 30.0% in 2025 and its gross margin rose from 60.6% to 62.8%, then to 64.8% in the first half of 2026, and its guidance sets a floor for the margin beside the growth rate. We recommend a plan that states the margin it will hold with the growth it wants, so that the growth cannot be bought by giving the margin away.

  2. Scale one technology in steps.

    On took LightSpray from validation at the elite level to commercial deployment across further franchises, and it keeps the next breakthroughs for 2027 and manages its wholesale sales until then. We recommend naming a single technology bet and scaling it in stages, each proven before the next, so that a launch is a decision made on evidence.

  3. Widen from the product people already trust.

    Apparel and accessories reached 7.0% of On’s net sales in 2025, up 190 basis points, from a brand known for its shoes, and On reports them on their own lines. We recommend growing into a new category from the one customers already buy, and measuring it separately, so that the new part is seen for what it is before it is asked to carry the whole.

Sources

  1. 1. On Holding AG (2026). On announces fourth quarter and full year results, and the filing of its annual report on Form 20-F for 2025. On press office, Full-year 2025 results. press.on-running.com
  2. 2. On Holding AG (2026). On reports results for the second quarter and six-month period ended June 30, 2026. On press office, 11 August 2026. press.on-running.com
  3. 3. On Holding AG (2024). Swiss sportswear brand On unveils LightSpray: a new high performance upper technology crafted by a revolutionary single step manufacturing process. On press office, 15 July 2024. press.on-running.com

Headwater is not connected with On Holding AG. On, LightSpray, CloudTilt, Cloudmonster, and Cloudsurfer are trade marks of their owners. Updated 29 September 2026.

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