TomTom (TOM2) Q4 2025 earnings summary

Executive summary

• Achieved record Automotive order intake and a €2.4 billion backlog, with major new deals including CARIAD and expanded partnerships with Uber and Esri, supporting future growth and strengthening commercial traction in both automotive and enterprise segments.

• Launched new products such as Lane Model Maps, TomTom AI Agent, ADAS SDK, and Automotive Navigation Application, leveraging AI-powered Map Factory for scalable, lane-level intelligence at urban scale.

• Strategic focus on automated driving, infotainment, insurtech, and government verticals, with continued investment in product accessibility and developer engagement.

• Initiated a €15 million share buyback program and undertook organizational realignment in June 2025, resulting in restructuring charges.

Financial highlights

• Group revenue for 2025 was €555 million, down 3% year-on-year; Q4 revenue was €131 million, down 8% year-on-year.

• Automotive IFRS revenue was €323 million (down 2%), and Location Technology revenue was €482 million (down 2%); Enterprise revenue was €159 million (down 2%).

• Gross margin improved to 88% for the year (up from 85% in 2024), and 89% in Q4.

• Operating result (EBIT) for 2025 was €2 million, a turnaround from a €20 million loss in 2024; net result was a €6 million loss, improved from €17 million loss in 2024.

• Free cash flow for 2025 was an inflow of €32 million, excluding restructuring payments; net cash position at year-end was €263 million.

Outlook and guidance

• 2026 group revenue projected between €495 million and €555 million; Location Technology revenue expected at €435–485 million.

• Operating margin expected around 3% of group revenue in 2026, up from 0% in 2025; free cash flow to turn temporarily negative due to sustained investment in lane model maps.

• Temporary revenue decline in 2026 due to customer transitions; return to top-line growth and positive free cash flow anticipated in 2027, with further operating margin improvement.