ITURAN PRESENTS THIRD QUARTER 2025 RESULTS

Record revenue of $92.3 million and added 40,000 net new subscribers in the quarter;

Highlights of the Third Quarter of 2025

Management Comment

Eyal Sheratzky, Co-CEO of Ituran said, “The third quarter marked a strong quarter for Ituran, in particular, we showed strong subscription revenue growth. Ituran’s overall subscriber growth is being driven by our long-term efforts and success in bringing customers new value-adding telematics and connected-car products and services, as well as adding additional OEM partners to our growing roster.”

Continued Mr. Sheratzky, “I am excited that during the quarter, following its success in Brazil, we have launched operations for IturanMOB in the United States. IturanMOB is our unique smart-mobility solution enabling remote vehicle access, real-time telematics and efficient fleet management for shared-mobility and rental-fleet application. We believe this creates an additional long term growth engine for Ituran with a large untapped addressable market alongside our core telematics and subscriber-based businesses.”

Concluded Mr. Sheratzky, “In celebration of 20 years as a public company and 30 years as a Company, we look forward to opening the Nasdaq market on November 25 and we thank both the Nasdaq as well as our shareholders for their long-term support of our business.”

Third Quarter 2025 Results

 

Revenues from subscription fees for the quarter were $67.6 million, an increase of 13% year-over-year. The subscriber base grew to 2,588,000 by the end of September 2025, marking a quarterly increase of 40,000 and a year-over-year increase of 219,000.

Gross margin on subscription revenues was 60.1%, compared to 58.8% last year. Gross margin on product revenues was 23.6%, compared to 21.5% last year. The variance in the product gross margin between quarters reflects changes in the mix of products sold in the quarter.

Net income for the quarter was $14.6 million (15.9% of revenues), or $0.74 per diluted share, an increase of 7% compared to $13.7 million (16.4% of revenues), or $0.69 per diluted share, in the third quarter of 2024.

On the balance sheet, as of September 30, 2025, the Company had net cash, including marketable securities, of $93.1 million, compared with $77.3 million at year-end 2024.

Dividend

The Board of Directors declared a dividend of $10.0 million for the quarter. The current dividend takes into account the Company’s continuing strong profitability, ongoing positive cash flow, and strong balance sheet.

Buy Back

During the quarter, Ituran purchased $1.5 million in shares under its Buy Back program. There remains approximately $5.2 million available under the buy-back program.

The Company will be hosting a video conference call via the Zoom platform later today, Tuesday, November 18, 2025 at 9am Eastern Time and 4pm Israel time.

On the call, management will review and discuss the results and will be available to answer investor questions.

To participate in the Zoom call, please register at the following link:

For those unable to listen to the live call, a replay of the call will be available from the day after the call in the investor relations section of Ituran’s website.

Certain statements in this press release are "forward-looking statements" within the meaning of the Securities Act of 1933, as amended.  These forward-looking statements include, but are not limited to, our plans, objectives, expectations and intentions and other statements contained in this report that are not historical facts as well as statements identified by words such as "expects", "anticipates", "intends", "plans", "believes", "seeks", "estimates" or words of similar meaning. These statements are based on our current beliefs or expectations and are inherently subject to significant uncertainties and changes in circumstances, many of which are beyond our control. Actual results may differ materially from these expectations due to changes in global political, economic, business, competitive, market and regulatory factors, as well as other factors.

 

Ituran is a leader in the emerging mobility technology field, providing value-added location-based services, including a full suite of services for the connected-car. Ituran offers Stolen Vehicle Recovery, fleet management as well as mobile asset location, management & control services for vehicles, cargo and personal security for the retail, insurance, financing industries and car manufacturers. Ituran is the largest OEM telematics provider in Latin America. Its products and applications are used by customers in over 20 countries. Ituran is also the founder of the Tel-Aviv based DRIVE startup incubator to promote the development of smart mobility technology.

Ituran's subscriber base has been growing significantly since the Company's inception to over 2.5 million subscribers using its location-based services with a market leading position in Israel and Latin America. Established in 1995, Ituran has approximately 2,800 employees worldwide, with offices in Israel, Brazil, Argentina, Mexico, Ecuador, Columbia, India, Canada and the United States.

 

	Page
Condensed Consolidated Interim Financial Statements:
Condensed Consolidated Balance Sheets	2-3
Condensed Consolidated Statements of Income	4
Condensed Consolidated Statements of Cash Flows	5

ITURAN LOCATION AND CONTROL LTD.

CONDENSED CONSOLIDATED BALANCE SHEETS

		US dollars
		September 30,				December 31,
(In thousands)		2025				2024
		(unaudited)
Current assets
Cash and cash equivalents			93,072				77,357
Investments in marketable securities			2				10
Accounts receivable (net of provision for credit loss)			62,059				47,688
Other current assets			49,396				46,067
Inventories			25,672				23,434
			230,201				194,556
Long-term investments and other assets
Investments in affiliated companies			494				519
Investments in other companies			1,833				1,491
Other non-current assets			5,290				5,853
Deferred income taxes			14,828				12,273
Funds in respect of employee rights upon retirement			26,495				21,823
			48,940				41,959
Property and equipment, net			39,970				33,080
Operating lease right-of-use assets, net			8,323				8,947
Intangible assets, net			8,932				9,011
Goodwill			39,690				39,325
Total assets			376,056				326,878

ITURAN LOCATION AND CONTROL LTD.

CONDENSED CONSOLIDATED BALANCE SHEETS (cont.)

		US dollars
		September 30,				December 31,
(In thousands)		2025				2024
		(unaudited)
Current liabilities
Credit from banking institutions			-				114
Accounts payable			20,380				18,847
Deferred revenues			26,620				22,857
Other current liabilities			55,398				45,904
			102,398				87,722
Long-term liabilities
Deferred income taxes			520				418
Liability for employee rights upon retirement			32,754				27,593
Deferred revenues			14,637				12,231
Operating lease liabilities, non-current			4,852				5,562
Other non-current liabilities			2,385				2,095
			55,148				47,899
Stockholders' equity			211,997				185,227
Non-controlling interests			6,513				6,030
Total equity			218,510				191,257
Total liabilities and equity			376,056				326,878

ITURAN LOCATION AND CONTROL LTD.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

		US dollars
		Nine months period ended September 30,								Three months period ended September 30,
(in thousands, except earnings per share)		2025				2024				2025				2024
		(unaudited)								(unaudited)
Revenues:
Telematics services			193,486				180,943				67,550				59,591
Telematics products			72,040				72,431				24,728				23,888
			265,526				253,374				92,278				83,479
Cost of revenues:
Telematics services			79,684				75,320				26,950				24,574
Telematics products			54,477				58,550				18,903				18,748
			134,161				133,870				45,853				43,322
Gross profit			131,365				119,504				46,425				40,157
Research and development expenses			15,654				13,607				5,734				4,490
Selling and marketing expenses			13,491				11,291				4,857				4,019
General and administrative expenses			45,586				41,571				16,217				13,264
Other expenses (income), net			18				(99	)			(9	)			24
Operating income			56,616				53,134				19,626				18,360
Financing income (expenses), net			(1,122	)			165				(340	)			34
Income before income tax			55,494				53,299				19,286				18,394
Income tax expenses			(11,221	)			(11,234	)			(3,892	)			(4,029	)
Share in losses of affiliated companies, net			(31	)			(301	)			(13	)			(179	)
Net income for the period			44,242				41,764				15,381				14,186
Less: net income attributable to non-controlling interest			(1,552	)			(1,948	)			(736	)			(533	)
Net income attributable to the company			42,690				39,816				14,645				13,653
Basic and diluted earnings per share attributable to company's stockholders			2.15				2.00				0.74				0.69
Basic and diluted weighted average number of shares outstanding			19,892				19,894				19,889				19,894

ITURAN LOCATION AND CONTROL LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS

		US dollars
		Nine months period ended September 30,								Three months period ended September 30,
(in thousands)		2025				2024				2025				2024
		(unaudited)								(unaudited)
Cash flows from operating activities
Net income for the period			44,242				41,764				15,381				14,186
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization			14,240				15,586				5,010				4,935
Loss in respect of trading marketable securities and other investments			8				85				-				50
Increase in liability for employee rights upon retirement			2,134				2,245				512				565
Share in losses of affiliated companies, net			31				301				13				179
Deferred income taxes			(891	)			(1,340	)			(504	)			(104	)
Capital loss on sale of property and equipment, net			99				14				10				109
Decrease (increase) in accounts receivable			(8,458	)			(4,792	)			(767	)			1,752
Decrease (increase) in other current and non-current assets			6,203				(5,328	)			1,403				(957	)
Decrease (increase) in inventories			(911	)			2,591				(853	)			1,062
Decrease in accounts payable			(812	)			(2,382	)			(688	)			(4,198	)
Increase (decrease) in deferred revenues			2,315				186				961				(186	)
Increase (decrease) in other current and non-current liabilities			1,028				2,645				865				(158	)
Net cash provided by operating activities			59,228				51,575				21,343				17,235
Cash flows from investment activities
Increase in funds in respect of employee rights upon retirement, net of withdrawals			(2,322	)			(2,337	)			(1,470	)			(822	)
Capital expenditures			(17,169	)			(9,144	)			(5,295	)			(2,835	)
Return from (investments in) affiliated and other companies, net			(49	)			(2	)			61				(59	)
Repayment of (Investment in) long-term deposit			35				(81	)			58				(104	)
Proceeds from sale of property and equipment			564				389				110				96
Net cash used in investment activities			(18,941	)			(11,175	)			(6,536	)			(3,724	)
Cash flows from financing activities
Short term credit from banking institutions			(114	)			(384	)			-				(53	)
Acquisition of company shares			(1,475	)			-				(1,475	)			-
Dividend paid			(27,652	)			(20,291	)			(9,947	)			(7,758	)
Dividend paid to non-controlling interests			(1,677	)			(3,261	)			-				(1,631	)
Net cash used in financing activities			(30,918	)			(23,936	)			(11,442	)			(9,442	)
Effect of exchange rate changes on cash and cash equivalents			6,346				(2,433	)			952				186
Net change in cash and cash equivalents			15,715				14,031				4,337				4,255
Balance of cash and cash equivalents at beginning of period			77,357				53,434				88,735				63,210
Balance of cash and cash equivalents at end of period			93,072				67,465				93,072				67,465