TomTom (TOM2) Q2 2025 earnings summary

Executive summary

• Organization realigned to support a product-led strategy, including a €25 million restructuring charge impacting 300 roles, and significant investments in technology such as the rebuilt map-making platform and Model Context Protocol Server launch.

• Automotive segment engaged at Auto Shanghai 2025, secured a partnership with smart, and benefited from contract adjustments, while Enterprise gained new customers in logistics and infrastructure.

• AI-driven innovation highlighted by the launch of the Model Context Protocol Server to enhance location-aware outputs.

• Despite near-term market headwinds, strategic progress and operational improvements support a raised outlook and upgraded guidance.

Financial highlights

• Q2 2025 group revenue was €146 million, down from €152 million year-over-year; H1 2025 revenue was €287 million, down 2%.

• Location Technology Q2 revenue was €126 million, down 2% year-over-year; Automotive operational revenue declined 13% to €77 million, IFRS revenue was €86 million.

• Enterprise Q2 revenue was €40 million, down 4% year-over-year, impacted by FX and prior-year government contract; Consumer Q2 revenue declined 15% to €20 million.

• Gross margin improved to 88% in Q2 2025 from 80% in Q2 2024, driven by lower NRE costs.

• Free cash flow was an inflow of €14 million in Q2 2025, a sharp improvement from a €5 million outflow last year; net cash position at quarter end was €267 million.

Outlook and guidance

• Full-year 2025 group revenue expected between €535 million and €565 million; Location Technology revenue guidance raised to €465 million–€490 million.

• Free cash flow is expected to be around 5% of group revenue at the midpoint of the guided range, excluding restructuring payments.

• Annualized savings from restructuring are expected to reach up to €35 million, with margin improvements expected from Q3 onward.