[Management View]
Key metrics: Revenue of $86.8 million, up 2% YoY; subscription revenue of $63.8 million, up 6% YoY; product revenue of $23 million, down 6% YoY; EBITDA of $22.9 million, down 1% YoY; net income of $13.5 million, up 2% YoY; net additions of 40,000 subscribers, totaling 2,548,000 subscribers.
Strategic priorities: Expansion in motorcycle market, new OEM partnership with BMW Motorrad in Brazil, continued growth in usage-based insurance segment in Israel.

[Outlook]
Performance guidance: Management reiterated guidance of 220,000-240,000 net subscriber additions for 2025.
Future plans: Expansion into high-growth motorcycle markets in South America, leveraging local OEMs and aftermarket channels.

[Financial Performance]
YoY/QoQ trends: Revenue up 2% YoY; subscription revenue up 6% YoY; product revenue down 6% YoY; EBITDA down 1% YoY; net income up 2% YoY; net cash position increased by $11.4 million from year-end 2024.

[Q&A Highlights]
Question 1: How should we be looking at growth into the second half? And would you say you've seen a bounce back in Israel?
Answer: Management maintains the forecast of 220,000 to 240,000 net subscriber additions for 2025, indicating expected growth in the second half of the year.

Question 2: Can you provide any more color on the BMW deal? What's the potential scope of customers and when might we see impact?
Answer: BMW motorcycles in Brazil have signed a partnership agreement to install Ituran's motorcycle solution. The deal is expected to bring tens of thousands of new subscribers annually in the coming years.

Question 3: How should we be looking at the financial expenses going forward?
Answer: Financial expenses are linked to FX and cash deposits. This quarter saw non-cash finance expenses due to the strengthening of the Israeli shekel against the US dollar. Future financial expenses are uncertain and dependent on currency movements.

[Sentiment Analysis]
Tone of analysts: Inquisitive and focused on growth prospects and financial stability.
Tone of management: Confident and optimistic about subscriber growth and strategic partnerships.

[Quarterly Comparison]
| Metric | Q2 2025 | Q2 2024 | YoY Change |
|-----------------------|---------------|---------------|--------------|
| Revenue | $86.8 million | $84.9 million | +2% |
| Subscription Revenue | $63.8 million | $60.2 million | +6% |
| Product Revenue | $23 million | $24.5 million | -6% |
| EBITDA | $22.9 million | $23.1 million | -1% |
| Net Income | $13.5 million | $13.1 million | +2% |
| Diluted EPS | 68¢ | 66¢ | +2¢ |
| Net Cash Position | $88.7 million | $77.3 million | +$11.4 million|

[Risks and Concerns]
Risks: Currency headwinds due to the strengthening of the US dollar; impact of geopolitical events such as the war between Israel and Iran; exposure to FX volatility affecting financial expenses.
Concerns: Uncertainty in financial expenses due to unpredictable currency movements; temporary cost increases from one-time events.

[Final Takeaway]
Ituran demonstrated resilience in Q2 2025 despite geopolitical and currency challenges, maintaining steady growth in subscription revenue and net income. Strategic partnerships, particularly in the motorcycle market, are poised to drive future subscriber growth. Management remains confident in achieving the full-year subscriber growth guidance, while acknowledging the impact of currency fluctuations on financial performance. Investors should monitor the company's expansion efforts and currency movements closely.