Strategic Performance Drivers

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• Achieved record quarterly revenue exceeding $100 million for the first time, supported by 21% growth in subscription services.

• Expanded the Stellantis partnership through 'Connect Fiat' in South America, providing a fully integrated end-to-end connectivity solution for the Fiat Strada.

• Attributed a portion of the strong year-over-year growth to currency tailwinds, marking a shift after nearly a decade of foreign exchange headwinds.

• Maintained a steady organic growth run rate with 40,000 net new subscribers, demonstrating consistent execution across core Israeli and Brazilian markets.

• Leveraged a dominant 90% market share in Israel to pivot toward high-margin growth engines like big data and car rental telematics.

• Secured a strategic data agreement with Israel's Ministry of Transportation, validating the company's ability to monetize accumulated telematics data for government planning.

Outlook and Strategic Initiatives

• Reiterated full-year 2026 guidance for net subscriber additions between 160,000 and 180,000.

• Anticipates that ongoing discussions with global OEMs will result in one to two new substantial agreements annually, following historical trends.

• Positions big data and the 'IturanMob' car rental solution as primary long-term growth engines to offset eventual saturation in core subscription markets.

• Expects more transportation data projects in Israel to mature in coming quarters as the company scales its B2B data-as-a-service model.

• Aims to lead the nascent U.S. car rental telematics market, though management acknowledges the sector is currently in a premature, 'market education' phase.

Financial and Risk Factors

• Foreign exchange impact contributed approximately $1 million to EBIT compared to the prior year period.

• Maintained a consistent capital return strategy with a $10 million quarterly dividend and an active share buyback program with $13 million remaining authorization.

• Noted that while subscriber growth can be volatile quarter-to-quarter, the overall business model offers high visibility and stable recurring revenue.

Q&A Session Summary

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Impact of foreign exchange on quarterly performance

• Management clarified that while FX was a tailwind this quarter, the underlying operational growth remains the primary driver of the record results.

• The EBIT benefit from currency fluctuations was approximately $1 million.