On Holding AG

Thank you for standing by and welcome to the On Holding AG fourth quarter and full year 2025 results conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, again, press star one. Thank you. I now like to turn the call over to Liv Radlinger, head of investor relations. You may begin.

Good afternoon and good morning to our investor community. Thank you for joining ONN's 2025 fourth quarter earnings conference call and webcast. With me today on the call are ONN's executive co-chairman and co-founder, David Allerman, and CEO and CFO, Martin Hoffman. Before we begin, I will briefly remind everyone that today's call will contain forward-looking statements within the meaning of the federal securities laws. These forward-looking statements reflect our current expectations and beliefs only and are subject to certain risks and uncertainties that could cause actual results to differ materially. Please refer to our 20F filed with the SEC earlier this morning for a detailed discussion of such risks and uncertainties. We will further reference certain non-IFRS financial measures such as adjusted EBITDA and adjusted EBITDA margin. These measures are not intended to be considered in isolation or as a substitute for the financial information presented in accordance with IFRS accounting standards. Please refer to today's release for a reconciliation to the most comparable IFRS measures. We will begin with David, followed by Martin, leading through today's prepared remarks. after which we are looking forward to opening the call for a Q&A session. With that, I'm very happy to turn the call over to David.

Good morning, everyone, and a very warm welcome from, no, this time not the Swiss Alps, but the New York Stock Exchange. Standing here always brings me back to the day where we rang the bell for our IPO almost five years ago. That moment was never just about becoming a public company. It was about sharing a dream. that a brand built on innovation and design and human energy could grow into the most premium global sportswear brands. Looking at where we are today, I feel both proud and deeply grateful to the global communities who choose to move with us every day. At the beginning of 2025, we set ambitious expectations for strong, profitable growth. What followed went well beyond them. Demand for our brand accelerated faster than we had planned, and for the first time, sports brand ON cleared the 3 billion Swiss franc revenue hurdle in 2025. Sales grew 36% at constant currency, and we delivered our highest ever gross profit in the adjusted EBTA margins. For me, this outperformance is deeply meaningful because it shows our premium strategy is working. And our elevated offer is resonating with consumers even stronger than anticipated. In fact, we see an acceleration in key areas. Let me zoom out. As this acceleration happens on the backdrop of a profound societal shift, the traditional leisure class is giving way to the movement class. All signifiers of wealth, sedentary comfort and overconsumption are being replaced by desire for vitality. You see this shift in the declining sales of self-indulgent categories. Today, status is an investment in the self. Health is the new wealth. Longevity is the ultimate luxury. For this new ageless athlete, sportswear has shifted from utility to identity, capturing a massive share of their life and their spending power. The traditional volume-driven sportswear model is simply not built to capture this discerning consumer. This societal shift has blown the market wide open for new generational premium brands like Onn. So we have to ask, what does the movement class demand from us? We see three defining answers driving our acceleration. First, relentless performance innovation. We don't just talk about innovation, we engineer it. In the past five years, we scaled our R&D team by 1,000%. Today, over 400 experts, sports scientists, robotics specialists, and AI engineers operate out of our Zurich labs. It's all about performance and feel for the movement class. In 2025, our engineers have made several industry-changing innovation breakthroughs. OnLabs in Zurich is home to the only advanced foam competence center outside of Asia. And thanks to this competitive advantage, we are the first brand which is able to combine structural engineering with superfoams. The immediate result is the upcoming CloudSurface 3, which is 15% lighter, 20% softer, and provides 15% more energy in push-offs. Over the next couple of years, we will bring this technology to a wide range of everyday running shoes, making cutting edge innovation accessible for many of our fans. But our crown jewel is light spray. We are completely rewriting the future of manufacturing by changing the very nature of how a shoe is constructed. We are no longer building uppers. We are spraying them. A robotic arm spins a 1.5 kilometer continuous filament into a perfect fit upper in exactly three minutes. We took 200 assembly steps and reduced them to one. It generates 75% less CO2 and the entire shoe weights just 170 grams, making it one of the lightest elite super shoes ever to compete in a marathon. The proof is on the podium. Wearing the Cloudfoom Strike Light Spray, Helen O'Berry didn't just win the marathon in New York in November, she shattered a 22-year-old course record. And now we scale. Last week, we opened our newest light spray facility in Busan, South Korea, increasing our production capacity 30-fold compared to 2025. And later this month, we will scale this elite, record-breaking technology to everyday runners everywhere, with the launch of the LightSpray CloudMonster 3 Hyper. Second, premium inspiration. For the movement class, movement isn't just a workout. It's their identity. They are buying into a brand that intersects with fashion and the zeitgeist. We aren't following trends. We are co-creating culture. Take our collaboration with Loewe now in its fifth year. We just launched our eighth drop featuring the cloud solo at $750. The consistent and strong demand we see at this premium price point is a profound validation of our premium pricing power. The global energy is electric. At Paris Fashion Week, our high fashion collaborations soared with younger consumers from APEC to London. We are pushing the boundaries of what sportswear can be like our highly thought after ballerina shoe with FK Twigs. And the ultimate cultural catalyst is Zendaya. We are shifting from a partnership to true co-creation leading to our first fully co-created collection for spring summer 26. Expect an important moment from all Zendaya and an Academy Award winning director very soon. Here is what matters to our long-term success. This cultural heat translates into undeniable revenue. We opened 18 new stores this past year. You see it in the queues outside our doors. The proof is in the hard numbers. Tokyo Ginza became a top 10 global store despite only opening in September. Sales rocketed into the top 10 in just months. Our retail footprint will scale to close to 20 countries in the next few months. It proves that when you intersect pinnacle innovation with cultural relevance, the commercial results are extraordinary. A premium brand doesn't stop at the physical product. It defines the entire experience. That's why we are applying our Swiss engineering directly to our digital ecosystem. We recently deployed a conversational AI layer across our customer service platforms. This isn't about processing returns. It's about having deep, personalized conversations with our community at the massive scale. But this is just step one. We are building the digital engine for our future. Over the next few years, you are going to see these AI blueprints transform how we operate. It will elevate our premium experience and drive efficiency. From the moment we design a shoe to how we run our global supply chain. Third, a complete expression of the brand from toe to head. Performance footwear will always be our anchor. But to truly serve this community, we are building a complete sports warehouse. And the breakthrough is happening right now. In 2025, our apparel business delivered an incredible 76% net sales growth at constant currency, proving we can build a highly profitable multi-category business. We saw apparel share of sales climb across every single region and every single channel, driven primarily by our direct-to-consumer business. Our foundation is running, but the movement class lives in our gear long after the run is over. They demand our performance in the gym, on the streets, and across entirely new sports. We are capturing these everyday hours with female-focused innovations like our new Sense Tech Fabric. The ultimate proof for this multi-category power? Tennis. Demand across all our apparel business was outstanding last year, and tennis was our fastest growing category. This was fueled by extraordinary moments on the court, like Igor Sviatek winning in Wimbledon and Ben Shelton taking the Masters 1000 in Toronto. But it's also combined with our off-court storytelling. By bringing Bernaboy into our tennis lifestyle brand, we are successfully redefining the courtside space for a younger demographic. And we are taking the same useful energy straight into the global pedal boom. In January, we brought on the youngest world number one in history, Arturo Coelho. Arturo isn't just an athlete on our roster. He's a co-creator driving our pedal-specific innovation. So what we have built at Kurzweil is a blueprint. Wherever sport and culture collide on a global stage, you can expect ON to be there. Let me be clear. We are not just building a better performance footwear company. We are building a lasting premium house for the movement class. Our premium growth strategy is working and our global momentum is accelerating. And our foundation for the future is broader and stronger than ever. With that, it is my great pleasure to hand the baton to our CEO, Martin, to walk you through the numbers and the details of a historic foundational year. Martin, please.