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TomTom NV
Earnings Release • Oct 14, 2025
3890_rns_2025-10-14_b077b747-daa7-46de-9005-ac512fc0b6b9.pdf
Earnings Release
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THIRD QUARTER 2025 RESULTS
TomTom achieves solid Q3 results with improving profitability
TOMTOM'S CHIEF EXECUTIVE OFFICER, HAROLD GODDIJN
"Our product-led approach continues to deliver results, as seen with the launch of our next generation Automotive Navigation Application. This ready-to-use solution enables automakers to quickly deploy high-quality navigation systems, setting a new benchmark for user experience and flexibility in the industry.
Recent adjustments to our organizational structure have enhanced our focus and efficiency across the business. By combining advanced technologies such as AI together with our modular product strategy, we are able to deliver greater value to our customers.
We are encouraged by promising developments and discussions around automated driving use-cases. Our investments in mapping and next-generation solutions position us well to support our partners as the industry evolves. We remain confident in our long-term trajectory and our ability to unlock new opportunities, even as we navigate a dynamic environment."
OPERATIONAL SUMMARY
- TomTom unveils next generation Automotive Navigation Application
- New TomTom app launched for enhanced driver experience along with an innovative road alert assistant
- We announced a multi-year agreement to deliver traffic services to Hyundai AutoEver's navigation for European vehicle lineup
FINANCIAL SUMMARY THIRD QUARTER 2025
- Group revenue decreased by 3% to €137 million (Q3 '24: €141 million)
- Location Technology revenue was €118 million (Q3 '24: €120 million)
- Automotive operational revenue increased by 22% to €85 million (Q3 '24: €69 million)
- Free cash flow1 was an inflow of €17 million (Q3 '24: inflow of €15 million)
- Net cash of €267 million (Q4 '24: €264 million)
KEY FIGURES
| (€ in millions, unless stated otherwise) | Q3 '25 | Q3 '24 | y.o.y. change |
YTD '25 | YTD '24 | y.o.y. change |
|---|---|---|---|---|---|---|
| Location Technology | 118.3 | 119.8 | (1%) | 366.0 | 367.1 | 0% |
| Automotive | 79.5 | 78.1 | 2% | 245.6 | 248.7 | (1%) |
| Enterprise | 38.7 | 41.7 | (7%) | 120.4 | 118.5 | 2% |
| Consumer | 18.6 | 20.9 | (11%) | 57.5 | 65.0 | (12%) |
| Revenue | 136.9 | 140.7 | (3%) | 423.5 | 432.1 | (2%) |
| Gross result | 122.1 | 121.8 | 0% | 373.6 | 363.2 | 3% |
| Gross margin | 89% | 87% | 88% | 84% | ||
| Operating expenses | (113.7) | (125.9) | (10%) | (379.3) | (377.4) | 1% |
| Operating result (EBIT) | 8.4 | (4.1) | (5.7) | (14.2) | ||
| Operating margin | 6% | (3%) | (1%) | (3%) | ||
| Net result | 9.1 | (4.4) | (11.5) | (11.6) | ||
| Free cash flow1 (FCF) |
16.6 | 15.0 | 11% | 27.5 | 0.9 | |
| FCF1 as a % of revenue |
12% | 11% | 7% | 0% |
1Free cash flow in 2025 excludes restructuring payments related to the organizational realignment announced in June 2025.
Phone | +31 20 757 5194 Email | [email protected] 1/9
This report includes the following non-GAAP measures which are further explained at the end of this report: operational revenue; gross margin; EBIT; free cash flow; net cash and gross deferred revenue.
TOMTOM'S CHIEF FINANCIAL OFFICER, TACO TITULAER
"This quarter, our Automotive operational revenue showed encouraging growth, partly driven by the ramp-up of new car lines we supply. On a constant currency basis, our Enterprise business maintained stable revenue quarter-onquarter.
Gross margin increased, driven by a more favorable product mix. We delivered a positive operating result and solid free cash flow in a dynamic market environment.
We now anticipate that our full-year Group revenue and Location Technology revenue will reach the upper end of our guided range, with free cash flow1 expected at around 5% of Group revenue."
OUTLOOK 2025
| (€ in millions, unless stated otherwise) | Outlook 2025 |
Actual 2024 |
|---|---|---|
| Revenue | 535 - 565 | 574 |
| Of which Location Technology | 465 - 490 | 489 |
| FCF1 as % of Group revenue |
+5% | -1% |
1Free cash flow in 2025 excludes restructuring payments related to the realignment announced in June 2025.
REVENUE FOR THE PERIOD
Revenue for the third quarter amounted to €137 million, a year-on-year decrease of 3% (Q3 '24: €141 million).
LOCATION TECHNOLOGY
Location Technology revenue was €118 million, marginally down compared with last year (Q3 '24: €120 million).
Automotive revenue in the quarter was €80 million, an increase of 2% compared with the same quarter last year (Q3 '24: €78 million). Automotive operational revenue in the quarter was €85 million, a year-on-year increase of 22% (Q3 '24: €69 million). This increase is partly caused by an increase in car production volumes and the ramp-up of some new car lines to which we are supplying. In addition, the operational revenue was supported by royalty reports related to previous periods of which a significant portion is still to be recognized in future periods.
Automotive operational revenue is calculated as follows:
| (€ in millions, unless stated otherwise) | Q3 '25 | Q3 '24 | y.o.y. change |
YTD '25 | YTD '24 | y.o.y. change |
|---|---|---|---|---|---|---|
| Automotive revenue | 79.5 | 78.1 | 2% | 245.6 | 248.7 | (1%) |
| Movement of Automotive deferred revenue | 5.2 | (8.6) | (0.9) | (11.1) | ||
| Automotive operational revenue | 84.8 | 69.5 | 22% | 244.7 | 237.5 | 3% |
Enterprise revenue decreased to €39 million in Q3 '25, 7% lower than the same quarter last year (Q3 '24: €42 million), mainly as a result of the depreciation of the US dollar. Enterprise revenue remained fairly consistent yearover-year when adjusted for currency fluctuations.
During the quarter, we reported several important product updates. We launched the new Automotive Navigation Application, a ready-to-use solution built on Orbis Maps and an enhanced Navigation SDK, enabling automakers to deploy high-quality navigation systems efficiently. The application offers customizable user experiences, immersive 3D visualization, and EV-optimized navigation, including real-time charging station recommendations, reducing development timelines and setting a new standard for automotive navigation.
Furthermore, we announced that Orbis Maps now includes over 2 million verified EV charging points worldwide, supporting the global shift to zero-emission driving. The platform allows automakers to enrich TomTom's database with their own or exclusive charging data, ensuring accurate and comprehensive EV navigation for drivers. This milestone demonstrates TomTom's commitment to enabling seamless, worry-free EV journeys and advancing sustainable mobility.
Additionally, we launched the new TomTom app, a free driving application that relies on our Orbis Maps with continuous updates and accurate speed limits, while also providing highly comprehensive speed camera data. For drivers seeking additional support, the app can be combined with a road alert assistant device to further improve the driving experience by delivering only the most critical alerts.
In Automotive we announced the expansion of our partnership with Hyundai AutoEver, securing a multi-year agreement to provide real-time traffic and speed camera services for Hyundai, Kia, and Genesis vehicles across Europe. The integration of TomTom's live services will enhance in-dash navigation, driver safety, and compliance with traffic regulations for millions of vehicles, further strengthening TomTom's position as a leading maps and traffic supplier for Hyundai AutoEver.
CONSUMER
Consumer reported revenue of €19 million for the quarter, compared with €21 million in the same quarter last year.
RESULT FOR THE PERIOD
GROSS MARGIN
The gross margin for the quarter was 89%, compared with 87% in Q3 '24. The year-on-year improvement in gross margin is mainly the result of a larger proportion of higher-margin content and software revenue in our revenue mix.
OPERATING RESULT
Operating result (EBIT) in the quarter was a profit of €8.4 million (Q3 '24: loss of €4.1 million). Total operating expenses in the quarter were €114 million, markedly lower compared with the same quarter last year (Q3 '24: €126 million). This decrease is the result of the combined effect of the organizational realignment as announced in June this year, the capitalization of the development cost associated with our 3D map layers and lower amortization charges.
FINANCIAL INCOME, EXPENSES AND INCOME TAX
Total financial result for the quarter was an income of €1.9 million, mainly resulting from interest income on our fixed-term deposits (Q3 '24: income of €2.0 million).
The income tax expense for the quarter was €1.2 million, compared with an expense of €2.3 million in Q3 '24.
CASH FLOW, LIQUIDITY, AND WORKING CAPITAL
In Q3 '25, free cash flow was an inflow of €3 million, compared with an inflow of €15 million in the same quarter last year. Correcting for the impact of restructuring-related payments associated with the organizational realignment as announced in June 2025, the free cash flow for the quarter was an inflow of €17 million.
A reconciliation from operating result to free cash flow, to net cash movement is presented below:
| (€ in millions) | Q3 '25 | Q3 '24 | YTD '25 | YTD '24 |
|---|---|---|---|---|
| Operating result | 8.4 | (4.1) | (5.7) | (14.2) |
| Depreciation and amortization | 4.4 | 8.9 | 13.5 | 26.6 |
| Equity-settled stock compensation expenses | 3.6 | 3.6 | 9.9 | 10.0 |
| Provisions and other non-cash items | (21.3) | (1.0) | (0.6) | (1.4) |
| Movements in working capital (excl. deferred revenue) | 25.9 | 17.4 | 46.4 | (12.7) |
| Movements in deferred revenue | (9.9) | (9.1) | (21.0) | (5.7) |
| Interest and tax payments | (0.8) | 0.6 | (4.0) | 1.6 |
| Investments in intangible assets and property, plant and equipment | (7.5) | (1.3) | (24.7) | (3.3) |
| Free cash flow | 2.8 | 15.0 | 13.7 | 0.9 |
| Lease payments | (2.4) | (2.5) | (7.0) | (6.6) |
| Cash flow from other investing and financing activities | — | — | — | (38.8) |
| Exchange rate differences on cash and fixed-term deposits | (0.0) | (0.2) | (3.5) | (0.2) |
| Net cash movement | 0.4 | 12.3 | 3.3 | (44.7) |
During the quarter, the deferred revenue position decreased by €9.9 million, from €421 million to €411 million.
The following table presents the deferred revenue including the effect of netting:
| (€ in millions) | 30 September 2025 | 30 June 2025 | 31 December 2024 |
|---|---|---|---|
| Automotive | 428.6 | 423.4 | 429.5 |
| Enterprise | 16.6 | 16.4 | 19.2 |
| Consumer | 21.3 | 20.1 | 20.8 |
| Gross deferred revenue | 466.5 | 459.8 | 469.6 |
| Less: Netting adjustment to unbilled revenue | (55.1) | (38.5) | (37.1) |
| Deferred revenue | 411.4 | 421.3 | 432.5 |
Investments in intangible assets and property, plant and equipment increased in the quarter compared with the same period last year, as we started capitalizing the development cost for our high-definition map data in 2025.
The year-to-date 2024 cash flow from financing activities included cash outflows related to our €50 million share buyback program, started in October 2023 and completed in June 2024.
On 30 September 2025, the Group had no outstanding bank borrowings and reported a net cash position of €267 million (Q2 '25: €267 million).
CONSOLIDATED CONDENSED STATEMENT OF INCOME
| Q3 '25 | Q3 '24 | YTD '25 | YTD '24 | |
|---|---|---|---|---|
| (€ in thousands) | Unaudited | Unaudited | Unaudited | Unaudited |
| Revenue | 136,884 | 140,679 | 423,486 | 432,143 |
| Cost of sales | (14,771) | (18,905) | (49,901) | (68,991) |
| Gross profit | 122,113 | 121,774 | 373,585 | 363,152 |
| Research and development expenses - Geographic data | (33,980) | (44,355) | (107,065) | (131,277) |
| Research and development expenses - Application layer | (47,418) | (46,230) | (148,026) | (138,408) |
| Sales and marketing expenses | (10,565) | (14,575) | (35,201) | (43,122) |
| General and administrative expenses1 | (21,736) | (20,723) | (88,978) | (64,566) |
| Total operating expenses | (113,699) | (125,883) | (379,270) | (377,373) |
| Operating result | 8,414 | (4,109) | (5,685) | (14,221) |
| Financial result | 1,917 | 2,018 | 1,143 | 7,299 |
| Result before tax | 10,331 | (2,091) | (4,542) | (6,922) |
| Income tax expense | (1,233) | (2,288) | (6,978) | (4,637) |
| Net result2 | 9,098 | (4,379) | (11,520) | (11,559) |
| Earnings per share (in €): | ||||
| Basic | 0.07 | (0.04) | (0.09) | (0.09) |
| Diluted3 | 0.07 | (0.04) | (0.09) | (0.09) |
1YTD '25 numbers includes a restructuring charge of €25 million recognized in Q2 '25.
2Fully attributable to the equity holders of the parent.
3When the net result is a loss, no additional shares from assumed conversion are taken into account as the effect would be anti-dilutive.
CONSOLIDATED CONDENSED BALANCE SHEET
| 30 September 2025 (€ in thousands) Unaudited |
31 December 2024 Audited |
|
|---|---|---|
| Goodwill | 192,294 | 192,294 |
| Other intangible assets | 23,666 | 2,233 |
| Property, plant and equipment | 17,849 | 22,018 |
| Lease assets | 36,007 | 41,111 |
| Other contract-related assets | 26,553 | 24,688 |
| Deferred tax assets | 1,256 | 1,288 |
| Total non-current assets | 297,625 | 283,632 |
| Inventories | 9,817 | 13,311 |
| Trade receivables | 55,302 | 78,538 |
| Unbilled receivables | 36,281 | 48,441 |
| Other contract-related assets | 6,230 | 6,211 |
| Prepayments and other receivables | 26,131 | 30,632 |
| Fixed-term deposits | 211,253 | 207,740 |
| Cash and cash equivalents | 55,692 | 55,913 |
| Total current assets | 400,706 | 440,786 |
| Total assets | 698,331 | 724,418 |
| Total equity | 131,421 | 138,847 |
| Lease liabilities | 30,566 | 34,552 |
| Provisions | 19,321 | 13,516 |
| Deferred revenue | 282,378 | 285,782 |
| Total non-current liabilities | 332,265 | 333,850 |
| Trade payables | 15,181 | 21,168 |
| Lease liabilities | 8,056 | 8,964 |
| Provisions | 3,097 | 6,883 |
| Deferred revenue | 129,068 | 146,701 |
| Other contract-related liabilities | 8,555 | 14,282 |
| Income taxes | 1,970 | 1,881 |
| Accruals and other liabilities | 68,718 | 51,842 |
| Total current liabilities | 234,645 | 251,721 |
| Total equity and liabilities | 698,331 | 724,418 |
CONSOLIDATED CONDENSED STATEMENT OF CASH FLOWS
| Q3 '25 | Q3 '24 | YTD '25 | YTD '24 | |
|---|---|---|---|---|
| (€ in thousands) | Unaudited | Unaudited | Unaudited | Unaudited |
| Operating result | 8,414 | (4,109) | (5,685) | (14,221) |
| Foreign exchange adjustments | (105) | (854) | (2,539) | 597 |
| Depreciation and amortization | 4,350 | 8,855 | 13,481 | 26,630 |
| Change in provisions | (21,157) | (118) | 1,964 | (2,002) |
| Equity-settled stock compensation expenses | 3,642 | 3,606 | 9,862 | 10,043 |
| Changes in working capital: | ||||
| Change in inventories | 1,050 | (1,917) | 3,917 | 2,544 |
| Change in receivables and prepayments | 10,226 | 18,496 | 37,738 | 17,806 |
| Change in liabilities (excluding provisions)1 | 4,757 | (8,288) | (16,319) | (38,799) |
| Cash flow from operations | 11,177 | 15,671 | 42,419 | 2,598 |
| Interest received | 1,733 | 2,824 | 5,055 | 8,318 |
| Interest paid | (441) | (1,024) | (1,291) | (1,978) |
| Corporate income taxes paid | (2,087) | (1,178) | (7,780) | (4,770) |
| Cash flow from operating activities | 10,382 | 16,293 | 38,403 | 4,168 |
| Investments in intangible assets | (7,013) | — | (22,316) | — |
| Investments in property, plant and equipment | (528) | (1,309) | (2,346) | (3,283) |
| (Increase)/decrease in fixed-term deposits | 559 | (926) | (3,513) | 21,794 |
| Cash flow from investing activities | (6,982) | (2,235) | (28,175) | 18,511 |
| Payment of lease liabilities | (2,385) | (2,470) | (6,962) | (6,635) |
| Purchase of treasury shares | — | — | — | (38,812) |
| Cash flow from financing activities | (2,385) | (2,470) | (6,962) | (45,447) |
| Net increase/(decrease) in cash and cash equivalents | 1,015 | 11,588 | 3,266 | (22,768) |
| Cash and cash equivalents at the beginning of period | 54,718 | 53,182 | 55,913 | 87,532 |
| Exchange rate changes on foreign cash balances | (41) | (185) | (3,487) | (179) |
| Total cash and cash equivalents at the end of the period | 55,692 | 64,585 | 55,692 | 64,585 |
| Cash held in short term fixed deposits | 211,253 | 205,868 | 211,253 | 205,868 |
| Net cash at the end of the period | 266,945 | 270,453 | 266,945 | 270,453 |
1Includes movements in the non-current portion of deferred revenue presented under non-current liabilities.
ACCOUNTING POLICIES
The condensed consolidated financial information for the three- and nine- month period ended 30 September 2025 and the related comparative information has been prepared using accounting policies and methods of computation which are based on International Financial Reporting Standards (IFRS) as disclosed in the Financial Statements for the year ended 31 December 2024.
Unless otherwise indicated, the quarterly condensed consolidated information in this press release is neither audited nor reviewed. Due to rounding, amounts may not add up precisely to totals. All change percentages are calculated before rounding.
NON-GAAP MEASURES
The financial information in this report includes measures which are not defined by generally accepted accounting principles (GAAP) such as IFRS. We believe this information, along with comparable GAAP measurements, gives insight to investors as it provides a basis for evaluating our operational performance. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information presented in compliance with GAAP. Wherever appropriate and practical, we provide reconciliations to relevant GAAP measures.
Operational revenue is IFRS revenue adjusted for the movement of gross deferred revenue
Gross margin is calculated as gross profit divided by revenue
EBIT is equal to our operating result
Free cash flow is cash from operating activities minus investments in intangible assets and property, plant and equipment
| (€ in thousands) | Q3 '25 | Q3 '24 | YTD '25 | YTD '24 |
|---|---|---|---|---|
| Cash flow from operating activities | 10,382 | 16,293 | 38,403 | 4,168 |
| Investments in intangible assets | (7,013) | — | (22,316) | — |
| Investments in property, plant and equipment | (528) | (1,309) | (2,346) | (3,283) |
| Free cash flow | 2,841 | 14,984 | 13,741 | 885 |
| Restructuring-related cash flow1 | 13,788 | — | 13,788 | — |
| Free cash flow excl. restructuring1 | 16,629 | 14,984 | 27,529 | 885 |
Net cash is cash and cash equivalents, plus cash held in fixed term deposits
Gross deferred revenue is deferred revenue2 before the netting of unbilled receivables
Restructuring-related cash flows are related to the organizational realignment announced in June 2025.
2 Deferred revenue reflects amounts not yet recognized as revenue as services still need to be delivered. Unbilled revenue represents amounts accrued for when a contractual right to invoice exists. When a single contract has both an accrual, based on contractual invoicing terms, and a deferral, because the underlying services are not yet fully delivered, the unbilled and the deferred positions are netted for presentation on the balance sheet.
FOR MORE INFORMATION
TomTom Investor Relations
Email: [email protected]
+31 20 757 5194
AUDIO WEBCAST THIRD QUARTER 2025 RESULTS
The information for our audio webcast is as follows:
Date and time: 14 October 2025 at 13:00 CEST
https://corporate.tomtom.com/investors/financial-publications/quarterly-results
TomTom is listed at NYSE Euronext Amsterdam in the Netherlands
ISIN: NL0013332471 / Symbol: TOM2
ABOUT TOMTOM
Billions of data points. Millions of sources. Hundreds of communities.
We are the mapmaker bringing it all together to build the world's smartest map. We provide location data and technology to drivers, carmakers, businesses and developers. Our application-ready maps, routing, real-time traffic, APIs and SDKs empower the dreamers and doers to move our world forward.
Headquartered in Amsterdam with 3,600 employees around the globe, TomTom has been shaping the future of mobility for over 30 years.
For further information, please visit www.tomtom.com.
FORWARD-LOOKING STATEMENTS / IMPORTANT NOTICE
This document contains certain forward-looking statements with respect to the financial position and results of TomTom's activities. We have based these forward-looking statements on our current expectations and projections about future events, including numerous assumptions regarding our present and future business strategies, operations and the environment in which we will operate in the future. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements, and you should not place undue reliance on them. Many of these risks and uncertainties relate to factors that are beyond TomTom's ability to control or estimate precisely, such as levels of customer spending in major economies, changes in consumer preferences, the performance of the financial markets, the levels of marketing and promotional expenditures by TomTom and its competitors, costs of raw materials, employee costs, exchange-rate and interest-rate fluctuations, changes in tax rates, changes in law, acquisitions or disposals, the rate of technological changes, political developments in countries where the company operates and the risk of a downturn in the market. Statements regarding market share, including the company's competitive position, contained in this document are based on outside sources such as specialized research institutes, industry and dealer panels in combination with management estimates.
The forward-looking statements contained herein speak only as of the date they are made. We do not assume any obligation to update any public information or forward-looking statement in this document to reflect events or circumstances after the date of this document, except as may be required by applicable laws.
This document contains inside information as meant in clause 7 of the Market Abuse Regulation.