Finance and governance

Amid shifting geopolitical forces, inflation changes, and US tariff disruptions, the AO Foundation stayed resilient. In 2025, stable markets and higher investor confidence led to an improved financial outlook despite global uncertainty. Our dedication to research, innovation, and education remains central to our mission, while our focus on financial sustainability has led to greater operational efficiency, strengthening our position for the future. Facing new challenges in exit markets and uncertainties around the vital Cooperation Agreement (CA), we continued to deliver our activities effectively and efficiently.

In 2025, global financial markets improved as inflation eased and interest rates declined. Despite ongoing geopolitical tensions, investor confidence grew, and sectors adapted well to new economic realities, creating opportunities for continued advancement.

Looking ahead, while global uncertainties persist, we are well-positioned to build on the momentum achieved in 2025. Leveraging our innovation capabilities and operational discipline, we will continue to seize emerging opportunities while focusing on cost discipline, portfolio resilience, and CA transition risk management to uphold our role as a leading force in orthopedic education, research, and development.

Financial overview and income statement

The 2025 operating result improved by 10%, totaling CHF -39.5 million, primarily due to a 1% decrease in operating income, totaling CHF 108.4 million, compensated by 4% decrease in operating expenses, amounting to CHF -147.9 million. While operational performance continued to strengthen, the overall financial result was dominated by a one-off impairment. Therefore, the financial result declined by 88%, dropping from CHF 138.1 million last year to CHF 17.2 million in 2025, due to an impairment charge on an AO Foundation participation. The asset management performance demonstrates the resilience of our asset and investment management functions, as well as the capacity to leverage favorable market conditions. Consequently, the net result for 2025 fell by 124% to CHF -22.3 million compared to CHF 94.1 million in 2024, resulting in a 2% reduction in equity to CHF 1,465 million.

Find the financial overview and the income statement 2025 in comparison to the previous year here:

Asset management

In 2025, the asset management portfolio delivered a return on investment of +6.1%, reflecting solid performance across several major asset classes despite continued geopolitical and macroeconomic uncertainties. Assets under management reached CHF 1,462 million at year-end.

Transparency

According to its Transparency Policy, the AO Foundation annually publishes the total remuneration of the AO Foundation Board (AO FB), international boards of the clinical specialties, and the AO Executive Management, in addition to disclosing all scientific grants to third parties.

Remunerations per board

The total remuneration summarized for all governance activities of the International Funding Boards in 2025 was CHF 1,408,500 (2024: CHF 1,411,750), which is 0.95% (2024: 0.92%) of the total Operating Expenses of the AO Foundation and its institutions. The table below shows the total remuneration of each individual International Board in absolute amounts CHF and as a percentage of the total amount of individual Operational Expenses, as well as the absolute amount of the highest individual remuneration amount within each board in 2025:

Remuneration of the AO Executive Committee (AO EC) and the relative ratio between the highest and the lowest paid individual compensation of all permanent employees.

The total annual compensation of the six members of the AO EC 2025 was CHF 2,033,808 (2024: CHF 1,980,534). The highest individual compensation was CHF 390,000, resulting in a relative ratio of 1/7.64 between the highest and the lowest paid individual compensation (permanent employees).

Assignment of scientific and other grants to third party organizations

In 2025, the AO Foundation funded research projects with scientific and other grants totaling CHF 2,580,922, benefiting 65 different third-party organizations (2024: CHF 3,179,876 for 77 third-party
organizations).