Q2 2026 TomTom NV Earnings Call Transcript
Key Points
- TomTom NV (TMOAY) is making strategic progress in both the Automotive and Enterprise sectors, strengthening its position as a provider of high-quality scalable location technology.
- The company is engaging globally with key players in the automated driving ecosystem, enhancing its role as a critical safety component.
- TomTom NV (TMOAY) is broadening its customer base in the Enterprise segment, reducing customer concentration and diversifying its revenue base.
- The introduction of the TomTom Agent Toolkit through the Maps SDK is enabling developers to build AI-powered applications, expanding the range of use cases.
- Gross margin improved to 90%, up from 88% last year, driven by a higher proportion of high-margin location technology revenue.
- Group revenue decreased by 8% year-on-year to EUR135 million, with declines in both Automotive and Enterprise segments.
- Automotive revenue fell by 6% year-on-year, and Enterprise revenue decreased by 4%, reflecting challenges in these segments.
- Consumer segment revenue declined by 24% year-on-year, impacted by the contraction of the PND market and memory supply constraints.
- Free cash flow for the quarter was an outflow of EUR8 million, compared with an inflow of EUR14 million last year.
- The company expects free cash flow to remain negative for the full year 2026, due to investments in lane-level maps.
Good day, ladies and gentlemen. Welcome to TomTom's second-quarter 2026 results conference call. (Operator Instructions) Please note that this conference is being recorded.
I will now turn the call over to your host for today's conference, Claudia Janssen, Investor Relations.
Thank you, operator. Good afternoon, everyone, and welcome to our conference call. On today's call, we will discuss the operational highlights and financial results for the second quarter and first half of 2026, together with Mike Schoofs and Taco Titulaer.
Mike will begin with an update on our strategic and operational developments, and Taco will then provide further insight into our financials. After their prepared remarks, we will open the line for your questions. And as always, please note that Safe Harbor applies.
With that, Mike, let me hand it over to you.
Thank you, Claudia, and
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