Stockholm – November 03, 2026 -- Truecaller reported third-quarter net sales of SEK 464.0 million, up 18% sequentially from Q2 and up about 3% year on year in constant currencies. Reported sales slipped 1% from SEK 467.9 million, and a SEK 92 million transfer pricing provision in India pushed the company to a quarterly loss.
Recurring revenue climbs to 47% of net sales
Subscription revenues grew 32% in constant currencies, and revenues from Truecaller for Business rose 14%. Advertising revenue fell 12%. Recurring revenues grew 26% year on year in constant currencies and now make up 47% of net sales, against 38% a year earlier.
The CEO said ad revenues grew 23% versus Q2 and turned modestly positive year on year in September, helped by the rollout of proprietary ad tech infrastructure. Truecaller for Business sales rose 15% versus Q2. Business Messaging volumes are structurally higher after the shift to a multi-partner model.
Acquisition costs and India provision hit profitability
EBITDA excluding non-recurring items fell 9% to SEK 148.5 million, a margin of 32.0% against 34.7%. In constant currencies the decline was about 5%. Including SEK 18.3 million of advisory costs tied to the acquisition of Text+ Inc., EBITDA fell 20% to SEK 130.2 million, a 28.1% margin.
Profit after tax was SEK -22.6 million, against SEK 108.5 million a year earlier. Basic and diluted earnings per share were SEK -0.07 (0.32).
Nine-month sales fall 17% as India contracts
For January-September, net sales fell 17% to SEK 1,218.9 million, or about 9% in constant currencies. EBITDA excluding non-recurring items dropped 38% to SEK 300.7 million, a 24.7% margin versus 33.1%. Profit after tax was SEK 61.5 million, against SEK 328.2 million.
In Q3, net sales fell 8% in India and rose 1% in the Middle East & Africa and 27% in the rest of the world. Over nine months, India sales fell 27%, the Middle East & Africa fell 2% and the rest of the world rose 20%.
Smartphone shipments drop 20-22%, slowing user growth
Average monthly active users excluding iOS reached 476.2 million, up from 441.7 million. Truecaller said user growth decelerated in the quarter because of a global contraction in smartphone sales and some product issues on its platform. It put the Q3 drop in global smartphone shipments at 20-22%, the lowest in more than a decade. OEMs are also pre-loading Truecaller less as device shipments fall.
Management expects the headwind to persist in the short term as rising RAM prices make handsets more expensive. It sees the greatest impact in price-sensitive, well-penetrated markets such as India, Nigeria and Egypt. Markets in Africa, Southeast Asia, South America and Latin America, where penetration is lower, continue to show healthy growth.
Text+ adds about 1.5 million US users
Truecaller completed the acquisition of Text+, a US subscription-led communications platform with around 1.5 million monthly active users. Text+ is now promoted inside Truecaller, with integrations in both directions under way. Management is targeting higher average revenue per user through premium services, digital consumables, Text+ expansion and B2B products, and does not expect user-volume pressure to carry into financial performance.