TomTom (TOM2) Q1 2026 earnings summary

Executive summary

• Q1 2026 execution was solid with improved profitability and margin expansion despite anticipated revenue decline.

• Strategic focus on advancing map platform, Lane Model Maps, and building partnerships, especially in automotive and enterprise.

• CEO succession announced, with Mike Schoofs appointed to ensure continuity and deep company knowledge.

• Broader adoption of Orbis Maps and new partnerships in Traffic and Traffic Analytics expanded reach and reinforced market leadership.

Financial highlights

• Group revenue was €129 million, down 8% year-over-year from €140 million.

• Location Technology revenue reached €114 million (down 6% year-over-year); Automotive operational revenue was €70 million (down 16%).

• Automotive IFRS revenue at €76 million, down 5% year-over-year.

• Enterprise revenue €38 million, down 8% year-over-year; slightly up on constant currency.

• Consumer revenue €15 million, down 21% year-over-year.

• Gross margin improved to 90% from 88% year-over-year.

• Operating result (EBIT) rose to €14 million (11% margin) from €6 million (4% margin) in Q1 2025.

• Net result increased to €13.7 million from €3.0 million year-over-year.

• Free cash flow (excluding restructuring) was €1.1 million, up from an outflow of €3.0 million.

• Net cash position at quarter-end was €248 million, down from €263 million at FY 2025 end.

Outlook and guidance

• Full-year 2026 group revenue expected at €495–555 million; Location Technology revenue €435–485 million.

• Operating margin for 2026 expected around 3%.

• Free cash flow for 2026 expected to be negative due to ongoing investments.

• Long-term margin improvement anticipated as new automotive programs ramp up.

• Management confident in delivering 2026 commitments and supporting long-term revenue growth.