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Introduction & Market Context
TomTom NV (AMS:TOM2) presented its third quarter 2025 results on October 14, 2025, showing signs of improved profitability despite facing ongoing revenue challenges. The navigation and mapping technology company reported a slight year-over-year decline in overall revenue but demonstrated significant growth in its automotive segment and maintained positive cash flow generation.
Quarterly Performance Highlights
TomTom reported Q3 2025 group revenue of €137 million, representing a modest decline from €141 million in the same period last year. However, the company achieved a positive operating result (EBIT) of €8.4 million for the quarter, a notable improvement compared to previous periods. The net result for Q3 was €9.1 million, marking a significant turnaround from earlier quarters.
As shown in the following financial highlights slide, the company maintained strong cash generation with free cash flow of €17 million in Q3, up from €15 million in the same period last year:
Location Technology, TomTom’s core business segment, generated revenue of €118 million, slightly down from €120 million in Q3 2024. However, Automotive operational revenue showed impressive growth, reaching €85 million compared to €69 million in Q3 2024, representing a 23% year-over-year increase.
The company’s detailed profit and loss statement reveals the quarterly progression toward profitability, with Q3 2025 showing the strongest performance of the year:
Strategic Initiatives and Product Development
During the quarter, TomTom unveiled several strategic product developments aimed at strengthening its position in the automotive navigation market. These initiatives included the launch of a next-generation Automotive Navigation Application and a new app with enhanced driver experience features, including a road alert assistant.
As illustrated in the operational highlights slide, these new offerings focus on improving driver safety and navigation experience:
A significant business development was the announcement of a multi-year agreement to deliver traffic services to Hyundai AutoEver’s navigation systems for their European vehicle lineup. This partnership underscores TomTom’s continued relevance in the automotive industry despite increasing competition from technology giants in the mapping space.
Detailed Financial Analysis
TomTom’s revenue breakdown shows that Location Technology continues to dominate the company’s business model, representing 86% of year-to-date revenue in 2025, with Consumer accounting for the remaining 14%. This represents a slight shift from 2024, when Location Technology made up 85% of revenue.
The following revenue breakdown slide provides a visual representation of the company’s revenue composition:
The company’s balance sheet remains healthy, with net cash of €267 million as of September 30, 2025, up from €264 million at the end of Q4 2024. This stable cash position provides TomTom with financial flexibility to continue investing in product development and strategic initiatives.
The cash flow statement further demonstrates the company’s improving financial health, with positive cash flow from operations of €11.2 million in Q3 2025 and €42.4 million year-to-date, a substantial improvement from €2.6 million in the same period last year:
Forward-Looking Statements
Looking ahead, TomTom provided guidance for the full year 2025, projecting group revenue between €535-565 million, down from €574 million achieved in 2024. Location Technology revenue is expected to be in the range of €465-490 million, compared to €489 million in 2024.
Despite the anticipated revenue decline, the company expects to maintain positive free cash flow at approximately 5% of group revenue for 2025, a significant improvement from -1% in 2024, as shown in the outlook slide:
The company noted that its free cash flow outlook excludes restructuring payments, suggesting ongoing organizational adjustments to align with market conditions and strategic priorities.
TomTom’s focus on automotive applications and services, combined with its improving profitability metrics, indicates a strategic shift toward higher-margin business segments despite overall revenue challenges. The company’s ability to generate positive cash flow while navigating competitive pressures in the mapping and navigation industry will be crucial for its long-term success.
Full presentation:
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