Amsterdam 15 October 2026 | TOM2
TomTom sharpens focus to capture growth in Automated Driving and Location Intelligence for Enterprises TOMTOM'S CHIEF EXECUTIVE OFFICER, MIKE SCHOOFS"Today, we are announcing organizational changes designed to make TomTom more focused, faster and more scalable. We have reorganized the company around three divisions: Automated Driving, Location Intelligence and Navigation. By reducing management layers and bringing decision-making closer to execution, we will improve our ability to respond quickly to customer needs and accelerate innovation. Unfortunately, these changes will impact approximately 200 roles. We are committed to supporting affected colleagues throughout this transition.
We see significant growth opportunities in automated driving and location intelligence, driven by AI. In automated driving, AI is helping us innovate faster to support higher levels of vehicle automation. In location intelligence, it is making it easier for customers to access and derive insights from location data. Across both markets, customers rely on accurate, continuously updated representations of the physical world that they integrate into their products.
Navigation remains the backbone of TomTom. It is where most of our revenue comes from, and where customers rely on us to deliver high-quality location technology every day. Together, our three divisions build on a shared foundation of maps, location technology and AI capabilities, enabling us to expand our customer base, strengthen our position in growing markets and drive sustainable growth over time."
OPERATIONAL SUMMARYAnnounced organizational changes impacting approximately 200 roles globally
Expanded collaboration with Microsoft to make TomTom's location intelligence available to AI agents built on Microsoft Fabric and Microsoft Foundry
Launched the TomTom Maps MCP Server in the Claude connector directory
FINANCIAL SUMMARY THIRD QUARTER 2026Group revenue decreased by 6% to €129 million (Q3 '25: €137 million)
Location Technology revenue decreased by 3% to €115 million (Q3 '25: €118 million)
Automotive operational revenue decreased by 19% to €68 million (Q3 '25: €85 million)
Operating result of €6 million and an operating margin of 5% (Q3 '25: €8 million and 6%)
Net cash of €239 million (Q4 '25: €263 million)
(€ in millions, unless stated otherwise) | Q3 '26 | y.o.y. Q3 '25 change | YTD '26 | y.o.y. YTD '25 change |
Location Technology | 114.8 | 118.3 (3%) | 348.4 | 366.0 (5%) |
Automotive | 77.7 | 79.5 (2%) | 234.5 | 245.6 (5%) |
Enterprise | 37.1 | 38.7 (4%) | 113.9 | 120.4 (5%) |
Consumer | 14.2 | 18.6 (24%) | 44.3 | 57.5 (23%) |
Revenue | 128.9 | 136.9 (6%) | 392.7 | 423.5 (7%) |
Gross result | 116.7 | 122.1 (4%) | 354.7 | 373.6 (5%) |
Gross margin | 90% | 89% | 90% | 88% |
Operating expenses | (110.6) | (113.7) (3%) | (326.4) | (379.3) (14%) |
Operating result (EBIT) | 6.0 | 8.4 | 28.3 | (5.7) |
Operating margin | 5% | 6% | 7% | (1%) |
Net result | 5.1 | 9.1 | 26.0 | (11.5) |
Free cash flow1 (FCF) | 7.6 | 16.6 | 0.8 | 27.5 |
FCF1 as a % of revenue | 6% | 12% | 0% | 7% |
1 Free cash flow excludes restructuring payments related to the organizational realignment announced in June 2025.
This report includes the following non-GAAP measures which are further explained at the end of this report: operational revenue; gross margin; EBIT; operating margin; free cash flow; net cash and gross deferred revenue.
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TOMTOM'S CHIEF FINANCIAL OFFICER, TACO TITULAER"Third-quarter revenue was in line with our expectations, while operating margin came in above the level we anticipated, reflecting strong cost discipline.
We are updating our 2026 full-year guidance by narrowing the revenue range and increasing our operating margin outlook. The 4% operating margin guidance reflects our stronger performance year to date, as well as lower expected salary costs in Q4 resulting from the organizational realignment announced today. If we exclude the one-off restructuring charge, we expect our operating margin to be around 7%.
For 2027, we reiterate our expectation of Location Technology revenue growth. Supported by increasing gross margins and a more efficient cost base, we are well positioned to deliver profitable growth."
OUTLOOK 2026(€ in millions, unless stated otherwise) | Updated Outlook 2026 | Previous Outlook Actual 2026 2025 |
Revenue | 505 - 530 | 495 - 555 555 |
Of which Location Technology | 450 - 470 | 435 - 485 482 |
Operating margin1 | Around +4% | Around +3% +0% |
1 Operating margin for the Updated Outlook 2026 includes an estimated restructuring charge of €15 million; Actual 2025 includes a restructuring charge of €26 million.
We expect to record a restructuring charge of approximately €15 million in Q4 2026 operating expenses, related to the organizational realignment announced today. The organizational realignment is expected to generate annualized savings of approximately €21 million.
REVENUE FOR THE PERIODRevenue for the third quarter amounted to €129 million, a year-on-year decrease of 6% (Q3 '25: €137 million).
LOCATION TECHNOLOGYLocation Technology revenue was €115 million, a modest decline compared with last year (Q3 '25: €118 million).
Automotive revenue in the quarter was €78 million, a decrease of 2% compared with the same quarter last year (Q3 '25: €80 million). Automotive operational revenue in the quarter was €68 million, a year-on-year decrease of 19% (Q3 '25: €85 million). The decline was partly driven by the phasing out of customer contracts. In addition, the same quarter last year benefited from royalty reports received relating to earlier periods, creating a higher comparison base.
Automotive operational revenue is calculated as follows:
(€ in millions, unless stated otherwise) | Q3 '26 | y.o.y. Q3 '25 change | YTD '26 | y.o.y. YTD '25 change |
Automotive revenue | 77.7 | 79.5 (2%) | 234.5 | 245.6 (5%) |
Movement of Automotive deferred revenue | (9.3) | 5.2 | (20.4) | (0.9) |
Automotive operational revenue | 68.4 | 84.8 (19%) | 214.0 | 244.7 (13%) |
Enterprise revenue decreased to €37 million in Q3 '26, 4% lower than the same quarter last year (Q3 '25: €39 million), mainly due to the phase-out of a customer contract. This was partly offset by new customer wins, which further diversified our revenue base and reduced customer concentration.
We continued to extend the role of our location technology in AI applications. During the quarter, we expanded our collaboration with Microsoft by bringing TomTom location intelligence to Microsoft Fabric and Microsoft Foundry through Microsoft's IQ Sharing preview. This allows enterprises to combine TomTom's geospatial data with their own business data, enabling AI agents to better understand real-world conditions and support more informed decision-making. We also launched the TomTom Maps MCP Server in the Claude connector directory, making our maps, routing, and real-time traffic capabilities easily accessible to AI assistants and enabling location-aware experiences without requiring complex integration. Together, these initiatives further strengthen TomTom's position as a provider of AI-ready location intelligence across both enterprise and developer ecosystems.
We broadened customer adoption of our location intelligence and traffic solutions across public sector, mobility and transportation markets, supporting a diverse set of use cases. Geograma expanded its partnership with TomTom to
help public authorities and businesses better understand road network performance, analyze mobility patterns, and make data-driven transportation decisions, including for a newly awarded traffic management project for the Basque Government. We also expanded our partnership with citiEU to deliver location analytics, traffic intelligence, and mobility solutions across Europe and the Middle East. Organizations responsible for managing critical transport infrastructure continue to rely on our solutions. Cofiroute selected TomTom Traffic to enhance driver information and real-time traffic operations across its motorway network, while Transurban renewed its partnership with TomTom to support navigation services, traffic management, and network performance analysis across toll roads in Australia and North America. In addition to supporting transportation infrastructure and mobility operations, Cedar Electronics selected TomTom Orbis Maps to power speed awareness capabilities, leveraging our frequently refreshed speed limit intelligence to help drivers stay informed of posted speed limits and changing road conditions across the United States.
CONSUMERConsumer reported revenue was €14 million for the quarter, compared with €19 million in the same quarter last year. The year-on-year decline was primarily driven by lower PND revenue, reflecting the continued contraction of the PND market as well as memory supply constraints.
RESULT FOR THE PERIODGROSS MARGIN
The gross margin for the quarter was 90%, compared with 89% in Q3 '25. 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 RESULTOperating result (EBIT) in the quarter was a profit of €6.0 million (Q3 '25: profit of €8.4 million). Total operating expenses in the quarter were €111 million, modestly lower compared with the same quarter last year (Q3 '25: €114 million).
FINANCIAL INCOME, EXPENSES AND INCOME TAXTotal financial result for the quarter was an income of €1.4 million, mainly resulting from interest income on our cash balances (Q3 '25: income of €1.9 million).
The income tax expense for the quarter was €2.3 million, compared with an expense of €1.2 million in Q3 '25.
CASH FLOW, LIQUIDITY, AND WORKING CAPITALIn Q3 '26, free cash flow was an inflow of €7.2 million, compared with an inflow of €2.8 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 Q3 '26 and Q3 '25 was respectively an inflow of €7.6 million and
€17 million.
A reconciliation from operating result to free cash flow, to net cash movement is presented below:
(€ in millions) | Q3 '26 | Q3 '25 | YTD '26 | YTD '25 |
Operating result | 6.0 | 8.4 | 28.3 | (5.7) |
Depreciation and amortization | 4.0 | 4.4 | 12.6 | 13.5 |
Equity-settled stock compensation expenses | 2.7 | 3.6 | 10.0 | 9.9 |
Provisions and other non-cash items | 2.8 | (21.3) | 2.3 | (0.6) |
Movements in working capital (excl. deferred revenue) | 15.4 | 25.9 | 2.6 | 46.4 |
Movements in deferred revenue | (12.5) | (9.9) | (22.7) | (21.0) |
Interest and tax payments | (1.7) | (0.8) | (5.8) | (4.0) |
Investments in intangible assets and property, plant and equipment | (9.5) | (7.5) | (30.6) | (24.7) |
Free cash flow | 7.2 | 2.8 | (3.3) | 13.7 |
Lease payments | (2.1) | (2.4) | (6.1) | (7.0) |
Cash flow from other investing and financing activities | - | - | (14.2) | - |
Exchange rate differences on cash and fixed-term deposits | 0.0 | (0.0) | 0.2 | (3.5) |
Net cash movement | 5.2 | 0.4 | (23.4) | 3.3 |
During the quarter, the deferred revenue position decreased by €12 million, from €414 million to €401 million. The following table presents the deferred revenue including the effect of netting:
(€ in millions) | 30 September 2026 | 30 June 2026 | 31 December 2025 |
Automotive | 408.7 | 417.9 | 429.1 |
Enterprise | 20.3 | 18.2 | 17.0 |
Consumer | 19.6 | 18.9 | 20.1 |
Gross deferred revenue | 448.6 | 455.1 | 466.2 |
Less: Netting adjustment to unbilled revenue | (47.2) | (41.3) (42.2) | |
Deferred revenue | 401.4 | 413.8 | 424.1 |
Investments in intangible assets and property, plant and equipment increased in the quarter compared with the same period last year, primarily driven by higher capitalization of development costs related to our Lane Model Map, supporting automated driving use cases.
The year-to-date cash flow from financing activities included cash outflows related to our share buyback program, which began in December 2025 and was completed in April 2026.
On 30 September 2026, the Group had no outstanding borrowings and reported a net cash position of €239 million (Q4 '25: €263 million).
- END -CONSOLIDATED CONDENSED STATEMENT OF INCOME
(€ in thousands) | Q3 '26 Unaudited | Q3 '25 Unaudited | YTD '26 Unaudited | YTD '25 Unaudited |
Revenue | 128,930 | 136,884 | 392,657 | 423,486 |
Cost of sales | (12,278) | (14,771) | (37,948) | (49,901) |
Gross profit | 116,652 | 122,113 | 354,709 | 373,585 |
Research and development expenses - Geographic data | (40,787) | (33,980) | (112,745) | (107,065) |
Research and development expenses - Application layer | (41,823) | (47,418) | (124,842) | (148,026) |
Sales and marketing expenses | (10,035) | (10,565) | (30,527) | (35,201) |
General and administrative expenses1 | (17,959) | (21,736) | (58,276) | (88,978) |
Total operating expenses | (110,604) | (113,699) | (326,390) | (379,270) |
Operating result | 6,048 | 8,414 | 28,319 | (5,685) |
Financial result | 1,400 | 1,917 | 4,579 | 1,143 |
Result before tax | 7,448 | 10,331 | 32,898 | (4,542) |
Income tax expense | (2,327) | (1,233) | (6,913) | (6,978) |
Net result2 | 5,121 | 9,098 | 25,985 | (11,520) |
Earnings per share (in €): | ||||
Basic | 0.04 | 0.07 | 0.21 | (0.09) |
Diluted3 | 0.04 | 0.07 | 0.20 | (0.09) |
1 YTD '25 includes a €25 million restructuring charge.
2 Fully attributable to the equity holders of the parent.
3 When 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(€ in thousands) | 30 September 2026 Unaudited | 31 December 2025 Audited |
Goodwill | 192,294 | 192,294 |
Other intangible assets | 58,561 | 31,955 |
Property, plant and equipment | 14,672 | 16,862 |
Lease assets | 36,998 | 37,773 |
Other contract-related assets | 29,269 | 27,664 |
Deferred tax assets | 1,083 | 1,074 |
Total non-current assets | 332,877 | 307,622 |
Inventories | 7,143 | 9,548 |
Trade receivables | 60,140 | 64,875 |
Unbilled receivables | 34,449 | 38,090 |
Other contract-related assets | 4,721 | 6,372 |
Prepayments and other receivables | 25,772 | 26,879 |
Fixed-term deposits | 175,000 | 182,151 |
Cash and cash equivalents | 64,374 | 80,651 |
Total current assets | 371,599 | 408,566 |
Total assets | 704,476 | 716,188 |
Total equity | 161,905 | 139,617 |
Lease liabilities | 32,280 | 31,798 |
Provisions | 14,186 | 11,067 |
Deferred revenue | 298,906 | 290,499 |
Total non-current liabilities | 345,372 | 333,364 |
Trade payables | 14,422 | 10,036 |
Lease liabilities | 7,654 | 8,549 |
Provisions | 9,186 | 12,614 |
Deferred revenue | 102,471 | 133,583 |
Other contract-related liabilities | 8,388 | 11,743 |
Income taxes | 630 | 760 |
Accruals and other liabilities | 54,448 | 65,922 |
Total current liabilities | 197,199 | 243,207 |
Total equity and liabilities | 704,476 | 716,188 |
(€ in thousands) | Q3 '26 Unaudited | Q3 '25 Unaudited | YTD '26 Unaudited | YTD '25 Unaudited |
Operating result | 6,048 | 8,414 | 28,319 | (5,685) |
Foreign exchange adjustments | 448 | (105) | 1,563 | (2,539) |
Depreciation and amortization | 3,977 | 4,350 | 12,585 | 13,481 |
Change in provisions | 2,338 | (21,157) | 735 | 1,964 |
Equity-settled stock compensation expenses | 2,654 | 3,642 | 9,955 | 9,862 |
Changes in working capital: | ||||
Change in inventories | 1,170 | 1,050 | 2,052 | 3,917 |
Change in receivables and prepayments | 9,681 | 10,226 | 11,064 | 37,738 |
Change in liabilities (excluding provisions)1 | (7,927) | 4,757 | (33,264) | (16,319) |
Cash flow from operations | 18,389 | 11,177 | 33,009 | 42,419 |
Interest received | 1,174 | 1,733 | 2,572 | 5,055 |
Interest paid | (432) | (441) | (1,327) | (1,291) |
Corporate income taxes paid | (2,429) | (2,087) | (7,006) | (7,780) |
Cash flow from operating activities | 16,702 | 10,382 | 27,248 | 38,403 |
Investments in intangible assets | (8,397) | (7,013) | (27,397) | (22,316) |
Investments in property, plant and equipment | (1,086) | (528) | (3,154) | (2,346) |
(Increase)/decrease in fixed-term deposits | 5,000 | 559 | 7,151 | (3,513) |
Cash flow from investing activities | (4,483) | (6,982) | (23,400) | (28,175) |
Payment of lease liabilities | (2,057) | (2,385) | (6,135) | (6,962) |
Purchase of treasury shares | - | - | (14,198) | - |
Cash flow from financing activities | (2,057) | (2,385) | (20,333) | (6,962) |
Net increase/(decrease) in cash and cash equivalents | 10,162 | 1,015 | (16,485) | 3,266 |
Cash and cash equivalents at the beginning of period | 54,171 | 54,718 | 80,651 | 55,913 |
Exchange rate changes on foreign cash balances | 41 | (41) | 208 | (3,487) |
Total cash and cash equivalents at the end of the period | 64,374 | 55,692 | 64,374 | 55,692 |
Cash held in short fixed-term deposits | 175,000 | 211,253 | 175,000 | 211,253 |
Net cash at the end of the period | 239,374 | 266,945 | 239,374 | 266,945 |
1 Includes movements in the non-current portion of deferred revenue presented under non-current liabilities.
ACCOUNTING POLICIESThe condensed consolidated financial information for the three- and nine- month periods ended 30 September 2026 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 2025.
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 MEASURESThe 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
Operating (EBIT) margin is calculated as operating result divided by IFRS revenue
Free cash flow is cash from operating activities minus investments in intangible assets and property, plant and equipment
(€ in thousands) | Q3 '26 | Q3 '25 | YTD '26 | YTD '25 |
Cash flow from operating activities | 16,702 | 10,382 | 27,248 | 38,403 |
Investments in intangible assets | (8,397) | (7,013) | (27,397) | (22,316) |
Investments in property, plant and equipment | (1,086) | (528) | (3,154) | (2,346) |
Free cash flow Restructuring-related cash flow1 | 7,219 389 | 2,841 13,788 | (3,303) 4,059 | 13,741 13,788 |
Free cash flow excl. restructuring1 | 7,608 | 16,629 | 756 | 27,529 |
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
1 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 INFORMATIONTomTom Investor Relations Email: ir@tomtom.com
+31 20 757 5194
AUDIO WEBCAST THIRD QUARTER 2026 RESULTSThe information for our audio webcast is as follows:
Date and time: 15 October 2026 at 13:00 CEST https://corporate.tomtom.com/investors/financial-publications/quarterly-results TomTom is listed at Euronext Amsterdam in the Netherlands
ISIN: NL0013332471 / Symbol: TOM2
ABOUT TOMTOMBillions of data points. Millions of sources. Thousands 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 3,300 employees around the globe, TomTom has been shaping the future of mobility for over 30 years.
For further information, please visit https://www.tomtom.com.
FORWARD-LOOKING STATEMENTS / IMPORTANT NOTICEThis 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.
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