TomTom Raises 2025 Revenue Guidance After Q2 Automotive Beat

TomTom NV reported mixed financial results for the second quarter of 2025, with group revenue declining 4% to €146 million, driven by a 13% drop in automotive operational revenue. Despite this, the company achieved an improved gross margin of 88% and a positive free cash flow of €14 million, signaling enhanced operational efficiency. TomTom raised its full-year revenue guidance to a range of €535 million to €565 million, up from a previous forecast of €505 million to €565 million, reflecting better-than-expected performance, especially in its automotive segment. The company is focusing on a strategic shift to a more product-led approach, including launching AI-driven products like the Model Context Protocol Server and strengthening partnerships with Chinese OEMs. CEO Harold Goddijn expressed confidence in TomTom's market position, highlighting the use of its maps for complex field services and logistics improvements. Overall, TomTom anticipates free cash flow to reach about 5% of group revenue by year-end, driven by operational efficiencies and strategic realignments.