Investing.com -- On Holding shares tumbled over 12% in premarket trading Tuesday after the Swiss sportswear maker issued a softer-than-expected revenue outlook.

For the fourth quarter of 2025, the company reported earnings per share (EPS) of 0.21 Swiss francs, in line with analyst estimates. Revenue rose to 743.8 million francs, beating the 727.6 million francs consensus and increasing 30.6% on a constant currency basis.

By channel, direct-to-consumer net sales climbed to 360.6 million Swiss francs, up 30.0% on a constant currency basis, while wholesale revenue rose to 383.2 million francs, up 31.2%.

Regionally, momentum remained strong, led by Asia-Pacific. Net sales in EMEA, the Americas and APAC increased 27.5%, 21.3% and 85.1%, respectively, on a constant currency basis.

Profitability also improved. Adjusted EBITDA rose 31.8% year over year to 131 million francs from 99.4 million, with the adjusted EBITDA margin expanding 120 basis points to 17.6%. Gross profit margin improved to 63.9% from 62.1%.

However, investors focused on the company’s forward 2026 guidance. On expects net sales to grow by at least 23% year over year on a constant currency basis, implying reported revenue of at least 3.44 billion Swiss francs at current spot rates, below the 3.67 billion consensus.

The company said the outlook reflects a higher comparison base following its strong fourth quarter and “therefore represents a further elevation of the Company’s ambition.”

On forecasts gross profit margin of at least 63.0% and an adjusted EBITDA margin in the range of 18.5% to 19.0% for the year.