TomTom (ENXTAM:TOM2) Margin Swings Keep Bullish Turnaround Narratives In Check

TomTom (ENXTAM:TOM2) has just opened 2026 on the back of a mixed 2025, with Q4 revenue of €131.2 million, basic EPS of €0.04 and net income of €5.1 million. The trailing 12 month figures show revenue of €554.7 million and a small loss, with basic EPS at €0.05 and net income €6.4 million in the red. Over recent quarters revenue has moved between €136.9 million and €146.2 million, while quarterly EPS has ranged from a loss of €0.19 to a profit of €0.07. This highlights how sensitive margins remain to swings in profitability. For investors, this set of results focuses attention on whether TomTom can translate stabilising revenue into more consistent margins and eventually sustainable earnings.

See our full analysis for TomTom.

With the latest numbers laid out, the next step is to see how this earnings profile lines up with the most common stories around TomTom, and where the figures start to challenge those expectations.

Curious how numbers become stories that shape markets? Explore Community Narratives

Losses Shrink To €6.4 Million Over 12 Months

• On a trailing 12 month view, TomTom recorded revenue of €554.7 million and a net loss of €6.4 million, with trailing basic EPS at about €0.05 loss per share, which is a much smaller loss than the quarterly swing seen in Q2 2025 when net income was a €23.6 million loss.
• What stands out for the bullish view is that the company is still unprofitable on €554.7 million of trailing revenue, yet losses have been reported as shrinking at 53.1% per year over five years. This both supports and tests the idea of a clean turnaround story:
  • Support comes from the step down in trailing losses, from €17.3 million a year earlier to €6.4 million now, which lines up with that long term loss reduction figure.
  • Tension comes from the fact that quarterly results still move from a €23.6 million loss in Q2 2025 to a €9.1 million profit in Q3 and a €5.1 million profit in Q4, so the path to steady profitability is not yet reflected in the trailing numbers.

Revenue Growing 2.1% Against 8.9% Market Pace

• Trailing 12 month revenue growth is cited at 2.1% per year, compared with an estimated 8.9% per year for the wider Dutch market, and quarterly revenue over 2025 moved in a tight band between €131.2 million and €146.2 million, which points to fairly flat top line trends in the recent data.
• Bears focus on this modest 2.1% revenue growth versus the 8.9% market figure and argue that TomTom is growing too slowly, but the earnings profile in the same period complicates that view:
  • Critics highlight that even with €554.7 million of trailing revenue the company still posted a €6.4 million loss, which fits the concern that current growth is not yet translating into clear profitability.
  • At the same time, the move from a €17.3 million trailing loss to €6.4 million, alongside quarterly profits of €9.1 million and €5.1 million in Q3 and Q4 2025, challenges a simple bearish claim that slow revenue growth automatically locks in ongoing large losses.

P/S At 1x Versus Industry At 2.1x

• Using the current share price of €4.54, TomTom trades on a P/S of about 1x trailing revenue, compared with 2.1x for the broader European software industry and 2.7x for peers, and the supplied DCF fair value of €11.67 per share also sits well above the current price.
• Supporters of a more optimistic interpretation point to this gap between the 1x P/S and both peer multiples and the €11.67 DCF fair value, but the numbers also underline the need for the earnings side to catch up:
  • What helps the bullish argument is that the stock trades at a lower multiple even though trailing losses have narrowed from €17.3 million to €6.4 million, suggesting the improvement in loss levels is not fully reflected in those P/S comparisons.
  • What tempers that bullish stance is that, despite quarterly profits in three of the last four quarters, the trailing figures still show an overall loss, so the discount to the DCF fair value and to peer P/S ratios sits against an earnings base that is not yet consistently positive.

For a fuller picture of how these revenue, margin and valuation pieces fit together, it is worth seeing how other investors connect the dots in the current narratives around TomTom, especially given the mix of shrinking losses, modest growth and a P/S discount relative to peers. 📊 Read the what the Community is saying about TomTom.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on TomTom's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

With that mix of cautious optimism and open questions in mind, it makes sense to look at the underlying data yourself and move quickly to form an independent view. To see what is currently exciting optimistic investors, check out the 4 key rewards

See What Else Is Out There

TomTom is still working through modest 2.1% revenue growth, uneven quarterly profitability, and a trailing loss on €554.7 million of revenue.

If that mix of flat growth and patchy earnings leaves you wanting stronger fundamentals, now is a good time to scan for companies in the solid balance sheet and fundamentals stocks screener (389 results).

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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