On Holding (NYSE: ONON) posts double-digit H1 2026 growth and higher profits
On Holding AG reports strong growth and profitability for the three and six months ended June 30, 2026. Net sales rose 13.5% in the quarter to CHF 850.3 million and 14.0% year‑to‑date to CHF 1,682.2 million, with constant‑currency growth of 21.6% and 24.0%, respectively.
Quarterly gross profit increased to CHF 555.7 million with margin expanding to 65.4% from 61.5%, helped by operational efficiencies, a higher direct‑to‑consumer mix, and favorable FX. Net income swung to a CHF 105.0 million profit from a CHF 40.9 million loss; six‑month net income climbed to CHF 208.3 million with margin of 12.4%.
Direct‑to‑consumer sales grew faster than wholesale, reaching 45.7% of Q2 net sales. Asia‑Pacific led regional performance with Q2 net sales up 43.1%. Cash and cash equivalents increased to CHF 1,205.6 million, the company has no drawings under its CHF 700 million credit facility, and remains in covenant compliance while investing in retail expansion and warehouse capacity.
Positive
- Strong top-line growth: Net sales rose 13.5% in Q2 to CHF 850.3 million and 14.0% year‑to‑date to CHF 1,682.2 million, with constant‑currency growth of 21.6% and 24.0%, respectively.
- Margin and earnings expansion: Gross margin improved to 65.4% in Q2 and 64.8% year‑to‑date, while net income reached CHF 105.0 million in Q2 and CHF 208.3 million year‑to‑date.
- DTC and APAC momentum: Direct‑to‑consumer Q2 sales grew 26.0% (34.3% constant currency) and Asia‑Pacific net sales grew 43.1% in Q2 and 43.7% year‑to‑date.
- Robust cash position, no debt usage: Cash and cash equivalents increased to CHF 1,205.6 million with no amounts drawn on the CHF 700 million multicurrency credit facility.
- Improved FX impact: Foreign exchange moved from a loss of CHF 139.9 million in Q2 2025 to a gain of CHF 3.3 million in Q2 2026, supporting net financial result.
- Upcoming tariff refund benefit: As of August 11, 2026, the company had received approximately CHF 27.9 million in IEEPA tariff refunds to be recognized in Q3 2026.
Negative
- None.
Filing Explained
The company has CHF 230.3 million of future lease commitments, award-related dilution mechanics, and CHF 27.9 million of refunds to recognize in the third quarter.
This Form 6-K, an interim report used by a foreign private issuer to furnish material home-market information, provides unaudited financial statements for the six months ended
It reports
The capital table reports
It also reports incentive-plan awards with dilutive effects of
During the six months, On sold
The filing states that approximately
The named follow-up items are the third-quarter accounting and the planned full operation of the Belgium warehouse by the end of the third quarter of 2026, against
Key Figures
Q2 2026 Net Sales: CHF 850.3 million
H1 2026 Net Sales: CHF 1,682.2 million
H1 2026 Net Income: CHF 208.3 million
+5 more
8 metrics
Q2 2026 Net Sales
CHF 850.3 million
Three-month period ended June 30, 2026 net sales
H1 2026 Net Sales
CHF 1,682.2 million
Six-month period ended June 30, 2026 net sales
H1 2026 Net Income
CHF 208.3 million
Six-month period ended June 30, 2026 net income
Q2 2026 Gross Profit Margin
65.4%
Three-month period ended June 30, 2026 gross profit margin
H1 2026 Adjusted EBITDA
CHF 342.3 million
Six-month period ended June 30, 2026 adjusted EBITDA
Cash and Cash Equivalents
CHF 1,205.6 million
Balance as of June 30, 2026
Undrawn Credit Facility
CHF 700 million
Multicurrency credit facility size with no amounts drawn as of June 30, 2026
IEEPA Tariffs Paid
CHF 55.6 million
Total IEEPA tariffs paid as of June 30, 2026
Key Terms
Adjusted EBITDA, net working capital, International Accounting Standard 34, functional currency, +2 more
6 terms
Adjusted EBITDA financial
"adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") increased by 23.5%"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
net working capital financial
"net working capital increased by 11.5% to CHF 635.9 million from CHF 570.3 million"
Net working capital is the amount left when you subtract a company’s short-term bills (like accounts payable and short-term loans) from its short-term assets (cash, money owed to it, and inventory). Think of it as the cash cushion a business has to keep daily operations running — a bigger cushion means fewer short-term funding worries, while a small or negative number can signal pressure to raise cash or cut activity, which matters to investors assessing stability and short-term risk.
International Accounting Standard 34 regulatory
"prepared in accordance with International Accounting Standard 34, “Interim Financial Reporting”"
An international accounting standard that sets rules for companies to publish clear, comparable financial reports between full annual accounts, like taking reliable snapshots of a business’s finances each quarter or half-year. For investors it matters because these standardized interim reports help spot trends, assess short-term risks or progress, and reduce surprises by ensuring consistent, timely information you can compare across companies.
functional currency financial
"have changed their functional currency from the Swiss Franc (CHF) to the U.S Dollar (USD)"
The functional currency is the single currency a company uses as its primary money for recording business transactions and preparing financial statements — think of it as the company's "home" currency or the money it budgets and measures performance in. It matters to investors because currency choices determine how foreign sales, costs and exchange-rate swings translate into reported revenue, profit and debt, affecting comparisons, risk assessments and valuation.
International Emergency Economic Powers Act regulatory
"invalidated specific tariffs levied under the International Emergency Economic Powers Act (“IEEPA”)"
A U.S. law that gives the president broad authority to control trade, financial transactions, and assets during a declared national emergency, such as by imposing sanctions, freezing property, or restricting exports and imports. For investors it matters because those powers can suddenly block deals, cut off access to markets or funds, and change the value of companies or securities much like an emergency brake that can stop or reroute economic activity overnight.
management-defined performance measures financial
"referred to as management-defined performance measures ("MPM's")"
Earnings Snapshot
Net sales growth Q2: 13.5%
Three and six months ended June 30, 2026
Net sales growth Q2
13.5%
Increase versus Q2 2025
H1 2026 net income
CHF 208.3 million
Up 1221.5% versus H1 2025
H1 2026 gross margin
64.8%
Up from 60.7% in H1 2025
H1 2026 adjusted EBITDA
CHF 342.3 million
Up 33.7% versus H1 2025
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FAQ
How did On Holding (ONON) perform financially in Q2 2026?
On Holding reported Q2 2026 net sales of CHF 850.3 million, up 13.5%, and net income of CHF 105.0 million, a swing from a CHF 40.9 million loss, with gross margin improving to 65.4%.
What were On Holding (ONON)’s results for the first half of 2026?
For the six months ended June 30, 2026, On Holding generated net sales of CHF 1,682.2 million (up 14.0%) and net income of CHF 208.3 million, with gross margin rising to 64.8% and net income margin to 12.4%.
How is On Holding (ONON)’s direct-to-consumer channel performing?
Direct‑to‑consumer net sales grew 26.0% in Q2 2026 to CHF 388.4 million and 21.4% year‑to‑date to CHF 710.7 million, reaching 45.7% of Q2 net sales as the company expands e‑commerce and retail stores.
What is driving On Holding (ONON)’s regional growth, especially in Asia-Pacific?
Q2 2026 net sales grew 4.5% in Americas, 15.4% in EMEA, and 43.1% in Asia‑Pacific. APAC growth was primarily driven by strong sales in China and Japan, with additional contribution from South Korea.
What is On Holding (ONON)’s cash and debt position as of June 30, 2026?
On Holding held CHF 1,205.6 million in cash and cash equivalents and had no borrowings under its CHF 700 million multicurrency credit facility, while remaining in compliance with all facility covenants.
How did adjusted EBITDA and margins trend for On Holding (ONON) in H1 2026?
Adjusted EBITDA increased to CHF 342.3 million in the first half of 2026 from CHF 256.1 million, with adjusted EBITDA margin improving to 20.3% from 17.4%, reflecting higher sales and expanded gross margins.
What impact will IEEPA tariff refunds have on On Holding (ONON)?
As of June 30, 2026, On had paid CHF 55.6 million in IEEPA tariffs; by August 11, 2026 it had received about CHF 27.9 million in refunds, to be recognized in Q3 2026 mainly as reductions to cost of sales.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
For the month of August 2026
Commission File Number: 001-40795
(Exact name of registrant as specified in its charter)
| Förrlibuckstrasse 190 | ||
| 8005 Zurich, Switzerland | ||
Tel:+41 44 225 1555
Fax: +41 44 225 1556
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:
Form 20-F | ☒ | Form 40-F | ||||||||||||
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| On Holding AG | |||||||||||
| By: | /s/ Frank Sluis | ||||||||||
| Name: | Frank Sluis | ||||||||||
| Title: | Chief Financial Officer | ||||||||||
Date: August 11, 2026
INCORPORATION BY REFERENCE
This Report on Form 6-K (other than Exhibit 99.1 hereto) shall be deemed to be incorporated by reference into the registration
statements on Form F-3 (Registration No. 333-291559 and Form S-8 (Registration Nos. 333-259533, 333-268853 and 333-293976) of On Holding AG and to be a part thereof from the date on which this report is filed, to the extent not superseded by documents or reports subsequently filed or furnished.
EXHIBIT INDEX
Exhibit Number | Description | ||||
99.1 | Unaudited Interim Condensed Consolidated Financial Statements | ||||
99.2 | Management’s Discussion and Analysis of Financial Condition and Results of Operations for the Second Quarter Ended June 30, 2026 | ||||
| 99.3 | Press Release dated August 11, 2026 | ||||
Exhibit 99.1
Index to unaudited interim condensed consolidated financial statements
| Unaudited interim condensed consolidated financial statements | |||||||||||
| - | Unaudited interim condensed consolidated statements of income / (loss) | F-2 | |||||||||
| - | Unaudited interim condensed consolidated statements of comprehensive income / (loss) | F-3 | |||||||||
| - | Unaudited interim condensed consolidated balance sheets | F-4 | |||||||||
| - | Unaudited interim condensed consolidated statements of cash flows | F-5 | |||||||||
| - | Unaudited interim condensed consolidated statements of changes in equity | F-6 | |||||||||
| - | Notes to the unaudited interim condensed consolidated financial statements | F-8 | |||||||||
F-1
Unaudited interim condensed consolidated statements of income / (loss)
| Three-month period ended June 30, | Six-month period ended June 30, | |||||||||||||||||||||||||||||||
| (CHF in millions) | Notes | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||||||
| Net sales | 2.1 | |||||||||||||||||||||||||||||||
| Cost of sales | ( | ( | ( | ( | ||||||||||||||||||||||||||||
| Gross profit | ||||||||||||||||||||||||||||||||
| Selling, general and administrative expenses | 2.3 | ( | ( | ( | ( | |||||||||||||||||||||||||||
| Operating result | ||||||||||||||||||||||||||||||||
| Financial income | 4.4 | |||||||||||||||||||||||||||||||
| Financial expenses | 4.4 | ( | ( | ( | ( | |||||||||||||||||||||||||||
| Foreign exchange gain / (loss) | 4.4 | ( | ( | |||||||||||||||||||||||||||||
| Income / (loss) before taxes | ( | |||||||||||||||||||||||||||||||
| Income tax benefit / (expense) | 5.2 | ( | ( | ( | ||||||||||||||||||||||||||||
| Net income / (loss) | ( | |||||||||||||||||||||||||||||||
| Earnings per share | 4.6 | |||||||||||||||||||||||||||||||
| Basic EPS Class A (CHF) | ( | |||||||||||||||||||||||||||||||
| Basic EPS Class B (CHF) | ( | |||||||||||||||||||||||||||||||
| Diluted EPS Class A (CHF) | ( | |||||||||||||||||||||||||||||||
| Diluted EPS Class B (CHF) | ( | |||||||||||||||||||||||||||||||
F-2
Unaudited interim condensed consolidated statements of comprehensive income / (loss)
| Three-month period ended June 30, | Six-month period ended June 30, | |||||||||||||||||||||||||||||||
| (CHF in millions) | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||||||||
| Net income / (loss) | ( | |||||||||||||||||||||||||||||||
| Net actuarial result from defined benefit plans | ( | ( | ||||||||||||||||||||||||||||||
| Taxes on net actuarial result from defined benefit plans | ( | ( | ||||||||||||||||||||||||||||||
| Items that will not be reclassified to income statement | ( | ( | ||||||||||||||||||||||||||||||
| Foreign currency translation effect | ( | ( | ||||||||||||||||||||||||||||||
| Taxes on foreign currency translation effect | ||||||||||||||||||||||||||||||||
| Items that will be reclassified to income statement when specific conditions are met | ( | ( | ||||||||||||||||||||||||||||||
| Other comprehensive income / (loss), net of tax | ( | ( | ||||||||||||||||||||||||||||||
| Total comprehensive income / (loss) | ( | ( | ||||||||||||||||||||||||||||||
F-3
Unaudited interim condensed consolidated balance sheets
| (CHF in millions) | Notes | 6/30/2026 | 12/31/2025 | ||||||||||||||||||||
| Cash and cash equivalents | 4.1 | ||||||||||||||||||||||
| Trade receivables | 3.1 | ||||||||||||||||||||||
| Inventories | 3.2 | ||||||||||||||||||||||
| Other current financial assets | 4.2 | ||||||||||||||||||||||
| Other current operating assets | 3.6 | ||||||||||||||||||||||
| Current assets | |||||||||||||||||||||||
| Property, plant and equipment | 3.3 | ||||||||||||||||||||||
| Right-of-use assets | 3.4 | ||||||||||||||||||||||
| Intangible assets | 3.5 | ||||||||||||||||||||||
| Deferred tax assets | 5.2 | ||||||||||||||||||||||
| Non-current assets | |||||||||||||||||||||||
| Assets | |||||||||||||||||||||||
| Trade payables | |||||||||||||||||||||||
| Current lease liabilities | 4.3 | ||||||||||||||||||||||
| Other current financial liabilities | 4.3 | ||||||||||||||||||||||
| Other current operating liabilities | 3.6 | ||||||||||||||||||||||
| Current provisions | 5.1 | ||||||||||||||||||||||
| Income tax liabilities | 5.2 | ||||||||||||||||||||||
| Current liabilities | |||||||||||||||||||||||
| Employee benefit obligations | |||||||||||||||||||||||
| Non-current provisions | 5.1 | ||||||||||||||||||||||
| Non-current lease liabilities | 4.3 | ||||||||||||||||||||||
| Other non-current financial liabilities | 4.3 | ||||||||||||||||||||||
| Deferred tax liabilities | 5.2 | ||||||||||||||||||||||
| Non-current liabilities | |||||||||||||||||||||||
| Share capital | 4.5 | ||||||||||||||||||||||
| Treasury shares | 4.5 | ( | ( | ||||||||||||||||||||
| Capital reserves | 4.7 | ||||||||||||||||||||||
| Other reserves | 4.7 | ( | ( | ||||||||||||||||||||
| Retained earnings | |||||||||||||||||||||||
| Equity | |||||||||||||||||||||||
| Equity and liabilities | |||||||||||||||||||||||
F-4
Unaudited interim condensed consolidated statements of cash flows
| Six-month period ended June 30, | ||||||||||||||||||||
| (CHF in millions) | Notes | 2026 | 2025 | |||||||||||||||||
| Net income | ||||||||||||||||||||
| Adjustments for: | ||||||||||||||||||||
| Share-based compensation | ||||||||||||||||||||
| Employee benefit expenses | ||||||||||||||||||||
| Depreciation and amortization | 3.3, 3.4, 3.5 | |||||||||||||||||||
| Loss on disposal of assets | ||||||||||||||||||||
| Interest income and expenses | ( | ( | ||||||||||||||||||
| Net exchange differences | ( | |||||||||||||||||||
| Income taxes | 5.2 | |||||||||||||||||||
| Change in working capital | ( | ( | ||||||||||||||||||
| Trade receivables | ( | ( | ||||||||||||||||||
| Inventories | ( | ( | ||||||||||||||||||
| Trade payables | ( | |||||||||||||||||||
| Change in other current assets / liabilities | 3.6, 4.2, 4.3 | ( | ||||||||||||||||||
| Change in provisions | 5.1 | ( | ||||||||||||||||||
| Interest received | ||||||||||||||||||||
| Income taxes paid | ( | ( | ||||||||||||||||||
| Cash inflow from operating activities | ||||||||||||||||||||
| Purchase of property, plant and equipment | 3.3 | ( | ( | |||||||||||||||||
| Proceeds from disposal of tangible assets | 3.3 | |||||||||||||||||||
| Purchase of intangible assets | 3.5 | ( | ( | |||||||||||||||||
| Cash (outflow) from investing activities | ( | ( | ||||||||||||||||||
| Payments of lease liabilities | 4.3 | ( | ( | |||||||||||||||||
| Proceeds on sale of treasury shares related to share-based compensation | 4.5 | |||||||||||||||||||
| Interest paid | 4.4 | ( | ( | |||||||||||||||||
| Cash (outflow) from financing activities | ( | ( | ||||||||||||||||||
| Change in net cash and cash equivalents | 4.1 | |||||||||||||||||||
| Net cash and cash equivalents at January 1 | ||||||||||||||||||||
| Net impact of foreign exchange rate differences | ( | |||||||||||||||||||
| Net cash and cash equivalents at June 30 | ||||||||||||||||||||
F-5
Unaudited interim condensed consolidated statements of changes in equity
| Three-month period ended June 30, 2026 and 2025 | ||||||||||||||||||||||||||||||||||||||
| (CHF in millions) | Share capital | Treasury shares | Capital reserves | Other reserves | Retained earnings | Total equity | ||||||||||||||||||||||||||||||||
| Balance at April 1, 2025 | ( | ( | ||||||||||||||||||||||||||||||||||||
| Net loss | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||
| Other comprehensive loss | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||
| Comprehensive loss | — | — | — | ( | ( | ( | ||||||||||||||||||||||||||||||||
| Share-based compensation | — | — | — | — | ||||||||||||||||||||||||||||||||||
| Sale of treasury shares | — | — | — | — | ||||||||||||||||||||||||||||||||||
| Tax impact on transactions with treasury shares | — | — | — | — | — | |||||||||||||||||||||||||||||||||
| Purchase of treasury shares | — | — | — | — | — | |||||||||||||||||||||||||||||||||
| Balance at June 30, 2025 | ( | ( | ||||||||||||||||||||||||||||||||||||
| Balance at April 1, 2026 | ( | ( | ||||||||||||||||||||||||||||||||||||
| Net income | — | — | — | — | ||||||||||||||||||||||||||||||||||
| Other comprehensive income | — | — | — | — | ||||||||||||||||||||||||||||||||||
| Comprehensive income | — | — | — | |||||||||||||||||||||||||||||||||||
| Share-based compensation | — | — | — | — | ||||||||||||||||||||||||||||||||||
| Sale of treasury shares | — | — | — | |||||||||||||||||||||||||||||||||||
| Balance at June 30, 2026 | ( | ( | ||||||||||||||||||||||||||||||||||||
F-6
| Six-month period ended June 30, 2026 and 2025 | ||||||||||||||||||||||||||||||||||||||
| (CHF in millions) | Share capital | Treasury shares | Capital reserves | Other reserves | Retained earnings | Total equity | ||||||||||||||||||||||||||||||||
| Balance at January 1, 2025 | ( | ( | ||||||||||||||||||||||||||||||||||||
| Net income | — | — | — | — | ||||||||||||||||||||||||||||||||||
| Other comprehensive loss | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||
| Comprehensive income / (loss) | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||
| Share-based compensation | — | — | — | — | ||||||||||||||||||||||||||||||||||
| Sale of treasury shares | — | — | — | |||||||||||||||||||||||||||||||||||
| Purchase of treasury shares | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||
| Balance at June 30, 2025 | ( | ( | ||||||||||||||||||||||||||||||||||||
| Balance at January 1, 2026 | ( | ( | ||||||||||||||||||||||||||||||||||||
| Net income | — | — | — | — | ||||||||||||||||||||||||||||||||||
| Other comprehensive income | — | — | — | — | ||||||||||||||||||||||||||||||||||
| Comprehensive income | — | — | — | |||||||||||||||||||||||||||||||||||
| Share-based compensation | — | — | — | — | ||||||||||||||||||||||||||||||||||
| Sale of treasury shares | — | — | — | |||||||||||||||||||||||||||||||||||
| Purchase of treasury shares | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||
| Balance at June 30, 2026 | ( | ( | ||||||||||||||||||||||||||||||||||||
F-7
Notes to the unaudited interim condensed consolidated financial statements
1 Basis for preparation
1.1 Corporate information
On Holding AG and its consolidated subsidiaries (together "On" or the "Company") is engaged in developing and distributing innovative premium performance sports products. On sells products worldwide through our Wholesale ("WHS") sales channel and our Direct-to-Consumer ("DTC") sales channel (i.e., On's e-commerce platform and On's owned and operated retail stores).
On is a publicly traded company on the New York Stock Exchange, trading under the ticker symbol "NYSE: ONON."
These unaudited interim condensed consolidated financial statements (the “financial statements”) present the financial position and the results of operations of On. On Holding AG is a limited company incorporated in accordance with Swiss law under a private statute and is domiciled at Förrlibuckstrasse 190, Zurich, Switzerland.
The financial statements for the period ended June 30, 2026 were authorized for issuance by the board of directors of the Company on August 11, 2026.
1.2 About the financials
The financial statements as of June 30, 2026 and for the three months and six months ended June 30, 2026 have been prepared in accordance with International Accounting Standard 34, “Interim Financial Reporting” (“IAS 34”) as issued by the International Accounting Standards Board ("IASB").
The financial statements are not necessarily indicative of the results for a full year and do not include all the notes typically included in an annual financial report prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB") (the “IFRS Accounting Standards”) and present the financial position and the results of operations of On. Accordingly, this report is to be read in conjunction with the Company’s Annual Report on Form 20-F for the year ended December 31, 2025, filed with the SEC on March 3, 2026 (the “Annual Report”), which has been prepared in accordance with IFRS Accounting Standards.
The financial statements comprise the Company's financial statements as of and during the three months and six months ended June 30, 2026 and are presented in Swiss Francs (CHF), the Company's presentation currency.
Effective January 1, 2026, On Holding AG (the Group's parent company) and On AG (the Group's main trading entity) have changed their functional currency from the Swiss Franc (CHF) to the U.S Dollar (USD). These changes were accounted for prospectively and did not impact prior period financial statements. The Group’s presentation currency continues to be CHF, as it is the lawful currency of Switzerland, where On Holding AG is headquartered and domiciled, and where it is incorporated under Swiss law. Refer to note titled "6.6 Events after the balance sheet date" within the Company's 2025 Annual Report (available at www.sec.gov) for more information.
The material accounting policies, methods of computation, and presentation applied in the preparation of the financial statements are consistent with those applied in the Company’s Annual Report for the year ended December 31, 2025 except where specifically described.
F-8
1.3 Oniverse
| Equity interest | ||||||||||||||||||||
| Entity | Domicile | 6/30/2026 | 12/31/2025 | |||||||||||||||||
| On Holding AG | Zurich, CH | |||||||||||||||||||
| On AG | Zurich, CH | |||||||||||||||||||
| On Brazil Ltda | Sao Paulo, BR | |||||||||||||||||||
| On Cloud Service GmbH | Berlin, DE | |||||||||||||||||||
| On Clouds GmbH | Zurich, CH | |||||||||||||||||||
| On Clouds Inc. | Delaware, USA | |||||||||||||||||||
| On Europe AG | Zurich, CH | |||||||||||||||||||
On Experience 1-31, LLC(1) | Delaware, USA(1) | |||||||||||||||||||
| On Hong Kong Ltd. | Hong Kong, SAR of CN | |||||||||||||||||||
| On Inc. | Oregon, USA | |||||||||||||||||||
| On Italy S.r.l. | Milan, IT | |||||||||||||||||||
| On Japan K.K. | Yokohama, JP | |||||||||||||||||||
| On Korea Ltd. | Seoul, Korea | |||||||||||||||||||
| On Oceania Pty Ltd. | Melbourne, AU | |||||||||||||||||||
| On Running Canada Inc. | Vancouver, CA | |||||||||||||||||||
| On Running Kenya Limited | Nairobi, KE | |||||||||||||||||||
| On Running Sports Products (Shanghai) Company Ltd. | Shanghai, CN | |||||||||||||||||||
| On Running UK Ltd. | London, UK | |||||||||||||||||||
| On Services UK Ltd. | London, UK | |||||||||||||||||||
| On Vietnam Co. Ltd. | Ho Chi Minh City, VN | |||||||||||||||||||
| Brunner Mettler GmbH | Zurich, CH | |||||||||||||||||||
| PT On Running Indonesia | Jakarta, ID | |||||||||||||||||||
| On Taiwan Limited | Taipei, CN | |||||||||||||||||||
| On Hong Kong Limited Macau Branch | Macau, SAR of CN | |||||||||||||||||||
| On Running México, S. de R.L. de C.V. | Mexico City, MX | |||||||||||||||||||
(1) On Experience 1-31, LLC consists of thirty-one entities (retail stores). They are all 100 0 % owned as of December 31, 2025 (entities did not exist as of December 31, 2025).
1.4 New and amended standards and interpretations
Contracts Referencing Nature-Dependent Electricity (Amendments to IFRS 8 and IFRS 7) and Amendments to the Classification and Measurement of Financial Instruments (Amendments to IFRS 9 and IFRS 7) became applicable for the current period, and did not have a material impact on the financial statements for the three-month and six-month periods ended June 30, 2026.
Further, at the date of authorization of these financial statements, On has not applied the following new and revised IFRS Standards that have been issued by the IASB but are not yet effective:
F-9
| Description | Standard Reference | IASB Effective Date | ||||||||||||
Presentation and Disclosure in Financial Statements | IFRS 18 | January 1, 2027 | ||||||||||||
| Fair Value Option for Investments in Associates and Joint Ventures | Amendments to IAS 28 | January 1, 2027 | ||||||||||||
| IFRS 20 Regulatory Assets and Regulatory Liabilities | IFRS 20 | January 1, 2029 | ||||||||||||
On does not expect that the adoption of the standards listed above, excluding IFRS 18, will have a material impact on the financial statement and disclosures of On in the current or future reporting periods.
IFRS 18 – Presentation and Disclosures in Financial Statements that will replace International Accounting Standards ("IAS") 1 – Presentation of Financial Statements from its effective date, was issued on April 9, 2024, by the IASB. IFRS 18 introduces new requirements for information presented in the primary financial statements and disclosed in the notes. The accounting standard introduces three new defined categories for income and expenses - operating, investing and financing, and requires all companies to provide certain new defined subtotals. IFRS 18 also requires companies to disclose explanations of company-specific measures that are related to the income statement, referred to as management-defined performance measures ("MPM's"). MPM's will be separately disclosed within the notes to the financial statements. Moreover, the accounting standard sets out enhanced guidance on how to organize information and whether to provide it in the primary financial statements or in the notes and requires companies to provide more transparency about operating expenses. IFRS 18 will be retroactively effective for annual reporting periods beginning on or after January 1, 2027, but early adoption is permitted.
The Company’s current assessment of IFRS 18 impacts indicates that certain income and expense amounts are expected to be reclassified within the consolidated statements of income. For example, portions of foreign exchange gain / (loss) will move from non-operating to operating income and expense. These expected presentation changes will not affect reported net income. The consolidated statements of cash flows presentation will change. It will start with operating income instead of net income, and certain cash flows are expected to be reclassified among the operating, investing, and financing activities categories. For example, interest received is expected to be reclassified from operating activities to investing activities. These presentation changes will not affect the net change in cash and cash equivalents reported for the period. On is currently finalizing its assessment of the impact of adopting IFRS 18, which will be effective January 1, 2027.
2 Operational performance
2.1 Net sales
Net sales by sales channels:
| Three-month period ended June 30, | Six-month period ended June 30, | ||||||||||||||||||||||||||||
| (CHF in millions) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||||
| Wholesale | |||||||||||||||||||||||||||||
| Direct-to-Consumer | |||||||||||||||||||||||||||||
| Net sales | |||||||||||||||||||||||||||||
F-10
Net sales by product groups:
| Three-month period ended June 30, | Six-month period ended June 30, | ||||||||||||||||||||||||||||
| (CHF in millions) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||||
| Shoes | |||||||||||||||||||||||||||||
| Apparel | |||||||||||||||||||||||||||||
| Accessories | |||||||||||||||||||||||||||||
| Net sales | |||||||||||||||||||||||||||||
On generates net sales primarily from the sale of premium performance shoes, apparel, and accessories through its WHS and DTC sales channels. The WHS sales channel involves larger volumetric sales to wholesale partners (e.g., large retailers or retail associations) and international distributors (i.e. in markets where On does not have local sales teams) with the intention of re-selling the products. The DTC sales channel includes sales to end customers directly, through On’s e-commerce platform and retail stores.
Net sales by geographic regions (based on the location of the customers):
| Three-month period ended June 30, | Six-month period ended June 30, | |||||||||||||||||||||||||
| (CHF in millions) | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||
| Americas | ||||||||||||||||||||||||||
| Europe, Middle East and Africa ("EMEA") | ||||||||||||||||||||||||||
| Asia-Pacific ("APAC") | ||||||||||||||||||||||||||
| Net sales | ||||||||||||||||||||||||||
The revenue generated from the largest single customer represents 11.6 % of total net sales for the six-month period ended June 30, 2026, with no other customers individually accounting for more than 10% of total net sales. For details on assets and liabilities related to contracts with customers refer to 3.1 Trade receivables and 3.6 Other current operating assets and liabilities, respectively. Trade receivables as shown in the unaudited interim condensed consolidated balance sheets relate to the sale of the Company's products.
2.2 Segment information
Operating segments are defined as components of an entity that engage in business activities from which they may earn revenues and incur expenses, whose operating results are reviewed regularly by the entity's chief operating decision maker ("CODM") to assess performance and make resource allocation decisions, and for which discrete financial information is available.
The Company operates a single operating segment. As of June 30, 2026, On’s CODM consists of the Executive Officers, who are the three Co-Founders, two of whom serve as Co-Chief Executive Officers. The financial information regularly reviewed by the CODM to assess performance, make resource allocation decisions, and set compensation targets, is based on financial information presented on a group consolidated basis, accompanied by disaggregated revenue.
2.3 Selling, general and administrative expenses
F-11
| Three-month period ended June 30, | Six-month period ended June 30, | ||||||||||||||||||||||||||||
| (CHF in millions) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||||
| Distribution expenses | ( | ( | ( | ( | |||||||||||||||||||||||||
| Selling expenses | ( | ( | ( | ( | |||||||||||||||||||||||||
| Marketing expenses | ( | ( | ( | ( | |||||||||||||||||||||||||
| Share-based compensation | ( | ( | ( | ( | |||||||||||||||||||||||||
| General and administrative expenses | ( | ( | ( | ( | |||||||||||||||||||||||||
| Selling, general and administrative expenses | ( | ( | ( | ( | |||||||||||||||||||||||||
The overall increase in selling expenses during the three and six-month comparative periods is driven by additional expenses incurred as a result of our expanding retail footprint, primarily due to retail store-related personnel costs and depreciation. The overall increase in marketing expenses was primarily driven by selective reinvestment of operational efficiency gains into meaningful brand building initiatives, including in digital environments and innovation activations, as well as a shift in the timing of our marketing campaigns. The decrease in distribution expenses as a percentage of net sales was primarily due to lower delivery and warehousing costs resulting from operational efficiency gains. The decrease in general and administrative expenses as a percentage of net sales was primarily due to strong net sales growth.
In the six-month period ended June 30, 2026, selling, general and administrative expenses include depreciation and amortization of non-current assets in the amount of CHF 64.7 million (six-month period ended June 30, 2025: CHF 55.6 million). In addition, depreciation charges for production tools in the amount of CHF 7.2 million (six-month period ended June 30, 2025: CHF 5.1 million) are reported in cost of sales.
Total personnel expenses, excluding any costs related to share-based compensation, amount to CHF 215.1 million in the six-month period ended June 30, 2026 and CHF 182.0 million in the six-month period ended June 30, 2025. Of these amounts, CHF 209.3 million and CHF 178.8 million, respectively, were recorded within selling, general and administrative expenses, and CHF 5.8 million and CHF 3.3 million, respectively, were recorded within cost of sales line.
3 Operating assets and liabilities
3.1 Trade receivables
Trade receivables are generally due within a payment period of between 30 to 90 days. Due to their short-term nature, the carrying amount is considered to be the same as their fair value.
| (CHF in millions) | 6/30/2026 | 12/31/2025 | |||||||||||||||
| Gross carrying amount | |||||||||||||||||
| Expected credit loss | ( | ( | |||||||||||||||
| Trade receivables | |||||||||||||||||
3.2 Inventories
| (CHF in millions) | 6/30/2026 | 12/31/2025 | ||||||||||||
| Shoes | ||||||||||||||
| Apparel | ||||||||||||||
| Accessories | ||||||||||||||
| Allowances | ( | ( | ||||||||||||
Inventories(1) | ||||||||||||||
(1) Inventories are primarily comprised of finished goods.
F-12
3.3 Property, plant and equipment
| (CHF in millions) | Leasehold improvements | Trade tools | Production equipment | Furniture and fixtures | Other | Total | ||||||||||||||||||||||||||||||||
| Cost at January 1, 2025 | ||||||||||||||||||||||||||||||||||||||
| Accumulated Depreciation at January 1, 2025 | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||
| Net book value at January 1, 2025 | ||||||||||||||||||||||||||||||||||||||
| Six month period ended June 30, 2025 | ||||||||||||||||||||||||||||||||||||||
| Opening net book value | ||||||||||||||||||||||||||||||||||||||
| Additions | ||||||||||||||||||||||||||||||||||||||
| Disposals | ( | ( | ( | |||||||||||||||||||||||||||||||||||
| Depreciation | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||
| Currency Translation | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||
| Net book value at June 30, 2025 | ||||||||||||||||||||||||||||||||||||||
| Cost at June 30, 2025 | ||||||||||||||||||||||||||||||||||||||
| Accumulated Depreciation at June 30, 2025 | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||
| Net book value at June 30, 2025 | ||||||||||||||||||||||||||||||||||||||
| Cost at January 1, 2026 | ||||||||||||||||||||||||||||||||||||||
| Accumulated Depreciation at January 1, 2026 | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||
| Net book value at January 1, 2026 | ||||||||||||||||||||||||||||||||||||||
| Six month period ended June 30, 2026 | ||||||||||||||||||||||||||||||||||||||
| Opening net book value | ||||||||||||||||||||||||||||||||||||||
| Additions | ||||||||||||||||||||||||||||||||||||||
| Disposals | ( | ( | ||||||||||||||||||||||||||||||||||||
| Depreciation | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||
| Currency Translation | ||||||||||||||||||||||||||||||||||||||
| Net book value at June 30, 2026 | ||||||||||||||||||||||||||||||||||||||
| Cost at June 30, 2026 | ||||||||||||||||||||||||||||||||||||||
| Accumulated Depreciation at June 30, 2026 | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||
| Net book value at June 30, 2026 | ||||||||||||||||||||||||||||||||||||||
Additions of CHF 46.5 million in the six-month period ended June 30, 2026 primarily relate to leasehold improvements within our retail stores, as well as various additions of production equipment.
During the six-month periods ended June 30, 2026 and June 30, 2025, non-cash additions of property, plant and equipment amounted to CHF 4.6 million and CHF 0.0 million, respectively.
F-13
| (CHF in millions) | Storage | Stores & showrooms | Offices | Cars | Total | |||||||||||||||||||||||||||
| Cost at January 1, 2025 | ||||||||||||||||||||||||||||||||
| Accumulated Depreciation at January 1, 2025 | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||
| Net book value at January 1, 2025 | ||||||||||||||||||||||||||||||||
| Six month period ended June 30, 2025 | ||||||||||||||||||||||||||||||||
Opening net book value | ||||||||||||||||||||||||||||||||
| Lease modification | ||||||||||||||||||||||||||||||||
| Additions | ||||||||||||||||||||||||||||||||
| Disposals | ( | ( | ||||||||||||||||||||||||||||||
| Depreciation | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||
| Currency Translation | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||
| Net book value at June 30, 2025 | ||||||||||||||||||||||||||||||||
| Cost at June 30, 2025 | ||||||||||||||||||||||||||||||||
| Accumulated Depreciation at June 30, 2025 | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||
| Net book value at June 30, 2025 | ||||||||||||||||||||||||||||||||
| Cost at January 1, 2026 | ||||||||||||||||||||||||||||||||
| Accumulated Depreciation at January 1, 2026 | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||
| Net book value at January 1, 2026 | ||||||||||||||||||||||||||||||||
| Six month period ended June 30, 2026 | ||||||||||||||||||||||||||||||||
Opening net book value | ||||||||||||||||||||||||||||||||
| Lease modification | ||||||||||||||||||||||||||||||||
| Additions | ||||||||||||||||||||||||||||||||
| Depreciation | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||
| Currency Translation | ||||||||||||||||||||||||||||||||
| Net book value at June 30, 2026 | ||||||||||||||||||||||||||||||||
| Cost at June 30, 2026 | ||||||||||||||||||||||||||||||||
| Accumulated Depreciation at June 30, 2026 | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||
| Net book value at June 30, 2026 | ||||||||||||||||||||||||||||||||
The additions of CHF 67.2 million in the six-month period ended June 30, 2026 primarily relate to the commencement of various retail store leases across the Americas, EMEA, and APAC regions.
Refer to 4.3 Financial liabilities for additional information on the contractual maturities of On's undiscounted lease liabilities.
F-14
3.5 Intangible assets
| (CHF in millions) | Patents, licenses and other rights | Software | Goodwill | Total | ||||||||||||||||||||||
| Cost at January 1, 2025 | ||||||||||||||||||||||||||
| Accumulated Depreciation at January 1, 2025 | ( | ( | ( | |||||||||||||||||||||||
| Net book value at January 1, 2025 | ||||||||||||||||||||||||||
| Six month period ended June 30, 2025 | ||||||||||||||||||||||||||
| Opening net book value | ||||||||||||||||||||||||||
| Additions | ||||||||||||||||||||||||||
| Depreciation | ( | ( | ( | |||||||||||||||||||||||
| Net book value at June 30, 2025 | ||||||||||||||||||||||||||
| Cost at June 30, 2025 | ||||||||||||||||||||||||||
| Accumulated Depreciation at June 30, 2025 | ( | ( | ( | |||||||||||||||||||||||
| Net book value at June 30, 2025 | ||||||||||||||||||||||||||
| Cost at January 1, 2026 | ||||||||||||||||||||||||||
| Accumulated Depreciation at January 1, 2026 | ( | ( | ( | |||||||||||||||||||||||
| Net book value at January 1, 2026 | ||||||||||||||||||||||||||
| Six month period ended June 30, 2026 | ||||||||||||||||||||||||||
| Opening net book value | ||||||||||||||||||||||||||
| Additions | ||||||||||||||||||||||||||
| Depreciation | ( | ( | ( | |||||||||||||||||||||||
| Currency Translation | ||||||||||||||||||||||||||
| Net book value at June 30, 2026 | ||||||||||||||||||||||||||
| Cost at June 30, 2026 | ||||||||||||||||||||||||||
| Accumulated Depreciation at June 30, 2026 | ( | ( | ( | |||||||||||||||||||||||
| Net book value at June 30, 2026 | ||||||||||||||||||||||||||
As of June 30, 2026, patents, licenses and other rights include patents, domain names and license rights for trademarks.
As of June 30, 2026, software includes capitalized IT development costs not yet in use in the amount of CHF 0.6 million (December 31, 2025: CHF 0.3 million). In the six-month period ended June 30, 2026, costs recognized in general and administrative expenses within the income statement for research and development amounts to CHF 5.4 million compared to CHF 3.6 million in the six-month period ended June 30, 2025.
Goodwill is allocated and monitored at the reportable segment level. As of June 30, 2026 and December 31, 2025, there was no None of the goodwill is expected to be deductible for tax purposes.
F-15
3.6 Other current operating assets and liabilities
| (CHF in millions) | 6/30/2026 | 12/31/2025 | |||||||||||||||
| Prepaid expenses | |||||||||||||||||
| Indirect taxes (VAT/GST) receivables | |||||||||||||||||
| Anticipated net sales returns | |||||||||||||||||
| Income tax receivables | |||||||||||||||||
| Other current operating assets | |||||||||||||||||
| Other current operating assets | |||||||||||||||||
| (CHF in millions) | 6/30/2026 | 12/31/2025 | |||||||||||||||
| Accrued expenses | |||||||||||||||||
| Accrued personnel expenses | |||||||||||||||||
| Indirect taxes (VAT/GST) payables | |||||||||||||||||
| Social security payables | |||||||||||||||||
| Other payables | |||||||||||||||||
| Other current operating liabilities | |||||||||||||||||
| Other current operating liabilities | |||||||||||||||||
4 Capital and financial management
4.1 Cash and cash equivalents
| (CHF in millions) | 6/30/2026 | 12/31/2025 | |||||||||||||||
| Current bank accounts | |||||||||||||||||
| Digital wallets | |||||||||||||||||
| Fixed deposits | |||||||||||||||||
Cash and cash equivalents(1) | |||||||||||||||||
F-16
4.2 Other current financial assets
| (CHF in millions) | 6/30/2026 | 12/31/2025 | |||||||||||||||
| Credit cards | |||||||||||||||||
| Deposits | |||||||||||||||||
| Other receivables | |||||||||||||||||
| Other current financial assets | |||||||||||||||||
| Other current financial assets at amortized cost | |||||||||||||||||
| Other current financial assets at fair value through profit and loss | |||||||||||||||||
| Other current financial assets | |||||||||||||||||
Due to their short-term nature, the carrying amount of other current financial assets at amortized cost corresponds to their fair value.
4.3 Financial liabilities
| (CHF in millions) | 6/30/2026 | 12/31/2025 | |||||||||||||||
| Current lease liabilities | |||||||||||||||||
| Customer refund liability returns | |||||||||||||||||
| Other current financial liabilities | |||||||||||||||||
| Total other current financial liabilities | |||||||||||||||||
| Non-current lease liabilities | |||||||||||||||||
| Other non-current financial liabilities | |||||||||||||||||
| Total other non-current financial liabilities | |||||||||||||||||
| Total other current and non-current financial liabilities | |||||||||||||||||
Contractual maturities of On’s undiscounted financial liabilities:
| (CHF in millions) | Due < 3 months | Due 4 to 12 months | Due 1 to 5 years | Due > 5 years | 6/30/2026 | |||||||||||||||||||||||||||
| Trade payables | ||||||||||||||||||||||||||||||||
| Current lease liabilities | ||||||||||||||||||||||||||||||||
| Other financial liabilities | ||||||||||||||||||||||||||||||||
| Other current financial liabilities | ||||||||||||||||||||||||||||||||
| Non-current lease liabilities | ||||||||||||||||||||||||||||||||
| Other non-current financial liabilities | ||||||||||||||||||||||||||||||||
| Other non-current financial liabilities | ||||||||||||||||||||||||||||||||
F-17
| (CHF in millions) | Due < 3 months | Due 4 to 12 months | Due 1 to 5 years | Due > 5 years | 12/31/2025 | |||||||||||||||||||||||||||
| Trade payables | ||||||||||||||||||||||||||||||||
| Current lease liabilities | ||||||||||||||||||||||||||||||||
| Other financial liabilities | ||||||||||||||||||||||||||||||||
| Other current financial liabilities | ||||||||||||||||||||||||||||||||
| Non-current lease liabilities | ||||||||||||||||||||||||||||||||
Other non-current financial liabilities | ||||||||||||||||||||||||||||||||
| Other non-current financial liabilities | ||||||||||||||||||||||||||||||||
The increase to current and non-current lease liabilities as of June 30, 2026 compared to December 31, 2025 relates primarily to the commencement of retail store leases across the APAC, EMEA, and Americas regions. Refer to 3.4 Right-of-use assets for additional information.
On July 7, 2023, On entered into a CHF 700 million multicurrency credit facility agreement ("credit facility"). On has an option to increase the total availability of borrowings under the facility in an aggregate amount of up to CHF 200 million, subject to the satisfaction of certain customary conditions. The credit facility had an initial term of three years , which has been subsequently extended for a total period of two years . Subsequent to extensions, the credit facility will expire on July 7, 2028. As of June 30, 2026 and December 31, 2025, no
Of the total guarantees and letters of credit outstanding as of June 30, 2026 and December 31, 2025, which are discussed in 4.8 Commitments and contingencies, CHF 163.2 million and CHF 153.2 million, respectively, relate to the credit facility.
The credit facility also contains financial covenants that depend on our consolidated equity as well as our net debt to adjusted EBITDA ratio. As of and during the six-month period ending June 30, 2026, we were in compliance with all covenants under the credit facility.
The following assets have been pledged in relation to the credit facility:
| (CHF in millions) | 6/30/2026 | 12/31/2025 | |||||||||||||||
| Trade receivables | |||||||||||||||||
| Inventory | |||||||||||||||||
| Assets pledged | |||||||||||||||||
4.4 Financial result
| Three-month period ended June 30, | Six-month period ended June 30, | |||||||||||||||||||||||||||||||
| (CHF in millions) | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||||||||
| Interest Income | ||||||||||||||||||||||||||||||||
| Financial income | ||||||||||||||||||||||||||||||||
| Bank charges | ( | ( | ( | ( | ||||||||||||||||||||||||||||
| Interest expenses leases | ( | ( | ( | ( | ||||||||||||||||||||||||||||
| Interest expenses on employee benefits | ( | ( | ( | ( | ||||||||||||||||||||||||||||
| Financial expenses | ( | ( | ( | ( | ||||||||||||||||||||||||||||
| Foreign exchange gain / (loss) | ( | ( | ||||||||||||||||||||||||||||||
| Foreign exchange gain / (loss) | ( | ( | ||||||||||||||||||||||||||||||
| Financial result | ( | ( | ||||||||||||||||||||||||||||||
F-18
Foreign exchange result for the three-month period ended June 30, 2026 was a foreign exchange gain of CHF 3.3 million, compared to a foreign exchange loss of CHF 139.9 million for the three-month period ended June 30, 2025. Foreign exchange result for the six-month period ended June 30, 2026 was a foreign exchange gain of CHF 2.9 million, compared to a foreign exchange loss of CHF 154.4 million for the six-month period ended June 30, 2025.
The change in foreign exchange result was primarily due to significant foreign exchange losses incurred during the three-month and six-month periods ended June 30, 2025, driven by fluctuations in the CHF/USD exchange rate. The foreign exchange gains recorded in the three-month and six-month periods ended June 30, 2026 were impacted by the functional currency changes that occurred on January 1, 2026 and the slight appreciation of the USD against the GBP, CHF, JPY, and EUR as of June 30, 2026 compared to December 31, 2025. For additional information regarding the functional currency changes, refer to the note titled "6.6 Events after the balance sheet date" within the Company's 2025 Annual Report (available at www.sec.gov).
4.5 Share capital
The share capital amounts to CHF 34.1 million and is divided into 308,472,124 registered shares with a nominal value of CHF 0.10 each (the "Class A Shares") and in 324,991,680 0.01 each (the "Class B Shares"). The share capital is paid in at 100 %.
| Class A Shares | Class B Shares | |||||||||||||||||||||||||
| Shares issued and outstanding as of January 1, 2026 | ||||||||||||||||||||||||||
| Sale of treasury shares related to share-based compensation | ||||||||||||||||||||||||||
| Purchase of treasury shares | ( | |||||||||||||||||||||||||
Conversion of Class B shares to Class A shares(2) | ( | |||||||||||||||||||||||||
Shares issued and outstanding as of June 30, 2026(1) | ||||||||||||||||||||||||||
| Awards granted under various incentive plans with dilutive effects as of June 30, 2026 | ||||||||||||||||||||||||||
(1) As of June 30, 2026 there were 6,756,589 treasury shares held by On (December 31, 2025: 9,973,771 ).
4.6 Earnings per share
Basic earnings per share (EPS) is calculated by dividing On’s net income for the period by the weighted average number of ordinary shares outstanding during the year.
Diluted EPS is calculated by dividing On’s net income for the period by the weighted average number of ordinary shares outstanding during the year plus the weighted average number of ordinary shares that would be issued at conversion of all the dilutive potential ordinary shares into ordinary shares. Dilutive effects arise from equity-settled awards from the Company's share-based plans. These shares are included even if the service conditions are not met, or respective performance conditions were fulfilled at the end of the reporting period.
F-19
| Three-month period ended June 30, | 2026 | 2026 | 2025 | 2025 | |||||||||||||||||||||||||
| Class A | Class B | Class A | Class B | ||||||||||||||||||||||||||
| Weighted number of outstanding shares | |||||||||||||||||||||||||||||
Weighted number of shares with dilutive effects | |||||||||||||||||||||||||||||
| Weighted number of outstanding shares (diluted and undiluted) | |||||||||||||||||||||||||||||
| Net income / (loss) (CHF in millions) | ( | ( | |||||||||||||||||||||||||||
| Basic EPS (CHF) | ( | ( | |||||||||||||||||||||||||||
| Diluted EPS (CHF) | ( | ( | |||||||||||||||||||||||||||
| Six-month period ended June 30, | 2026 | 2026 | 2025 | 2025 | ||||||||||||||||||||||
| Class A | Class B | Class A | Class B | |||||||||||||||||||||||
| Weighted number of outstanding shares | ||||||||||||||||||||||||||
Weighted number of shares with dilutive effects | ||||||||||||||||||||||||||
| Weighted number of outstanding shares (diluted and undiluted) | ||||||||||||||||||||||||||
| Net income (CHF in millions) | ||||||||||||||||||||||||||
| Basic EPS (CHF) | ||||||||||||||||||||||||||
| Diluted EPS (CHF) | ||||||||||||||||||||||||||
4.7 Capital and other reserves
| (CHF in millions) | 6/30/2026 | 12/31/2025 | ||||||||||||||||||
| Share premium | ||||||||||||||||||||
| Legal reserves | ||||||||||||||||||||
| Equity transaction costs | ( | ( | ||||||||||||||||||
| Tax impact on equity transaction costs | ||||||||||||||||||||
| Share-based compensation | ||||||||||||||||||||
| Capital reserves | ||||||||||||||||||||
| Foreign currency translation effect | ( | ( | ||||||||||||||||||
| Taxes on foreign currency translation effect | ||||||||||||||||||||
| Actuarial gains and losses | ||||||||||||||||||||
| Taxes on actuarial gains and losses | ( | ( | ||||||||||||||||||
| Other reserves | ( | ( | ||||||||||||||||||
4.8 Commitments and contingencies
As of June 30, 2026, guarantees and letters of credit in the amount of CHF 163.2 million (December 31, 2025: CHF 153.2 million) were provided in favor of third parties.
The Swiss On entities form a VAT group and, hence, every entity participating in the group is jointly and severally liable for VAT debt of other group participants. Further, On group entities participating in central cash pooling are jointly and severally
F-20
liable for any debit position or outstanding overdraft in connection with them. In that context, gross balances in the amount of CHF 322.8 million have been offset as of June 30, 2026 (December 31, 2025: CHF 271.7 million).
On has signed several new leases, which have not yet commenced as of June 30, 2026, and are therefore not yet recognized on the balance sheet. The total committed future outflow resulting of these lease related contracts amount to:
| (CHF in millions) | 6/30/2026 | 12/31/2025 | |||||||||||||||
| Due < 1 year | |||||||||||||||||
| Due 1 - 5 years | |||||||||||||||||
| Due > 5 years | |||||||||||||||||
| Commitments for future lease related obligations | |||||||||||||||||
The majority of the future lease commitments relate to a contract entered into for a highly-automated warehouse in Belgium (Beringen). The warehouse in Belgium partially began operations in 2024 and is expected to be fully operational by the end of the third quarter in 2026, and amounts to CHF 104.3 million as of June 30, 2026 (December 31, 2025: CHF 104.4 million). The remaining lease commitments primarily relate to various new retail store leases.
F-21
5 Other disclosures
5.1 Provisions
| (CHF in millions) | Social charges | Long-service leave | Other | Total | ||||||||||||||||||||||
| Balance as of January 1, 2025 | ||||||||||||||||||||||||||
| thereof current | ||||||||||||||||||||||||||
| thereof non-current | ||||||||||||||||||||||||||
| Additions | ||||||||||||||||||||||||||
| Release | ( | ( | ( | ( | ||||||||||||||||||||||
| Utilization | ( | ( | ||||||||||||||||||||||||
| Exchange differences | ( | ( | ( | ( | ||||||||||||||||||||||
| Balance as of June 30, 2025 | ||||||||||||||||||||||||||
| thereof current | ||||||||||||||||||||||||||
| thereof non-current | ||||||||||||||||||||||||||
| Balance as of January 1, 2026 | ||||||||||||||||||||||||||
| thereof current | ||||||||||||||||||||||||||
| thereof non-current | ||||||||||||||||||||||||||
| Additions | ||||||||||||||||||||||||||
| Release | ( | ( | ( | ( | ||||||||||||||||||||||
| Utilization | ( | ( | ||||||||||||||||||||||||
| Exchange differences | ||||||||||||||||||||||||||
| Balance as of June 30, 2026 | ||||||||||||||||||||||||||
| thereof current | ||||||||||||||||||||||||||
| thereof non-current | ||||||||||||||||||||||||||
F-22
5.2 Income taxes
| Three-month period ended June 30, | Six-month period ended June 30, | ||||||||||||||||||||||||||||
| (CHF in millions) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||||
| Current income tax expense | ( | ( | ( | ( | |||||||||||||||||||||||||
| Deferred income tax benefit | |||||||||||||||||||||||||||||
| Income tax (expense) / benefit | ( | ( | ( | ||||||||||||||||||||||||||
Income tax expense for the three and six-month periods ended June 30, 2026, was CHF 20.7 million and CHF 33.5 million, respectively. This compares to Income tax (expense) / benefit of CHF 6.4 million and CHF (0.8 ) million for the corresponding periods in 2025. The effective income tax rate was 16.5 % and 13.9 % for the three and six-month periods ended June 30, 2026, respectively, compared to 13.5 % and 5.1 % for the three and six-month periods ended June 30, 2025, respectively. The increases to the effective income tax rates were mainly due to deferred income tax benefits during the three and six-month periods ended June 30, 2025 related to the elimination of intercompany profits in inventory, as well as higher effectiveness of certain tax incentives and prior year adjustments during the three and six-month periods ended June 30, 2025.
5.3 Events after the balance sheet date
There were no material events after the balance sheet date.
F-23
Exhibit 99.2
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Unless otherwise indicated or the context otherwise requires, all references in this document to “On,” “On Holding AG,” the “Company,” “we,” “our,” “ours,” “us,” or similar terms refer to On Holding AG and its consolidated subsidiaries.
The following discussion of our financial condition and results of operations should be read in conjunction with the unaudited interim condensed consolidated financial statements, included in the Form 6-K filed with this management's discussion and analysis of financial condition and results of operations with the Securities and Exchange Commission ("SEC"), as well as our audited financial statements and the notes thereto, and the section titled "Risk Factors," each of which appear in our annual report on Form 20-F for the year ended December 31, 2025, filed with the SEC on March 3, 2026 ("Annual Report"). As discussed in the section titled "Special Note Regarding Forward-Looking Statements," the following management's discussion and analysis contains forward-looking statements that involve risks and uncertainties, as well as assumptions that, if they never materialize or prove incorrect, could cause our results to differ materially from those expressed or implied by such forward-looking statements. Factors that could cause or contribute to these differences include, but are not limited to, those identified in such section. The unaudited interim condensed consolidated financial statements as of June 30, 2026, and for the three-month and six-month periods ended June 30, 2026 and 2025 were prepared in accordance with International Accounting Standards ("IFRS"), and International Accounting Standard 34, Interim Financial Reporting ("IAS 34"), as issued by the International Accounting Standards Board, and presented in Swiss Francs (CHF), the legal currency of Switzerland.
Certain numerical figures shown as totals in some tables may not be an arithmetic aggregation of the figures that preceded them due to rounding. With respect to financial information set out in this document, a dash (“—”) signifies that the relevant figure is available but is or has been rounded to zero.
Overview
On is a premium performance sportswear brand rooted in innovation, design, and sustainability. Since our founding in the Swiss Alps in 2010, we have built a distinctive global brand with a passionate community across more than 90 countries. Through our premium product and brand experience, we bring our mission—to ignite the human spirit through movement—to life for our fans worldwide.
We believe our premium positioning and our relentless focus on performance and design sets us apart within the global sportswear market. Our culture of innovation has enabled us to repeatedly introduce groundbreaking technologies designed to elevate the running experience and create enduring excitement around our brand. Anchored in our running heritage, we have extended this expertise into other performance categories, including performance outdoor, performance all-day, performance tennis, and performance training, connecting us with new communities across a full spectrum of movement.
On operates as a single-brand consumer products business and therefore has a single operating and reportable segment.
Key Financial and Operating Metrics
Key financial and operating metrics for the three-month period ended June 30, 2026 compared to the three-month period ended June 30, 2025 include:
•net sales increased by 13.5% to CHF 850.3 million, or by 21.6% on a constant currency basis;
•net sales through the direct-to-consumer ("DTC") sales channel increased by 26.0% to CHF 388.4 million, or by 34.3% on a constant currency basis;
•net sales through the wholesale sales channel increased by 4.8% to CHF 461.9 million, or by 12.7% on a constant currency basis;
•net sales in Europe, Middle East and Africa (“EMEA”), Americas and Asia-Pacific increased by 15.4% to CHF 228.2 million, 4.5% to CHF 451.6 million and 43.1% to CHF 170.5 million, respectively;
•net sales in EMEA, Americas, and Asia-Pacific increased by 20.5%, 13.0% and 54.7% on a constant currency basis, respectively;
•net sales from shoes, apparel and accessories increased by 10.9% to CHF 781.6 million, 47.7% to CHF 54.2 million and 88.3% to CHF 14.5 million, respectively;
•net sales from shoes, apparel and accessories increased by 18.9%, 56.2%, and 102.2% on a constant currency basis, respectively;
1
•gross profit increased by 20.6% to CHF 555.7 million from CHF 460.8 million;
•gross profit margin increased to 65.4% from 61.5%;
•net income / (loss) increased by 356.5% to CHF 105.0 million from CHF (40.9) million;
•net income / (loss) margin increased to 12.3% from (5.5)%;
•basic earnings per share (“EPS”) Class A (CHF) increased to 0.31 from (0.12);
•diluted EPS Class A (CHF) increased to 0.31 from (0.12);
•adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") increased by 23.5% to CHF 168.1 million from CHF 136.1 million;
•adjusted EBITDA margin increased to 19.8% from 18.2%;
•adjusted net income / (loss) increased to CHF 117.6 million from CHF (29.7) million;
•adjusted basic EPS Class A (CHF) increased to 0.35 from (0.09); and
•adjusted diluted EPS Class A (CHF) increased to 0.35 from (0.09).
Key financial and operating metrics for the six-month period ended June 30, 2026 compared to the six-month period ended June 30, 2025 include:
•net sales increased by 14.0% to CHF 1,682.2 million; or by 24.0% on a constant currency basis;
•net sales through the DTC sales channel increased by 21.4% to CHF 710.7 million, or by 31.6% on a constant currency basis;
•net sales through the wholesale sales channel increased by 9.1% to CHF 971.5 million, or by 19.0% on a constant currency basis;
•net sales in EMEA, Americas and Asia-Pacific increased by 18.8% to CHF 435.4 million, 3.8% to CHF 902.3 million and 43.7% to CHF 344.5 million, respectively;
•net sales in EMEA, Americas, and Asia-Pacific increased by 22.8%, 15.0% and 58.1% on a constant currency basis, respectively;
•net sales from shoes, apparel and accessories increased by 11.5% to CHF 1,545.3 million, 46.4% to CHF 109.5 million and 80.3% to CHF 27.4 million, respectively;
•net sales from shoes, apparel and accessories increased by 21.4%, 56.9%, and 94.4% on a constant currency basis, respectively;
•gross profit increased by 21.6% to CHF 1,090.0 million from CHF 896.1 million;
•gross profit margin increased to 64.8% from 60.7%;
•net income increased by 1221.5% to CHF 208.3 million from CHF 15.8 million;
•net income margin increased to 12.4% from 1.1%;
•basic EPS Class A (CHF) increased to 0.63 from 0.05;
•diluted EPS Class A (CHF) increased to 0.62 from 0.05;
•adjusted EBITDA increased by 33.7% to CHF 342.3 million from CHF 256.1 million;
•adjusted EBITDA margin increased to 20.3% from 17.4%;
•adjusted net income increased to CHF 241.1 million from CHF 40.9 million;
•adjusted basic EPS Class A (CHF) increased to 0.72 from 0.12; and
•adjusted diluted EPS Class A (CHF) increased to 0.72 from 0.12.
Key financial and operating metrics as of June 30, 2026 compared to December 31, 2025 included:
•cash and cash equivalents increased by 18% to CHF 1,205.6 million from CHF 1,019.9 million; and
•net working capital increased by 11.5% to CHF 635.9 million from CHF 570.3 million.
2
Adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted basic EPS, adjusted diluted EPS, net working capital and net sales on a constant currency basis are non-IFRS measures used by us to evaluate our performance. Furthermore, we believe these non-IFRS measures enhance investors' understanding of our financial and operating performance from period to period because they enhance the comparability of results between each period, help identify trends in operating results and provide additional insight and transparency on how management evaluates the business. Adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted basic EPS, adjusted diluted EPS, net working capital and net sales on a constant currency basis should not be considered in isolation or as a substitute for other financial measures calculated and presented in accordance with IFRS. For a detailed description and a reconciliation to the nearest IFRS measure, see the section titled “Non-IFRS Measures.”
3
Operating Results
The following table summarizes certain key operating measures for the three-month and six-month periods ended June 30, 2026 and 2025.
| Three-month period ended June 30, | Six-month period ended June 30, | |||||||||||||||||||||||||||||||||||||
| (CHF in millions) | 2026 | 2025 | % Change | 2026 | 2025 | % Change | ||||||||||||||||||||||||||||||||
| Net sales | 850.3 | 749.2 | 13.5 | % | 1,682.2 | 1,475.8 | 14.0 | % | ||||||||||||||||||||||||||||||
| Cost of sales | (294.6) | (288.4) | 2.1 | % | (592.2) | (579.7) | 2.1 | % | ||||||||||||||||||||||||||||||
| Gross profit | 555.7 | 460.8 | 20.6 | % | 1,090.0 | 896.1 | 21.6 | % | ||||||||||||||||||||||||||||||
| Gross profit margin | 65.4 | % | 61.5 | % | 64.8 | % | 60.7 | % | ||||||||||||||||||||||||||||||
| Selling, general and administrative expenses | (436.3) | (368.0) | 18.5 | % | (853.2) | (726.3) | 17.5 | % | ||||||||||||||||||||||||||||||
| Operating result | 119.4 | 92.8 | 28.7 | % | 236.9 | 169.8 | 39.5 | % | ||||||||||||||||||||||||||||||
| Net financial result | 6.3 | (140.1) | 104.5 | % | 4.9 | (153.2) | 103.2 | % | ||||||||||||||||||||||||||||||
| Income / (loss) before taxes | 125.7 | (47.3) | 365.6 | % | 241.8 | 16.6 | 1356.3 | % | ||||||||||||||||||||||||||||||
| Income tax benefit / (expense) | (20.7) | 6.4 | (423.5) | % | (33.5) | (0.8) | 3878.7 | % | ||||||||||||||||||||||||||||||
| Net income / (loss) | 105.0 | (40.9) | 356.5 | % | 208.3 | 15.8 | 1221.5 | % | ||||||||||||||||||||||||||||||
| Basic EPS Class A (CHF) | 0.31 | (0.12) | 353.2 | % | 0.63 | 0.05 | 1160.0 | % | ||||||||||||||||||||||||||||||
| Diluted EPS Class A (CHF) | 0.31 | (0.12) | 351.8 | % | 0.62 | 0.05 | 1140.0 | % | ||||||||||||||||||||||||||||||
Other data(1) | ||||||||||||||||||||||||||||||||||||||
| Adjusted EBITDA | 168.1 | 136.1 | 23.5 | % | 342.3 | 256.1 | 33.7 | % | ||||||||||||||||||||||||||||||
| Adjusted EBITDA margin | 19.8 | % | 18.2 | % | 20.3 | % | 17.4 | % | ||||||||||||||||||||||||||||||
| Adjusted net income / (loss) | 117.6 | (29.7) | 496.5 | % | 241.1 | 40.9 | 490.2 | % | ||||||||||||||||||||||||||||||
| Adjusted basic EPS Class A (CHF) | 0.35 | (0.09) | 491.4 | % | 0.72 | 0.12 | 500.0 | % | ||||||||||||||||||||||||||||||
| Adjusted diluted EPS Class A (CHF) | 0.35 | (0.09) | 489.2 | % | 0.72 | 0.12 | 500.0 | % | ||||||||||||||||||||||||||||||
(1) Adjusted EBITDA, adjusted EBITDA Margin, adjusted net income, adjusted basic EPS, and adjusted diluted EPS are non-IFRS measures. See section titled “Non-IFRS Measures” for a description of these measures and a reconciliation to the nearest IFRS measure.
4
Net Sales
Net sales by sales channel
The following tables present net sales by sales channel:
| Three-month period ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||
| (CHF in millions) | 2026 | 2025 | % Change | Constant Currency % Change (1) | |||||||||||||||||||||||||||||||||||||||||||
| Wholesale | 461.9 | 441.0 | 4.8 | % | 12.7 | % | |||||||||||||||||||||||||||||||||||||||||
| Direct-to-consumer | 388.4 | 308.3 | 26.0 | % | 34.3 | % | |||||||||||||||||||||||||||||||||||||||||
| Net sales | 850.3 | 749.2 | 13.5 | % | 21.6 | % | |||||||||||||||||||||||||||||||||||||||||
| Wholesale % of Net sales | 54.3 | % | 58.9 | % | |||||||||||||||||||||||||||||||||||||||||||
Direct-to-consumer % of Net sales | 45.7 | % | 41.1 | % | |||||||||||||||||||||||||||||||||||||||||||
| Net sales % | 100.0 | % | 100.0 | % | |||||||||||||||||||||||||||||||||||||||||||
| Six-month period ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||
| (CHF in millions) | 2026 | 2025 | % Change | Constant Currency % Change (1) | ||||||||||||||||||||||||||||||||||||||||||||||
| Wholesale | 971.5 | 890.6 | 9.1 | % | 19.0 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Direct-to-consumer | 710.7 | 585.2 | 21.4 | % | 31.6 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Net sales | 1,682.2 | 1,475.8 | 14.0 | % | 24.0 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Wholesale % of Net sales | 57.8 | % | 60.3 | % | ||||||||||||||||||||||||||||||||||||||||||||||
Direct-to-consumer % of Net sales | 42.2 | % | 39.7 | % | ||||||||||||||||||||||||||||||||||||||||||||||
| Net sales % | 100.0 | % | 100.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||
(1) The constant currency percent change represents changes to net sales on a constant currency basis, which is a non-IFRS financial measure. See section titled "Non-IFRS Measures" for a description of this measure. Reconciliation to the nearest IFRS measure is shown in table above.
Three-month period ended June 30, 2026 compared to the three-month period ended June 30, 2025
Net sales for the three-month period ended June 30, 2026 increased by CHF 101.1 million, or 13.5%, compared to the three-month period ended June 30, 2025.
Net sales generated by the wholesale sales channel for the three-month period ended June 30, 2026 increased by CHF 21.0 million, or 4.8%, to CHF 461.9 million, compared to CHF 441.0 million for the three-month period ended June 30, 2025. The increase was attributable to the growth within our distributor network and continued selective door expansion, particularly with global key accounts. This growth was somewhat moderated by the disciplined sell-in to wholesale partners in a more promotional environment, particularly in the Americas.
Net sales generated by the DTC sales channel for the three-month period ended June 30, 2026 increased by CHF 80.1 million, or 26.0%, to CHF 388.4 million, compared to CHF 308.3 million for the three-month period ended June 30, 2025. The increase was primarily driven by the continued increase in popularity and awareness of the On brand, resulting in increased traffic and transactions, both on our e-commerce platform and in our existing retail stores. Additionally, the continued expansion of our own retail store network across all regions further contributed to the growth.
As a result of the strength of our DTC channel and in line with the strategic ambition for our DTC sales channel to outgrow our wholesale sales channel, net sales generated from our DTC channel as a percentage of net sales increased to 45.7% for the three-month period ended June 30, 2026 compared to 41.1% for the three-month period ended June 30, 2025.
5
Six-month period ended June 30, 2026 compared to the six-month period ended June 30, 2025
Net sales for the six-month period ended June 30, 2026 increased by CHF 206.4 million, or 14.0%, compared to the six-month period ended June 30, 2025.
Net sales generated by the wholesale sales channel for the six-month period ended June 30, 2026 increased by CHF 80.9 million, or 9.1%, to CHF 971.5 million, compared to CHF 890.6 million for the six-month period ended June 30, 2025. The increase was attributable to continued selective door expansion, particularly with global key accounts, and growth within our distributor network.
Net sales generated by the DTC sales channel for the six-month period ended June 30, 2026 increased by CHF 125.5 million, or 21.4%, to CHF 710.7 million, compared to CHF 585.2 million for the six-month period ended June 30, 2025. The increase was primarily driven by the continued increase in popularity and awareness of the On brand, resulting in increased traffic and transactions, both on our e-commerce platform and in our existing retail stores. Additionally, the continued expansion of our own retail store network across all regions further contributed to the growth.
As a result of the strength of our DTC channel and in line with the strategic ambition for our DTC sales channel to outgrow our wholesale sales channel, net sales generated from our DTC channel as a percentage of net sales increased to 42.2% for the six-month period ended June 30, 2026 compared to 39.7% for the six-month period ended June 30, 2025.
Net sales by geography
The following tables present net sales by geographic region (based on the location of the counterparty):
| Three-month period ended June 30, | ||||||||||||||||||||||||||
| (CHF in millions) | 2026 | 2025 | % Change | Constant Currency % Change (1) | ||||||||||||||||||||||
Americas | 451.6 | 432.3 | 4.5 | % | 13.0 | % | ||||||||||||||||||||
Europe, Middle East and Africa | 228.2 | 197.8 | 15.4 | % | 20.5 | % | ||||||||||||||||||||
Asia-Pacific | 170.5 | 119.2 | 43.1 | % | 54.7 | % | ||||||||||||||||||||
Net Sales | 850.3 | 749.2 | 13.5 | % | 21.6 | % | ||||||||||||||||||||
| Americas % of Net sales | 53.1 | % | 57.7 | % | ||||||||||||||||||||||
| Europe, Middle East and Africa % of Net sales | 26.8 | % | 26.4 | % | ||||||||||||||||||||||
| Asia-Pacific % of Net sales | 20.0 | % | 15.9 | % | ||||||||||||||||||||||
Net Sales % | 100.0 | % | 100.0 | % | ||||||||||||||||||||||
6
| Six-month period ended June 30, | ||||||||||||||||||||||||||
| (CHF in millions) | 2026 | 2025 | % Change | Constant Currency % Change (1) | ||||||||||||||||||||||
Americas | 902.3 | 869.7 | 3.8 | % | 15.0 | % | ||||||||||||||||||||
Europe, Middle East and Africa | 435.4 | 366.4 | 18.8 | % | 22.8 | % | ||||||||||||||||||||
Asia-Pacific | 344.5 | 239.7 | 43.7 | % | 58.1 | % | ||||||||||||||||||||
Net Sales | 1,682.2 | 1,475.8 | 14.0 | % | 24.0 | % | ||||||||||||||||||||
| Americas % of Net sales | 53.6 | % | 58.9 | % | ||||||||||||||||||||||
| Europe, Middle East and Africa % of Net sales | 25.9 | % | 24.8 | % | ||||||||||||||||||||||
| Asia-Pacific % of Net sales | 20.5 | % | 16.2 | % | ||||||||||||||||||||||
Net Sales % | 100.0 | % | 100.0 | % | ||||||||||||||||||||||
(1) The constant currency percent change represents changes to net sales on a constant currency basis, which is a non-IFRS financial measure. See section titled "Non-IFRS Measures" for a description of this measure. Reconciliation to the nearest IFRS measure is shown in table above.
Three-month period ended June 30, 2026 compared to the three-month period ended June 30, 2025
Net sales increased across all geographic regions for the three-month period ended June 30, 2026, compared to the three-month period ended June 30, 2025, with Asia-Pacific showing particularly strong growth. The 4.5% increase in net sales in the Americas was driven primarily by the strength in the DTC channel, with more moderate growth in wholesale as a result of the controlled sell-in to partners. Net sales in EMEA for the three-month period ended June 30, 2026 increased by 15.4%. The increase in EMEA was driven by the growth within our distributor network, continued strength in United Kingdom, and accelerated growth in France, Italy, and Spain. Net sales growth of 43.1% in Asia-Pacific was primarily driven by strong sales growth in China and Japan, alongside notable contribution from South Korea.
Six-month period ended June 30, 2026 compared to the six-month period ended June 30, 2025
Net sales increased across all geographic regions for the six-month period ended June 30, 2026, compared to the six-month period ended June 30, 2025, with Asia-Pacific showing particularly strong growth. The 3.8% increase in net sales in the Americas was driven by the ongoing rise in awareness of the On brand in the region and continued strength in both channels, particularly the collaboration with key account partners and the successful expansion of our retail stores. The 18.8% increase in net sales in EMEA was driven by the continued strength in United Kingdom, particularly with key account partners, accelerated growth in France and Spain, and notable contributions within our distributor network. Net sales growth of 43.7% in Asia-Pacific was primarily driven by strong sales growth in China and Japan, alongside notable contribution from South Korea.
7
Net sales by product
The following tables present net sales by product group:
| Three-month period ended June 30, | ||||||||||||||||||||||||||
| (CHF in millions) | 2026 | 2025 | % Change | Constant Currency % Change (1) | ||||||||||||||||||||||
| Shoes | 781.6 | 704.9 | 10.9 | % | 18.9 | % | ||||||||||||||||||||
| Apparel | 54.2 | 36.7 | 47.7 | % | 56.2 | % | ||||||||||||||||||||
| Accessories | 14.5 | 7.7 | 88.3 | % | 102.2 | % | ||||||||||||||||||||
| Net Sales | 850.3 | 749.2 | 13.5 | % | 21.6 | % | ||||||||||||||||||||
| Shoes % of Net sales | 91.9 | % | 94.1 | % | ||||||||||||||||||||||
| Apparel % of Net sales | 6.4 | % | 4.9 | % | ||||||||||||||||||||||
| Accessories % of Net sales | 1.7 | % | 1.0 | % | ||||||||||||||||||||||
| Net sales % | 100.0 | % | 100.0 | % | ||||||||||||||||||||||
| Six-month period ended June 30, | ||||||||||||||||||||||||||
| (CHF in millions) | 2026 | 2025 | % Change | Constant Currency % Change (1) | ||||||||||||||||||||||
| Shoes | 1,545.3 | 1,385.8 | 11.5 | % | 21.4 | % | ||||||||||||||||||||
| Apparel | 109.5 | 74.8 | 46.4 | % | 56.9 | % | ||||||||||||||||||||
| Accessories | 27.4 | 15.2 | 80.3 | % | 94.4 | % | ||||||||||||||||||||
| Net Sales | 1,682.2 | 1,475.8 | 14.0 | % | 24.0 | % | ||||||||||||||||||||
| Shoes % of Net sales | 91.9 | % | 93.9 | % | ||||||||||||||||||||||
| Apparel % of Net sales | 6.5 | % | 5.1 | % | ||||||||||||||||||||||
| Accessories % of Net sales | 1.6 | % | 1.0 | % | ||||||||||||||||||||||
| Net sales % | 100.0 | % | 100.0 | % | ||||||||||||||||||||||
(1) The constant currency percent change represents changes to net sales on a constant currency basis, which is a non-IFRS financial measure. See section titled "Non-IFRS Measures" for a description of this measure. Reconciliation to the nearest IFRS measure is shown in table above.
Three-month period ended June 30, 2026 compared to the three-month period ended June 30, 2025
Net sales increased across all product groups during the three-month period ended June 30, 2026 compared to the three-month period ended June 30, 2025. The 10.9% increase in net sales for shoes was driven by new franchise iterations, expanded seasonal colorways, and the continuity of successful products carrying over from previous seasons. Growth was led by our Performance All Day vertical, primarily due to strong performance of the Cloudtilt franchise. The 47.7% increase in net sales for apparel was driven by our Performance Running vertical, with additional contributions from the Performance Training and Performance Tennis verticals. Net sales in accessories increased by 88.3% compared to the three-month period ended June 30, 2025, driven by growth within the socks category with additional contributions from our bags category.
8
Six-month period ended June 30, 2026 compared to the six-month period ended June 30, 2025
Net sales increased across all product groups during the six-month period ended June 30, 2026 compared to the six-month period ended June 30, 2025. The 11.5% increase in net sales for shoes was driven by new franchise iterations, expanded seasonal colorways, and the continuity of successful products carrying over from previous seasons. Growth was led by our Performance All Day vertical, primarily due to the strong performance of the Cloudtilt franchise, with additional contributions from the Performance Running vertical, driven by the strong performance of the Cloudmonster and Cloudsurfer franchises. The 46.4% increase in net sales for apparel was driven by our Performance Running vertical, with additional contributions from the Performance All Day and Performance Tennis verticals. Net sales in accessories increased by 80.3% compared to the six-month period ended June 30, 2025, driven by growth within the socks category with additional contributions from our bags category.
Gross Profit
| Three-month period ended June 30, | Six-month period ended June 30, | |||||||||||||||||||||||||||||||||||||
| (CHF in millions) | 2026 | 2025 | % Change | 2026 | 2025 | % Change | ||||||||||||||||||||||||||||||||
| Gross profit | 555.7 | 460.8 | 20.6 | % | 1,090.0 | 896.1 | 21.6 | % | ||||||||||||||||||||||||||||||
| Gross profit margin | 65.4 | % | 61.5 | % | 64.8 | % | 60.7 | % | ||||||||||||||||||||||||||||||
Three-month period ended June 30, 2026 compared to the three-month period ended June 30, 2025
Cost of sales increased during the three-month period ended June 30, 2026 by CHF 6.2 million, or 2.1%, to CHF 294.6 million, compared to CHF 288.4 million during the three-month period ended June 30, 2025. Gross profit was CHF 555.7 million for the three-month period ended June 30, 2026, representing a gross profit margin of 65.4%, compared to CHF 460.8 million for the three-month period ended June 30, 2025, representing a gross profit margin of 61.5%. The increase in gross profit margin was mainly driven by operational efficiencies and improvements, particularly in freight, higher share of net sales through the DTC channel, our premium brand positioning, and favorable foreign exchange impacts, which more than offset the impact of increased import duties in the United States.
Six-month period ended June 30, 2026 compared to the six-month period ended June 30, 2025
Cost of sales increased during the six-month period ended June 30, 2026 by CHF 12.5 million, or 2.1%, to CHF 592.2 million, compared to CHF 579.7 million during the six-month period ended June 30, 2025. Gross profit was CHF 1,090.0 million for the six-month period ended June 30, 2026, representing a gross profit margin of 64.8%, compared to CHF 896.1 million for the six-month period ended June 30, 2025, representing a gross profit margin of 60.7%. The increase in gross profit margin was mainly driven by operational efficiencies and improvements, particularly in freight, our premium brand positioning, higher share of net sales through the DTC channel, and favorable foreign exchange impacts, which more than offset the impact of increased import duties in the United States.
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Selling, General and Administrative ("SG&A") Expenses
| Three-month period ended June 30, | Six-month period ended June 30, | |||||||||||||||||||||||||||||||||||||
| (CHF in millions) | 2026 | 2025 | % Change | 2026 | 2025 | % Change | ||||||||||||||||||||||||||||||||
| Net sales | 850.3 | 749.2 | 13.5 | % | 1,682.2 | 1,475.8 | 14.0 | % | ||||||||||||||||||||||||||||||
| Distribution expenses | (84.7) | (85.3) | (0.7) | % | (167.9) | (164.9) | 1.9 | % | ||||||||||||||||||||||||||||||
| Selling expenses | (81.1) | (60.8) | 33.5 | % | (151.6) | (121.5) | 24.7 | % | ||||||||||||||||||||||||||||||
| Marketing expenses | (118.8) | (89.7) | 32.4 | % | (228.0) | (170.5) | 33.7 | % | ||||||||||||||||||||||||||||||
| Share-based compensation | (12.2) | (10.9) | 11.3 | % | (33.5) | (25.5) | 31.2 | % | ||||||||||||||||||||||||||||||
| General and administrative expenses | (139.5) | (121.3) | 15.0 | % | (272.2) | (243.9) | 11.6 | % | ||||||||||||||||||||||||||||||
| SG&A expenses | (436.3) | (368.0) | 18.5 | % | (853.2) | (726.3) | 17.5 | % | ||||||||||||||||||||||||||||||
| Less share-based compensation | (12.2) | (10.9) | 11.3 | % | (33.5) | (25.5) | 31.2 | % | ||||||||||||||||||||||||||||||
SG&A expenses (excluding share-based compensation) | (424.1) | (357.1) | 18.8 | % | (819.7) | (700.8) | 17.0 | % | ||||||||||||||||||||||||||||||
| Distribution expenses % of Net sales | 10.0 | % | 11.4 | % | 10.0 | % | 11.2 | % | ||||||||||||||||||||||||||||||
| Selling expenses % of Net sales | 9.5 | % | 8.1 | % | 9.0 | % | 8.2 | % | ||||||||||||||||||||||||||||||
| Marketing expenses % of Net sales | 14.0 | % | 12.0 | % | 13.6 | % | 11.6 | % | ||||||||||||||||||||||||||||||
| Share-based compensation % of Net sales | 1.4 | % | 1.5 | % | 2.0 | % | 1.7 | % | ||||||||||||||||||||||||||||||
| General and administrative expenses % of Net sales | 16.4 | % | 16.2 | % | 16.2 | % | 16.5 | % | ||||||||||||||||||||||||||||||
| SG&A expenses % of Net sales | 51.3 | % | 49.1 | % | 50.7 | % | 49.2 | % | ||||||||||||||||||||||||||||||
SG&A expenses (excluding share-based compensation) % of Net sales | 49.9 | % | 47.7 | % | 48.7 | % | 47.5 | % | ||||||||||||||||||||||||||||||
Three-month period ended June 30, 2026 compared to the three-month period ended June 30, 2025
SG&A expenses for the three-month period ended June 30, 2026 increased by CHF 68.3 million, or 18.5%, to CHF 436.3 million, compared to CHF 368.0 million for the three-month period ended June 30, 2025. Excluding share-based compensation, SG&A expenses as a percentage of net sales increased to 49.9% in the three-month period ended June 30, 2026 compared to 47.7% for the three-month period ended June 30, 2025.
The drivers for the fluctuations in SG&A expenses, mostly denominated as a percentage of net sales, can be summarized as follows:
•Distribution expenses as a percentage of net sales decreased to 10.0% during the three-month period ended June 30, 2026 compared to 11.4% during the three-month period ended June 30, 2025. This was primarily due to lower delivery and warehousing costs resulting from operational efficiency gains during the three-month period ended June 30, 2026.
•Selling expenses as a percentage of net sales increased to 9.5% during the three-month period ended June 30, 2026 compared to 8.1% during the three-month period ended June 30, 2025. The increase was primarily driven by additional expenses incurred as a result of our expanding retail footprint, primarily due to retail store-related personnel costs and depreciation.
•Marketing expenses as a percentage of net sales increased to 14.0% during the three-month period ended June 30, 2026 compared to 12.0% during the three-month period ended June 30, 2025. The increase was primarily driven by selective reinvestment of operational efficiency gains into meaningful brand building initiatives, including in digital environments and innovation activations, as well as a shift in the timing of our marketing campaigns.
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•Share-based compensation increased to CHF 12.2 million during the three-month period ended June 30, 2026 compared to share-based compensation of CHF 10.9 million during the three-month period ended June 30, 2025.
•General and administrative expenses as a percentage of net sales increased to 16.4% during the three-month period ended June 30, 2026 compared to 16.2% during the three-month period ended June 30, 2025. This slight increase was primarily driven by higher personnel related expenses, as well as higher research and development expenses, partially offset by strong net sales growth.
Six-month period ended June 30, 2026 compared to the six-month period ended June 30, 2025
SG&A expenses for the six-month period ended June 30, 2026 increased by CHF 126.9 million, or 17.5%, to CHF 853.2 million, compared to CHF 726.3 million for the six-month period ended June 30, 2025. Excluding share-based compensation, SG&A expenses as a percentage of net sales increased to 48.7% in the six-month period ended June 30, 2026 compared to 47.5% for the six-month period ended June 30, 2025.
The drivers for the fluctuations in SG&A expenses, mostly denominated as a percentage of net sales, can be summarized as follows:
•Distribution expenses as a percentage of net sales decreased to 10.0% during the six-month period ended June 30, 2026 compared to 11.2% during the six-month period ended June 30, 2025. This was primarily due to lower delivery and warehousing costs resulting from operational efficiency gains during the six-month period ended June 30, 2026.
•Selling expenses as a percentage of net sales increased to 9.0% during the six-month period ended June 30, 2026 compared to 8.2% during the six-month period ended June 30, 2025. The increase was primarily driven by additional expenses incurred as a result of our expanding retail footprint, primarily due to retail store-related personnel costs and depreciation.
•Marketing expenses as a percentage of net sales increased to 13.6% during the six-month period ended June 30, 2026 compared to 11.6% during the six-month period ended June 30, 2025. The increase was primarily driven by selective reinvestment of operational efficiency gains into meaningful brand building initiatives, including in digital environments and innovation activations, as well as a shift in the timing of our marketing campaigns.
•Share-based compensation increased to CHF 33.5 million during the six-month period ended June 30, 2026 compared to share-based compensation of CHF 25.5 million during the six-month period ended June 30, 2025.
•General and administrative expenses as a percentage of net sales decreased to 16.2% during the six-month period ended June 30, 2026 compared to 16.5% during the six-month period ended June 30, 2025. This decrease is primarily driven by the non-recurrence of one-off employee-related expenses, partially offset by higher recurring personnel related expenses.
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Depreciation and Amortization
| Three-month period ended June 30, | Six-month period ended June 30, | |||||||||||||||||||||||||||||||||||||
| (CHF in millions) | 2026 | 2025 | % Change | 2026 | 2025 | % Change | ||||||||||||||||||||||||||||||||
| Depreciation and amortization | 36.5 | 32.4 | 12.6 | % | 71.9 | 60.7 | 18.4 | % | ||||||||||||||||||||||||||||||
| Depreciation and amortization % of Net sales | (4.3) | % | (4.3) | % | (4.3) | % | (4.1) | % | ||||||||||||||||||||||||||||||
Three-month period ended June 30, 2026 compared to the three-month period ended June 30, 2025
Depreciation and amortization expenses during the three-month period ended June 30, 2026 increased by CHF 4.1 million, or 12.6%, to CHF 36.5 million, compared to CHF 32.4 million during the three-month period ended June 30, 2025. Thereof, depreciation and amortization expenses attributable to right of use assets increased by CHF 2.3 million as a result of the expansion of our retail stores. In addition, depreciation and amortization expenses attributable to owned assets increased by CHF 1.8 million.
Six-month period ended June 30, 2026 compared to the six-month period ended June 30, 2025
Depreciation and amortization expenses during the six-month period ended June 30, 2026 increased by CHF 11.2 million, or 18.4%, to CHF 71.9 million, compared to CHF 60.7 million during the six-month period ended June 30, 2025. Thereof, depreciation and amortization expenses attributable to right of use assets increased by CHF 8.5 million as a result of the expansion of our retail stores, as well as our enhanced warehouse and distribution facilities. In addition, depreciation and amortization expenses attributable to owned assets increased by CHF 2.7 million as a result of retail expansion, mainly related to leasehold improvements.
Net Financial Result
| Three-month period ended June 30, | Six-month period ended June 30, | |||||||||||||||||||||||||||||||||||||
| (CHF in millions) | 2026 | 2025 | % Change | 2026 | 2025 | % Change | ||||||||||||||||||||||||||||||||
| Financial income | 11.3 | 7.5 | 50.7 | % | 18.3 | 14.8 | 23.6 | % | ||||||||||||||||||||||||||||||
| Financial expenses | (8.3) | (7.7) | 7.8 | % | (16.3) | (13.6) | 19.9 | % | ||||||||||||||||||||||||||||||
| Foreign exchange gain / (loss) | 3.3 | (139.9) | (102.4) | % | 2.9 | (154.4) | (101.9) | % | ||||||||||||||||||||||||||||||
| Net financial result | 6.3 | (140.1) | (104.5) | % | 4.9 | (153.2) | (103.2) | % | ||||||||||||||||||||||||||||||
Three-month and six-month periods ended June 30, 2026 compared to the three-month and six-month periods ended June 30, 2025
Financial income for the three-month period ended June 30, 2026 increased by CHF 3.8 million to CHF 11.3 million, compared to the three-month period ended June 30, 2025. Financial income for the six-month period ended June 30, 2026 increased by CHF 3.5 million to CHF 18.3 million, when compared to the six-month period ended June 30, 2025. The increases in the three and six-month periods ended June 30, 2026 were primarily driven by an increase in the underlying amount of fixed deposits.
Financial expenses for the three-month period ended June 30, 2026 increased by CHF 0.5 million to CHF 8.3 million, compared to CHF 7.7 million for the three-month period ended June 30, 2025. Financial expenses for the six-month period ended June 30, 2026 increased by CHF 2.7 million, to CHF 16.3 million, compared to CHF 13.6 million for the six-month period ended June 30, 2025. The increases in the three and six-month periods ended June 30, 2026 were primarily driven by higher interest expenses on lease contracts, resulting from new leases outstanding throughout the three and six-month periods ended June 30, 2026, compared to the three and six-month periods ended June 30, 2025.
12
The change in foreign exchange result was primarily due to significant foreign exchange losses incurred during the three-month and six-month periods ended June 30, 2025, driven by fluctuations in the CHF/USD exchange rate. The foreign exchange gains recorded in the three-month and six-month periods ended June 30, 2026 were impacted by the functional currency changes that occurred on January 1, 2026 and the slight appreciation of the USD against the GBP, CHF, JPY, and EUR as of June 30, 2026 compared to December 31, 2025. Refer to the section titled "Factors Affecting Performance and Trend Information," and to our Annual Report, available at www.sec.gov, for additional information on the aforementioned functional currency changes.
Income Taxes
| Three-month period ended June 30, | Six-month period ended June 30, | |||||||||||||||||||||||||||||||||||||
| (CHF in millions) | 2026 | 2025 | % Change | 2026 | 2025 | % Change | ||||||||||||||||||||||||||||||||
| Income tax (expense) / benefit | (20.7) | 6.4 | (423.5) | % | (33.5) | (0.8) | 3878.7 | % | ||||||||||||||||||||||||||||||
| Effective income tax rate | 16.5 | % | 13.5 | % | 13.9 | % | 5.1 | % | ||||||||||||||||||||||||||||||
Income tax (expense) / benefit, based on an estimate of the annual effective income tax rate for the three and six-month periods ended June 30, 2026, was CHF (20.7) million and CHF (33.5) million, respectively. This compares to income tax (expense) / benefit of CHF 6.4 million and CHF (0.8) million for the corresponding periods in 2025. The effective income tax rate was 16.5% and 13.9% for the three and six-month periods ended June 30, 2026, respectively, compared to 13.5% and 5.1% for the three and six-month periods ended June 30, 2025, respectively. The increases to the effective income tax rates were mainly due to deferred income tax benefits during the three and six-month periods ended June 30, 2025 related to the elimination of intercompany profits in inventory, as well as higher effectiveness of certain tax incentives and prior year adjustments during the three and six-month periods ended June 30, 2025.
Liquidity and Capital Resources
Our primary need for liquidity is to fund working capital requirements, capital expenditures, lease obligations and for general corporate purposes. We finance our liquidity needs using a combination of cash and cash equivalents balances and cash provided from operating activities.
Cash Flows
| Six-month period ended June 30, | ||||||||||||||||||||
| (CHF in millions) | 2026 | 2025 | Change | |||||||||||||||||
| Cash inflow from operating activities | 255.0 | 89.1 | 165.8 | |||||||||||||||||
| Cash (outflow) from investing activities | (47.2) | (29.4) | (17.8) | |||||||||||||||||
| Cash (outflow) from financing activities | (43.3) | (37.0) | (6.3) | |||||||||||||||||
Change in cash and cash equivalents | 164.6 | 22.6 | 142.1 | |||||||||||||||||
Cash and cash equivalents at the beginning of the period | 1,019.9 | 924.3 | 95.5 | |||||||||||||||||
| Net impact of foreign exchange rate differences | 21.1 | (100.3) | 121.4 | |||||||||||||||||
Cash and cash equivalents at the end of the period(1) | 1,205.6 | 846.6 | 359.0 | |||||||||||||||||
(1) Cash and cash equivalents as of June 30, 2026 include restricted cash in the amount of CHF 0.9 million provided for a bank guarantee associated with lease commitments. Restricted cash as of June 30, 2025 is equal to CHF 0.9 million.
13
Operating activities
Cash inflow from operating activities for the six-month period ended June 30, 2026 increased by CHF 165.8 million to 255.0 million, compared to CHF 89.1 million for the six-month period ended June 30, 2025. This increase is driven mainly by an increase in cash flows from changes in working capital of CHF 94.6 million (primarily due to changes in trade payables and trade receivables), higher net income after adjustments of CHF 76.0 million, and various other offsetting decreases and increases.
Investing activities
Cash outflow from investing activities for the six-month period ended June 30, 2026 increased by CHF 17.8 million to CHF 47.2 million, compared to CHF 29.4 million for the six-month period ended June 30, 2025. The increase is driven by higher purchases of property, plant and equipment during the current year period, primarily related to leasehold improvements within our retail stores.
Financing activities
Cash outflow from financing activities for the six-month period ended June 30, 2026 increased by CHF 6.3 million to CHF 43.3 million, compared to CHF 37.0 million for the six-month period ended June 30, 2025.
Net Working Capital
Net working capital is a financial measure that is not defined under IFRS. We use, and believe that certain investors and analysts use, this information to assess liquidity and management use of net working capital resources. We define net working capital as trade receivables, plus inventories, minus trade payables. This measure should not be considered in isolation or as a substitute for any standardized measure under IFRS.
Other companies in our industry may calculate this measure differently than we do, limiting its usefulness as a comparative measure.
| As of June 30, | As of December 31, | |||||||||||||||||||
| (CHF in millions) | 2026 | 2025 | % Change | |||||||||||||||||
Trade receivables | 374.0 | 305.4 | 22.5 | % | ||||||||||||||||
| Inventories | 472.9 | 419.8 | 12.7 | % | ||||||||||||||||
| Trade payables | (211.0) | (154.8) | 36.3 | % | ||||||||||||||||
| Net working capital | 635.9 | 570.3 | 11.5 | % | ||||||||||||||||
14
Capital Management
| As of June 30, | As of December 31, | |||||||||||||||||||
| (CHF in millions) | 2026 | 2025 | % Change | |||||||||||||||||
As of June 30, 2026: CHF 0.10 nominal value, 308,472,124 Class A Ordinary Shares issued of which 301,715,535 were outstanding As of December 31, 2025: CHF 0.10 nominal value, 306,847,124 Class A Ordinary Shares issued of which 296,873,353 were outstanding | 30.8 | 30.7 | 0.3 | % | ||||||||||||||||
As of June 30, 2026: CHF 0.01 nominal value, 324,991,680 Class B voting rights shares issued and outstanding As of December 31, 2025: CHF 0.01 nominal value, 341,241,680 Class B voting rights shares issued and outstanding | 3.2 | 3.4 | (5.9) | % | ||||||||||||||||
| Share capital | 34.1 | 34.1 | — | % | ||||||||||||||||
| Treasury shares | (26.4) | (26.7) | (1.1) | % | ||||||||||||||||
| Share premium | 760.7 | 760.8 | — | % | ||||||||||||||||
| Statutory reserves | 67.4 | 62.4 | 8.0 | % | ||||||||||||||||
| Equity transaction costs | (8.7) | (8.7) | — | % | ||||||||||||||||
| Tax impact on equity transaction costs | 1.3 | 1.3 | — | % | ||||||||||||||||
| Share-based compensation | 504.1 | 473.2 | 6.5 | % | ||||||||||||||||
| Capital reserves | 1,324.7 | 1,289.0 | 2.8 | % | ||||||||||||||||
| Other reserves | (12.0) | (46.6) | (74.2) | % | ||||||||||||||||
| Retained earnings | 590.9 | 382.6 | 54.4 | % | ||||||||||||||||
| Equity | 1,911.4 | 1,632.4 | 17.1 | % | ||||||||||||||||
| Class A Shares | Class B Shares | |||||||||||||
| Shares issued and outstanding as of January 1, 2026 | 296,873,353 | 341,241,680 | ||||||||||||
| Sale of treasury shares related to share-based compensation | 3,219,674 | 0 | ||||||||||||
| Purchase of treasury shares | (2,492) | 0 | ||||||||||||
Conversion of Class B shares to Class A shares(2) | 1,625,000 | (16,250,000) | ||||||||||||
Shares issued and outstanding as of June 30, 2026(1) | 301,715,535 | 324,991,680 | ||||||||||||
| Awards granted under various incentive plans with dilutive effects as of June 30, 2026 | 1,644,629 | 2,493,692 | ||||||||||||
(1) As of June 30, 2026 there were 6,756,589 treasury shares held by On (December 31, 2025: 9,973,771).
(2) As previously disclosed on Form 6-K' filed with the SEC on May 28, 2026, 16,250,000 of Class B Shares were converted into 1,625,000 Class A Ordinary Shares.
15
Share-based compensation
As of June 30, 2026, On has recognized an increase in shareholders' equity in the balance sheet of CHF 30.8 million for share-based compensation incurred during the six-month period ending June 30, 2026.
For the six-month period ending June 30, 2026, we have recognized a share-based compensation charge of CHF 33.5 million pursuant to the following share-based compensation plans and programs for select employees including our group executive team and senior management team:
• Long Term Incentive Plan 2021
• Compensation of non-executive members of our board of directors
Share-based payments are valued based on the grant date fair value of these awards and recorded over the corresponding vesting period.
Indebtedness
On July 7, 2023, we entered into a CHF 700 million multicurrency credit facility agreement ("credit facility"). We have an option to increase the total availability of borrowings under the credit facility in an aggregate amount of up to CHF 200 million, subject to the satisfaction of certain customary conditions. We entered into the credit facility as part of our prudent financial planning strategy to create future financial flexibility to better align with the size and maturity of the Company. The proceeds of any borrowings under the credit facility may be used towards the financing of working capital requirements and for general corporate purposes, including the roll-in of certain existing bank guarantees and the issuance of new bank guarantees. The credit facility had an initial term of three years, which has subsequently been extended for a total period of two years. Subsequent to extensions, the credit facility will expire on July 7, 2028.
As of June 30, 2026 and December 31, 2025, no amounts had been drawn under the new credit facility, and we do not currently expect to do so in the near term. As of June 30, 2026, we are using the credit facility to provide guarantees and letters of credit, as further discussed in the section titled "Off-Balance Sheet Arrangements."
The credit facility also contains financial covenants that depend on our consolidated equity as well as our net debt to adjusted EBITDA ratio. As of and during the six-month period ending June 30, 2026, we were in compliance with all covenants under the credit facility.
Further, as of June 30, 2026, trade receivables and inventories with a carrying value of CHF 312.8 million and CHF 342.2 million, respectively, were pledged in relation to the credit facility.
Material Cash Requirements
There were no material changes outside of the ordinary course of business as of June 30, 2026, to the material cash requirements reported in our Annual Report, with the exception of the items discussed below.
Lease commitments: As of June 30, 2026, total lease commitments are CHF 230.3 million, with CHF 14.4, CHF 99.9 million, and CHF 116.0 million due in less than one year, between one to five years, and more than five years, respectively. The increase in total lease commitments as of June 30, 2026, compared to CHF 153.8 million as of December 31, 2025, relates to our planned global retail expansion and a new warehouse planned in APAC.
Lease liabilities: As of June 30, 2026, total undiscounted lease liabilities are CHF 672.4 million, with CHF 110.2 million, CHF 332.5 million, and CHF 229.7 million due in less than one year, between one to five years, and more than five years, respectively. This represents an increase of CHF 56.8 million from CHF 615.6 million as of December 31, 2025, primarily driven by new retail lease commencements as part of our ongoing expansion.
Off-Balance Sheet Arrangements
As of June 30, 2026 and December 31, 2025, we provided guarantees and letters of credit in the amount of CHF 163.2 million and CHF 153.2 million in favor of third parties, respectively. Of the total guarantees and letters of credit outstanding as of June 30, 2026 and December 31, 2025, CHF 163.2 million and CHF 153.2 million, respectively, relate to our credit facility, as discussed in the section titled "Indebtedness." Other than those items disclosed here and elsewhere in this document, we do not have any material off-balance sheet arrangements or commitments as of June 30, 2026.
Non-IFRS Measures
Adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted basic EPS, adjusted diluted EPS, net working capital, and net sales on a constant currency basis are financial measures that are not defined under IFRS.
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We use these non-IFRS measures when evaluating our performance, including when making financial and operating decisions, and as a key component in the determination of variable incentive compensation for employees. We believe that, in addition to conventional measures prepared in accordance with IFRS, these non-IFRS measures enhance investor understanding of our financial and operating performance from period to period, because they enhance the comparability of results between each period, help identify trends in operating results and provide additional insight and transparency on how management evaluates the business. In particular, we believe adjusted EBITDA, adjusted EBITDA margin, adjusted net income and net working capital are measures commonly used by investors to evaluate companies in the sportswear industry.
However, adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted basic EPS, adjusted diluted EPS, net working capital, and net sales on a constant currency basis should not be considered in isolation or as a substitute for other financial measures calculated and presented in accordance with IFRS and may not be comparable to similarly titled non-IFRS measures used by other companies. The tables below reconcile adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted basic EPS, and adjusted diluted EPS to their most directly comparable IFRS measure. See sections titled "Liquidity and Capital Resource" and "Operating Results" for reconciliations of net working capital and net sales on a constant currency basis, respectively, to their most directly comparable IFRS measure.
Adjusted EBITDA and Adjusted EBITDA Margin
The table below reconciles net income and adjusted EBITDA for the periods presented. Adjusted EBITDA margin is equal to adjusted EBITDA for the period presented as a percentage of net sales for the same period.
| Three-month period ended June 30, | Six-month period ended June 30, | |||||||||||||||||||||||||||||||||||||
| (CHF in millions) | 2026 | 2025 | % Change | 2026 | 2025 | % Change | ||||||||||||||||||||||||||||||||
| Net income / (loss) | 105.0 | (40.9) | 356.5 | % | 208.3 | 15.8 | 1221.5 | % | ||||||||||||||||||||||||||||||
| Exclude the impact of: | ||||||||||||||||||||||||||||||||||||||
| Income taxes | 20.7 | (6.4) | 423.5 | % | 33.5 | 0.8 | 3878.7 | % | ||||||||||||||||||||||||||||||
| Financial income | (11.3) | (7.5) | 50.7 | % | (18.3) | (14.8) | 23.6 | % | ||||||||||||||||||||||||||||||
| Financial expenses | 8.3 | 7.7 | 7.8 | % | 16.3 | 13.6 | 19.9 | % | ||||||||||||||||||||||||||||||
Foreign exchange result (1) | (3.3) | 139.9 | (102.4) | % | (2.9) | 154.4 | (101.9) | % | ||||||||||||||||||||||||||||||
| Depreciation and amortization | 36.5 | 32.4 | 12.6 | % | 71.9 | 60.7 | 18.4 | % | ||||||||||||||||||||||||||||||
Share-based compensation (2) | 12.2 | 10.9 | 11.3 | % | 33.5 | 25.5 | 31.2 | % | ||||||||||||||||||||||||||||||
| Adjusted EBITDA | 168.1 | 136.1 | 23.5 | % | 342.3 | 256.1 | 33.7 | % | ||||||||||||||||||||||||||||||
| Adjusted EBITDA Margin | 19.8 | % | 18.2 | % | 20.3 | % | 17.4 | % | ||||||||||||||||||||||||||||||
(1) Represents the foreign exchange gain / (loss) line item within the consolidated statements of income.
(2) Management excludes share-based compensation expenses as these are non-cash and we do not consider these expenses reflective of our ongoing operations and performance.
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Adjusted Net Income, Adjusted Basic EPS and Adjusted Diluted EPS
We use adjusted net income, adjusted basic EPS and adjusted diluted EPS as measures of operating performance in conjunction with related IFRS measures.
For the purpose of operational performance measurement, we calculate adjusted net income, adjusted basic EPS and adjusted diluted EPS in a manner that fully excludes the impact of any costs related to share-based compensation and includes the tax effect on the tax-deductible portion of the non-IFRS adjustments, which we believe increases comparability of the metric from period to period, and makes it useful for management, our audit committee and investors to assess our financial performance over time.
Adjusted basic EPS is calculated by dividing adjusted net income by the weighted average number of ordinary shares outstanding during the period. Adjusted diluted EPS is calculated by dividing adjusted net income by the weighted average number of ordinary shares outstanding during the period on a fully diluted basis.
The table below provides a reconciliation between net income and adjusted net income, adjusted basic EPS and adjusted diluted EPS for the periods presented:
| Three-month period ended June 30, | ||||||||||||||||||||||||||
| (CHF in millions, except per share data) | 2026 | 2026 | 2025 | 2025 | ||||||||||||||||||||||
| Class A | Class B | Class A | Class B | |||||||||||||||||||||||
| Net income / (loss) | 94.5 | 10.5 | (36.7) | (4.2) | ||||||||||||||||||||||
| Exclude the impact of: | ||||||||||||||||||||||||||
Share-based compensation(1) | 10.9 | 1.2 | 9.8 | 1.1 | ||||||||||||||||||||||
Tax effect of adjustments(2) | 0.4 | — | 0.3 | — | ||||||||||||||||||||||
| Adjusted net income / (loss) | 105.8 | 11.8 | (26.6) | (3.1) | ||||||||||||||||||||||
| Weighted number of outstanding shares | 300,422,597 | 335,348,823 | 295,531,210 | 341,044,191 | ||||||||||||||||||||||
| Weighted number of shares with dilutive effects | 1,677,255 | 2,493,692 | 3,300,452 | 12,293,550 | ||||||||||||||||||||||
Weighted number of outstanding shares (diluted and undiluted)(3) | 302,099,852 | 337,842,515 | 298,831,662 | 353,337,741 | ||||||||||||||||||||||
| Adjusted basic EPS (CHF) | 0.35 | 0.04 | (0.09) | (0.01) | ||||||||||||||||||||||
| Adjusted diluted EPS (CHF) | 0.35 | 0.03 | (0.09) | (0.01) | ||||||||||||||||||||||
(1) Management excludes share-based compensation expenses as these are non-cash and we do not consider these expenses reflective of our ongoing operations and performance.
(2) The tax effect has been calculated by applying the local tax rate on the tax deductible portion of the respective adjustments.
(3) Weighted number of outstanding shares (diluted and undiluted) are presented herein in order to calculate Adjusted EPS as Adjusted net income for such periods.
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| Six-month period ended June 30, | ||||||||||||||||||||||||||
| (CHF in millions, except per share data) | 2026 | 2026 | 2025 | 2025 | ||||||||||||||||||||||
| Class A | Class B | Class A | Class B | |||||||||||||||||||||||
| Net income / (loss) | 187.1 | 21.2 | 14.1 | 1.6 | ||||||||||||||||||||||
| Exclude the impact of: | ||||||||||||||||||||||||||
Share-based compensation(1) | 30.1 | 3.4 | 22.8 | 2.7 | ||||||||||||||||||||||
Tax effect of adjustments(2) | (0.6) | (0.1) | (0.4) | — | ||||||||||||||||||||||
| Adjusted net income / (loss) | 216.6 | 24.5 | 36.6 | 4.3 | ||||||||||||||||||||||
| Weighted number of outstanding shares | 298,951,784 | 338,278,973 | 294,458,484 | 343,228,709 | ||||||||||||||||||||||
| Weighted number of shares with dilutive effects | 2,596,588 | 3,726,415 | 4,005,446 | 12,885,677 | ||||||||||||||||||||||
Weighted number of outstanding shares (diluted and undiluted)(3) | 301,548,372 | 342,005,388 | 298,463,930 | 356,114,386 | ||||||||||||||||||||||
| Adjusted basic EPS (CHF) | 0.72 | 0.07 | 0.12 | 0.01 | ||||||||||||||||||||||
| Adjusted diluted EPS (CHF) | 0.72 | 0.07 | 0.12 | 0.01 | ||||||||||||||||||||||
(1) Management excludes share-based compensation expenses as these are non-cash and we do not consider these expenses reflective of our ongoing operations and performance.
(2) The tax effect has been calculated by applying the local tax rate on the tax-deductible portion of the respective adjustments.
(3) Weighted numbers of outstanding shares (diluted and undiluted) are presented herein in order to calculate adjusted diluted EPS in relation to adjusted net income for such periods.
Net Sales on a Constant Currency Basis
Net sales on a constant currency basis is a non-IFRS measure which represents current period results that have been retranslated using exchange rates used in the prior year comparative period. We provide constant currency percent change in net sales within our "Key Financial and Operating Metrics" and "Operating Results" sections, to enhance the visibility of the underlying growth rate of net sales, excluding the impact of foreign currency exchange rate fluctuations.
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Factors Affecting Performance and Trend Information
We expect our growth, financial condition, cash flows, and results of operations will continue to be affected by a number of factors and trends. Refer to “Item 3.D. Risk Factors” and "Item 5. Operating and Financial Review and Prospects" within our Annual Report for further information on these factors. Below, we have included recent updates.
Customs and duty expenses
Beginning in April 2025, the United States ("U.S") implemented new tariffs as part of its trade policy, including both baseline tariffs and higher country-specific reciprocal tariffs on imports from all countries. Additionally, on July 31, 2025, an executive order ("Executive Order") was signed confirming the tariff rates on various trading partner countries, including a fixed reciprocal import tariff of 20% on Vietnam (applied in addition to the existing 20% import tariff in Vietnam). The confirmed tariff rates under the Executive Order became effective on August 8th, 2025. In July 2026, the U.S. government imposed additional tariffs under Section 301 of the Trade Act of 1974 that are expected to result in an increase in tariffs on our products.
On February 20, 2026, the U.S. Supreme Court invalidated specific tariffs levied under the International Emergency Economic Powers Act (“IEEPA”), and the U.S government ceased collecting these tariffs on February 24, 2026. On April 20, 2026, the U.S. Customs and Border Protection introduced an electronic system to manage refunds for these IEEPA tariffs.
As of June 30, 2026, our total IEEPA tariffs paid are CHF 55.6 million, of which CHF 52.7 million have been submitted through the U.S. Customs refund processing. We have determined that potential recovery of any of these funds is not virtually certain as of June 30, 2026 and therefore have not recognized any of these potential refund amounts in the unaudited interim condensed consolidated financial statements. We will recognize refunds in the unaudited interim condensed consolidated financial statements when realization of these amounts is deemed virtually certain. We will recognize the potential refund impact attributed to inventories already sold as a reduction to cost of sales, and the potential impact attributed to inventories still on-hand as a reduction to inventories. As of June 30, 2026, the majority of the potential refund relates to inventory already sold. As of August 11, 2026, we received approximately CHF 27.9 million in IEEPA tariff refunds. This amount will be recognized in the third quarter of 2026.
We will continue to monitor changes to the import and export policies of the U.S. and other countries, including the imposition of additional tariffs, that could impact our financial position, results of operations and cash flows.
Macroeconomic conditions
Global events, including the recent military conflict in the Middle East, have resulted in worldwide geopolitical and macroeconomic uncertainty, and we cannot predict how these conflicts will evolve or the timing and effects thereof. Continued instability could adversely affect consumer demand and our sales and growth in those markets. In addition, the conflict could further disrupt regional trade routes. We will continue to monitor the situation and the potential impact it may have on consumer patterns and sentiment in the Middle East and other regions.
We are subject to risks and exposures from the evolving global macroeconomic environment, including the level of promotional activity in the market and economic uncertainty, all of which may negatively impact customer demand, consumer spending, our ability to manage inventory, and our sales and growth. In the second quarter of 2026, growth in our wholesale channel was more moderate given selective sell-in actions with partners, particularly in the Americas, as we continue to operate in a highly promotional market / industry. These actions are a result of our commitment to our premium strategy and disciplined execution, including selective actions taken in the third quarter of 2026 and the potential for further action to manage sell-in for the remainder of the year.
Functional Currency Change
Effective January 1, 2026, On Holding AG (the Group's parent company) and On AG (the Group's main trading entity) have changed their functional currency from the Swiss Franc (CHF) to the U.S Dollar (USD). These
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changes were accounted for prospectively and did not impact prior period financial statements. The Group’s presentation currency remains in CHF.
As a result, during the three and six months ended June 30, 2026, the effect of exchange rate changes on USD-denominated monetary assets and liabilities was reduced, resulting in reduced volatility within line item foreign exchange gains / (losses) in our consolidated profit or loss statements. We expect this lower volatility, as a result of the reduced effect of exchange rate changes on USD-denominated monetary assets and liabilities, to continue in 2026 and future periods.
Additionally, beginning in the first quarter of 2026, we are recording adjustments in other comprehensive income / (loss) to translate these entities' financial statements from USD to CHF (our presentation currency), which led to increased volatility within other comprehensive income / (loss) during the three and six months ended June 30, 2026. We expect the increased volatility arising from the translation of these entities' financial statements from USD to CHF to continue throughout 2026 and into future periods.
Refer to note "6.6 Events after the balance sheet date" and "Item 5.B Liquidity and capital resources" within our Annual Report, available at www.sec.gov., for additional information on the aforementioned functional currency change.
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New Accounting Pronouncements
There have been no material changes related to recently issued or adopted accounting standards from those disclosed in our consolidated financial statements for the year ended December 31, 2025, included in our Annual Report, available at www.sec.gov.
Critical Accounting Policies
There have been no material changes to the key estimates, assumptions and judgments from those disclosed in our consolidated financial statements for the year ended December 31, 2025, included in our Annual Report, available at www.sec.gov.
Risk Factors
There have been no material changes to the risk factors as set out in our Annual Report, available at www.sec.gov.
Special Note Regarding Forward-Looking Statements
This management's discussion and analysis contains statements that may constitute “forward-looking” statements pursuant to the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Many of the forward-looking statements contained in this management’s discussion and analysis can be identified by the use of forward-looking words such as “anticipate,” “believe,” “continue,” “could,” “expect,” “estimate,” “forecast,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “target,” “will,” “would,” and “should,” among others.
Among other things, On’s quotations from management in the press releases and other written materials, as well as On’s strategic and operational plans, contain forward-looking statements. On may also make written or oral forward-looking statements in its periodic reports to the SEC, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Further, On uses the investors.on-running.com website as well as LinkedIn as means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD. Forward-looking statements appear in a number of places in this management’s discussion and analysis and include, but are not limited to, statements regarding our intent, belief or current expectations. Forward-looking statements are based on our management’s beliefs and assumptions and on information currently available to our management.
Such statements are subject to risks and uncertainties, and actual results may differ materially from those expressed or implied in the forward-looking statements due to various factors, including, but not limited to, those identified under the section titled “Risk Factors” in our Annual Report. These risks and uncertainties include factors relating to: the strength of our brand and our ability to maintain our reputation and premium brand image; our ability and the ability of our independent manufacturers and other suppliers to follow responsible business practices; our ability to implement our growth strategy; the concentration of our business in a single, discretionary product category, namely footwear, apparel and accessories; our ability to continue to innovate and meet consumer expectations; changes in consumer tastes and preferences including in products and sustainability, and our ability to connect with our consumer base; our ability to open new stores at locations that will attract customers to our premium products; our ability to compete and conduct our business in the future; health epidemics, pandemics and similar outbreaks; general economic, political, demographic and business conditions worldwide, including geopolitical uncertainty and instability, such as the on-going Russia-Ukraine or Israel-Hamas conflicts and on-going shipping disruptions in the Red Sea and surrounding waterways; the success of operating initiatives, including advertising and promotional efforts and new product and concept development by us and our competitors; our ability to successfully develop, implement, and scale our LightSpray™ technology and products developed using this technology; our ability to strengthen and grow our DTC channel; our ability to address climate related risks; our ability to execute and manage our sustainability strategy and achieve our sustainability-related goals and targets, including sustainable product offerings and investor and customer scrutiny; our third-party suppliers, manufacturers and other partners, including their financial stability and our ability to find suitable partners to implement our growth strategy; supply chain disruptions, inflation and increased costs in supplies, goods and transportation, customs and duty expenses, and foreign exchange rates; the availability of qualified personnel and the ability to retain such personnel, including our Executive Founder Team; our ability to accurately forecast demand for our products and manage product manufacturing decisions; our ability to distribute products through our wholesale channel; changes in commodity, material, labor, distribution and other operating costs; our international operations; our ability to protect our intellectual property and defend against allegations of violations of third-party intellectual property by us; cybersecurity incidents and other disruptions to our information technology ("IT") systems; increased hacking activity against the critical infrastructure of any nation or organization that retaliates against Russia for its invasion of Ukraine; our reliance on complex IT systems; our ability to adopt and monitor generative artificial intelligence ("AI") technologies in our operations; changes and contemplation of changes to trade policies, tariffs and import/export regulations in the United States and other jurisdictions; financial accounting and tax
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matters; our ability to maintain effective internal control over financial reporting; the potential impact of, and our compliance with, new and existing laws and regulations; other factors that may affect our financial condition, liquidity and results of operations; and other risks and uncertainties set out in filings made from time to time with the SEC and available at www.sec.gov, including, without limitation, our most recent reports on Form 20-F and Form 6-K. You are urged to consider these factors carefully in evaluating the forward-looking statements contained herein and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by these cautionary statements.
Forward-looking statements speak only as of the date they are made, and we do not undertake any obligation to update them in light of new information or future developments or to release publicly any revisions to these statements in order to reflect later events or circumstances or to reflect the occurrence of unanticipated events.
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Exhibit 99.3
On Reports Results for the Second Quarter and Six-Month Period Ended June 30, 2026
•On delivers another quarter of premium growth, driven by the strength of its brand, disciplined execution and a deepening connection with consumers worldwide. Net sales increase by 13.5% year-over-year, or by 21.6% on a constant currency basis, to CHF 850.3 million. Growth is led by the extraordinary strength of On’s Direct-to-Consumer (“DTC”) channel, which increases by 26.0%, or 34.3% on a constant currency basis, exceeding expectations in every single region. DTC reaches a new second-quarter high of 45.7% of net sales, while global brand awareness climbs to 30%, as a whole new generation of fans discovers On.
•On continues to successfully execute on its strategic priorities. The Asia-Pacific region again delivers more than 20% of global net sales, powered by standout momentum across Japan, South Korea and Greater China. Net sales in Apparel increase by 47.7%, or 56.2% on a constant currency basis, scaling at pace across verticals. On’s own retail stores drive further gains in key metrics from an already high base, as the Company extends its global network of highly profitable premium brand hubs. In recent weeks On has also opened its first-ever stores in São Paulo and Copenhagen.
•Reflecting the substantial increase in DTC share, sustainable operational efficiencies and an unwavering commitment to full-price discipline, On delivers another quarter of exceptional profitability. Gross profit margin reaches 65.4%, up 3.9 percentage points year-over-year, even while fully absorbing higher U.S. import tariffs and excluding any tariff refunds. Adjusted EBITDA margin reaches 19.8%, up from 18.2% in the prior year, corresponding to absolute adjusted EBITDA of CHF 168.1 million. Net income margin reaches 12.3%. On demonstrates strong cash conversion, with cash and cash equivalents increasing to CHF 1,205.6 million.
•On further strengthens its position at the intersection of performance, design and culture. At its inaugural Running Summit, the Company unveils the next generation of performance running products that hit the market in the second half of this year and in 2027. This includes the recently launched Cloudboom Strike 2 and the new SURREAL superfoam which will debut in the Cloudsurfer 3 later this year. LightSpray continues to scale from elite validation into a commercial engine and will be introduced to further core franchises. At the same time, On’s connection with a new generation deepens: consumers under 34 now represent over one-third of the customer base, with the Cloudtilt franchise resonating particularly strongly with this important demographic.
•Consistent with its premium strategy and commitment to only pursuing growth that protects and elevates the brand, On expects full-year 2026 constant currency net sales growth in the low-20% range. This includes the deliberate management of wholesale sell-in, including to secure a strong and clean runway for the upcoming breakthrough innovations. Reflecting On’s growing DTC mix and the enduring strength of its full-price discipline, On raises its full-year gross profit margin expectation to at least 65.0% and reiterates its adjusted EBITDA margin guidance of 19.5% to 20.0%.
ZURICH, Switzerland, August 11, 2026 - On Holding AG (NYSE: ONON) (“On,” “On Holding AG,” the “Company,” “we,” “our,” “ours,” or “us”), has announced its financial results for the second quarter and six-month period ended June 30, 2026.
David Allemann, Founder and Co-CEO of On, said: "We are proving that a brand can achieve global scale without compromising its premium brand positioning. Our Q2 results reflect this discipline - demonstrating strong net sales growth globally, significant expansion of our own channels, and an exceptional gross profit margin. This financial strength allows us to reinvest in what drives our long-term success: authentic brand connections, premium customer experiences, and, above all, continuous performance innovation. Our founder-led perspective keeps us focused on taking the right decisions as we build the most premium global sportswear brand for decades to come with an enviable, compounding financial profile."
Frank Sluis, CFO of On, said: "In my first quarter with On, it has been a privilege to see the incredible ambition and innovation culture of the team firsthand, which is clearly reflected in the strong set of results this quarter. Delivering 21.6% constant currency growth alongside an industry-leading 65.4% gross margin shows the structural benefits of leading with innovation and brand heat. It also underscores the discipline that differentiates our financial profile. We do not compromise our full-price integrity for volume - even in the heavily promotional environment we saw this quarter in some markets. We expect constant currency growth in the low-20% range for the full-year while raising our gross profit margin expectation to at least 65.0% and maintaining our adjusted EBITDA margin guidance at 19.5% to 20.0% as we pursue high quality growth."
Key Financial and Operating Metrics
Key financial and operating metrics for the three-month period ended June 30, 2026 compared to the three-month period ended June 30, 2025 include:
•net sales increased by 13.5% to CHF 850.3 million, or by 21.6% on a constant currency basis;
•net sales through the direct-to-consumer ("DTC") sales channel increased by 26.0% to CHF 388.4 million, or by 34.3% on a constant currency basis;
•net sales through the wholesale sales channel increased by 4.8% to CHF 461.9 million, or by 12.7% on a constant currency basis;
•net sales in Europe, Middle East and Africa (“EMEA”), Americas and Asia-Pacific increased by 15.4% to CHF 228.2 million, 4.5% to CHF 451.6 million and 43.1% to CHF 170.5 million, respectively;
•net sales in EMEA, Americas, and Asia-Pacific increased by 20.5%, 13.0% and 54.7% on a constant currency basis, respectively;
•net sales from shoes, apparel and accessories increased by 10.9% to CHF 781.6 million, 47.7% to CHF 54.2 million and 88.3% to CHF 14.5 million, respectively;
•net sales from shoes, apparel and accessories increased by 18.9%, 56.2%, and 102.2% on a constant currency basis, respectively;
•gross profit increased by 20.6% to CHF 555.7 million from CHF 460.8 million;
•gross profit margin increased to 65.4% from 61.5%;
•net income / (loss) increased by 356.5% to CHF 105.0 million from CHF (40.9) million;
•net income / (loss) margin increased to 12.3% from (5.5)%;
•basic earnings per share (“EPS”) Class A (CHF) increased to 0.31 from (0.12);
•diluted EPS Class A (CHF) increased to 0.31 from (0.12);
•adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") increased by 23.5% to CHF 168.1 million from CHF 136.1 million;
•adjusted EBITDA margin increased to 19.8% from 18.2%;
•adjusted net income / (loss) increased to CHF 117.6 million from CHF (29.7) million;
•adjusted basic EPS Class A (CHF) increased to 0.35 from (0.09); and
•adjusted diluted EPS Class A (CHF) increased to 0.35 from (0.09).
Key financial and operating metrics for the six-month period ended June 30, 2026 compared to the six-month period ended June 30, 2025 include:
•net sales increased by 14.0% to CHF 1,682.2 million; or by 24.0% on a constant currency basis;
•net sales through the DTC sales channel increased by 21.4% to CHF 710.7 million, or by 31.6% on a constant currency basis;
•net sales through the wholesale sales channel increased by 9.1% to CHF 971.5 million, or by 19.0% on constant currency basis;
•net sales in EMEA, Americas and Asia-Pacific increased by 18.8% to CHF 435.4 million, 3.8% to CHF 902.3 million and 43.7% to CHF 344.5 million, respectively;
•net sales in EMEA, Americas, and Asia-Pacific increased by 22.8%, 15.0% and 58.1% on a constant currency basis, respectively;
•net sales from shoes, apparel and accessories increased by 11.5% to CHF 1,545.3 million, 46.4% to CHF 109.5 million and 80.3% to CHF 27.4 million, respectively;
•net sales from shoes, apparel and accessories increased by 21.4%, 56.9%, and 94.4% on a constant currency basis, respectively;
•gross profit increased by 21.6% to CHF 1,090.0 million from CHF 896.1 million;
•gross profit margin increased to 64.8% from 60.7%;
•net income increased by 1221.5% to CHF 208.3 million from CHF 15.8 million;
•net income margin increased to 12.4% from 1.1%;
•basic EPS Class A (CHF) increased to 0.63 from 0.05;
•diluted EPS Class A (CHF) increased to 0.62 from 0.05;
•adjusted EBITDA increased by 33.7% to CHF 342.3 million from CHF 256.1 million;
•adjusted EBITDA margin increased to 20.3% from 17.4%;
•adjusted net income increased to CHF 241.1 million from CHF 40.9 million;
•adjusted basic EPS Class A (CHF) increased to 0.72 from 0.12; and
•adjusted diluted EPS Class A (CHF) increased to 0.72 from 0.12.
Key financial and operating metrics as of June 30, 2026 compared to December 31, 2025 included:
•cash and cash equivalents increased by 18% to CHF 1,205.6 million from CHF 1,019.9 million; and
•net working capital increased by 11.5% to CHF 635.9 million from CHF 570.3 million.
Adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted basic EPS, adjusted diluted EPS, net working capital and net sales on a constant currency basis are non-IFRS measures used by us to evaluate our performance. Furthermore, we believe these non-IFRS measures enhance investors' understanding of our financial and operating performance from period to period because they enhance the comparability of results between each period, help identify trends in operating results and provide additional insight and transparency on how management evaluates the business. Adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted basic EPS, adjusted diluted EPS, net working capital and net sales on a constant currency basis should not be considered in isolation or as a substitute for other financial measures calculated and presented in accordance with IFRS. For a detailed description and a reconciliation to the nearest IFRS measure, see the section titled “Non-IFRS Measures.”
Outlook
Following a very strong first half of 2026, On approaches the second half of the year with discipline and commitment to its premium growth model. While DTC momentum remains highly encouraging, On is deliberately managing wholesale sell-in to protect full-price integrity in a promotional marketplace, ensuring a clean runway for On's upcoming breakthrough innovations leading into 2027. Reflecting this disciplined approach, and excluding any benefits from anticipated tariff refunds in the second half of the year, On expects the following for full-year 2026:
•Net Sales: Expected to grow in the low-20% range on a constant currency basis, with the DTC channel expected to strongly outperform wholesale in the second half of the year. At current spot rates, this implies absolute net sales of CHF 3.47 billion to CHF 3.56 billion.
•Gross profit margin: Expected to be at least 65.0%, demonstrating the strength of and commitment to On's premium operating model and the highly favorable DTC mix.
•Adjusted EBITDA margin: As On continues to pursue high quality growth and keeps investing in its future, adjusted EBITDA margin is expected in the range 19.5% to 20.0%.
Other than with respect to IFRS net sales and gross profit margin, On only provides guidance on a non-IFRS basis. The Company does not provide a reconciliation of forward-looking adjusted EBITDA to IFRS net income due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation. As a result, we are not able to forecast with reasonable certainty all deductions needed in order to provide a reconciliation to net income. The above outlook is based on current market conditions and reflects the Company’s current and preliminary estimates of market and operating conditions and customer demand, which are all subject to change. Actual results and the timing of events could differ materially from those anticipated in these forward-looking statements as a result of risks and uncertainties, including those stated below and in our filings with the U.S. Securities and Exchange Commission (the "SEC").
Conference Call Information
A conference call to discuss second quarter results is scheduled for August 11, 2026 at 8 a.m. U.S. Eastern time (2 p.m. Central European Time). Those interested in participating in the call are invited to dial the following numbers:
United States: +1 585 542 99 83
United Kingdom: +44 117 389 01 04
Switzerland: +41 800 200 0 46
Conference ID: 701026773
Additionally, a live webcast of the conference call will be available on the Company's investor relations website and under the following link: https://events.q4inc.com/attendee/701026773. Following the conclusion of the call, a replay of the conference call will be available on the Company's website.
About On
On was born in the Swiss Alps in 2010 with the mission to ignite the human spirit through movement – a mission that still guides the brand today. Sixteen years after market launch, On delivers industry-disrupting innovation in premium footwear, apparel and accessories for high-performance running, outdoor, training, all-day activities and tennis. On’s award-winning CloudTec® and LightSpray™ innovation, purposeful design and groundbreaking strides within the circular economy have attracted a fast-growing global fan base – inspiring humans to explore, discover and Dream On.
On is present in more than 90 countries globally and engages with a digital community on www.on.com.
Non-IFRS Measures
Adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted basic EPS, adjusted diluted EPS, net working capital, and net sales on a constant currency basis are financial measures that are not defined under IFRS. We use these non-IFRS measures when evaluating our performance, including when making financial and operating decisions, and as a key component in the determination of variable incentive compensation for employees. We believe that, in addition to conventional measures prepared in accordance with IFRS, these non-IFRS measures enhance investor understanding of our financial and operating performance from period to period, because they exclude share-based compensation which is not viewed by management as part of our ongoing operations and performance, enhance the comparability of results between each period, help identify trends in operating results and provide additional insight and transparency on how management evaluates the business. In particular, we believe adjusted EBITDA, adjusted EBITDA margin, adjusted net income and net working capital are measures commonly used by investors to evaluate companies in the sportswear industry.
However, adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted basic EPS, adjusted diluted EPS, net working capital, and net sales on a constant currency basis should not be considered in isolation or as a substitute for other financial measures calculated and presented in accordance with IFRS and may not be comparable to similarly titled non-IFRS measures used by other companies. The tables below reconcile each non-IFRS measure to its most directly comparable IFRS measure.
As noted above, we do not provide a reconciliation of forward-looking adjusted EBITDA to IFRS net income due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation. The amount of these deductions may be material and, therefore, could result in projected net income being materially less than projected adjusted EBITDA. These statements represent forward-looking information and may represent a financial outlook, and actual results may vary. Please see the risks and assumptions referred to in the Forward-Looking Statements section of this press release.
Net sales on a constant currency basis is a non-IFRS financial measure and should be viewed as a supplement to our results under IFRS. Net sales on a constant currency basis represents current period results that have been retranslated using exchange rates used in the prior year comparative period. We provide constant currency percent change in net sales within our results, to enhance the visibility of the underlying growth rate of net sales, excluding the impact of foreign currency exchange rate fluctuations.
Forward-Looking Statements
This press release contains statements that may constitute “forward-looking” statements pursuant to the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Many of the forward-looking statements contained in this press release can be identified by the use of forward-looking words such as “anticipate,” “believe,” “continue,” “could,” “expect,” “estimate,” “forecast,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “target,” “will,” “would,” and “should,” among others.
Among other things, On’s quotations from management in this press release and other written materials, as well as On’s strategic and operational plans, contain forward-looking statements. On may also make written or oral forward-looking statements in its periodic reports to the SEC, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Further, On uses the investors.on-running.com website as well as LinkedIn as means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD. Forward-looking statements appear in a number of places in this press release and include, but are not limited to, statements regarding our intent, belief or current expectations. Forward-looking statements are based on our management’s beliefs and assumptions and on information currently available to our management.
Such statements are subject to risks and uncertainties, and actual results may differ materially from those expressed or implied in the forward-looking statements due to various factors, including, but not limited to, those identified under the section titled “Risk Factors” in our Annual Report. These risks and uncertainties include factors relating to: the strength of our brand and our ability to maintain our reputation and premium brand image; our ability and the ability of our independent manufacturers and other suppliers to follow responsible business practices; our ability to implement our growth strategy; the concentration of our business in a single, discretionary product category, namely footwear, apparel and accessories; our ability to continue to innovate and meet consumer expectations; changes in consumer tastes and preferences including in products and sustainability, and our ability to connect with our consumer base; our ability to open new stores at locations that will attract customers to our premium products; our ability to compete and conduct our business in the future; health epidemics, pandemics and similar outbreaks; general economic, political, demographic and business conditions worldwide, including geopolitical uncertainty and instability, such as the on-going Russia-Ukraine or Israel-Hamas conflicts and on-going shipping disruptions in the Red Sea and surrounding waterways; the success of operating initiatives, including advertising and promotional efforts and new product and concept development by us and our competitors; our ability to successfully develop, implement, and scale our LightSpray™ technology and products developed using this technology; our ability to strengthen and grow our DTC channel; our
ability to address climate related risks; our ability to execute and manage our sustainability strategy and achieve our sustainability-related goals and targets, including sustainable product offerings and investor and customer scrutiny; our third-party suppliers, manufacturers and other partners, including their financial stability and our ability to find suitable partners to implement our growth strategy; supply chain disruptions, inflation and increased costs in supplies, goods and transportation, customs and duty expenses, and foreign exchange rates; the availability of qualified personnel and the ability to retain such personnel, including our Executive Officers; our ability to accurately forecast demand for our products and manage product manufacturing decisions; our ability to distribute products through our wholesale channel; changes in commodity, material, labor, distribution and other operating costs; our international operations; our ability to protect our intellectual property and defend against allegations of violations of third-party intellectual property by us; cybersecurity incidents and other disruptions to our information technology ("IT") systems; increased hacking activity against the critical infrastructure of any nation or organization that retaliates against Russia for its invasion of Ukraine; our reliance on complex IT systems; our ability to adopt and monitor generative artificial intelligence ("AI") technologies in our operations; changes and contemplation of changes to trade policies, tariffs and import/export regulations in the United States and other jurisdictions; financial accounting and tax matters; our ability to maintain effective internal control over financial reporting; the potential impact of, and our compliance with, new and existing laws and regulations; other factors that may affect our financial condition, liquidity and results of operations; and other risks and uncertainties set out in filings made from time to time with the SEC and available at www.sec.gov, including, without limitation, our most recent reports on Form 20-F and Form 6-K. You are urged to consider these factors carefully in evaluating the forward-looking statements contained herein and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by these cautionary statements.
Forward-looking statements speak only as of the date they are made, and we do not undertake any obligation to update them in light of new information or future developments or to release publicly any revisions to these statements in order to reflect later events or circumstances or to reflect the occurrence of unanticipated events.
For investor and media inquiries
Investor Contact:
On Holding AG
Liv Radlinger
investorrelations@on.com
or
ICR, Inc.
Brendon Frey
brendon.frey@icrinc.com
Media Contact:
On Holding AG
Adib Sisani
press@on.com
Source: On
Category: Earnings
Consolidated Financial Information
Unaudited interim condensed consolidated statements of income / (loss)
| Three-month period ended June 30, | Six-month period ended June 30, | |||||||||||||||||||||||||
| (CHF in millions) | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||
| Net sales | 850.3 | 749.2 | 1,682.2 | — | 1,475.8 | |||||||||||||||||||||
| Cost of sales | (294.6) | (288.4) | (592.2) | (579.7) | ||||||||||||||||||||||
| Gross profit | 555.7 | 460.8 | 1,090.0 | 896.1 | ||||||||||||||||||||||
| Selling, general and administrative expenses | (436.3) | (368.0) | (853.2) | (726.3) | ||||||||||||||||||||||
| Operating result | 119.4 | 92.8 | 236.9 | 169.8 | ||||||||||||||||||||||
| Financial income | 11.3 | 7.5 | 18.3 | 14.8 | ||||||||||||||||||||||
| Financial expenses | (8.3) | (7.7) | (16.3) | (13.6) | ||||||||||||||||||||||
| Foreign exchange gain / (loss) | 3.3 | (139.9) | 2.9 | (154.4) | ||||||||||||||||||||||
| Income / (loss) before taxes | 125.7 | (47.3) | 241.8 | 16.6 | ||||||||||||||||||||||
| Income tax benefit / (expense) | (20.7) | 6.4 | (33.5) | (0.8) | ||||||||||||||||||||||
| Net income / (loss) | 105.0 | (40.9) | 208.3 | 15.8 | ||||||||||||||||||||||
| Earnings per share | ||||||||||||||||||||||||||
| Basic EPS Class A (CHF) | 0.31 | (0.12) | 0.63 | 0.05 | ||||||||||||||||||||||
| Basic EPS Class B (CHF) | 0.03 | (0.01) | 0.06 | — | ||||||||||||||||||||||
| Diluted EPS Class A (CHF) | 0.31 | (0.12) | 0.62 | 0.05 | ||||||||||||||||||||||
| Diluted EPS Class B (CHF) | 0.03 | (0.01) | 0.06 | — | ||||||||||||||||||||||
Unaudited interim condensed consolidated balance sheets
| (CHF in millions) | 6/30/2026 | 12/31/2025 | ||||||||||||
| Cash and cash equivalents | 1,205.6 | 1,019.9 | ||||||||||||
| Trade receivables | 374.0 | 305.4 | ||||||||||||
| Inventories | 472.9 | 419.8 | ||||||||||||
| Other current financial assets | 78.1 | 59.2 | ||||||||||||
| Other current operating assets | 162.4 | 158.2 | ||||||||||||
| Current assets | 2,293.0 | 1,962.4 | ||||||||||||
| Property, plant and equipment | 175.5 | 148.8 | ||||||||||||
| Right-of-use assets | 530.7 | 494.1 | ||||||||||||
| Intangible assets | 55.8 | 54.2 | ||||||||||||
| Deferred tax assets | 187.8 | 175.9 | ||||||||||||
| Non-current assets | 949.9 | 873.0 | ||||||||||||
| Assets | 3,242.9 | 2,835.4 | ||||||||||||
| Trade payables | 211.0 | 154.8 | ||||||||||||
| Current lease liabilities | 87.9 | 81.2 | ||||||||||||
| Other current financial liabilities | 46.3 | 56.7 | ||||||||||||
| Other current operating liabilities | 371.3 | 355.4 | ||||||||||||
| Current provisions | 12.0 | 13.0 | ||||||||||||
| Income tax liabilities | 81.4 | 63.2 | ||||||||||||
| Current liabilities | 810.0 | 724.4 | ||||||||||||
| Employee benefit obligations | 8.1 | 5.5 | ||||||||||||
| Non-current provisions | 27.6 | 20.7 | ||||||||||||
| Non-current lease liabilities | 474.6 | 440.3 | ||||||||||||
| Other non-current financial liabilities | 5.6 | 2.8 | ||||||||||||
| Deferred tax liabilities | 5.5 | 9.3 | ||||||||||||
| Non-current liabilities | 521.5 | 478.6 | ||||||||||||
| Share capital | 34.1 | 34.1 | ||||||||||||
| Treasury shares | (26.4) | (26.7) | ||||||||||||
| Capital reserves | 1,324.7 | 1,289.0 | ||||||||||||
| Other reserves | (12.0) | (46.6) | ||||||||||||
| Retained earnings | 590.9 | 382.6 | ||||||||||||
| Equity | 1,911.4 | 1,632.4 | ||||||||||||
| Equity and liabilities | 3,242.9 | 2,835.4 | ||||||||||||
Unaudited interim condensed consolidated statements of cash flows
| Six-month period ended June 30, | ||||||||||||||||||||
| (CHF in millions) | 2026 | 2025 | ||||||||||||||||||
| Net income | 208.3 | 15.8 | ||||||||||||||||||
| Adjustments for: | ||||||||||||||||||||
| Share-based compensation | 30.9 | 25.2 | ||||||||||||||||||
| Employee benefit expenses | 2.0 | 1.8 | ||||||||||||||||||
| Depreciation and amortization | 72.1 | 60.7 | ||||||||||||||||||
| Loss on disposal of assets | 0.1 | 0.2 | ||||||||||||||||||
| Interest income and expenses | (4.8) | (4.6) | ||||||||||||||||||
| Net exchange differences | (6.8) | 159.2 | ||||||||||||||||||
| Income taxes | 33.5 | 0.8 | ||||||||||||||||||
| Change in working capital | (49.5) | (144.1) | ||||||||||||||||||
| Trade receivables | (61.3) | (122.7) | ||||||||||||||||||
| Inventories | (37.4) | (17.8) | ||||||||||||||||||
| Trade payables | 49.2 | (3.5) | ||||||||||||||||||
| Change in other current assets / liabilities | (9.7) | 10.6 | ||||||||||||||||||
| Change in provisions | 1.8 | (4.6) | ||||||||||||||||||
| Interest received | 17.3 | 14.5 | ||||||||||||||||||
| Income taxes paid | (40.1) | (46.5) | ||||||||||||||||||
| Cash inflow from operating activities | 255.0 | 89.1 | ||||||||||||||||||
| Purchase of property, plant and equipment | (41.9) | (27.3) | ||||||||||||||||||
| Proceeds from disposal of tangible assets | — | 0.1 | ||||||||||||||||||
| Purchase of intangible assets | (5.3) | (2.2) | ||||||||||||||||||
| Cash (outflow) from investing activities | (47.2) | (29.4) | ||||||||||||||||||
| Payments of lease liabilities | (35.8) | (34.7) | ||||||||||||||||||
| Proceeds on sale of treasury shares related to share-based compensation | 5.0 | 7.7 | ||||||||||||||||||
| Interest paid | (12.5) | (9.9) | ||||||||||||||||||
| Cash (outflow) from financing activities | (43.3) | (37.0) | ||||||||||||||||||
| Change in net cash and cash equivalents | 164.6 | 22.6 | ||||||||||||||||||
| Net cash and cash equivalents at January 1 | 1,019.9 | 924.3 | ||||||||||||||||||
| Net impact of foreign exchange rate differences | 21.1 | (100.3) | ||||||||||||||||||
| Net cash and cash equivalents at June 30 | 1,205.6 | 846.6 | ||||||||||||||||||
Reconciliation of Non-IFRS measures
Adjusted EBITDA and Adjusted EBITDA Margin
The table below reconciles net income to adjusted EBITDA for the periods presented. Adjusted EBITDA margin is equal to adjusted EBITDA for the period presented as a percentage of net sales for the same period.
| Three-month period ended June 30, | Six-month period ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||||
| (CHF in millions) | 2026 | 2025 | % Change | 2026 | 2025 | % Change | ||||||||||||||||||||||||||||||||||||||||||||
| Net income / (loss) | 105.0 | (40.9) | 356.5 | % | 208.3 | 15.8 | 1221.5 | % | ||||||||||||||||||||||||||||||||||||||||||
| Exclude the impact of: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Income taxes | 20.7 | (6.4) | 423.5 | % | 33.5 | 0.8 | 3878.7 | % | ||||||||||||||||||||||||||||||||||||||||||
| Financial income | (11.3) | (7.5) | 50.7 | % | (18.3) | (14.8) | 23.6 | % | ||||||||||||||||||||||||||||||||||||||||||
| Financial expenses | 8.3 | 7.7 | 7.8 | % | 16.3 | 13.6 | 19.9 | % | ||||||||||||||||||||||||||||||||||||||||||
Foreign exchange result (1) | (3.3) | 139.9 | (102.4) | % | (2.9) | 154.4 | (101.9) | % | ||||||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization | 36.5 | 32.4 | 12.6 | % | 71.9 | 60.7 | 18.4 | % | ||||||||||||||||||||||||||||||||||||||||||
Share-based compensation (2) | 12.2 | 10.9 | 11.3 | % | 33.5 | 25.5 | 31.2 | % | ||||||||||||||||||||||||||||||||||||||||||
| Adjusted EBITDA | 168.1 | 136.1 | 23.5 | % | 342.3 | 256.1 | 33.7 | % | ||||||||||||||||||||||||||||||||||||||||||
| Adjusted EBITDA Margin | 19.8 | % | 18.2 | % | 20.3 | % | 17.4 | % | ||||||||||||||||||||||||||||||||||||||||||
(1) Represents the foreign exchange gain / (loss) line item within the consolidated statements of income.
(2) Management excludes share-based compensation expenses as these are non-cash and we do not consider these expenses reflective of our ongoing operations and performance.
Adjusted Net Income, Adjusted Basic EPS and Adjusted Diluted EPS
We use adjusted net income, adjusted basic EPS and adjusted diluted EPS as measures of operating performance in conjunction with related IFRS measures.
For the purpose of operational performance measurement, we calculate adjusted net income, adjusted basic EPS and adjusted diluted EPS in a manner that fully excludes the impact of any costs related to share-based compensation and includes the tax effect on the tax-deductible portion of the non-IFRS adjustments, which we believe increases comparability of the metric from period to period, and makes it useful for management, our audit committee and investors to assess our financial performance over time.
Adjusted basic EPS is calculated by dividing adjusted net income by the weighted average number of ordinary shares outstanding during the period. Adjusted diluted EPS is calculated by dividing adjusted net income by the weighted average number of ordinary shares outstanding during the period on a fully diluted basis.
The table below provides a reconciliation between net income and adjusted net income, adjusted basic EPS and adjusted diluted EPS for the periods presented:
| Three-month period ended June 30, | ||||||||||||||||||||||||||
| (CHF in millions, except per share data) | 2026 | 2026 | 2025 | 2025 | ||||||||||||||||||||||
| Class A | Class B | Class A | Class B | |||||||||||||||||||||||
| Net income / (loss) | 94.5 | 10.5 | (36.7) | (4.2) | ||||||||||||||||||||||
| Exclude the impact of: | ||||||||||||||||||||||||||
Share-based compensation(1) | 10.9 | 1.2 | 9.8 | 1.1 | ||||||||||||||||||||||
Tax effect of adjustments(2) | 0.4 | — | 0.3 | — | ||||||||||||||||||||||
| Adjusted net income / (loss) | 105.8 | 11.8 | (26.6) | (3.1) | ||||||||||||||||||||||
| Weighted number of outstanding shares | 300,422,597 | 335,348,823 | 295,531,210 | 341,044,191 | ||||||||||||||||||||||
| Weighted number of shares with dilutive effects | 1,677,255 | 2,493,692 | 3,300,452 | 12,293,550 | ||||||||||||||||||||||
Weighted number of outstanding shares (diluted and undiluted)(3) | 302,099,852 | 337,842,515 | 298,831,662 | 353,337,741 | ||||||||||||||||||||||
| Adjusted basic EPS (CHF) | 0.35 | 0.04 | (0.09) | (0.01) | ||||||||||||||||||||||
| Adjusted diluted EPS (CHF) | 0.35 | 0.03 | (0.09) | (0.01) | ||||||||||||||||||||||
(1) Management excludes share-based compensation expenses as these are non-cash and we do not consider these expenses reflective of our ongoing operations and performance.
(2) The tax effect has been calculated by applying the local tax rate on the tax deductible portion of the respective adjustments.
(3) Weighted number of outstanding shares (diluted and undiluted) are presented herein in order to calculate Adjusted EPS as Adjusted net income for such periods.
| Six-month period ended June 30, | ||||||||||||||||||||||||||
| (CHF in millions, except per share data) | 2026 | 2026 | 2025 | 2025 | ||||||||||||||||||||||
| Class A | Class B | Class A | Class B | |||||||||||||||||||||||
| Net income / (loss) | 187.1 | 21.2 | 14.1 | 1.6 | ||||||||||||||||||||||
| Exclude the impact of: | ||||||||||||||||||||||||||
Share-based compensation(1) | 30.1 | 3.4 | 22.8 | 2.7 | ||||||||||||||||||||||
Tax effect of adjustments(2) | (0.6) | (0.1) | (0.4) | — | ||||||||||||||||||||||
| Adjusted net income / (loss) | 216.6 | 24.5 | 36.6 | 4.3 | ||||||||||||||||||||||
| Weighted number of outstanding shares | 298,951,784 | 338,278,973 | 294,458,484 | 343,228,709 | ||||||||||||||||||||||
| Weighted number of shares with dilutive effects | 2,596,588 | 3,726,415 | 4,005,446 | 12,885,677 | ||||||||||||||||||||||
Weighted number of outstanding shares (diluted and undiluted)(3) | 301,548,372 | 342,005,388 | 298,463,930 | 356,114,386 | ||||||||||||||||||||||
| Adjusted basic EPS (CHF) | 0.72 | 0.07 | 0.12 | 0.01 | ||||||||||||||||||||||
| Adjusted diluted EPS (CHF) | 0.72 | 0.07 | 0.12 | 0.01 | ||||||||||||||||||||||
(1) Management excludes share-based compensation expenses as these are non-cash and we do not consider these expenses reflective of our ongoing operations and performance.
(2) The tax effect has been calculated by applying the local tax rate on the tax-deductible portion of the respective adjustments.
(3) Weighted numbers of outstanding shares (diluted and undiluted) are presented herein in order to calculate adjusted diluted EPS in relation to adjusted net income for such periods.
Net Sales on a Constant Currency Basis
Net sales on a constant currency basis is a non-IFRS measure which represents current period results that have been retranslated using exchange rates used in the prior year comparative period. We provide constant currency percent change in net sales in our results to enhance the visibility of the underlying growth rate of net sales, excluding the impact of foreign currency exchange rate fluctuations. Below, we show net sales split out by sales channel, geography, and product, and include the reported percent change and the constant currency percent change.
Net sales by sales channel
The following table presents net sales by sales channel:
| Three-month period ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||
| (CHF in millions) | 2026 | 2025 | % Change | Constant Currency % Change (1) | |||||||||||||||||||||||||||||||||||||||||||
| Wholesale | 461.9 | 441.0 | 4.8 | % | 12.7 | % | |||||||||||||||||||||||||||||||||||||||||
| Direct-to-consumer | 388.4 | 308.3 | 26.0 | % | 34.3 | % | |||||||||||||||||||||||||||||||||||||||||
| Net sales | 850.3 | 749.2 | 13.5 | % | 21.6 | % | |||||||||||||||||||||||||||||||||||||||||
| Six-month period ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||
| (CHF in millions) | 2026 | 2025 | % Change | Constant Currency % Change (1) | ||||||||||||||||||||||||||||||||||||||||||||||
| Wholesale | 971.5 | 890.6 | 9.1 | % | 19.0 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Direct-to-consumer | 710.7 | 585.2 | 21.4 | % | 31.6 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Net sales | 1,682.2 | 1,475.8 | 14.0 | % | 24.0 | % | ||||||||||||||||||||||||||||||||||||||||||||
Net sales by geography
The following table presents net sales by geographic region (based on the location of the counterparty):
| Three-month period ended June 30, | ||||||||||||||||||||||||||
| (CHF in millions) | 2026 | 2025 | % Change | Constant Currency % Change (1) | ||||||||||||||||||||||
Americas | 451.6 | 432.3 | 4.5 | % | 13.0 | % | ||||||||||||||||||||
Europe, Middle East and Africa | 228.2 | 197.8 | 15.4 | % | 20.5 | % | ||||||||||||||||||||
Asia-Pacific | 170.5 | 119.2 | 43.1 | % | 54.7 | % | ||||||||||||||||||||
Net Sales | 850.3 | 749.2 | 13.5 | % | 21.6 | % | ||||||||||||||||||||
(1) The constant currency percent change represents changes to net sales on a constant currency basis, which is a non- IFRS financial measure. See section titled "Non-IFRS Measures" for a description of this measure. Reconciliation to the nearest IFRS measure is shown in table above.
| Six-month period ended June 30, | ||||||||||||||||||||||||||
| (CHF in millions) | 2026 | 2025 | % Change | Constant Currency % Change (1) | ||||||||||||||||||||||
Americas | 902.3 | 869.7 | 3.8 | % | 15.0 | % | ||||||||||||||||||||
Europe, Middle East and Africa | 435.4 | 366.4 | 18.8 | % | 22.8 | % | ||||||||||||||||||||
Asia-Pacific | 344.5 | 239.7 | 43.7 | % | 58.1 | % | ||||||||||||||||||||
Net Sales | 1,682.2 | 1,475.8 | 14.0 | % | 24.0 | % | ||||||||||||||||||||
Net sales by product
The following table presents net sales by product group:
| Three-month period ended June 30, | ||||||||||||||||||||||||||
| (CHF in millions) | 2026 | 2025 | % Change | Constant Currency % Change (1) | ||||||||||||||||||||||
| Shoes | 781.6 | 704.9 | 10.9 | % | 18.9 | % | ||||||||||||||||||||
| Apparel | 54.2 | 36.7 | 47.7 | % | 56.2 | % | ||||||||||||||||||||
| Accessories | 14.5 | 7.7 | 88.3 | % | 102.2 | % | ||||||||||||||||||||
| Net Sales | 850.3 | 749.2 | 13.5 | % | 21.6 | % | ||||||||||||||||||||
| Six-month period ended June 30, | ||||||||||||||||||||||||||
| (CHF in millions) | 2026 | 2025 | % Change | Constant Currency % Change (1) | ||||||||||||||||||||||
| Shoes | 1,545.3 | 1,385.8 | 11.5 | % | 21.4 | % | ||||||||||||||||||||
| Apparel | 109.5 | 74.8 | 46.4 | % | 56.9 | % | ||||||||||||||||||||
| Accessories | 27.4 | 15.2 | 80.3 | % | 94.4 | % | ||||||||||||||||||||
| Net Sales | 1,682.2 | 1,475.8 | 14.0 | % | 24.0 | % | ||||||||||||||||||||
(1) The constant currency percent change represents changes to net sales on a constant currency basis, which is a non- IFRS financial measure. See section titled "Non-IFRS Measures" for a description of this measure. Reconciliation to the nearest IFRS measure is shown in table above.
Net Working Capital
Net working capital is a financial measure that is not defined under IFRS. We use, and believe that certain investors and analysts use, this information to assess liquidity and management use of net working capital resources. We define net working capital as trade receivables, plus inventories, minus trade payables. This measure should not be considered in isolation or as a substitute for any standardized measure under IFRS.
Other companies in our industry may calculate this measure differently than we do, limiting its usefulness as a comparative measure.
| As of June 30, | As of December 31, | |||||||||||||||||||||||||
| (CHF in millions) | 2026 | 2025 | % Change | |||||||||||||||||||||||
Trade receivables | 374.0 | 305.4 | 22.5 | % | ||||||||||||||||||||||
| Inventories | 472.9 | 419.8 | 12.7 | % | ||||||||||||||||||||||
| Trade payables | (211.0) | (154.8) | 36.3 | % | ||||||||||||||||||||||
| Net working capital | 635.9 | 570.3 | 11.5 | % | ||||||||||||||||||||||
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