Truecaller Q2 Revenue Falls 21% As Advertising Weakness Persists

Caller identification platform Truecaller reported a 21 per cent year-on-year decline in second-quarter revenue as continued weakness in its advertising business weighed on earnings, despite strong growth in subscriptions, enterprise services, and its global user base, which signalled improving momentum for the second half of 2026.

The Swedish technology company posted net sales of SEK393.2 million for the quarter ended June 2026, down from SEK496.4 million in the corresponding period last year. On a constant currency basis, revenue declined by 14 per cent, while profit after tax fell to SEK51.7 million from SEK118 million a year earlier.

The weaker financial performance was largely driven by a sharp decline in advertising revenue, highlighting the continued challenges facing digital advertising businesses despite improving demand in some markets. However, the company said its recurring revenue streams continued to strengthen, reducing its reliance on advertising income.

Despite the earnings decline, Truecaller expanded its global reach by adding eight million average monthly active users during the quarter, taking its Android and other non-iOS user base to 471 million, compared with 426.6 million in the same period of 2025.

The company said subscription revenue grew by 41 per cent in constant currencies, while revenue from Truecaller for Business increased by eight per cent. Advertising revenue, however, declined by 34 per cent, although recurring revenues rose 26 per cent year-on-year and accounted for 49 per cent of total net sales, up from 33 per cent a year earlier.

Earnings before interest, taxes, depreciation and amortisation (EBITDA), excluding incentive programme costs, dropped by 50 per cent to SEK105.8 million, resulting in an EBITDA margin of 26.9 per cent, compared with 42.6 per cent in the corresponding quarter of 2025. Excluding one-off restructuring costs, EBITDA declined by 39 per cent

Commenting on the results, Truecaller Chief Executive Officer, Rishit Jhunjhunwala, said the quarter marked a turning point despite difficult year-on-year comparisons.

He said, “The quarter marked an important step forward for the company despite difficult year-on-year comparisons, with all revenue streams improving sequentially from the first quarter as our strategic initiatives began to deliver results.”

Jhunjhunwala added, “The advertising business showed encouraging signs of recovery, with revenue increasing 6 per cent from the previous quarter. The improvement was aided by the removal of restrictions imposed by the company’s largest demand partner towards the end of the quarter, resulting in a 10 to 15 per cent increase in average daily revenue from that partner. The positive trend has continued into the third quarter.”

Meanwhile, he also highlighted the company’s subscription business as its strongest growth driver. According to him, “Premium revenue rose 41 per cent year-on-year in constant currencies, reflecting continued customer conversion, stable monetisation and increasing demand for the Premium offering, while there remains significant long-term opportunity given that only a small proportion of our global users currently subscribe to the service.”

The company also reported stronger momentum in its enterprise segment, with revenue from Truecaller for Business rising 24 per cent from the first quarter, supported by increased adoption of its Verified Business solution and higher business messaging volumes.

During the quarter, Truecaller expanded beyond its traditional caller identification services by launching travel eSIMs, marking its first entry into digital mobile services as part of its broader strategy to diversify revenue sources.

Jhunjhunwala, expressing optimism about the company’s prospects, said, “We enter the second half of 2026 with improving momentum across subscriptions, advertising and business services, supported by cost-efficiency measures that have created a leaner organisation while allowing continued investment in areas with strong long-term growth potential. We remain focused on building a more diversified and predictable revenue base and delivering sustainable, profitable growth over time”