Ituran Location and Control (NASDAQ:ITRN) reported a record first quarter of 2026, with revenue surpassing $100 million for the first time as subscription growth and continued subscriber additions supported double-digit gains in profitability.
Chief Executive Officer Eyal Sheratzky said on the earnings call that the company was “very pleased” with the start to the year, citing total revenue of $102.7 million, up 19% from a year earlier. Subscription revenue rose 21% year over year to $75.4 million, while product revenue increased 12% to $27.3 million.
“For the quarter, overall revenue grew 19% year-over-year to $102.7 million, a record, with subscription revenue growth of 21% to $75.4 million,” Sheratzky said. He added that operating income, EBITDA and net income all grew by double digits from the prior-year period.
Subscriber Base Continues to Expand
Ituran added 40,000 net subscribers during the quarter, ending March 2026 with 2.67 million subscribers. Sheratzky said the gain was in line with the company’s expected run rate and reflected “continued healthy organic growth across our core markets.”
The company reiterated its expectation to add between 160,000 and 180,000 net subscribers during 2026, though Sheratzky noted that the pace of additions may vary from quarter to quarter.
Chief Financial Officer Eli Kamer said subscription fees represented 73% of total revenue in the first quarter. By geography, Israel accounted for 57% of revenue, Brazil for 22% and the rest of the world for 21%.
Profitability and Cash Flow Increase
EBITDA for the quarter was $26.7 million, or 26% of revenue, compared with $23.3 million, or 26.9% of revenue, in the first quarter of 2025. Net income was $16.8 million, or $0.85 per diluted share, up from $14.6 million, or $0.73 per diluted share, a year earlier.
Cash flow from operations totaled $18.2 million in the quarter. As of March 31, 2026, Ituran had net cash, including marketable securities, of $108 million, compared with $107.6 million at the end of 2025.
The company’s board declared a quarterly dividend of $10 million, or $0.50 per share. Kamer said the dividend reflected Ituran’s “continuing strong profitability, ongoing positive cash flow, and strong balance sheet.” During the quarter, the company also repurchased $0.5 million of shares under its buyback program, leaving approximately $13 million remaining under the authorization.
OEM Partnerships Remain a Growth Focus
Sheratzky highlighted original equipment manufacturer partnerships as a key long-term growth driver. During the first quarter, Ituran expanded its strategic partnership with Stellantis through the launch of Connect Fiat, a connected vehicle solution exclusive to the Fiat Strada in South America.
According to Sheratzky, Connect Fiat is an end-to-end solution from Ituran that includes embedded hardware, connected vehicle services, the technology backend and an end-user mobile application. The program has an initial three-year term with an option to extend for an additional two years.
The launch builds on a Stellantis partnership announced in early 2025 and, Sheratzky said, reinforces Ituran’s role as a “complete connectivity partner for global OEMs” in its region. He also said the company remains in active discussions with additional OEMs and cited existing partnerships with Nissan, Renault, General Motors, Yamaha, BMW and others.
During the question-and-answer portion of the call, an analyst asked whether the company had new substantial OEM agreements under discussion. Sheratzky said Ituran is “always under discussion” and noted that, looking backward, the company has typically announced one or two new agreements each year. He said the company would report new agreements when they occur.
New Initiatives Include Data, Rental Cars and Credit Carbon
Beyond its core subscriber-based telematics business, Ituran is pursuing several initiatives that management said could become meaningful long-term contributors. Sheratzky cited IturanMob, the company’s car rental solution; Credit Carbon; and big data capabilities.
As an example of the data business, Sheratzky said Ituran recently signed an agreement with an entity of Israel’s Ministry of Transportation to provide transportation data intended to help it better understand commuter patterns and support future planning. He said more projects in Israel could mature in coming quarters.
In response to an analyst question about the big data initiative, Sheratzky said the effort remains in its early stages but is attracting interest in Israel. He described the model as different from Ituran’s recurring subscriber revenue, saying it is typically a business-to-business arrangement based on data size, information and measurements. Some projects, he said, may involve annual payments over four or five years rather than a subscriber-based model.
Sheratzky also discussed IturanMob in response to a question about the U.S. market. He said the solution is still “premature” and that the market for such rental car services is not yet well established. However, he said Ituran aims to become a leader in the U.S. industry and noted that the company recently participated in a large conference for rental companies and rental car services, where it served as both speaker and demonstrator.
Management Points to Currency Tailwind, Stable Growth
Asked about the sources of growth in the quarter, Sheratzky said there was no single geography that grew more than usual and no specific area driving results disproportionately. He said subscriber movement can vary by quarter and by average revenue per user, with different geographies contributing at different times.
Sheratzky said the first quarter benefited from currency strength in the geographies where Ituran operates, describing it as a tailwind after years in which foreign exchange had been a headwind. However, he emphasized that the company is not relying on currency movements and that operational growth continued as in prior periods.
When asked about potential lumpiness in product revenue or pricing increases in the subscriber base, Sheratzky said there was nothing unusual to call out. He said Ituran’s business has high visibility and is not typically subject to many “lumping” situations.
Sheratzky closed the call by thanking shareholders for their continued support and said management remains confident in Ituran’s ability to deliver continued growth and profitability throughout 2026.
About Ituran Location and Control (NASDAQ:ITRN)
Ituran Location and Control Ltd. is a provider of wireless vehicle tracking and stolen vehicle recovery services. The company leverages a combination of cellular and global positioning system (GPS) technologies to offer real-time monitoring and location-based solutions for private vehicle owners, fleet operators and insurance companies. Its core offerings include subscription-based tracking devices, centralized control centers and software platforms that enable clients to detect unauthorized vehicle use, dispatch recovery teams and manage fleet logistics.
Founded in 1994 in Israel, Ituran pioneered the use of wireless communications for security and telematics applications.
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