TomTom (TOM2) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue grew 1% year-over-year to €140 million, with strong momentum in Enterprise and Location Technology segments, driven by investments in advanced mapping, analytics, and fleet management.

• Automotive business strengthened with new 3D map layers and AI-driven data fusion, supporting higher vehicle autonomy and easy integration for carmakers.

• Transitioned from a project-driven to a product-led organization, enabling greater standardization, efficiency, and faster integration for automotive clients.

• Joined EU AI Champions Initiative, reinforcing commitment to AI innovation.

Financial highlights

• Group revenue for Q1 2025 was €140 million, up from €139 million in Q1 2024.

• Location Technology revenue was €121 million (+2%); Automotive operational revenue increased to €83 million (+5%); reported Automotive revenue declined 4% to €80 million.

• Enterprise segment revenue grew 18% year-over-year to €42 million; Consumer segment revenue declined 8% to €19 million.

• Gross margin improved to 88% (Q1 '24: 86%); operating result (EBIT) was €6 million profit (Q1 '24: €5 million loss); net result was €3 million profit.

• Free cash flow outflow improved to €3 million from €9 million last year; net cash position at quarter-end was €257 million.

Outlook and guidance

• 2025 group revenue guidance is €505–565 million (2024 actual: €574 million); Location Technology revenue guidance is €440–490 million (2024 actual: €489 million).

• Free cash flow targeted at break-even for 2025, after a €4 million outflow in 2024.

• Management remains confident in long-term growth, despite short-term unpredictability from trade tensions and market uncertainty.