On Holding AG and its consolidated subsidiaries (together "On" or the "Company") is engaged in developing and distributing innovative premium performance sports products, sold worldwide through our Wholesale sales channel, and through our Direct-to-Consumer sales channel (i.e., through On's e-commerce website 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 and its principal offices are located at Förrlibuckstrasse 190, Zurich, Switzerland.

The financial statements for the period ended June 30, 2025 were authorized for issuance by the board of directors of the Company on August 12, 2025.

The financial statements as of June 30, 2025 and for the three months and six months ended June 30, 2025 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 comprise the Company's financial statements as of and during the three months and six months ended June 30, 2025 and are presented in Swiss Francs (CHF), the Company's reporting currency.

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, 2024, filed with the SEC on March 4, 2025 (the “Annual Report”), which has been prepared in accordance with IFRS Accounting Standards.

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, 2024 except where specifically described.

Certain amounts included in this document may not add or recalculate 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.

(1) On Experience 1-16, LLC consists of sixteen entities (retail stores). They are all 100% owned as of June 30, 2025 and as of December 31, 2024, excluding On Experience 13-16, LLC entities, which were 0% owned as of December 31, 2024 (entities did not exist as of December 31, 2024).

Amendments to IAS 21 became applicable for the current period, which did not have a material impact on the financial statements for the three month and six month periods ended June 30, 2025.

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:

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 International Accounting Standards Board ("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. 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 is effective for annual reporting periods beginning on or after January 1, 2027, but early adoption is permitted. On is evaluating the impact of IFRS 18 on the Company's financial statements and disclosures.

Net sales by sales channels:

Net sales by product groups:

On generates net sales primarily from the sale of premium performance shoes, apparel and accessories, through its Wholesale ("WHS") and Direct-to-Consumer ("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 goods. The DTC sales channel includes sales to end customers directly through On’s e-commerce platform and owned and operated retail stores.

Net sales by geographic regions (based on the location of the customers):

There is no single customer who accounts 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.

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. On’s CODM are the Executive Officers, which as of June 30, 2025, consist of the three Co-Founders and the two Co-CEOs. The financial information is 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.

On operates as a single-brand consumer products business. This is primarily due to On’s business activities which focus on driving sales growth by increasing overall brand awareness and market share. The key operating expenditures related to cost of sales, distribution, selling, marketing and general and administrative expenses, are either not differentiated across individual components, or are managed to benefit the entire On brand irrespective of the impact on the potential profitability of a particular component. These key operating expenditures are regularly reviewed by the CODM at the group consolidated level. Accordingly, On has determined that it has a single operating and reportable segment.

						Three-month period ended June 30,												Six-month period ended June 30,
(CHF in millions)						2025						2024						2025						2024
Distribution expenses						(85.3)						(71.1)						(164.9)						(142.0)
Selling expenses						(60.8)						(41.2)						(121.5)						(75.6)
Marketing expenses						(89.7)						(70.3)						(170.5)						(131.8)
Share-based compensation						(10.9)						(17.1)						(25.5)						(33.9)
General and administrative expenses						(121.3)						(93.1)						(243.9)						(174.4)
Selling, general and administrative expenses						(368.0)						(292.9)						(726.3)						(557.7)

            

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 general and administrative expenses during the three and six-month comparative periods are driven by higher IT and technology related expenses, including the consolidation of our technology teams and resources. The overall increase in marketing expenses and increase in distribution expenses during the three and six-month comparative periods are in line with higher net sales.

In the six-month period ended June 30, 2025, selling, general and administrative expenses include depreciation and amortization of non-current assets in the amount of CHF 55.6 million (six-month period ended June 30, 2024: CHF 44.0 million). In addition, depreciation charges for production tools in the amount of CHF 5.1 million (six-month period ended June 30, 2024: CHF 4.4 million) are reported in cost of sales.

Total personnel expenses, excluding any costs related to share-based compensation, amount to CHF 182.0 million in the six-month period ended June 30, 2025 and CHF 131.4 million in the six-month period ended June 30, 2024.

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.

(1) Inventories are comprised of finished goods.