Q4 2025 TomTom NV Earnings Call Transcript
Key Points
- TomTom NV (TMOAF) introduced several new products in 2025, including the Orbit's lane model maps, which provide lane-level intelligence and have been a major milestone.
- The company secured a record amount of new business, including a collaboration with Carriat for the Volkswagen Group brands, highlighting strong commercial traction.
- TomTom NV (TMOAF) expanded its global partnership with Uber, enhancing on-demand travel experiences worldwide.
- The company's gross margin improved to 89% in Q4 2025, a 2% increase from the previous year, driven by a lower proportion of hardware in the revenue mix.
- The automotive backlog increased to 2.4 billion, a net increase of 300 million compared to the end of 2024, driven by a record level of new deals.
- Automotive IFRS revenue for Q4 2025 was down 3% year-on-year, and automotive operational revenue was 12% lower compared to Q4 2024.
- Enterprise business revenue declined by 10% in Q4 2025 compared to the same quarter last year, partly due to a weaker US dollar.
- For the full year 2025, group revenue was 3% lower than in 2024, with automotive IFRS revenue down 2% due to lower car volumes and phase-out of certain car lines.
- Operating expenses were reduced by 21 million in Q4 2025, but the company expects a slight increase in operating expenses in 2026.
- Free cash flow is expected to turn temporarily negative in 2026 due to sustained investment in lane model maps, with a projected negative impact above 10 million.
Good day ladies and gentlemen, and welcome to TomTom's 4th quarter and full year 2025 results conference call. At this time, all participants are in a listen-only mode. We will be facilitating a question-and-answer session towards the end of today's prepared remarks, at which time, if you wish to ask a question, you may do so by pressing 11 on your telephone keypad, where you will hear an automated message advising your hand is raised.
If you are calling in via Microsoft Teams, please ensure you press 11 from the keypad where the call is made and not from your Teams screen in order to enter the queue.
Please note that this conference is being recorded. I would now like to turn over to your host for today's conference, Claudia Jansen from Investor relations. You may begin.
Thank you. Good afternoon, everyone, and welcome to our conference call. In today's call, we will discuss the fourth quarter and full year 2025 operational highlights and financial results with CEO
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