This article first appeared on GuruFocus .
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Group Revenue:EUR135 million, an 8% decrease from last year's EUR146 million.
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Automotive Revenue:EUR81 million, a 6% decrease year on year.
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Automotive Operational Revenue:EUR76 million, down 2% year on year.
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Enterprise Revenue:EUR38 million, down 4% year on year.
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Location Technology Segment Revenue:EUR119 million, 5% lower than last year.
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Consumer Revenue:EUR15 million, down 24% year on year.
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Gross Margin:Improved to 90%, up from 88% last year.
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Operating Expenses:EUR113 million, a reduction of EUR35 million compared to last year.
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Operating Result:EUR9 million, compared with a loss of EUR20 million last year.
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Operating Margin:6%, a sharp improvement year on year.
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Free Cash Flow:Outflow of EUR8 million, compared with an inflow of EUR14 million last year.
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Net Cash Position:EUR234 million, with no outstanding bank borrowings.
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Full-Year 2026 Revenue Outlook:EUR495 million to EUR555 million.
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Location Technology Revenue Outlook:EUR435 million to EUR485 million.
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Full-Year Operating Margin Outlook:Around 3%.
Release Date: July 15, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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TomTom NV ( TMOAY ) is making strategic progress in both the Automotive and Enterprise sectors, strengthening its position as a provider of high-quality scalable location technology.
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The company is engaging globally with key players in the automated driving ecosystem, enhancing its role as a critical safety component.
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TomTom NV ( TMOAY ) is broadening its customer base in the Enterprise segment, reducing customer concentration and diversifying its revenue base.
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The introduction of the TomTom Agent Toolkit through the Maps SDK is enabling developers to build AI-powered applications, expanding the range of use cases.
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Gross margin improved to 90%, up from 88% last year, driven by a higher proportion of high-margin location technology revenue.
Negative Points
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Group revenue decreased by 8% year-on-year to EUR135 million, with declines in both Automotive and Enterprise segments.
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Automotive revenue fell by 6% year-on-year, and Enterprise revenue decreased by 4%, reflecting challenges in these segments.
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Consumer segment revenue declined by 24% year-on-year, impacted by the contraction of the PND market and memory supply constraints.
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Free cash flow for the quarter was an outflow of EUR8 million, compared with an inflow of EUR14 million last year.
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The company expects free cash flow to remain negative for the full year 2026, due to investments in lane-level maps.
Q & A Highlights
Q: Given your appointment as CEO, are there any strategic shifts you plan to implement at TomTom? A: Mike Schoofs, Chief Executive Officer: We aim for continuity, leveraging our strong foundation in Automotive and Enterprise. We plan to focus on growth segments like automated driving and location intelligence, where we see significant industry investments and opportunities. We are concentrating on making our data AI consumable to accelerate adoption and open new use cases.
Q: With VW planning cuts, do you see any impact on your business with them? A: Mike Schoofs, Chief Executive Officer: Despite industry turmoil, the push for automated driving capabilities remains strong globally, including at VW. We don't see an impact on our business as these programs are crucial for competitiveness, especially with overseas competition from China.
Q: The free cash flow was negative this quarter. What do you expect for the full year? A: Taco Titulaer, Chief Financial Officer: We expect free cash flow to remain negative for the full year due to investments in lane-level maps. However, we are on track to reverse this trend next year.
Q: Can you explain the decrease in operating expenses and the one-off reversal of previously capitalized contract costs? A: Taco Titulaer, Chief Financial Officer: Operating expenses decreased due to lower personnel costs and one-off items from the previous year. The reversal of capitalized contract costs was due to a change in customer plans, which we then accounted for in the OpEx line.
Q: How do you see the trajectory for revenue growth next year? A: Taco Titulaer, Chief Financial Officer: We expect revenue growth to start next year, driven by new models and contracts coming online, rather than improvements in the second half of this year.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
