This article first appeared on GuruFocus .
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Revenue:Record $104.8 million, a 21% increase year over year.
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Subscription Revenue:$79.8 million, up 25% year over year, representing 76% of total revenues.
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Product Revenue:$25 million, an 8% increase year over year.
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EBITDA:$28.5 million, or 27.2% of revenues, up 24% from $22.9 million in the prior year.
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Net Income:$17.3 million, or 16.5% of revenues, up 29% from $13.5 million in the prior year.
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Diluted Earnings Per Share:$0.88, compared to $0.68 in the second quarter of last year.
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Cash Flow from Operations:$32.2 million, the highest-ever quarterly figure.
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Subscriber Base:2,711,000 at the end of June 2026, with 41,000 net new subscribers added during the quarter.
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Geographic Revenue Breakdown:Israel 56%, Brazil 22%, rest of world 22%.
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Dividend:Declared $10 million for the quarter, or $0.50 per share.
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Share Buyback:$3 million in shares purchased during the quarter, with $10 million remaining authorization.
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Release Date: August 12, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Record revenue of $104.8 million, up 21% year-over-year, with strong growth across all income statement lines.
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Recurring subscription revenue grew 25% to $80 million, representing 76% of total revenues, providing a stable revenue base.
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Added 41,000 net new subscribers, bringing total subscriber base to 2.711 million, in line with expected run rate.
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Record cash flow from operations of $32.2 million, reflecting strong profitability and a robust balance sheet with no debt.
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Continued shareholder returns with a $10 million dividend ($0.50 per share) and $3 million in share buybacks.
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OEM relationships, including the new Connect Fiat program with Stellantis, are ramping up and driving growth in South America.
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Growth initiatives like IturanMob and Credit Carbon are expanding addressable markets, with big data discussions progressing.
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EBITDA increased 24% to $28.5 million, with margins expanding to 27.2% from 26.4%.
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Net income rose 29% to $17.3 million, with diluted EPS up to $0.88 from $0.68.
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Motorcycle OEM deals with Yamaha and BMW in Brazil are ramping up impressively, contributing to subscriber growth.
Negative Points
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Finance expenses of $1.3 million were incurred due to the strengthening of the Israeli shekel against the US dollar, impacting net income.
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IturanMob in the US is still in early stages with low revenue contribution, and management expects no material impact until 2027 or later.
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Big data deals are still nascent, with only a small initial agreement with the Israeli Ministry of Transportation; larger deals are not yet closed.
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UBI (usage-based insurance) growth is limited to Israel and Argentina, with low ARPU and slow adoption in other geographies.
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The company faces currency fluctuation risks, as evidenced by the FX impact on EBIT of approximately $1 million in the quarter.
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Product revenue growth of 8% lagged subscription growth, indicating a slower pace in hardware sales.
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Net cash decreased to $103.7 million from $107.6 million at year-end 2025, partly due to dividend and buyback payments.
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Management remains cautious on spending for IturanMob, indicating uncertainty about its near-term success.
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The big data opportunity is still in early discussions, with no guarantee of closing larger deals in the near term.
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Geographic concentration remains high, with Israel contributing 56% of revenues, exposing the company to regional risks.
Q & A Highlights
Q: Can you provide details on the initial big data agreement with the Israeli Ministry of Transportation, including its conclusion and how it will impact the income statement? A: Eyal Sheratzky, Co-CEO, confirmed the deal was concluded in Q1 and, while not very large (a few million shekels), it involved selling historical data to a specific ministry division. The data will be used to analyze truck accident locations to determine optimal sites for new rest areas, a project aimed at preventing accidents and driver fatigue. This marks the first step in what the company expects to be a series of larger, more valuable deals with government and public transportation agencies.
Q: Is the pipeline for big data opportunities primarily in Israel, or are you seeing international interest as well? A: Eyal Sheratzky, Co-CEO, explained that the strategy is to start in Israel due to the high density of Ituran's data (about 1 million subscribers out of 3 million cars), which builds confidence and allows for the creation of specific use cases. After establishing a substantial market in Israel, the plan is to expand this offering to other key geographies, with Brazil and Mexico being the most likely next targets, leveraging their existing subscriber bases there.
Q: Were there any noteworthy foreign exchange (FX) impacts on the quarter's results? A: Eli Kamer, CFO, stated that the FX impact was almost the same as the last quarter, with an approximate $1 million effect on EBIT.
Q: How is the IturanMob car rental solution progressing in the US market? A: Eyal Sheratzky, Co-CEO, noted that market interest is growing, but the company is intentionally operating at a low intensity to build confidence before scaling up sales and marketing budgets. While the number of pilots and customers is increasing, the revenue contribution is still minimal. He reiterated that this is a mid-term project that is not expected to contribute substantially in 2026 or 2027, but the company will provide updates once it reaches more material numbers.
Q: What are the current trends for Ituran in the motorcycle market and the UBI (Usage-Based Insurance) segment? A: Eyal Sheratzky, Co-CEO, stated that the motorcycle business, driven by OEM deals with Yamaha and BMW in Brazil, is ramping up impressively and starting to contribute to subscriber growth. They are in discussions to expand these programs. For UBI, the focus remains on the Israeli market, where it is growing but has a low ARPU and is typically for second cars or young drivers. Expansion to other geographies has been limited, with only Argentina showing smaller numbers.
Q: Could the big data project be used to accumulate data for the UBI segment as well? A: Eyal Sheratzky, Co-CEO, confirmed this is absolutely a goal. While current UBI relies on personal data, Ituran is in discussions with insurance companies to leverage its big data for pricing new and existing policies based on driving habits and locations. He noted that the insurance industry is traditional and changes slowly, but this is expected to be the next phase after closing deals with governmental authorities, with insurance companies and car dealers being the next target customers.
Q: Can you provide a summary of the record financial results for the second quarter of 2026? A: Eli Kamer, CFO, reported record revenues of $104.8 million, a 21% increase year-over-year. Subscription revenues grew 25% to $79.8 million, representing 76% of total revenues. EBITDA increased 24% to $28.5 million (27.2% of revenues), and net income rose 29% to $17.3 million, or $0.88 per diluted share. The company also generated record cash flow from operations of $32.2 million.
Q: What was the subscriber growth and geographic revenue breakdown for the quarter? A: Eyal Sheratzky, Co-CEO, and Eli Kamer, CFO, confirmed the company added 41,000 net new subscribers, bringing the total to 2,711,000. The geographic revenue breakdown for the quarter was Israel at 56%, Brazil at 22%, and the rest of the world at 22%.
Q: What is the company's capital return policy for the quarter? A: Eli Kamer, CFO, stated that the Board declared a dividend of $10 million, or $0.50 per share, in line with its standard policy. Additionally, the company purchased $3 million in shares under its buyback program, leaving approximately $10 million in remaining authorization.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
