The Amsterdam-based location-technology provider posted revenue of 131.2 million euros for the quarter, down from 142.2 million euros a year earlier. This contraction was felt across the board: the location-technology division saw a 5% dip, while the enterprise unit slumped 10%, primarily due to the depreciation of the U.S. dollar. Despite the top-line pressure, TomTom achieved a net profit of 5.1 million euros, a significant recovery from the 5.7 million euro loss recorded in the same quarter last year.

The company’s automotive unit, a critical driver of its long-term strategy, saw revenue fall 3%. Management attributed this decline to lower vehicle production volumes among certain clients and the phase-out of specific car models. Despite Wednesday’s sell-off, which brought shares to 5.45 euros, TomTom’s stock remains up approximately 26% over the last 12 months, reflecting previous optimism regarding its software-first pivot.

Navigating a Transitional Outlook

Looking ahead, TomTom warned that 2026 would serve as a bridge year as several major customers transition their systems. The company expects this impact to be temporary, forecasting a return to top-line growth by 2027. For the 2026 fiscal year, the group issued the following guidance:

• Total revenue is projected between 495 million and 555 million euros.
• Location-technology revenue is expected to range from 435 million to 485 million euros.
• Operating margins are anticipated to grow by 3%.

Operating profit for the quarter reached 7.3 million euros, a sharp reversal from the 6.1 million euro loss in the prior-year period. However, analysts suggest that the market is focusing more on the immediate revenue headwinds and the delayed growth trajectory than the current improvement in margins.