Record revenue of $104.8 million, up 21%, with subscription revenue up 25% year-over-year; EBITDA up 24% to a record $28.5 million
AZOUR, Israel, Aug. 12, 2026 /PRNewswire/ -- Ituran Location and Control Ltd. (NASDAQ: ITRN) today announced its consolidated financial results for the second quarter, ended June 30, 2026.
https://mma.prnewswire.com/media/1972820/Ituran_logo.jpg
Highlights of the Second Quarter of 2026
- Added 41,000 net subscribers in the quarter, bringing the total subscriber base to 2,711,000.
- Record quarterly revenue of $104.8 million, a 21% increase year-over-year.
- Net income of $17.3 million, a 29% increase year-over-year.
- EBITDA grew to $28.5 million, a 24% increase year-over-year.
- Record quarterly cash flow from operations of $32.2 million;
- The Board declared a quarterly dividend of $10 million, or $0.50 per share.
Management Comment
Eyal Sheratzky, Co-CEO of Ituran said, "The second quarter was an excellent quarter for Ituran. Revenue reached a record $104.8 million, a 21% increase year-over-year with our recurring subscription revenue growing by 25% year-over-year. Furthermore, our operating income, EBITDA and net income each grew faster than our revenue, demonstrating the operating leverage in our business model."
Mr. Sheratzky continued, "Our growth remains broad-based across Israel and Latin America, supported by our OEM partnerships and by newer segments. Alongside the core business, our growth initiatives continue to mature. IturanMob, our car rental solution, has expanded into the United States and was recognized during the quarter with a Global Tech Insider award, our Credit Carbon initiative continues to advance, and our Big Data capabilities are gaining commercial traction. We remain confident in our ability to deliver continued growth and profitability throughout 2026."
Second Quarter 2026 Results
Revenues for the quarter were a record $104.8 million, a 21% increase compared with $86.8 million in the second quarter of last year.
76% of revenues were from location-based service subscription fees, and 24% were from product revenues.
Revenues from subscription fees for the quarter were $79.8 million, an increase of 25% over the second quarter of last year.
The subscriber base expanded to 2,711,000 by the end of June 2026, marking a quarterly net increase of 41,000 and a year-over-year increase of 163,000.
Subscriber growth in the quarter continued to be driven by organic demand across our core stolen vehicle recovery and telematics businesses in Israel and Latin America, together with the ongoing contribution from our OEM programs.
Product revenues for the quarter were $25.0 million, an 8% increase year-over-year.
Gross profit for the quarter was $53.4 million (50.9% of revenues), a 24% increase compared with $42.9 million (49.5% of revenues) in the second quarter of last year.
Gross margin on subscription revenues improved to 58.8%, compared to 57.9% in Q2 last year. The gross margin on product revenues was 25.7%, compared to 26.0% last year. The variance in the product gross margin between quarters was due to the change in the product mix sold.
Operating income for the quarter was $23.8 million (22.7% of revenues), representing a 30% increase compared to $18.3 million (21.1% of revenues) in Q2 last year.
EBITDA for the quarter was $28.5 million (27.2% of revenues), up 24% from $22.9 million (26.4% of revenues) in the second quarter of last year.
Finance expenses for the quarter were $1.3 million, similar to finance expenses of $1.3 million in the second quarter of last year. The high level of financial expenses in the quarter was primarily due to the strength of the Israeli Shekel against the US Dollar, which lowered the value of US Dollar linked deposits held in Israel.
Net income for the second quarter of 2026 was $17.3 million (16.5% of revenues), or diluted earnings per share of $0.88, an increase of 29% compared to $13.5 million (15.5% of revenues), or $0.68 per diluted share, in the second quarter of last year.
Cash flow from operations for the quarter was $32.2 million.
On the balance sheet, as of June 30, 2026, the Company had net cash, including marketable securities, of $103.7 million, which includes no debt. This is compared with net cash, including marketable securities, of $107.6 million, as of year-end last year.
Dividend
The Board of Directors declared a dividend of $10 million for the quarter, or $0.50 per share. 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 $3.0 million in shares were purchased under the Company's share buy-back program. The total remaining authorization is approximately $10 million. Share repurchases will be funded by available cash and will be made in accordance with SEC Rule 10b-18.
Conference Call Information
The Company will also be hosting a video conference call via the Zoom platform later today, Wednesday, August 12, 2026 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:
https://us06web.zoom.us/webinar/register/WN_mE4jXN-IS0ufW5K5ZyeaUg
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, but not limited to, changes in global political, economic, business, competitive, market and regulatory factors. Forward-looking statements are not guarantees of future performance, and involve risks, uncertainties and assumptions that may cause our actual results to differ materially from the expectations that we describe in our forward-looking statements. We disclaim any obligation to update forward-looking statements, even if our assumptions and projections change, except where applicable law may otherwise require us to do so.
About Ituran
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 and 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 2.7 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, Colombia, India, Canada and the United States.
For more information, please visit Ituran's website, at: www.ituran.com.
Logo: https://mma.prnewswire.com/media/1972820/Ituran_logo.jpg
Company Contact
Udi Mizrahi
udi_m@ituran.com
Deputy CEO & VP Finance, Ituran
(Israel) +972 3 557 1348
International Investor Relations
Ehud Helft
ituran@ekgir.com
EK Global Investor Relations
(US) +1 212 378 8040
ITURAN LOCATION AND CONTROL LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS
US dollars
June 30, December 31,
(In thousands) 2026 2025
(unaudited)
Current assets
Cash and cash equivalents 103,700 107,551
Investments in marketable securities 3 3
Accounts receivable (net of provision for credit loss) 66,527 58,517
Other current assets 53,027 48,360
Inventories 24,974 23,213
248,231 237,644
Long-term investments and other assets
Investments in affiliated companies 503 517
Investments in other companies 1,874 1,542
Other non-current assets 5,695 5,413
Deferred income taxes 18,489 15,684
Funds in respect of employee rights upon retirement 33,027 28,480
59,588 51,636
Property and equipment, net 42,915 39,386
Operating lease right-of-use assets, net 8,004 8,878
Intangible assets, net 9,563 8,839
Goodwill 40,119 39,831
Total assets 408,420 386,214
ITURAN LOCATION AND CONTROL LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS (cont.)
US dollars
June 30, December 31,
(In thousands) 2026 2025
(unaudited)
Current liabilities
Accounts payable 25,725 19,082
Deferred revenues 29,427 27,206
Other current liabilities 67,211 57,817
122,363 104,105
Long-term liabilities
Liability for employee rights upon retirement 39,839 35,080
Deferred income taxes 751 531
Deferred revenues 14,513 14,876
Operating lease liabilities, non-current 4,156 4,745
Other non-current liabilities 1,259 2,391
60,518 57,623
Stockholders' equity 218,372 217,564
Non-controlling interests 7,167 6,922
Total equity 225,539 224,486
Total liabilities and equity 408,420 386,214
ITURAN LOCATION AND CONTROL LTD.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
US dollars
Six months period Three months period
ended June 30, ended June 30,
(in thousands, except per share data) 2026 2025 2026 2025
(unaudited) (unaudited)
Revenues:
Telematics services
155,224 125,936 79,824 63,756
Telematics products 52,230 47,312 24,964 23,037
207,454 173,248 104,788 86,793
63,949 52,734 32,887 26,835
Cost of revenues:
Telematics services
Telematics products 40,711 35,574 18,551 17,037
104,660 88,308 51,438 43,872
102,794 84,940 53,350 42,921
Gross profit
Research and development expenses 10,555 9,920 5,538 5,058
Selling and marketing expenses 10,754 8,634 5,521 4,375
General and administrative expenses 35,848 29,369 18,533 15,131
Other expenses (income), net (180) 27 21
Operating income 45,817 36,990 23,758 18,336
Financing expenses, net (740) (782) (1,327) (1,328)
Income before income tax 45,077 36,208 22,431 17,008
Income tax expenses (10,159) (7,329) (4,592) (3,263)
Share in profit (losses) of affiliated companies, net (59) (18) (14) 16
Net income for the period 34,859 28,861 17,825 13,761
Less: net income attributable to non-controlling interest (758) (816) (498) (308)
Net income attributable to the company 34,101 28,045 17,327 13,453
Basic and diluted earnings per share attributable to 1.72 1.41 0.88 0.67
Company's stockholders
Basic and diluted weighted average number of shares 19,802 19,894 19,773 19,894
outstanding (in thousands
ITURAN LOCATION AND CONTROL LTD.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
US dollars
Six months period Three months period
ended June 30, ended June 30,
(in thousands) 2026 2025 2026 2025
(unaudited) (unaudited)
Cash flows from operating activities
Net income for the period 34,859 28,861 17,825 13,761
Adjustments to reconcile net income to net cash from operating
activities:
Depreciation and amortization 9,299 9,230 4,652 4,602
Loss in respect of trading marketable securities and other investments 8
Increase in liability for employee rights upon retirement 2,343 1,622 1,235 591
Share in losses (profit) of affiliated companies, net 59 18 14 (16)
Deferred income taxes (2,255) (387) (1,042) (302)
Capital loss on sale of property and equipment, net 124 89 180 58
Decrease (increase) in accounts receivable (4,638) (7,691) 4,233 (1,127)
Decrease in other current and non-current assets 188 4,800 1,706 4,822
Decrease (increase) in inventories (655) (58) (3,160) 72
Increase (decrease) in accounts payable 5,477 (124) 3,173 (393)
Increase (decrease) in deferred revenues 833 1,354 (996) 607
Increase (decrease) in other current and non-current liabilities 4,834 163 4,399 (249)
Net cash provided by operating activities 50,468 37,885 32,219 22,426
Cash flows from investment activities
Increase in funds in respect of employee rights upon retirement, (2,476) (852) (1,324) (560)
net of withdrawals
Capital expenditures (11,937) (11,874) (6,634) (5,264)
Investments in affiliated and other companies, net (172) (110) (124) (106)
Repayment of (investment in) long-term deposit (123) (23) (109) 61
Proceeds from sale of property and equipment 717 454 424 154
Net cash used in investment activities (13,991) (12,405) (7,767) (5,715)
Cash flows from financing activities
Short term credit from banking institutions, net (114)
Acquisition of company shares (3,579) (3,048)
Dividend paid (39,761) (17,705) (29,840) (9,947)
Dividend paid to non-controlling interests (1,913) (1,677)
Net cash used in financing activities (45,253) (19,496) (32,888) (9,947)
Effect of exchange rate changes on cash and cash equivalents 4,925 5,394 4,167 6,288
Net change in cash and cash equivalents (3,851) 11,378 (4,269) 13,052
Balance of cash and cash equivalents at beginning of period 107,551 77,357 107,969 75,683
Balance of cash and cash equivalents at end of period 103,700 88,735 103,700 88,735
Supplementary information on financing activities not involving cash flows:
In May 2026, the Company declared a dividend in an amount of US$10 million. The dividend was paid in July 2026.
View original content:https://www.prnewswire.com/news-releases/ituran-presents-second-quarter-2026-results-302849528.html
SOURCE Ituran Location and Control Ltd.
