Netherlands · Delayed Price · Currency is EUR TomTom Earnings Call Transcripts
Fiscal Year 2026
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Revenue declined 8% year-over-year in Q2 2026, but gross margin improved to 90% and operating margin reached 6%. Outlook for 2026 is reaffirmed, with revenue growth expected from 2027, excluding Consumer. Free cash flow remains negative due to ongoing investments.
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Q1 2026 saw improved profitability and margin expansion despite lower revenue, driven by cost reductions and a higher mix of location technology. Strategic investments in Lane Model Maps and new partnerships position the business for future growth, with a strong cash position and ongoing share buybacks.
Fiscal Year 2025
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Record automotive order intake and new partnerships drove strategic momentum in 2025, despite modest revenue declines. Gross margin improved to 88%, and a EUR 2.4 billion backlog positions the business for growth and margin expansion from 2027.
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Q3 2025 saw strong automotive growth and improved gross margin, with group revenue at €137M and free cash flow at €70M. Full-year revenue is expected at the upper end of guidance, driven by new product launches and robust order intake, especially in automotive.
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Q2 revenue declined year-over-year, but gross margin improved to 88% and free cash flow turned positive. Organizational realignment and a product-led strategy are expected to drive annualized savings of EUR 35 million, supporting a raised full-year revenue and cash flow outlook.
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Q1 2025 delivered modest revenue growth, strong Enterprise momentum, and improved gross margin, driven by investments in advanced mapping and a shift to a product-led model. Automotive saw higher average selling prices despite market headwinds, while guidance remains unchanged amid trade uncertainty.
Fiscal Year 2024
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Enterprise revenue grew strongly in 2024, offsetting automotive headwinds and backlog reduction. 2025 guidance reflects market uncertainty, but optimism remains for midterm growth driven by EV and self-driving trends. Gross margin is expected to improve to 88%.
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Q3 2024 revenue declined 2% year-over-year amid automotive industry headwinds, but enterprise segment grew 13% and gross margin rose to 87%. Free cash flow improved to €50 million, and full-year guidance is maintained, with long-term growth expected from automation trends.
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Q2 2024 saw a 3% revenue decline year-on-year, with strong enterprise growth offset by automotive and consumer weakness. Gross margin was impacted by one-offs, and free cash flow guidance was lowered due to market unpredictability. Major contracts and a completed share buyback were highlights.