On Holding stock price plummets, 2026 revenue outlook falls short of expectations

Investing.com - On Holding’s stock plummeted over 12% in pre-market trading on Tuesday after the Swiss sportswear manufacturer issued a revenue outlook that fell short of expectations.

The company reported a Q4 2025 earnings per share (EPS) of CHF 0.21, in line with analyst estimates. Revenue rose to CHF 743.8 million, surpassing the market consensus of CHF 727.6 million, representing a 30.6% increase at constant currency.

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Looking at sales channels, direct-to-consumer net sales increased to CHF 360.6 million, up 30.0% at constant currency, while wholesale revenue grew to CHF 383.2 million, up 31.2%.

Regionally, growth remains strong, led by the Asia-Pacific region. Net sales in Europe, the Middle East, and Africa (EMEA), the Americas, and Asia-Pacific increased by 27.5%, 21.3%, and 85.1%, respectively, at constant currency.

Profitability also improved. Adjusted EBITDA grew 31.8% year-over-year from CHF 99.4 million to CHF 131 million, with the adjusted EBITDA margin expanding 120 basis points to 17.6%. Gross margin increased from 62.1% to 63.9%.

However, investor focus is on the company’s forward guidance for 2026. On expects net sales to grow at least 23% year-over-year at constant currency, implying a revenue of at least CHF 3.44 billion at current spot rates, below the market consensus of CHF 3.67 billion.

The company stated that this outlook reflects a higher base after a strong Q4 performance, “thus representing an even greater ambition for the company.”

On forecasts an annual gross margin of at least 63.0% and an adjusted EBITDA margin between 18.5% and 19.0%.

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