Revenue growth remains strong at 13.5% YoY in 2026Q2, with gross margin expanding to 65.4% from 61.5% a year ago, while operating margin improved to 14.0% from 12.4%, reflecting effective cost control and operating leverage.
On Holding AG (ONON) annual income statement — 7-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 |
|---|
| Sales/Revenue | 3.24B | 3.01B | 2.32B | 1.79B | 1.22B | 724.6M | 425.3M | 267.12M |
| Revenue Growth % | 19.16% | 30.01% | 29.36% | 46.64% | 68.66% | 70.37% | 59.22% | - |
| Cost of Goods Sold | 1.14B | 1.12B | 912.6M | 724.8M | 537.2M | 294.3M | 194.2M | 124M |
| COGS % of Revenue | - | 37.17% | 39.37% | 40.44% | 43.96% | 40.62% | 45.66% | 46.42% |
| Gross Profit | 2.1B | 1.89B | 1.41B | 1.07B | 684.9M | 430.3M | 231.1M | 143.12M |
| Gross Margin % | 64.82% | 62.83% | 60.63% | 59.56% | 56.04% | 59.38% | 54.34% | 53.58% |
| Gross Profit Growth % | - | 34.71% | 31.71% | 55.83% | 59.17% | 86.2% | 61.48% | - |
| Operating Expenses | 1.65B | 1.52B | 1.19B | 887.1M | 599.8M | 571.4M | 248.2M | 137.43M |
| OpEx % of Revenue | - | 50.32% | 51.51% | 49.5% | 49.08% | 78.86% | 58.36% | 51.45% |
| Selling, General & Admin | 1.65B | 1.52B | 1.19B | 855.2M | 599.8M | 571.4M | 248.2M | 137.43M |
| SG&A % of Revenue | - | 50.32% | 51.51% | 47.72% | 49.08% | 78.86% | 58.36% | 51.45% |
| Research & Development | 0 | 0 | 0 | 8.9M | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | 0.5% | - | - | - | - |
| Other Operating Expenses | 200K | 100K | -100K | 23M | 0 | 0 | 0 | 0 |
| Operating Income | 446.62M | 377M | 211.6M | 180.2M | 85.1M | -141.1M | -17.1M | 5.69M |
| Operating Margin % | 13.79% | 12.51% | 9.13% | 10.06% | 6.96% | -19.47% | -4.02% | 2.13% |
| Operating Income Growth % | - | 78.17% | 17.43% | 111.75% | 160.31% | -725.15% | -400.58% | - |
| EBITDA | 586.21M | 504.4M | 316.2M | 245.1M | 131.5M | -109.7M | -5M | 11.03M |
| EBITDA Margin % | 18.1% | 16.74% | 13.64% | 13.68% | 10.76% | -15.14% | -1.18% | 4.13% |
| EBITDA Growth % | 42.18% | 59.52% | 29.01% | 86.39% | 219.87% | -2094% | -145.33% | - |
| D&A (Non-Cash Add-back) | 139.59M | 127.4M | 104.6M | 64.9M | 46.4M | 31.4M | 12.1M | 5.34M |
| EBIT | 442.87M | 227.1M | 295.4M | 179.8M | 82.2M | -157.2M | -24.1M | 3.27M |
| Net Interest Income | 9.88M | 9M | 412.3K | 190.38K | -677.51K | -3.54M | -852.3K | -629.64K |
| Interest Income | 34.56M | 30.9M | 24.22M | 10.95M | 5.52M | 0 | 0 | 0 |
| Interest Expense | 24.68M | 21.9M | 23.81M | 10.76M | 6.19M | 3.54M | 852.3K | 629.64K |
| Other Income/Expense | -13.63M | -171.8M | 68M | -111.1M | -7.2M | -18.5M | -7.3M | -2.54M |
| Pretax Income | 432.99M | 205.2M | 279.6M | 69.1M | 77.9M | -159.6M | -24.4M | 3.15M |
| Pretax Margin % | 13.37% | 6.81% | 12.06% | 3.86% | 6.37% | -22.03% | -5.74% | 1.18% |
| Income Tax | 34.39M | 1.5M | 37.4M | -10.5M | 20.2M | 10.6M | 3.1M | 4.62M |
| Effective Tax Rate % | 7.94% | 0.73% | 13.38% | -15.2% | 25.93% | -6.64% | -12.7% | 146.81% |
| Net Income | 398.6M | 203.7M | 242.3M | 79.6M | 57.7M | -170.2M | -27.5M | -1.47M |
| Net Margin % | 12.31% | 6.76% | 10.45% | 4.44% | 4.72% | -23.49% | -6.47% | -0.55% |
| Net Income Growth % | 193.31% | -15.93% | 204.4% | 37.95% | 133.9% | -518.91% | -1766.94% | - |
| Net Income (Continuing) | 398.6M | 203.7M | 242.2M | 79.6M | 57.7M | -170.2M | -27.5M | -1.47M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 1.19 | 0.61 | 0.71 | 0.25 | 0.18 | -0.55 | -0.09 | -0.00 |
| EPS Growth % | 197.5% | -14.08% | 184% | 38.89% | 132.73% | -511.79% | - | - |
| EPS (Basic) | - | 0.62 | 0.71 | 0.25 | 0.18 | -0.55 | -0.09 | -0.00 |
| Diluted Shares Outstanding | 335.88M | 333.86M | 338.89M | 323.26M | 319.78M | 311.41M | 305.73M | 305.73M |
| Basic Shares Outstanding | 333.96M | 329.5M | 338.89M | 323.26M | 316.74M | 311.41M | 305.73M | 305.73M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying ONON stock.
For fiscal year 2025, On Holding AG (ONON) reported total revenue of $3.01B. This represents a 1028.3% increase compared to $267.1M in 2019.
On Holding AG (ONON) is profitable, generating $203.7M in net income for the fiscal year ending 2025 with a net profit margin of 6.8%.
On Holding AG (ONON) reported an operating income of $377.0M, resulting in an operating profit margin of 12.5%. This margin reflects the operational efficiency of the business before interest and taxes.
On Holding AG (ONON) generated $1.89B in gross profit for the year, representing a gross profit margin of 62.8%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Inventory build-up and guidance omission
Revenue Growth Momentum Persists
ONON's revenue grew 13.5% YoY in 2026Q2, decelerating from 32% in 2025Q2 but still robust; according to recent financial statements, growth remains double-digit despite macro headwinds.
The 13.5% growth in 2026Q2 marks a slowdown from the 32% pace a year earlier, yet the absolute revenue level of $850M is nearly flat sequentially, suggesting stabilization. The deceleration appears driven by tougher comparables and potential market saturation in North America, which accounts for over 60% of sales. Investors should monitor whether growth can sustain above 15% as the brand expands into new categories and geographies.
Gross Margin Expansion Defies Cost Pressures
Gross margin reached 65.4% in 2026Q2, up from 61.5% a year ago, as reported in the latest quarterly data; this expansion suggests pricing power and DTC mix gains.
The 390 basis point year-over-year improvement in gross margin indicates that ONON is successfully maintaining full-price selling despite rising input costs. This likely reflects a higher direct-to-consumer mix and disciplined inventory management, as evidenced by stable margins despite increasing inventory levels. However, the sustainability of this margin is contingent on avoiding promotional activity, which would erode the premium positioning.
Operating Leverage Drives Margin Expansion
Operating margin improved to 14.0% in 2026Q2 from 12.4% in 2025Q2, as SG&A grew slower than revenue; based on reported figures, this indicates effective cost control.
SG&A increased roughly 18% year-over-year while revenue grew 13.5%, yet operating margin still expanded, implying that fixed cost absorption is improving. The company's investment in retail stores and marketing is scaling efficiently, but the recent acceleration in owned retail expansion could pressure this leverage if same-store sales falter. The absence of R&D expenses in the data suggests that product development costs are embedded in SG&A, warranting scrutiny of that line item.
Earnings Volatility Masks Underlying Strength
Net income swung from a loss of $40.9M in 2025Q2 to a profit of $105.0M in 2026Q2, with EPS at $0.31; this volatility appears driven by non-operating items.
The 2025Q2 net loss of $40.9M despite positive operating income of $92.8M suggests a significant one-time charge or tax anomaly, likely related to foreign exchange or a deferred tax valuation allowance. In contrast, 2026Q2 net income of $105.0M is higher than operating income of $119.4M, implying a tax benefit or other non-operating gains. Investors should adjust for these items to assess normalized earnings power, as the reported EPS of $0.31 may not be sustainable.
SG&A Dominates Cost Structure
SG&A expenses of $436.3M in 2026Q2 represent 51% of revenue, the largest cost line, as per the income statement; this reflects heavy investment in marketing and retail.
SG&A has grown consistently, from $264.8M in 2024Q1 to $436.3M in 2026Q2, outpacing revenue growth in absolute terms. This is typical for a scaling brand, but the efficiency of this spend is critical; the operating margin of 14% suggests that the investment is yielding returns. However, if the brand's marketing spend loses effectiveness or retail expansion underperforms, SG&A could become a drag on profitability.
2025Q2 Loss Marks Turning Point
The $40.9M net loss in 2025Q2 was a clear inflection, followed by a rebound to $118.9M net income in 2025Q3; this volatility highlights the impact of non-operating items.
The 2025Q2 loss appears to be an anomaly, as operating income was positive and subsequent quarters showed strong profitability. This suggests that the loss was driven by a one-time event, possibly a tax charge or FX loss, rather than operational deterioration. The recovery to a 15% net margin in 2025Q3 indicates that the underlying business remains healthy, but the earnings volatility warrants caution when forecasting future EPS.
Inventory Buildup Threatens Margin Stability
Rising inventory levels relative to sales, combined with skipped guidance in the latest quarter, may signal demand softening; as reported, gross margin remains stable, but risks loom.
The company's inventory levels have increased, and management's decision to omit formal guidance in the 2026Q2 report could indicate uncertainty about future demand. If sell-through slows, ONON may be forced to offer promotions, which would compress the 65% gross margin. Additionally, the heavy concentration in North America and reliance on a single manufacturing region (Vietnam) expose the company to geopolitical and trade risks that could disrupt supply or raise costs.