TOMTOM'S CHIEF EXECUTIVE OFFICER, HAROLD GODDIJN
"The investments in our technology stack are enabling us to transform our product portfolio into one that is more modular and scalable. This enables faster deployment, greater flexibility and a shorter time-to-market for our customers. Through these advancements, we are becoming a product-led company, and we have realigned our organization in support of this shift.
As anticipated at the start of the year, transitory headwinds are weighing on our top-line development. Nonetheless, we are encouraged by the progress made in the first half of the year and are upgrading our full-year guidance accordingly.
We remain confident about our market position. In the second quarter, our maps were selected to support complex field service operations, optimize logistics, improve infrastructure investments, and more. As location technology becomes increasingly integral to virtual experiences and business operations, our maps and advanced applications help more and more customers grow and innovate."
OPERATIONAL SUMMARY
- We realigned our organization as we advanced our product-led strategy
- We launched our Model Context Protocol Server, enabling AI agents to gain spatial awareness through TomTom's data and APIs
- We announced a partnership with premium all-electric auto brand smart and generated meaningful engagement with carmakers at Auto Shanghai 2025
- We kept up our momentum in Enterprise, with our products being selected by IFS, NextBillion.ai and many more
FINANCIAL SUMMARY SECOND QUARTER 2025
- Group revenue decreased by 4% to €146 million (Q2 '24: €152 million)
- Location Technology revenue decreased by 2% to €126 million (Q2 '24: €129 million)
- Automotive operational revenue decreased by 13% to €77 million (Q2 '24: €89 million)
- Operating expenses included a restructuring charge of €25 million
- Free cash flow is an inflow of €14 million (Q2 '24: outflow of €5 million)
- Net cash of €267 million (Q4 '24: €264 million)
TOMTOM'S CHIEF FINANCIAL OFFICER, TACO TITULAER
"In the second quarter, our performance was influenced by a variety of transitory factors. Our Automotive business encountered industry uncertainties, while the underlying growth of our Enterprise business was more than offset by unfavorable exchange rate movements.
Nevertheless, our business' fundamentals remain sound. We realized a strong gross margin that will continue to improve as we advance our product-led strategy. In addition, while operating expenses in the second quarter were impacted by the provision related to the organizational realignment we announced in June, we expect reduced complexity and greater operational efficiencies to start benefiting our operating margin from the third quarter onward.
While headwinds remain present, our performance in the first half of the year was ahead of our initial expectations. This has led us to upgrade our guidance. For the full year, we now expect Group and Location Technology revenue to reach the upper end of our initial guidance. We are also upgrading our free cash flow1 guidance to around +5% of Group revenue at the mid-point of the guided range."
Donwload full press release:
https://corporate.tomtom.com/static-files/4bb910ad-8e52-475b-a871-0cf308a9f843
"The investments in our technology stack are enabling us to transform our product portfolio into one that is more modular and scalable. This enables faster deployment, greater flexibility and a shorter time-to-market for our customers. Through these advancements, we are becoming a product-led company, and we have realigned our organization in support of this shift.
As anticipated at the start of the year, transitory headwinds are weighing on our top-line development. Nonetheless, we are encouraged by the progress made in the first half of the year and are upgrading our full-year guidance accordingly.
We remain confident about our market position. In the second quarter, our maps were selected to support complex field service operations, optimize logistics, improve infrastructure investments, and more. As location technology becomes increasingly integral to virtual experiences and business operations, our maps and advanced applications help more and more customers grow and innovate."
OPERATIONAL SUMMARY
- We realigned our organization as we advanced our product-led strategy
- We launched our Model Context Protocol Server, enabling AI agents to gain spatial awareness through TomTom's data and APIs
- We announced a partnership with premium all-electric auto brand smart and generated meaningful engagement with carmakers at Auto Shanghai 2025
- We kept up our momentum in Enterprise, with our products being selected by IFS, NextBillion.ai and many more
FINANCIAL SUMMARY SECOND QUARTER 2025
- Group revenue decreased by 4% to €146 million (Q2 '24: €152 million)
- Location Technology revenue decreased by 2% to €126 million (Q2 '24: €129 million)
- Automotive operational revenue decreased by 13% to €77 million (Q2 '24: €89 million)
- Operating expenses included a restructuring charge of €25 million
- Free cash flow is an inflow of €14 million (Q2 '24: outflow of €5 million)
- Net cash of €267 million (Q4 '24: €264 million)
TOMTOM'S CHIEF FINANCIAL OFFICER, TACO TITULAER
"In the second quarter, our performance was influenced by a variety of transitory factors. Our Automotive business encountered industry uncertainties, while the underlying growth of our Enterprise business was more than offset by unfavorable exchange rate movements.
Nevertheless, our business' fundamentals remain sound. We realized a strong gross margin that will continue to improve as we advance our product-led strategy. In addition, while operating expenses in the second quarter were impacted by the provision related to the organizational realignment we announced in June, we expect reduced complexity and greater operational efficiencies to start benefiting our operating margin from the third quarter onward.
While headwinds remain present, our performance in the first half of the year was ahead of our initial expectations. This has led us to upgrade our guidance. For the full year, we now expect Group and Location Technology revenue to reach the upper end of our initial guidance. We are also upgrading our free cash flow1 guidance to around +5% of Group revenue at the mid-point of the guided range."
Donwload full press release:
https://corporate.tomtom.com/static-files/4bb910ad-8e52-475b-a871-0cf308a9f843
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