On Holding posts record revenue and strong margins despite 27% stock drop amid CEO change and FX losses

On Holding reported record revenue of CHF 3 billion, a gross margin of 62.8%, and adjusted EBITDA of CHF 567 million, driven by strong direct-to-consumer and Asia-Pacific growth. Despite these strong fundamentals, the stock has declined about 27% over the past year due to foreign exchange losses and a CEO transition. The company is attractively valued at 13 times EV/forward EBITDA and 3 times forward sales, with potential upside supported by upcoming Q1 2026 earnings, Asia-Pacific expansion, and scaling of its LightSpray manufacturing technology. Investors should watch these catalysts as signs of future growth potential.