Ituran Location and Control NASDAQ: ITRN reported record second-quarter revenue and profitability for 2026, driven by growth in recurring subscription revenue, subscriber additions and expanding original equipment manufacturer relationships.
Revenue for the quarter rose 21% year over year to $104.8 million, while subscription-fee revenue increased 25% to $79.8 million. Subscription revenue represented 76% of total quarterly revenue, according to CFO Eli Kamer. Product revenue increased 8% from a year earlier to $25 million.
CEO Eyal Sheratzky said the company added 41,000 net subscribers during the quarter, ending June with 2.711 million subscribers. He characterized the additions as consistent with Ituran’s expected run rate and said the company continues to pursue organic growth in its core markets through new products, value-added services, market segments and regions.
Profitability and Cash Generation
EBITDA increased 24% year over year to $28.5 million, equal to 27.2% of revenue, compared with $22.9 million, or 26.4% of revenue, in the prior-year quarter. Net income rose 29% to $17.3 million, or $0.88 per diluted share, from $13.5 million, or $0.68 per diluted share, a year earlier.
Kamer said second-quarter finance expenses totaled $1.3 million, unchanged from the prior-year period. The expense was primarily related to the strengthening of the Israeli shekel against the U.S. dollar, which reduced the value of U.S.-dollar-linked deposits held in Israel.
The company generated $32.2 million in cash flow from operations during the quarter, which Sheratzky described as its highest-ever operating cash flow. As of June 30, Ituran had $103.7 million in net cash, including marketable securities, and no debt. That compared with $107.6 million at the end of 2025.
Ituran’s board declared a quarterly dividend of $10 million, or $0.50 per share. The company also repurchased $3 million of shares during the period. About $10 million remained under the buyback authorization, with repurchases to be funded by available cash and conducted in line with SEC Rule 10b-18, Kamer said.
OEM Programs Remain a Growth Focus
Sheratzky said OEM relationships remain a central component of Ituran’s long-term growth strategy. During the quarter, the company continued expanding existing South American OEM programs, including Connect Fiat, a program with Stellantis that launched earlier this year for the Fiat Strada.
The company is also seeking to broaden existing relationships with Nissan, Renault, General Motors, Yamaha, BMW and other manufacturers, he said. In Brazil, Sheratzky said the company’s motorcycle-related OEM programs with Yamaha and BMW have been ramping up and are beginning to contribute to subscriber growth.
“Our main focus in the Brazilian market” for motorcycles is centered on those OEM arrangements, Sheratzky said, adding that the company is discussing potential expansion to additional brands but had no new agreement to announce.
Geographically, Israel accounted for 56% of second-quarter revenue, Brazil represented 22%, and the rest of the world accounted for the remaining 22%.
Big Data and New Business Initiatives
Management also highlighted several longer-term initiatives beyond the company’s traditional subscription telematics business. These include IturanMOB, a car-rental solution recently launched in the United States; Credit Carbon, a platform intended to enable electric and zero-emission vehicle drivers to generate and sell verified carbon savings; and the commercialization of the company’s transportation data.
Sheratzky said Ituran completed a previously disclosed data transaction with Israel’s Ministry of Transport and Road Safety at the end of the first quarter. The transaction involved several million Israeli shekels and provided historical data to help identify locations where truck rest areas could be developed to address driver fatigue and accidents.
He said the company is in advanced discussions with additional potential data customers and is conducting several pilot projects. Ituran expects that its early big-data opportunities will be concentrated in Israel, where it has roughly 1 million subscribers among approximately 3 million vehicles, giving it a comparatively large data set for transportation analysis.
Over time, the company aims to expand such efforts to Brazil and Mexico, Sheratzky said. Potential uses include supporting government agencies, transport authorities, municipalities, commercial centers, OEMs and insurers with data related to transportation patterns and driving behavior.
In the usage-based insurance segment, Sheratzky said Ituran is currently focused primarily on Israel, with smaller activity in Argentina. He said the segment is growing but has relatively low average revenue per user and remains concentrated in specific customer groups, such as younger drivers and households’ second vehicles.
U.S. Rental-Market Rollout Still Early
Regarding IturanMOB, Sheratzky said market interest from car-rental companies has increased, along with the number of pilots and customers. However, the business remains at an early stage and is producing low revenue levels as the company expands its capabilities into more U.S. cities.
Management said it is taking a measured approach to sales and business-development spending while gaining confidence in the offering. Sheratzky said the initiative is not expected to make a substantial contribution in 2026 or 2027, but the company plans to provide updates if it begins to scale to more material levels.
Looking ahead, Sheratzky said Ituran remains confident in its ability to continue growing revenue and profitability through 2026, supported by subscription growth, OEM programs, newer business lines and opportunities to monetize its data assets.
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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