Q2 FY2026
Filed Aug 11, 2026On reports Q2 2026 net sales of CHF 850.3 million, up 13.5%, with gross profit margin of 65.4% and adjusted EBITDA margin of 19.8%; raises full-year gross profit margin expectation to at least 65.0%.
Q2 delivered 21.6% constant-currency net sales growth, 3.9 percentage points of gross profit margin expansion, 23.5% adjusted EBITDA growth, strong DTC and Asia-Pacific momentum, and increased full-year gross profit margin guidance.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net sales, three-month period ended June 30, 2026other | CHF 850.3 million | – | 13.5% |
| Net sales growth on a constant currency basis, three-month period ended June 30, 2026non-GAAP | 21.6% | – | – |
| Gross profit, three-month period ended June 30, 2026other | CHF 555.7 million | – | 20.6% |
| Gross profit margin, three-month period ended June 30, 2026other | 65.4% | – | – |
| Selling, general and administrative expenses, three-month period ended June 30, 2026other | CHF 436.3 million | – | – |
| Operating result, three-month period ended June 30, 2026other | CHF 119.4 million | – | – |
| Net income / (loss), three-month period ended June 30, 2026other | CHF 105.0 million | – | 356.5% |
| Net income / (loss) margin, three-month period ended June 30, 2026other | 12.3% | – | – |
| Basic EPS Class A, three-month period ended June 30, 2026other | 0.31 | – | – |
| Diluted EPS Class A, three-month period ended June 30, 2026other | 0.31 | – | – |
| Adjusted EBITDA, three-month period ended June 30, 2026non-GAAP | CHF 168.1 million | – | 23.5% |
| Adjusted EBITDA margin, three-month period ended June 30, 2026non-GAAP | 19.8% | – | – |
| Adjusted net income / (loss), three-month period ended June 30, 2026non-GAAP | CHF 117.6 million | – | – |
| Adjusted basic EPS Class A, three-month period ended June 30, 2026non-GAAP | 0.35 | – | – |
| Adjusted diluted EPS Class A, three-month period ended June 30, 2026non-GAAP | 0.35 | – | – |
| Net sales, six-month period ended June 30, 2026other | CHF 1,682.2 million | – | 14.0% |
| Net sales growth on a constant currency basis, six-month period ended June 30, 2026non-GAAP | 24.0% | – | – |
| Gross profit, six-month period ended June 30, 2026other | CHF 1,090.0 million | – | 21.6% |
| Gross profit margin, six-month period ended June 30, 2026other | 64.8% | – | – |
| Operating result, six-month period ended June 30, 2026other | CHF 236.9 million | – | – |
| Net income, six-month period ended June 30, 2026other | CHF 208.3 million | – | 1221.5% |
| Net income margin, six-month period ended June 30, 2026other | 12.4% | – | – |
| Adjusted EBITDA, six-month period ended June 30, 2026non-GAAP | CHF 342.3 million | – | 33.7% |
| Adjusted EBITDA margin, six-month period ended June 30, 2026non-GAAP | 20.3% | – | – |
| Cash inflow from operating activities, six-month period ended June 30, 2026other | CHF 255.0 million | – | – |
| Cash (outflow) from investing activities, six-month period ended June 30, 2026other | CHF (47.2) million | – | – |
| Cash (outflow) from financing activities, six-month period ended June 30, 2026other | CHF (43.3) million | – | – |
| Cash and cash equivalents, as of June 30, 2026other | CHF 1,205.6 million | 18% | – |
| Net working capital, as of June 30, 2026non-GAAP | CHF 635.9 million | 11.5% | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Direct-to-consumer, three-month period ended June 30, 2026Growth reached 34.3% on a constant currency basis and DTC represented 45.7% of net sales. | CHF 388.4 million | – | 26.0% |
| Wholesale, three-month period ended June 30, 2026Growth was 12.7% on a constant currency basis; On is deliberately managing wholesale sell-in to protect full-price integrity. | CHF 461.9 million | – | 4.8% |
| Americas, three-month period ended June 30, 2026Net sales growth was 13.0% on a constant currency basis. | CHF 451.6 million | – | 4.5% |
| Europe, Middle East and Africa, three-month period ended June 30, 2026Net sales growth was 20.5% on a constant currency basis. | CHF 228.2 million | – | 15.4% |
| Asia-Pacific, three-month period ended June 30, 2026Net sales growth was 54.7% on a constant currency basis, powered by momentum across Japan, South Korea and Greater China. | CHF 170.5 million | – | 43.1% |
| Shoes, three-month period ended June 30, 2026Net sales growth was 18.9% on a constant currency basis. | CHF 781.6 million | – | 10.9% |
| Apparel, three-month period ended June 30, 2026Net sales growth was 56.2% on a constant currency basis. | CHF 54.2 million | – | 47.7% |
| Accessories, three-month period ended June 30, 2026Net sales growth was 102.2% on a constant currency basis. | CHF 14.5 million | – | 88.3% |
Full-year 2026 outlook
- RevenueExpected to grow in the low-20% range on a constant currency basis. At current spot rates, this implies absolute net sales of CHF 3.47 billion to CHF 3.56 billion.
- Gross marginAt least 65.0%
- NoteAdjusted EBITDA margin: expected in the range 19.5% to 20.0%.
- NoteThe DTC channel is expected to strongly outperform wholesale in the second half of the year.
- NoteOutlook excludes any benefits from anticipated tariff refunds in the second half of the year.
What drove it
- DTC net sales increased 26.0%, or 34.3% on a constant currency basis, and reached 45.7% of net sales.
- Asia-Pacific net sales increased 43.1%, or 54.7% on a constant currency basis.
- Apparel net sales increased 47.7%, or 56.2% on a constant currency basis.
- Gross profit margin reached 65.4%, supported by the increase in DTC share, sustainable operational efficiencies and full-price discipline.
- The Company stated that it fully absorbed higher U.S. import tariffs and excluded any tariff refunds from its results.
Concerns
- Americas net sales increased 4.5% as reported, below EMEA growth of 15.4% and Asia-Pacific growth of 43.1%.
- Wholesale net sales increased 4.8% as reported, compared with 26.0% growth in DTC net sales.
- On described a heavily promotional environment in some markets and is deliberately managing wholesale sell-in.
- Net working capital increased to CHF 635.9 million from CHF 570.3 million, while inventories increased to CHF 472.9 million from CHF 419.8 million.
What to watch
- Whether DTC strongly outperforms wholesale in the second half of 2026, as guided.
- Execution of deliberately managed wholesale sell-in while maintaining full-price integrity.
- Performance of upcoming product launches, including Cloudsurfer 3 featuring SURREAL superfoam, and expansion of LightSpray into further core franchises.
- Progress toward full-year 2026 net sales growth in the low-20% range on a constant currency basis, gross profit margin of at least 65.0%, and adjusted EBITDA margin of 19.5% to 20.0%.
- Continued Asia-Pacific momentum and the pace of apparel and accessories growth.
Balance sheet and cash flow
- Cash and cash equivalents were CHF 1,205.6 million as of June 30, 2026, compared with CHF 1,019.9 million as of December 31, 2025.
- Net working capital was CHF 635.9 million as of June 30, 2026, compared with CHF 570.3 million as of December 31, 2025.
- Cash inflow from operating activities was CHF 255.0 million for the six-month period ended June 30, 2026, compared with CHF 89.1 million in the prior-year period.
- Purchase of property, plant and equipment was CHF 41.9 million for the six-month period ended June 30, 2026, compared with CHF 27.3 million in the prior-year period.
- Change in net cash and cash equivalents was CHF 164.6 million for the six-month period ended June 30, 2026, compared with CHF 22.6 million in the prior-year period.
Analysis
On delivered Q2 net sales of CHF 850.3 million, up 13.5% year-over-year and 21.6% on a constant currency basis. The gap between reported and constant-currency growth was evident across the business, including the Americas, where sales rose 4.5% as reported and 13.0% on a constant currency basis. First-half net sales were CHF 1,682.2 million, up 14.0% as reported and 24.0% on a constant currency basis.
Channel mix was a central feature of the quarter. DTC sales increased 26.0% to CHF 388.4 million, compared with 4.8% growth in wholesale sales to CHF 461.9 million. DTC reached 45.7% of quarterly net sales and is expected to strongly outperform wholesale in the second half. Geographically, Asia-Pacific was the fastest-growing region, with sales up 43.1% to CHF 170.5 million, while apparel and accessories expanded 47.7% and 88.3%, respectively. Shoes remained the largest product category at CHF 781.6 million.
Profitability improved materially. Gross profit increased 20.6% to CHF 555.7 million and gross profit margin expanded to 65.4% from 61.5%. Adjusted EBITDA increased 23.5% to CHF 168.1 million, with adjusted EBITDA margin rising to 19.8% from 18.2%. Net income was CHF 105.0 million versus a net loss of CHF (40.9) million in the prior-year quarter, with the prior-year period affected by a CHF (139.9) million foreign exchange loss. The Company attributed margin performance to higher DTC mix, operational efficiencies and full-price discipline while fully absorbing higher U.S. import tariffs.
Cash generation was strong in the first half. Cash inflow from operating activities was CHF 255.0 million, and cash and cash equivalents increased to CHF 1,205.6 million as of June 30, 2026. Net working capital increased to CHF 635.9 million, reflecting higher trade receivables and inventories, partly offset by higher trade payables. The filing did not report free cash flow.
For full-year 2026, On expects net sales growth in the low-20% range on a constant currency basis, implying CHF 3.47 billion to CHF 3.56 billion at current spot rates. It raised gross profit margin guidance to at least 65.0% and reiterated adjusted EBITDA margin guidance of 19.5% to 20.0%. The outlook excludes benefits from anticipated tariff refunds in the second half and incorporates deliberate wholesale sell-in management to preserve full-price integrity and create a runway for innovation entering 2027.
Management, verbatim
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.
David Allemann, Founder and Co-CEO of On
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.
Frank Sluis, CFO of On
Not in the filing
stated, not guessed- Previous-release outlook was not provided, so comparison with prior guidance is unavailable.
- Free cash flow was not reported.
- Debt was not reported as a distinct line item.
- Capital return activity, including dividends and share repurchases, was not reported.
- Quarterly cash flow metrics were not reported; the cash flow statement covers the six-month period ended June 30, 2026.
- Prior-quarter comparisons were not reported for the operating metrics.
- Full-year operating expense guidance was not reported.
- Full-year tax-rate guidance was not reported.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.