Ituran Location and Control Ltd. (NASDAQ:ITRN) reported second-quarter earnings and revenue above Wall Street expectations on Wednesday, supported by strong growth in its recurring subscription business and continued expansion of its subscriber base.
The shares showed little movement in after-hours trading following the announcement.
Adjusted earnings per share reached $0.88, beating the analyst consensus estimate of $0.82 by $0.06. Revenue climbed 21% year on year to a record $104.8 million, exceeding the $96.8 million forecast and up from $86.8 million in the second quarter of 2025.
Subscription revenue climbs 25%
Ituran’s subscription business remained the primary driver of growth, generating $79.8 million during the quarter, an increase of 25% from the same period last year.
Subscription revenue accounted for 76% of total sales, while product revenue increased 8% year on year to $25.0 million.
The company added 41,000 net subscribers during the quarter, taking its total subscriber base to 2.71 million.
“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,” said Eyal Sheratzky, Co-CEO of Ituran. “Furthermore, our operating income, EBITDA and net income each grew faster than our revenue, demonstrating the operating leverage in our business model.”
Profit growth outpaces revenue
Ituran’s profitability expanded faster than sales during the quarter, with net income increasing 29% year on year to $17.3 million.
EBITDA rose 24% to $28.5 million, while operating income climbed 30% to $23.8 million from $18.3 million in the prior-year period.
Operating income represented 22.7% of quarterly revenue, highlighting the company’s improving operating leverage.
Gross margin on subscription revenue also strengthened, reaching 58.8% compared with 57.9% in the second quarter of 2025.
Ituran declares $10 million quarterly dividend
Ituran’s board declared a quarterly dividend totalling $10 million, equivalent to $0.50 per share.
The company also repurchased $3.0 million of its shares during the quarter under its existing buyback programme. Approximately $10 million remains available under the current authorisation.
Ituran ends quarter with no debt
As of June 30, 2026, Ituran held $103.7 million in net cash and marketable securities, with no debt on its balance sheet.
The combination of record revenue, accelerating subscription income, expanding profitability and a growing subscriber base highlighted continued momentum in Ituran’s recurring-revenue business, despite the muted share-price reaction following the results.
Ituran Location and Control stock price
