Whether the majority of big data opportunities are in Israel or internationally.

Eyal Sheratzky explained that they started in Israel due to the high ratio of Ituran subscribers to total vehicles (1 million among 3 million), providing rich data. The goal is to expand to other geographies like Brazil and Mexico after establishing a substantial market and experience in Israel, focusing on areas where their customer base allows for accurate data provision. “Currently, we started in Israel. The advantage that we have to start in Israel is that in Israel, the portion of -- or the ratio between the total vehicles on roads with Ituran cars -- I mean, Ituran subscriber base is very high.”

Update on the progression of IturanMob in the U.S., discussions, and observations.

Eli Kamer stated that market interest and traction are increasing, with more pilots and customers. However, monetization is still low, and they are proceeding cautiously before scaling up marketing and sales. He reiterated it's a midterm project not expected to contribute substantially in 2026 or 2027. “So from the side of the marketing side, the interest of the market, we see higher and higher traction. On the other hand or the other part is our part to install, to marketing and sales. We're still going in a very low mode in order to get our own confidence before we start spending more money, more budget basically on business development and sales.”

How Ituran is performing in the motorcycle market and with Usage-Based Insurance (UBI).

Eyal Sheratzky highlighted impressive ramp-up in the Brazilian motorcycle market through OEM deals with Yamaha and BMW, contributing to subscriber growth. For UBI, the focus remains on the Israeli market, showing growth but with low ARPU, targeting specific segments like second cars or young drivers. It hasn't expanded significantly to other geographies except Argentina. “Regarding motorcycles, as you know, Sergey, and as we stated in the past, our main focus in the Brazilian market -- we started with the OEM deals with Yamaha and then [ BMW ]. And this is ramping up very impressive.”

ITRN

Ituran (ITRN) Q2 FY26 earnings call: the analyst Q&A

Earnings call· Jun 2026 (Q2 FY26)· Industrials· Aug 12, 2026

Source: earnings call transcript

Executive summary

Ituran Q2 FY26 — Record Revenue and Profitability Driven by Strong Subscriber Growth

Ituran delivered a strong second quarter, achieving record revenue and profitability, primarily fueled by robust growth in its recurring subscription business and healthy subscriber additions. The company continues to expand its OEM programs and explore new growth avenues through big data monetization and new solutions like IturanMob, aiming for long-term transformation and sustained growth.

Highlights

Overall revenue grew 21% year-over-year to a record $104.8 million.
Recurring subscription revenue increased 25% year-over-year to $80 million, representing 76% of total revenues.
EBITDA increased 24% to $28.5 million, with margin expanding to 27.2%.
Net income grew 29% to $17.3 million, resulting in diluted EPS of $0.88.
Generated highest ever cash flow from operations of $32.2 million.

Concerns

Net cash position decreased to $103.7 million as of June 30, 2026, from $107.6 million at year-end 2025.
Finance expenses of $1.3 million were mainly due to the strengthening of the Israeli shekel against the U.S. dollar, impacting U.S. dollar-linked deposits.
FX impact on EBIT was approximately $1 million.

Segment performance

Segment	Revenue	YoY	QoQ	Margin
Israel Revenue contribution from Israel.	56%	—	—	—
Brazil Revenue contribution from Brazil.	22%	—	—	—
Rest of World Revenue contribution from Rest of World.	22%	—	—	—

Product announcements

Product	Type	Timeline	Details
IturanMob	launch	recently launched
Credit Carbon	launch	—

Deals & partnerships

Stellantis (Fiat) OEM program for Connect Fiat, exclusive to Fiat Strada

New OEM program launched earlier this year, exclusive to the Fiat Strada model.

Nissan, Renault, General Motors, Yamaha, BMW and others Existing OEM relationships

Actively looking to expand existing OEM relationships.

Israeli Ministry of Transportation Big data agreement for truck accident analysis few millions of shekels

Agreement concluded in Q1 to analyze historical data for identifying accident-prone areas and planning rest stops for trucks.

Risks & headwinds

Foreign Exchange Impact Q2 FY26

$1.3 million finance expense; ~$1 million impact on EBIT

What to watch in Q3 FY26

Big Data Agreement Announcements

near term

Current Advanced discussions and pilot projects with potential customers

Target Announcement of further big data agreement(s)

Why it matters

Big data monetization is a key new growth engine with significant long-term potential beyond traditional subscription models.

We would hope to be able to announce a further big data agreement with one of these in the near term.

Find out whether ITRN delivers this. Inve re-checks your case every morning.

Q&A highlights

Inquiry about the concluded engagement with the Israeli Ministry of Transportation, feedback received, and where it shows up on the income statement.

Eyal Sheratzky confirmed the deal concluded in Q1, was not very large (few millions of shekels), and involved analyzing historical data for truck accident prevention and rest area planning. He noted more discussions with public transportation agents and governmental bodies, expressing optimism for larger, more valuable deals soon.

“This deal transaction was already concluded in the end in Q1, and it was not -- as we said, it was not a very large deal, but still, it was few millions of shekels and it was basically a need of a specific division in this ministry to look for places where trucks in Israel are making specific accidents in order to analyze where is the best place to open a rest areas.”

asked by Derek Greenberg · answered by Eyal Sheratzky

2 min read 7 chapters

Detailed narrative

Record Financial Performance

Ituran reported record Q2 FY26 revenue of $104.8 million, a 21% year-over-year increase. This growth was driven by a 25% increase in recurring subscription revenue to $80 million, which now constitutes 76% of total revenues. All profit metrics, including operating income, EBITDA ($28.5 million, 27.2% margin), and net income ($17.3 million, 16.5% margin), grew ahead of revenue, demonstrating strong operating leverage.

Subscriber Growth and Core Markets

The company added 41,000 net new subscribers during the quarter, bringing the total subscriber base to 2,711,000. This growth is consistent with expected run rates and reflects healthy organic expansion across core markets, supported by new products and value-added services.

OEM Partnerships as Growth Driver

OEM relationships remain a critical growth vector, with continued ramp-up of existing programs in South America, including the new Connect Fiat program with Stellantis. Ituran is actively discussing with additional OEMs and seeking to expand current relationships with major automotive brands like Nissan, Renault, General Motors, Yamaha, and BMW.

New Growth Initiatives

Beyond its core telematics, Ituran is advancing initiatives such as IturanMob (car rental solution, recently launched in the U.S.), Credit Carbon (platform for electric vehicle carbon savings), and big data monetization. These initiatives are expected to become meaningful long-term contributors by expanding addressable markets.

Big Data Monetization Progress

Following an initial agreement in Q1 with the Israeli Ministry of Transportation for truck accident analysis, Ituran is in advanced discussions and pilot projects with other potential customers for its big data capabilities. The company hopes to announce further big data agreements in the near term, targeting governments, transport authorities, and commercial centers.

Cash Generation and Capital Returns

Ituran generated its highest-ever cash flow from operations at $32.2 million. The Board declared a dividend of $10 million ($0.50 per share) for the quarter, consistent with its standard policy. Additionally, $3 million in shares were purchased under the buyback program, with approximately $10 million remaining authorization. The company ended the quarter with $103.7 million in net cash, including marketable securities, and no debt.

Geographic Performance and FX Impact

Revenue distribution for the quarter was 56% from Israel, 22% from Brazil, and 22% from the Rest of World. The strengthening of the Israeli shekel against the U.S. dollar resulted in a finance expense of $1.3 million due to U.S. dollar-linked deposits held in Israel, impacting EBIT by approximately $1 million.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.