Estimated reading time: 6 minutes
Key Takeaways
- On has surged to CHF 2.3 billion in 2024 revenue, propelled by visionary leadership and rapid product cycles.
- Co-founder-turned-CEO Martin Hoffmann focuses on *transparent goals* and *cost discipline* while encouraging bold design ideas.
- The patented **CloudTec** platform and recyclable Cyclon model underscore On’s commitment to innovation and sustainability.
- Expansion rests on three pillars: new geographies, wider product categories, and stronger digital engagement.
- Analysts view On as a disruptive force challenging heavyweight rivals in the premium-performance niche.
Table of contents
Martin Hoffmann’s Profile & Strategy
“Finance is the backbone, yet imagination moves the athlete,” explains Investopedia’s Q&A with Martin Hoffmann. Joining On in 2013 as CFO, Hoffmann leveraged a dual degree in Business Management and Computer Science to link rigorous cash-flow control with fast design iterations. After becoming sole CEO in July 2025, he strengthened trust-based teams that prefer *objective scorecards* over top-down edicts.
Under his stewardship, On graduated from seed rounds to a New York Stock Exchange listing, all while preserving margins near 60%. Hoffmann’s mantra balances ambitious expansion with fiscal prudence—an approach that has rattled entrenched rivals who struggle to match On’s speed.
Design & Manufacturing Approach
From garden-hose midsoles in 2010 to today’s CloudTec platform, On’s R&D culture rewards fearless experimentation. The patented structure compresses on landing and locks for take-off, delivering simultaneous softness and rebound. Elite athletes claim lower impact forces, while everyday users enjoy all-day comfort.
Quality control remains hands-on: key processes are supervised in long-term partner plants in Vietnam and China, and polymer research is co-funded in Switzerland and Germany. Sustainability targets are equally bold—bio-based EVA, recycled polyester, and the fully recyclable Cyclon shoe subscription all aim to comply with forthcoming EU Extended Producer Responsibility laws.
Growth Plan & Market Position
- Geography: Flagship stores in Zurich, London, Tokyo, and New York anchor brand presence. São Paulo and Seoul follow this year, with local-language e-commerce backing the rollout.
- Categories: Apparel—wind-resistant jackets and ultralight tights—hit 10% of 2024 revenue, with scope to triple as data-driven sizing improves.
- Digital Reach: A mobile app tracks runs and suggests shoe rotation. Anonymised data loops back into R&D, cutting feedback cycles in half.
Partnerships amplify the message. Roger Federer co-developed *The Roger* lifestyle line, attracting style-first shoppers, while marathon champion Hellen Obiri offers competitive proof. Market researchers position On between mass-market and luxury labels—high enough for strong margins, accessible enough for performance buyers.
Founder Story
Former pro-triathlete Olivier Bernhard founded On in 2010 with friends David Allemann and Caspar Coppetti to ease knee stress without sacrificing speed. After early prototypes drew race-day buzz, Hoffmann’s arrival tightened inventory and supplier audits, preparing the firm for explosive demand that followed a 2016 Ironman podium finish.
- 2017: Launch of Cloudflow, the first lightweight racer with full cushioning
- 2019: Series C financing valued On at USD 1.3 billion
- 2021: IPO raised USD 746 million for supply-chain automation and R&D
- 2024: Revenue passed CHF 2 billion with net profit above CHF 240 million
Vision & Disruption Strategy
Hoffmann envisions merging *engineering rigor* with *lifestyle appeal* to reshape athletic footwear. Targets include eliminating virgin polyester by 2027, expanding Cyclon-style subscriptions to tennis and trail shoes, and embedding sensors for strike-pattern feedback—all moves that force slower rivals to react.
Sector Context
- Tightening environmental regulation demands design for disassembly.
- Smart footwear leverages lightweight sensors for coaching.
- Direct-to-consumer models safeguard pricing and collect data.
On’s 43% two-year compound annual growth rate outpaces heavyweight peers, while a 59% gross margin slots neatly between sportswear and luxury averages.
Outlook
Management aims for CHF 4 billion revenue by 2028 without sacrificing margin. Success depends on maintaining R&D at 11% of sales, automating sole-mould production, cautious apparel growth, and advancing closed-loop manufacturing. Early signs look encouraging—pre-orders for the next-gen *Cloudboom* already exceed factory capacity, triggering waiting lists rather than markdowns.
Conclusion
On’s trajectory illustrates how disciplined finance, relentless material innovation, and precise brand positioning can unlock space in a crowded market. Martin Hoffmann’s blend of fiscal caution and creative zeal offers a roadmap for sustainable, disruptive growth.
FAQs
How did On transition from a startup to a NYSE-listed company?
Robust cash-flow forecasting, tight inventory controls, and consistent product innovation allowed On to scale rapidly and attract institutional investors, culminating in its 2021 IPO.
What makes CloudTec different from other cushioning systems?
CloudTec compresses on landing for softness and locks for take-off to deliver rebound, providing both comfort and propulsion in a single platform.
Is the Cyclon subscription truly circular?
Yes. Subscribers return worn shoes for full recycling, and materials are re-processed into new products, minimising waste and virgin inputs.
Can On sustain its growth against giants like Nike and Adidas?
While On’s scale is smaller, its patent portfolio, speed of innovation, and premium niche positioning create defensive moats that larger rivals find hard to replicate quickly.
