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.

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 ended June 30,		Three months period ended June 30,
(in thousands, except per share data)	2026	2025		2026	2025
Revenues: Telematics services	(unaudited)			(unaudited)
	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
Cost of revenues: Telematics services	63,949	52,734		32,887	26,835
Telematics products	40,711	35,574		18,551	17,037
	104,660	88,308		51,438	43,872
Gross profit	102,794	84,940		53,350	42,921
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 Company's stockholders	1.72	1.41		0.88	0.67


Basic and diluted weighted average number of shares outstanding (in thousands	19,802	19,894		19,773	19,894

ITURAN LOCATION AND CONTROL LTD.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
	US dollars
	Six months period ended June 30,			Three months period 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, net of withdrawals	(2,476)		(852)			(1,324)		(560)
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.

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SOURCE Ituran Location and Control Ltd.