TomTom (TOM2) Q3 2025 earnings summary

Executive summary

• Launched a next-generation automotive navigation application and innovative road alert assistant, expanding OEM partnerships with a multi-year agreement to provide real-time traffic and speed camera services to Hyundai AutoEver for European vehicles.

• Automotive market remains dynamic with strong order intake for automated driving use cases and continued investment in mapping and next-gen solutions.

• Organizational realignment in June 2025 improved focus, efficiency, and reduced operating expenses.

• Product updates included a new free app and expanded EV charging point coverage.

Financial highlights

• Group revenue for Q3 2025 was €137 million, down from €141 million year-over-year.

• Automotive operational revenue rose 22% year-over-year to €85 million, driven by new vehicle line ramp-ups.

• Location Technology revenue was €118 million, down 1% year-over-year.

• Gross margin improved to 89% from 87% in Q3 2024, reflecting a favorable product mix.

• Free cash flow (excluding restructuring) was €17 million, up from €15 million in Q3 2024.

• Net result was €9.1 million, up from a loss of €4.4 million year-over-year.

• Net cash position at quarter-end was €267 million, up from €264 million at the end of 2024.

Outlook and guidance

• Full-year 2025 group revenue and Location Technology revenue are expected at the upper end of guidance (€535–565 million and €465–490 million, respectively).

• Free cash flow for 2025 projected at around 5% of group revenue, excluding restructuring payments.

• Automotive and enterprise segments are expected to see modest sequential improvements, while consumer will continue to decline.

• Significant revenue from new AV mapping solutions is expected to start in H2 2027, with amortization beginning late 2027.