Ituran Location and Control - Q4 2025
March 5, 2026
Transcript
Kenny Green (Investor Relations Manager)
Ladies and gentlemen, thank you for standing by. My name is Kenny Green. I am part of the Investor Relations team at Ituran. I would like to welcome all of you to Ituran's Results Zoom webinar, and I would like to thank Ituran's management for hosting this call. All participants other than the presenters are currently muted, and following the formal presentation, I'll provide some instructions for participating in the live Q&A session. I would like to remind everyone that this conference call is being recorded, and the recording will be available from the link in the earnings press release and on Ituran's website from tomorrow. With me today on the call are Mr. Eyal Sheratzky, CEO, Mr. Udi Mizrahi, Deputy CEO and VP Finance, and Mr. Eli Kamer, CFO of Ituran.
Eyal will begin with a summary of the quarter's results, followed by Eli with a summary of the financials. We will open the call for the question and answer session. You should have all by now received the company's press release. If not, please view it on the company's website. I'd like to remind everyone that the safe harbor statement in today's press release also covers the contents of this conference call and the associated presentation. Now, Eyal, would you like to begin, please?
Eyal Sheratzky (Co-CEO)
Thank you, Kenny. I'd like to welcome all of you to our fourth quarter and full year 2025 results call, and thank you for joining us today. Before I begin, I'd first like to acknowledge the war between Israel and the United States against Iran. We honor the bravery of both of the Israel Defense Forces and U.S. military personnel and their air forces, and we sincerely wish for their swift and safe return home. We hope the war will draw to a quick resolution and lead to lasting peace for all countries in the Middle East. Now to the results. We are very happy with the results of the fourth quarter as well as the full year of 2025, our best ever and record across all key parameters.
For the quarter, overall revenue growth was 13% to almost $94 million, a record with subscriber revenue growth at 15%, EBITDA grow to over $25 million, a record for us and puts our yearly EBITDA run rate in excess of the $100 million milestones for the first time. We generated a significant amount of cash in the quarter at $29.4 million, our highest ever, and as I will discuss later, given our very strong balance sheet, we have decided to share all the rewards of our success in 2025 with our shareholders through a special dividend and increased buyback in addition to the regular dividend.
Our growth and success in 2025 continued to be driven by our long-term efforts in bringing new value-adding telematics and connected car products and services to both existing as well as new customers globally. Throughout the year, we were particularly successful at bringing additional new OEM partners to our growing roster. Examples during 2025 were Stellantis, Renault, Yamaha, and BMW. We are in active discussions with others. Beyond our new partnership with Fiat that we announced last week, we hope to bring additional ones in future. Our results show an ongoing expansion in our large subscriber base, reaching at year-end year over 2.6 million subscribers. In the fourth quarter, we added 42,000 net subscribers, adding 221,000 net new subscribers in 2025, a record year for subscriber growth for Ituran.
I remind you that in Q1, our new OEM agreement with Stellantis brought their subscribers into Ituran, which gave us a bump in net new subscriber adds in that quarter. Our net adds in recent years has tended to be in the 40,000+ per quarter range. Looking ahead, while the rate can vary between quarters, we expect to maintain this overall current net subscribers add run rate, which means for 2026, we would expect to add between 160,000-188,000 net during the year. I want to summarize some of our new activities, which we believe will contribute to our growth and success in the midterm over the coming years. These all have the potential to completely transform the company.
Our IturanMob smart-mobility platform is differentiated solution enabling remote vehicle access, real-time telematics, and efficient management for shared mobility, rental fleet, and specialized vehicle application. IturanMob was first launched in Brazil and Israel, where it has gained solid traction among fleet operators and rental companies. Building on this success, we recently introduced the platform to the U.S. market and recently established dedicated IturanMob operations there. We see a clear opportunity among small and mid-sized car rental companies seeking to improve operational efficiency and the end-user rental experience.
This is the first time we are coming to the U.S. market, the largest rental market in the world, with over 17,000 small to mid-sized car rental companies, with a solution that is unique, with a real need in the market, and therefore, has the potential to gain significant market share. In addition, IturanMob is expanding into new verticals. In the past few weeks, we announced a partnership with leading Israel-based motorsport data analytics company, Griiip. Under this agreement, IturanMob becomes Griiip official IoT technology provider, combining Ituran's real-time telemetry with Griiip AI-powered analytics platform for racing drivers. Based on industry estimates, there are over 60,000 racing event each year, with closer to 1 million participants, representing a large addressable market for our technology. Our goal is that this partnership will already connect thousands of new vehicles in 2026.
As you may have seen in the video we published together with the press release, the technology is deployed in some of the most demanding operating environments, professional racing and track day driving, demonstrating the robustness, precision, and scalability of our solution. The higher complexity of this technology allows us to generate a high ARPU for this type of services. IturanMob represent another new long-term growth avenue alongside our core telematics and subscriber-based businesses. Credit Carbon is a new and unique initiative being developed by Ituran that enable drivers of electric and other zero-emission vehicles to participate economically in the global transition to low carbon transportation, something that has not previously been accessible to individual drivers.
Today, while companies that emit carbon dioxide can purchase carbon credits to offset their emissions, there has been no efficient, scalable mechanism for individuals who actively reduce emissions, such as electric vehicle drivers, to generate and monetize verified carbon savings. This solution will create a new incentive for EV adoption while opening an additional revenue stream for Ituran by providing the platform that connect carbon emitters with carbon savers. It leverages our existing technology, subscriber base, and infrastructure with minimal incremental cost. This initiative has been developed internally over years, leveraging our regulatory, technological, and data expertise. The solution is highly differentiated and is currently undergoing testing and validation. We are in advanced stages and have received encouraging early feedback. We expect initial commercial deployment toward the year-end 2026.
The timing is favorable right now as global awareness and regulatory pressure to reduce carbon emissions around the world continue to accelerate, expanding the addressable market. Another new initiative is leveraging our big data capabilities. Over many years, Ituran has built one of the largest and richest vehicle telematics datasets in our markets, encompassing decades of driving behavior, usage patterns, location data, and vehicle performance across millions of connected vehicles. Anonymized and aggregate insight derived from our extensive road use, driver behavior, and transportation dataset with decades of data can support governments, transport, ministries, and local authorities in optimizing traffic flow, improving road safety, and informing infrastructure planning. Our data can also support leading vehicle OEMs in advancing driver assistance and autonomous driving capabilities, providing deep understanding of actual road usage and training systems to better reflect real-world driving behavior.
We are actively exploring multiple avenues to monetize this significant asset. Overall, our big data capabilities strengthen customer retention, support margin expansion, and provide a highly scalable platform for future growth beyond traditional subscription revenues. Finally, as I discussed earlier, 2025 was the most successful year in Ituran's history. As such, given our strong profitability, very strong cash generation, and balance sheet with well over $100 million in cash and no debt, the board declared a total dividend of $30 million for the fourth quarter, consisting of our regular $10 million quarterly dividend and an additional $20 million special dividend. Therefore, for the full year, we will have shared a total of $60 million in dividends, representing approximately 100% of our net income, which amounts to dividend yield of around 7% based on our year-end share price.
This is an excellent dividend yield for a strong, stable, and continually growing company demonstrating record results year in, year out. Beyond all this, and in line with the feedback we hear from many of our investors, we also declared an addition to our buyback of up to $10 million. During 2025, we bought back $3.1 million in shares, or a total of 85,000 Ituran shares. We believe all this reflects our commitment to creating value and generating capital for our shareholders, while at the same time continuing to develop new products and services and invest in long-term growth at Ituran. We see our ongoing dividend and share buyback as a reward to our shareholders for their loyalty and long-term support of our company.
In summary, we remain very pleased with Ituran performance in the fourth quarter, and more generally, Ituran's long-term and ongoing performance in 2025. At the same time, we look for more revenues to bring further growth to our business across all our regions and the recent product launches I spoke about earlier are example for this. Additionally, we will continue to partner with the new OEMs, as we have successfully done throughout 2025, as well as new financing companies and other lending companies. 2025 marked 20 years as a public company and 30 years as a company. We look forward to continued success over the next decades, and I thank our shareholders for their long-term support of our business. With that, I hand over to Eli. Eli, please go ahead.
Eli Kamer (EVP and CFO)
Thanks, Eyal. I will provide a short summary of the financial results. You can find the more detailed results that we issued in the press release earlier today. Fourth quarter revenues were $93.5 million, a 13% increase year-over-year. Subscription revenues were $71.1 million, up 15% and representing 76% of total revenues. Product revenues were $22.4 million, up 5% year-over-year. Our subscriber base reached 2,630,000 at the end of 2025, an increase of 42,000 in the fourth quarter and 221,000 year-over-year. The geographic breakdown of revenues in the fourth quarter was as follow: Israel 55%, Brazil 23%, rest of world 22%. EBITDA in the fourth quarter was $25.3 million, representing 27.1% of revenues and a 12% increase year-over-year.
Net income for the fourth quarter was $15.3 million, or diluted earnings per share of $0.77, an increase of 10% year-over-year and compared to $13.8 million or diluted earnings per share of $0.70 in the fourth quarter of last year. Cash flow from operation for the fourth quarter of 2025 was $29.4 million. Taking a look at the full year 2025 results. Revenues for 2025 were a record $359 million, a 7% increase over the $336.3 million reported in 2024. 74% of revenues were from location-based services subscription fees and 26% were from product revenues. Revenues from subscription fees were $264.6 million, representing an increase of 9% over 2024.
Product revenues were $94.5 million, representing an increase of 1% compared with 2024. EBITDA for 2025 were $96.2 million, 26.8% of revenues, an increase of 5% compared year-over-year. Net income in 2025 was $58 million, 16.1% of revenues, or fully diluted earnings per share of $2.92, an increase of 8% compared with net income of $53.7 million, 16% of revenues, or fully diluted earnings per share of $2.70 in 2024. Cash flow from operation for the year was $88.6 million. As of December 31st, 2025, net cash and marketable securities total $107.6 million.
This is compared with net cash including marketable securities of $77.2 million as of year-end 2024. The board declared a $30 million dividend for the fourth quarter, including a $20 million special dividend and a $10 million dividend in line with our dividend policy. In addition, during the quarter, we purchased $1.6 million in shares under our buyback program. As of the end of the year, we had around $3.5 million remaining available under this program.
Eyal Sheratzky (Co-CEO)
However, the board today approved a $10 million increase to the existing buyback authorization, which will be funded from available cash and executed in accordance with SEC Rule 10b-18. This means that as of today, there is $13.5 million available under the buyback program. The current dividend and buyback takes into account the company's continuing strong profitability, ongoing positive cash flow, and strong balance sheet. With that, I'd like to open the call for the question and answer session. Operator.
Kenny Green (Investor Relations Manager)
Thank you. At this time, we will begin the question and answer session. If you have a question, please raise your hand via the Zoom platform. I will introduce you and ask you to unmute, after which you may ask your question. We will now open the call for your questions. Will be from Chris Reimer of Barclays. Chris, please go ahead.
Chris Reimer (Managing Director and Senior Equity Research Analyst)
My question.
Kenny Green (Investor Relations Manager)
Now can you repeat your question?
Chris Reimer (Managing Director and Senior Equity Research Analyst)
I'm just writing on the chat.
Kenny Green (Investor Relations Manager)
You. Okay. We'll move. Question will be from Sergey Glinyanov of Freedom Capital Markets. Sergey, go ahead.
Sergey Glinyanov (Equity Research Senior Analyst)
Good day, gentlemen. Great results. Could you please some colors on ARPU and the EBITDA dynamics in 2026 and after your initiatives are fully deployed, I mean, carbon credits, et cetera?
Eyal Sheratzky (Co-CEO)
Hi, Sergey. First of all, we are not providing any guidance as you know, but practically and in a general ways we are not, I think that the ARPU as it today should continue. More than 2.6 million subscribers, this is a big ship of a customer base, so one year is not changing the total ARPU. Looking forward, we really believe that the ARPU is not going to go down because things that I didn't mention today, I said it in the past, we always having additional service to our current subscribers which allow us to provide kind of a upsell of services. This is regard our traditional services, the fleet management, the stolen vehicle recovery, the UBI, et cetera.
Regard the new technologies and offers that we have, as I mentioned, as it's important to say again, those initiatives are after a few years of putting R&D development and making all the technological and regulatory infrastructure. For us commercially, it will be ready, as I said, mid to the end of 2026. I must say that the contribution, the financial contribution in 2026 of those initiatives will be very low. The idea to put more colors on those items was to show a little bit longer future from 2027, 2028, and of course ahead. We will see because we know some negotiations and we know some customer attractions in the Credit Carbon as well as in the rental solution.
The main idea is to show it, to expose it, and, the majority of the contribution will be in the next years. I believe that we will show at the second half of, 2026, we will be able to talk or discuss about some deals and contribution.
Sergey Glinyanov (Equity Research Senior Analyst)
Okay. Thank you. The next question about.
Eyal Sheratzky (Co-CEO)
By the way, Sergey, regarding EBITDA, I didn't answer you. We are not providing guidance, but.
Sergey Glinyanov (Equity Research Senior Analyst)
Yeah, yeah.
Eyal Sheratzky (Co-CEO)
All the things should leverage our EBITDA's margins of course.
Sergey Glinyanov (Equity Research Senior Analyst)
Do you believe that new initiatives could change your margin profile in the long term?
Eyal Sheratzky (Co-CEO)
First of all, if you look backwards, you will see that our margins are growing. I mean, we show the operating leverage dynamics happened in the margins. I'm totally believe that it will continue based on the new services and the upsells that we can do to the current customers. Yes.
Sergey Glinyanov (Equity Research Senior Analyst)
Okay, great. The next question about motorcycle market in Brazil. How is it going on and did you gain any additional market share on this market?
Eyal Sheratzky (Co-CEO)
Can you repeat? There was some noises here. Can you repeat? Sorry.
Sergey Glinyanov (Equity Research Senior Analyst)
The question about motorcycle.
Eyal Sheratzky (Co-CEO)
Oh, okay.
Sergey Glinyanov (Equity Research Senior Analyst)
And,
Eyal Sheratzky (Co-CEO)
Okay
Sergey Glinyanov (Equity Research Senior Analyst)
Did you gain any additional portion of this market in Brazil?
Eyal Sheratzky (Co-CEO)
First of all, this market, this market in Brazil is very, very big, and we didn't touch this segment until about a year ago, until the moment that we understood or we developed the right device that can be very productive and we can go then to motorcycles, OEM distributors, as well as to insurance companies. As you remember, we already reports about two OEM deals, one with Yamaha Brazil, the second one with BMW Brazil. This year we will see along the year or we already started thousands of motorcycles or maybe even closer to 10,000 subscribers from this segment in 2026.
Now we expand it to the retail market after we get, you know, more confidence and we have more to show to the retail market after Yamaha and BMW. As always, I also believe that we will add more motorcycle producer, international producers during this year and the next year.
Sergey Glinyanov (Equity Research Senior Analyst)
Awesome. Thank you. Thank you for taking my question. That's all from me.
Kenny Green (Investor Relations Manager)
Our next question is from Allen Klee of Maxim Group. Allen, please go ahead.
Allen Klee (Managing Director and Senior Research Analyst)
Hey, guys. Thanks for taking my questions. I know it's still a little early as you expect commercialization towards the end of the year, but I was wondering if you could help just walk through maybe what you would expect the economics to look like for the new big data and Credit Carbon products you're rolling out. Maybe just in terms of on big data, maybe what like deal sizing and contract terms could potentially look like. Then on Credit Carbon, maybe just the economics for drivers, EV drivers in terms of the additional benefits they gain from the product.
Eyal Sheratzky (Co-CEO)
Since we are very optimistic and we see the reaction, I wouldn't come with any guidance because it can be not realistic or not serious that we will do it. It's like new startups among our business. It's a startup that done by a very big or the largest telematics company in the world. We will continue to use our connections, our brand, our infrastructure in every country that we work. I must say that, for example, the Credit Carbon, once we start to commercialize it, we are talking about situation where, for example, taxi drivers or truck drivers or truck companies can get with Ituran solution additional revenues.
They're have a totally interest to come and put our solution because just as an example, if I can give a truck driver per truck on an average mileage something like EUR 200, EUR 250, EUR 300 a month from emitters through a worldwide or European broker, why should he give up for it? If I'm in Brazil, giving kind of a Uber type of a company, the drivers to get additional income, additional resource of revenue that without me, they cannot get it while they're driving a electric vehicle. I think that the request is going to be tough, there is questions. First of all, it's new to the world. This is the first time, except in some smaller market in the world where people get money for non-accurate information, not regulatory.
The rest of the world required a very, very tough regulatory to approve credit from for emitters. At that case, I think that the request should be tough. No one up until now didn't show it to the world how EV drivers can get money just for drive. For example, take a taxi driver that doesn't have a client, and he just drive from place to place, he get money. I think that this is something that can be big, but still it's not yet on a commercialized place, so I don't want just to come and throw numbers. It can be something with a high contribution, again, it will take time. It will take time to market it, to stabilize it, et cetera.
The same is the rental, remote rental company in the U.S. U.S. is a huge market, we are not as Ituran, we are conservative. We are not starting with tens of millions dollars of marketing, et cetera. We go step by step with strategic partners in the U.S., I believe that we'll do it. Regarding big data, we already start to sell data. In Israel, mainly to governmental, like road operators, like road accident authorities, et cetera. Up until now, we charge few, let's say few hundreds of thousand of dollar for pilot, only 1 pilot. I believe that this will continue and will support our results. Again, I don't want anyone to wait for a major contribution in 2026.
Allen Klee (Managing Director and Senior Research Analyst)
Okay. Got it. That's really helpful. In terms of could you maybe just quantify the FX impact you saw this year and maybe what you're expecting for next year?
Eyal Sheratzky (Co-CEO)
Yes. I will ask Udi to answer it. He has the pages. Udi?
Udi Mizrahi (Deputy CEO and VP Finance)
Yes. Can you repeat the question, please?
Allen Klee (Managing Director and Senior Research Analyst)
Just on the FX impact,
Udi Mizrahi (Deputy CEO and VP Finance)
Yeah
Allen Klee (Managing Director and Senior Research Analyst)
To the business in 2025, and then maybe expectations in 2026.
Udi Mizrahi (Deputy CEO and VP Finance)
I'll start with the future. It's really hard to say what will be the FX in 2026, you know, due to all the parameters that can change or affect the FX. Regarding 2025, I would say that about if we look at the annual basis, the FX in the EBIT, for example, was about between $1 million-$1.5 million. This is more or less.
Allen Klee (Managing Director and Senior Research Analyst)
Okay. Got it. My last question is just, with everything that's going on, I was wondering, with just geopolitically and the war, if you're expecting any potential disruptions, to your business or any maybe supply chain issues, or just how you view, the situation?
Eyal Sheratzky (Co-CEO)
Since we unfortunately, for many years, we get used to this situation. There is I think I will divide my answer to two. First of all, there is a major part of our business revenues and profits comes out of the Middle East. This is, of course, never was influenced by that. Regard our operation in Israel, which of course is, it's a major operation. It's not nothing. As you maybe heard from today, the market in Israel also already, I mean, not the stock market, I mean the commercial life in Israel also, back to get authorization to work half a day. Up until now, of course, the last three or four days, the market was shut down.
Those was anyway a holiday, a Jewish holiday that in any case, it was in the diary, a day off for car dealers, insurance, et cetera. Currently, we don't see a damage or nothing majority. In the past, in June, for example, of course, there was about 12 days in the last war where car dealers in Israel were shut down. After those 12 days, we cover the gap, or those dealers cover the gap in the next month or two. Overall, with our experience in the past, with what happening in Israel today, and with the situation that we get used to, I don't believe there will be any major influence on the 2026 results.
It's might move one month or two weeks from, month-to-month kind of volatility, but no more than that, as I expect.
Allen Klee (Managing Director and Senior Research Analyst)
Great. Got it. That's helpful. All right. Well, thanks for taking my questions.
Kenny Green (Investor Relations Manager)
Next question is gonna come from Eric Gregg of Four Tree Island Advisory. Eric, please go ahead. Gonna ask you a question now. Are you there?
Eric Gregg (Founder and Principal)
I am here.
Kenny Green (Investor Relations Manager)
Oh, great. Okay.
Eric Gregg (Founder and Principal)
I'm sorry. Do you hear me?
Kenny Green (Investor Relations Manager)
Yeah.
Eric Gregg (Founder and Principal)
Okay, great. First of all, tremendous results. We hope you all stay safe through this situation. If you could tease out the big data initiative sounds very interesting. Can you tease out a little bit more there beyond just some of the use cases in terms of how you think, your data could be used for, you know, various different initiatives? I understand the road accident, maybe the road, you know, repair maybe for civic uses. Are there other things you think you could be using the big data for?
Eyal Sheratzky (Co-CEO)
Yes.
Eric Gregg (Founder and Principal)
I have another-.
Eyal Sheratzky (Co-CEO)
Okay. I will answer first, and then you ask your second question. First of all, just to illustrate one deal that we already did in Israel. The road authorities want to know where most of the trucks arriving between specific hours along the evening to create parking loads for nights around the country. They wanted to get a one month of movement of trucks in the country and find the most traffic places. They asked to do it for a month, historically, of course. They paid for it, and of course, in less than one second we had this raw data get into customized data for them. For that only, we charge few hundreds of thousands of dollars, only for that.
We have, for example now, potential fees for entering cities from highways, which is a nationwide project in Israel. For that, they need a lot of data for those movements, those traffic from highways to the gates of municipal and central of cities. Like today, if you know in London, local British, they paid money when they get with the car inside London. For that, there is need for a lot of data, so this is something that we are the almost the only one in the country that has so big and so accurate data. Of course, this will lead to, I believe, to much more larger deal with those governmental office. This is from a governmental point of view.
Let's think about approach that we have from commercial malls that want to know, for example, specific hours a day, how many cars valued more than $50,000 are driving in order to customize advertisement and coupon for specific high-end shops. They're willing to pay for that. Everything should be anonymous, of course, because we are according to the all the regulation of anonymous. The data itself is something that for us exists almost for 30 years. Up until a year ago, we didn't do anything with that because the market and the technology and our AI capabilities was not enough to customize it, but to customize it with low cost.
Today, that's what we developed, that's what we offer, really the potential customers are across all the segments, as I said, governmental, commercial. Car dealers, they want to know in which area in the country. People sell their car to a second hand and then they buy again. We realize for one of the car dealers in Israel that only a third of the people that sell the car come back to him. He want to issue to all of his client a campaign and sales on a specific time that they sell their car, he doesn't know anymore after they sold it once. There are many aspects. We have a technology, we have a today a software that know how to get the raw data in and bring out customized data upon any request.
This is an example for a big data, a product that we're going to charge for. We talk with everybody today.
Eric Gregg (Founder and Principal)
That's tremendous. Thank you. That was very helpful. Second is on capital allocation. If you take consensus estimates that based on these very strong Q4 results, I think are gonna be going higher, net of your cash position, you trade at less than 13x forward earnings, which is less than what your growth rate of services was in Q4. As your growth keeps on accelerating, it's kind of a PEG of less than one, which is very inexpensive. The question is, it's great how generous you've been with shareholders in terms of dividends and the special dividend, but why aren't you emphasizing stock repurchase more versus the dividends here, given how cheap you seem to be? Thank you.
Eyal Sheratzky (Co-CEO)
Practically, when we do only this as, investors ask why not this. You may be right, but it runs volume. We grow in the last 12, 15 months. The volume in the market is low, and we don't want, by going with a $30 million or $50 million to the market a year to create to shrink the volume, because one of the interesting for the shareholders is the volume. This is kind of, we find a balance between dividend and shares repurchase project. As you see in the past and even now, every month, or better to say every quarter when we have a board discussion about it, we check it again and we take a new decision.
I totally accept what you say, but we have to balance and this is the current decision of the board. As we did in the past, this might grow. We look on the volume, we get advice with some brokers and bankers how it can influence, and we do as best as at the moment that we can.
Eric Gregg (Founder and Principal)
Okay. Thank you for that clarity. Appreciate it.
Kenny Green (Investor Relations Manager)
Next question will go to Evan Tindell of Bireme Capital. Evan, please go ahead.
Evan Tindell (Co-Founder and Chief Investment Officer)
Hi. Yes. Thanks for taking my question. Just a quick comment if you don't mind, one second on the buyback issue and volume. My personal advice as a shareholder is, don't listen to the shareholders or the bankers that tell you that volume is a big problem, 'cause there's research that shows that actually, if you have a buyback in place, it actually can increase the volume in the stock even though you're shrinking the float. You know, if the price goes up and the valuation is more reasonable, that can actually bring volume and interest into the company.
I would just say maybe don't listen to those people and go ahead and buy back the stock, if that's what you think is the right thing to do based on the valuation. Sorry for that aside. Sorry for that.
Eyal Sheratzky (Co-CEO)
Okay. No comment. No comment on the buyback. Thank you.
Evan Tindell (Co-Founder and Chief Investment Officer)
Yeah. No comment. Okay. Okay. Okay. Yeah, I'd say just do based on what you think the value of the stock is in the open market versus the fair value. Okay. Can you talk about competition in both Brazil, and I know in Israel there's not much competition, but can you just talk about the state of your competitors in both markets in terms of, you know, market share and pricing and kinda, you know, competitive positioning and things like that?
Eyal Sheratzky (Co-CEO)
Okay. First of all, as you said regarding shares, I will tell you regarding competition. We have a very strong competition also in Israel, but we win it, and this is totally different that no competition. Pointer is in the market more or before Ituran, this is the main competitor, and along the years we succeed to gain more and more market share, and what we do today. In order to keep and gain this market share more and more, in Israel it's a very. We have to be the best every day, and this is why we develop more and more technology, why we have to have more recovery rates, a better recovery rate, et cetera.
Because for insurance companies and for car dealer, to change is a one day, 'cause they want better results, they want better solution, they want their customers to be satisfied. We have a everyday competition, but 30 years we succeed to win and gain market share. This is regard Israel. Regard Brazil, I think that it's almost the same. The market is much bigger. The size of Brazil is much bigger. There are specific geographies in Brazil, in the north, in the Amazonas area, where there are some small companies that might have some subscribers. When you talk about the main commercial area in Brazil, which is São Paulo State, Rio de Janeiro, Brasília, and all the main urban areas, we are also, I think, controlling the telematics market, we are the main provider.
What's happened in the last two years, and I believe that we will show it this year and later, we also see in the B2B market, customers like leasing companies, like big fleets, that even they try our competitor now, they change their supplier to Ituran. The situation in Brazil is that we also gaining more and more market share. In the telematics business, I think that we are the largest, and the situation is very close to Israel. The competitive landscape is bigger.
I mean, there are more competitors than in Israel, the market is also more, the geography is bigger. I think that overall in the ongoing new subscribers in the telematics industry, we are add, we are the one that adding the major portion of those subscribers.
Evan Tindell (Co-Founder and Chief Investment Officer)
Okay, thanks. I have one more question. On the fleet business, I know you also have a fleet business, where you sell to fleets. It seems like the leaders in that business, whether it's, you know, Samsara or Geotab, like I'm thinking of Geotab mostly, they really have built out their kind of the software suite and the integration with other providers and things like that to go with the telematics platform for fleet owners.
I'm just wondering, like, how much thought and effort you guys put into, you know, thinking about trying to match that capability over time to make your product more, more competitive in the, in the, in the fleet segment, 'cause it seems like that's gonna be a really big market over time.
Eyal Sheratzky (Co-CEO)
The main different, if you mention Samsara and Geotab, the main different is the market that we choose to go to. If I put aside Samsara with their video solution that we adding it from a third parties today or in the last two years, Geotab is mainly focused in the European market and other markets, but in Latin America, specifically in Mexico and Brazil, when we consider market share, Ituran has larger market share in fleet management. In Israel, totally, this is totally right.
I think that the most differentiated issue is that Samsara, mainly in the U.S., Ituran from beginning, we didn't start to go to lion caves to fight with companies that put billions of dollars in order to penetrate markets. We went to the market where we are strong, when we have brand, when we have relationship. From technological point of view, if you will judge our technology as a fleet manager, I'm totally sure that you will see state-of-the-art solution, not a one single point under a Geotab or Samsara. It's only the markets. We didn't went to Europe. We didn't went to the U.S. We are very focused on Israel and Latin America. Currently, that's what we do.
In the future, if we will decide to go to other geographies, probably we will do it based on acquisition. We will not start from scratch.
Evan Tindell (Co-Founder and Chief Investment Officer)
Okay, thank you.
Kenny Green (Investor Relations Manager)
We'll now try and go back to Chris Reimer from Barclays. Chris, are you able to talk? Looks like Chris.
Chris Reimer (Managing Director and Senior Equity Research Analyst)
Yeah, I think-
Kenny Green (Investor Relations Manager)
Oh, great. continue.
Chris Reimer (Managing Director and Senior Equity Research Analyst)
Thank you. Question answered. about larger.
Eyal Sheratzky (Co-CEO)
We can't hear you, Chris.
Kenny Green (Investor Relations Manager)
Can actually hear you.
Eyal Sheratzky (Co-CEO)
Maybe you will approach us, you know, not in this platform. I can't hear you, sorry.
Kenny Green (Investor Relations Manager)
Chris, we'll speak to you offline.
Eyal Sheratzky (Co-CEO)
Okay, no problem.
Kenny Green (Investor Relations Manager)
Ends our question and answer session. The call will be available on Ituran's website, in the next day for download. Other than that, Eyal, please make your concluding statements.
Eyal Sheratzky (Co-CEO)
Thank you, Kenny. On behalf of the management of Ituran, I would like to thank you, our shareholders, for your continued interest and long-term support for our business. We look forward to continuing our accomplishments over the next decade. If you are interested in meeting or speaking with us, feel free to reach out to our investor relations team. With that, we end our call. Have a good and safe day. Thank you very much.