Truecaller Reports Lower Q2 Sales but Signals Recovery in Core Businesses

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Truecaller reported lower second-quarter revenue and profit as continued weakness in its advertising business weighed on financial performance, although strong growth in subscriptions, enterprise services and its expanding user base signalled improving momentum heading into the second half of 2026.

The caller identification and communications platform posted net sales of SEK 393.2 million for the quarter ended June 2026, down 21% from SEK 496.4 million in the same period last year. On a constant currency basis, revenue declined 14%.

The decline was largely driven by continued softness in the company’s advertising business, where revenue fell 34% year-on-year, reflecting ongoing challenges across the digital advertising market. Despite this, Truecaller continued strengthening its recurring revenue business, reducing its reliance on advertising. Subscription revenue grew 41% in constant currencies, while revenue from Truecaller for Business increased 8%. As a result, recurring revenue rose 26% year-on-year and accounted for 49% of total net sales, up from 33% a year earlier.

Profitability also came under pressure during the quarter. EBITDA, excluding incentive programme costs, declined 50% to SEK 105.8 million, representing an EBITDA margin of 26.9%, compared with 42.6% in the corresponding period last year. Excluding a one-off restructuring charge of SEK 23.5 million, EBITDA fell 39%, with an adjusted margin of 32.9%. Profit after tax dropped to SEK 51.7 million, down from SEK 118 million in the second quarter of 2025.

Despite the lower earnings, Truecaller continued expanding its global user base. The company added 8 million average monthly active users during the quarter, bringing average monthly active users across Android and other non-iOS platforms to 471 million, compared with 426.6 million a year earlier.

For the first six months of 2026, net sales declined 24% to SEK 754.8 million, while profit after tax fell to SEK 84.1 million from SEK 219.7 million during the same period last year. Average monthly active users increased to 405.9 million, up from 361.2 million in the corresponding period of 2025.

Chief Executive Officer Rishit Jhunjhunwala said the second quarter marked an important step forward despite challenging year-on-year comparisons, noting that all of the company’s revenue streams improved sequentially from the first quarter as strategic initiatives began delivering results.

He said the advertising business showed early signs of recovery after restrictions imposed by the company’s largest demand partner were lifted towards the end of the quarter. The change contributed to a 10% to 15% increase in average daily revenue from that partner and helped advertising revenue grow 6% from the first quarter. According to Jhunjhunwala, the positive momentum has continued into the third quarter.

Subscription services remained the company’s strongest growth driver, with Premium revenue increasing 41% year-on-year in constant currencies and 6% quarter-on-quarter. Jhunjhunwala said the performance reflected stronger customer conversion, stable monetisation and rising demand for the Premium offering, while noting that only a small proportion of Truecaller’s global users currently subscribe, leaving significant room for long-term growth.

The enterprise business also delivered stronger momentum during the quarter. Revenue from Truecaller for Business increased 24% from the first quarter, supported by stronger sales of its Verified Business offering and higher Business Messaging volumes as new partners expanded their activity and a former exclusive partner returned under a non-exclusive arrangement.

Truecaller also expanded its product portfolio with the launch of travel eSIM services, marking its first move beyond caller identification and spam protection into digital mobile services. Jhunjhunwala described the launch as the beginning of a broader strategy to introduce additional digital products to the company’s global user base.

Looking ahead, the company said it enters the second half of 2026 with improving momentum across subscriptions, advertising and enterprise services, supported by cost-efficiency measures that have created a leaner organisation while allowing continued investment in areas with strong long-term growth potential. Truecaller said it remains focused on building a more diversified and predictable revenue base while delivering sustainable, profitable growth over the long term.