ONON Q2 2026 Earnings Summary

$ONON Q2 2026 Earnings Results & Recap

• Reported GAAP EPS of $0.31 up 358.33% YoY
• Reported revenue of $850.3M up 13.49% YoY
• On expects full-year 2026 constant currency net sales growth in the low-20% range, while raising its gross profit margin expectation to at least 65.0% and maintaining adjusted EBITDA margin guidance.

Bullish Highlights

• On achieved exceptional profitability with a gross profit margin of 65.4%, which is up 3.9 percentage points year-over-year, despite absorbing higher U.S. import tariffs during the second quarter of 2026.
• The direct-to-consumer channel continues to lead growth, increasing by 26.0% or 34.3% on a constant currency basis, reaching a new second-quarter high of 45.7% of total net sales for On.
• On is successfully executing its strategic priorities, including global expansion with new store openings in So Paulo and Copenhagen, and the introduction of breakthrough innovations like the SURREAL superfoam.

Key Risks

• On faces potential risks from the concentration of business in a single, discretionary product category, namely footwear, apparel, and accessories, which may be impacted by changes in consumer tastes and preferences.
• The company operates in a promotional marketplace and must navigate geopolitical uncertainty, shipping disruptions in the Red Sea, and potential fluctuations in foreign exchange rates that could impact financial results.
• On reported an increase in inventory to CHF 472.9 million as of June 30, 2026, compared to CHF 419.8 million as of December 31, 2025, alongside an 11.5% increase in net working capital.