TomTom N.V.

In Q2 2026, TomTom reported group revenue of EUR 135 million, down 8% from EUR 146 million last year. Automotive revenue was EUR 81 million, down 6%; Automotive operational revenue was EUR 76 million, down 2%; Enterprise revenue was EUR 38 million, down 4%; and Consumer revenue was EUR 15 million, down 24%. Gross margin was 90% versus 88% a year ago. Operating expenses were EUR 113 million, operating result was EUR 9 million versus a EUR 20 million loss last year, and operating margin was 6%. Free cash flow was an outflow of EUR 8 million, 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%.

Mike Schoofs emphasized continuity but said TomTom will concentrate investment on growth markets where it sees product-market fit, especially automated driving in Automotive and AI-consumable location intelligence in Enterprise. He described TomTom’s data and dynamic services as a differentiator and said the company is “doubling down” on opportunities such as VW Group, China overseas wins, and higher-value use cases. His tone was confident and selective: pick the battles, focus on areas with margin and value, and position the company for a return to revenue growth from 2027 onward.

Taco Titulaer said Q2 group revenue was EUR 135 million, with gross margin improving to 90% from 88% and operating expenses falling to EUR 113 million, down EUR 35 million year over year. He attributed the lower opex mainly to lower personnel costs after organizational realignment, and noted operating result improved to EUR 9 million with a 6% operating margin. He also highlighted free cash flow outflow of EUR 8 million, completion of the EUR 15 million share buyback program, and a quarter-end net cash position of EUR 234 million with no bank debt. On outlook, he reiterated full-year revenue and margin guidance and said free cash flow will remain negative this year but is expected to reverse next year.

Analysts pressed on whether TomTom’s growth story is starting this year or only in 2027, and Mike clarified that revenue is expected to start growing “as of next year, not in the second half.” Questions also focused on the soft free cash flow and the lower opex run-rate; Taco said free cash flow will stay negative this year but should improve gradually, while the 6% operating margin will not repeat in the second half partly because of less capitalization. On automotive demand, management said EV swings are hard to forecast, but the more important industry trend is accelerating automated driving investment, and TomTom does not see VW’s restructuring plans changing the need for those programs.