TomTom N.V.

Second-quarter 2026 group revenue was EUR 135 million, down 8% from EUR 146 million last year. Automotive revenue was EUR 81 million, down 6% year over year, with Automotive operational revenue at EUR 76 million, down 2%; Enterprise revenue was EUR 38 million, down 4%; and Consumer revenue was EUR 15 million, down 24%. Gross margin improved to 90% from 88%, operating expenses were EUR 113 million versus EUR 35 million lower than last year, and operating result was EUR 9 million versus a EUR 20 million loss a year ago. Operating margin was 6%, free cash flow was an outflow of EUR 8 million versus an inflow of EUR 40 million last year, and net cash ended at EUR 234 million with no bank borrowings. Management reiterated full-year 2026 guidance for group revenue of EUR 495 million-EUR 555 million, location technology revenue of EUR 435 million-EUR 485 million, and operating margin of around 3%. They also said free cash flow will remain negative in 2026, though the decline should gradually slow, and that revenue growth is expected to start in 2027, excluding Consumer.

Mike Schoofs emphasized continuity but said the company will concentrate more on growth markets where it sees the strongest fit: automated driving in Automotive and AI-consumable location intelligence in Enterprise. He highlighted TomTom’s data quality, freshness, and dynamic services as differentiators, and said the company is investing higher in the stack to make its data easier to use in AI workflows. His tone was confident and focused on selective execution, with repeated references to a path toward revenue growth from 2027 and better profitability over time.

Taco Titulaer said the quarter was in line with expectations and that revenue is still on track for the full year. He noted the gross margin increase to 90% came from a higher mix of high-margin location technology revenue, while operating expenses fell to EUR 113 million due mainly to lower personnel costs after organizational realignment and prior-year one-off items. He also said the company completed its EUR 15 million share buyback, ended with EUR 234 million net cash and no bank borrowings, expects free cash flow to stay negative in 2026 but improve next year, and reaffirmed full-year guidance of EUR 495 million-EUR 555 million revenue and around 3% operating margin.

Analysts focused on whether TomTom would need to make strategic shifts under Mike Schoofs, and he replied that continuity remains important while the company narrows its focus on automated driving and location intelligence. They also asked whether Volkswagen’s announced cuts could hurt TomTom, but management said there is no expected impact because the industry-wide push toward automated driving remains intact. On cash flow, management said free cash flow will stay negative in 2026, though the deterioration should gradually slow, and on margins they said second-half operating margin will be lower than the 6% seen in Q2 but they remain comfortable with the full-year 3% target.