On Holding reported its Q4 and full-year results on Tuesday and the numbers showed that the company — which is backed by tennis star Roger Federer — continues to grow fast.

It beat its own guidance across all metrics. Net sales rose 29.4% reported and 33.2% constant currency (CC) to CHF 2.318 billion (€2.4bn/£2bn/$2.6bn). 

The gross profit margin was 60.6% with adjusted EBITDA up 40% to CHF 387.6 million and net income up 204.5% to CHF 242.3 million. The adjusted EBITDA margin was 16.7%. 

The company said the results “underscore On’s ability to drive continued strong growth alongside increasing profitability and significant cash flow generation”.

In Q4 alone, the business accelerated as fast as it hopes runners will when wearing its shoes. Net sales rose 35.7% reported and 40.6% CC to CHF606.6 million. 

Net sales in EMEA, the Americas and Asia-Pacific increased by 33.1%, 33.9%, and a stunning 124.6%, respectively, on a CC basis, while net sales for shoes increased by 33.6% to CHF568.8 million, for apparel by 77.5% to CHF32.6 million and for accessories by 80% to CHF5.2 million.

Adjusted EBITDA increased 38.3% to CHF99.4 million and Q4 net income increased 434.6% to CHF89.5 million from a CHF26.8 million loss in the previous fourth quarter.

It said the strong performance was supported by its “ability to convert on the rapid rise in brand awareness across the globe. The significant brand momentum drove strong traffic to On’s e-commerce channel and global retail stores (of which there are now almost 50), resulting in a record high DTC share of 48.8% of net sales in the fourth quarter”.

And driven by the significant DTC share expansion and strong full-price demand throughout the holiday season, On reached a record-breaking gross profit margin of 62.1% in Q4, the highest in the company’s public history. 

The year’s and quarter’s results were also helped by it achieving “several significant milestones” in 2024, including the unveiling of its innovative LightSpray technology and surpassing CHF100 million in apparel net sales.

It expects “continued strong growth and profitability expansion in 2025” and for the full year is forecasting CC growth of at least 27%, translating to net sales of at least CHF 2.94 billion at current exchange rates. The gross profit margin should be around 60.5% with an adjusted EBITDA margin in the range of 17%-17.5%.

As it celebrates its 15th anniversary and enters the second year of its Dream On 2026 strategy, it said it “aims to build on its broad-based momentum. Supported by an exciting product pipeline, On intends to continue creating memorable brand experiences on the world’s biggest stages and further establish its position as the brand of choice for the customer seeking the unique combination of performance, design and sustainability”.