Q2 FY2026
Filed Aug 12, 2026Record quarterly revenue of $104.8 million, up 21%, with subscription revenue up 25% year-over-year; EBITDA up 24% to a record $28.5 million.
Revenue, subscription fees, operating income, EBITDA, net income and operating cash flow reached or approached record levels, while gross margin and operating margin increased year-over-year.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenuesother | $104.8 million | – | 21% increase |
| Subscription fee revenuesother | $79.8 million | – | 25% increase |
| Product revenuesother | $25.0 million | – | 8% increase |
| Gross profitother | $53.4 million (50.9% of revenues) | – | 24% increase |
| Gross margin on subscription revenuesother | 58.8% | – | – |
| Gross margin on product revenuesother | 25.7% | – | – |
| Research and development expensesother | $5,538 (in thousands) | – | – |
| Selling and marketing expensesother | $5,521 (in thousands) | – | – |
| General and administrative expensesother | $18,533 (in thousands) | – | – |
| Operating incomeother | $23.8 million (22.7% of revenues) | – | 30% increase |
| Finance expensesother | $1.3 million | – | similar |
| Income tax expensesother | $4,592 (in thousands) | – | – |
| Net income for the periodother | $17,825 (in thousands) | – | – |
| Net income attributable to the companyother | $17.3 million (16.5% of revenues) | – | 29% increase |
| Diluted earnings per share attributable to Company's stockholdersother | $0.88 | – | – |
| EBITDAother | $28.5 million (27.2% of revenues) | – | 24% increase |
| Net cash provided by operating activitiesother | $32.2 million | – | – |
| Capital expendituresother | $6,634 (in thousands) | – | – |
| Cash and cash equivalentsother | $103.7 million | – | – |
| Total assetsother | $408,420 (in thousands) | – | – |
| Total equityother | $225,539 (in thousands) | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Location-based service subscription feesOrganic demand across core stolen vehicle recovery and telematics businesses in Israel and Latin America, together with the ongoing contribution from OEM programs. | $79.8 million | – | 25% increase |
| Product revenuesThe variance in product gross margin between quarters was due to the change in the product mix sold. | $25.0 million | – | 8% increase |
Capital returns
- The Board of Directors declared a dividend of $10 million for the quarter, or $0.50 per share.
- During the quarter $3.0 million in shares were purchased under the Company’s share buy-back program.
- The total remaining authorization is approximately $10 million.
- In May 2026, the Company declared a dividend in an amount of US$ 10 million. The dividend was paid in July 2026.
What drove it
- The subscriber base reached 2,711,000 at the end of June 2026, after a quarterly net increase of 41,000 and a year-over-year increase of 163,000.
- 76% of revenues were from location-based service subscription fees and 24% were from product revenues.
- Management cited broad-based growth across Israel and Latin America, OEM partnerships, and newer segments.
- IturanMob expanded into the United States, while management said its Credit Carbon initiative continued to advance and Big Data capabilities gained commercial traction.
Concerns
- Product gross margin was 25.7%, compared to 26.0% last year, due to the change in product mix sold.
- Finance expenses of $1.3 million were 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.
- Cash and cash equivalents were $103.7 million as of June 30, 2026, compared with $107.6 million as of year-end last year.
What to watch
- Subscriber additions and the subscriber base following the quarterly net addition of 41,000 subscribers.
- Subscription revenue growth and the 58.8% subscription revenue gross margin.
- Product mix and product gross margin following the decline to 25.7%.
- The ongoing contribution from OEM programs and the commercial progress of IturanMob, Credit Carbon and Big Data initiatives.
- Financial expenses associated with Israeli Shekel strength against the US Dollar.
Balance sheet and cash flow
- Cash flow from operations for the quarter was $32.2 million.
- Net cash, including marketable securities, was $103.7 million as of June 30, 2026, which includes no debt.
- Net cash, including marketable securities, was $107.6 million as of year-end last year.
- Cash and cash equivalents were $103,700 (in thousands) as of June 30, 2026, compared with $107,551 (in thousands) as of December 31, 2025.
- Net cash used in investment activities was $7,767 (in thousands) in the three months ended June 30, 2026, including capital expenditures of $6,634 (in thousands).
- Net cash used in financing activities was $32,888 (in thousands) in the three months ended June 30, 2026, including acquisition of company shares of $3,048 (in thousands) and dividend paid of $29,840 (in thousands).
Analysis
Ituran reported record quarterly revenue of $104.8 million, up 21% year-over-year. Subscription fee revenue increased 25% to $79.8 million, faster than total revenue, while product revenue rose 8% to $25.0 million. Location-based service subscription fees represented 76% of revenue and products represented 24%. The subscriber base reached 2,711,000 after 41,000 net additions in the quarter, with management attributing growth to organic demand in Israel and Latin America and the continuing contribution from OEM programs.
Profitability improved faster than revenue. Gross profit increased 24% to $53.4 million and gross margin rose to 50.9% from 49.5%. Subscription gross margin improved to 58.8% from 57.9%, while product gross margin declined to 25.7% from 26.0% because of product mix. Operating income increased 30% to $23.8 million, and operating margin increased to 22.7% from 21.1%. EBITDA rose 24% to a record $28.5 million, with its margin increasing to 27.2% from 26.4%.
Net income attributable to the company was $17.3 million, or $0.88 per diluted share, compared with $13.5 million, or $0.67 per diluted share, in the second quarter of last year. Finance expenses were $1.3 million, similar to last year, and management said the expense primarily reflected Israeli Shekel strength against the US Dollar lowering the value of US Dollar linked deposits held in Israel. Research and development, selling and marketing, and general and administrative expenses were each higher year-over-year in the quarterly financial statements, but operating income nevertheless grew faster than revenue.
Cash flow from operations was a record $32.2 million. Net cash, including marketable securities, was $103.7 million as of June 30, 2026, with no debt, compared with $107.6 million at year-end last year. The company declared a $10 million quarterly dividend, or $0.50 per share, and purchased $3.0 million in shares during the quarter, leaving approximately $10 million of repurchase authorization. The release provided no quantitative financial outlook, although management expressed confidence in continued growth and profitability throughout 2026.
Management, verbatim
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.
Eyal Sheratzky, Co-CEO of Ituran
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.
Eyal Sheratzky, Co-CEO of Ituran
Not in the filing
stated, not guessed- Quantitative forward revenue guidance was not provided.
- Forward gross-margin, operating-expense and tax-rate guidance was not provided.
- Previous-period outlook was not provided.
- Prior-quarter comparisons for reported operating metrics were not provided.
- Free cash flow was not reported.
- The filing did not identify a GAAP, IFRS or other accounting-framework basis for the condensed financial statements.
- A non-GAAP reconciliation for EBITDA was not provided.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.