TomTom (TOM2) Q4 2025 earnings summary

Executive summary

• 2025 marked a pivotal year with record Automotive order intake, a €2.4 billion backlog, and major deals including CARIAD for Volkswagen Group brands, supported by new product launches such as Lane Model Maps, TomTom AI Agent, and ADAS SDK.

• Expanded partnerships with Esri, Uber, and CARIAD broadened enterprise reach and enhanced global travel experiences.

• Strategic focus on automated driving, infotainment, and high-potential verticals like insurtech and government, with organizational realignment and a €15 million share buyback program initiated.

Financial highlights

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

• Location Technology revenue declined 2% to €482 million; Automotive operational revenue was €322–323 million, down 1–2%.

• Gross margin improved to 89% in Q4 and 88% for the year, up from 85% in 2024, driven by a shift away from hardware.

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

• Operating result (EBIT) for 2025 was €1.6–2 million, a turnaround from a €17–20 million loss in 2024; net result was a €6–6.4 million loss, improved from €17–17.3 million loss in 2024.

Outlook and guidance

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

• Operating margin expected around 3% in 2026, up from 0% in 2025; free cash flow to turn temporarily negative due to sustained investment in Lane Model Maps.

• Temporary revenue impact in 2026 due to customer transitions; return to top-line growth and positive free cash flow anticipated in 2027.