Truecaller shares rise 3.2% as preliminary third-quarter sales beat forecasts
Key Facts
Truecaller shares rose 3.2% during trading on October 19 after preliminary figures for the third quarter of 2026 showed net sales exceeding analysts' forecasts, according to Investing.com. Net sales totaled 464 million Swedish kronor during the period, with growth in paid subscription revenue and a recovery in advertising from the previous quarter. The company-compiled consensus forecast for net sales was 430 million Swedish kronor. The figures are preliminary and unaudited, with the company set to publish its full interim report later. The sales beat coincided with a decline in net profit and underlying operating profit compared with the same period a year earlier.
Net profit fell to 68.8 million Swedish kronor from 108.5 million kronor a year earlier, according to figures reported by Investing.com. Underlying operating profit also fell 9% year on year to 147.6 million Swedish kronor. This measure excludes non-recurring items related to the company's acquisition of textPlus. When announcing its first-quarter results, Truecaller had forecast a reduction in personnel costs excluding incentives of at least 20% from their level during that quarter. The company identified the third quarter as the starting point for this expected decline, resulting from restructuring and earlier efficiency initiatives.
In advertising, revenue recovered 23% from the previous quarter, according to Investing.com. The business generated revenue of 245.6 million Swedish kronor in the third quarter. However, it remained below the 290.2 million Swedish kronor recorded in the same period a year earlier. The company had linked an improvement in advertising toward the end of the quarter covered by its previous report to the lifting of restrictions at its largest advertising demand partner. Truecaller said in that report: "We saw a positive impact from the lifting of the restricted classification at our largest advertising demand partner."
Paid subscription revenue grew 32% year on year to 127.10 million Swedish kronor, according to Investing.com. In terms of its user base, Truecaller announced in March 2026 that its monthly active users had exceeded 500 million. That figure included Android and iOS users combined, according to the company's announcement. In the Middle East and Africa, monthly active users had exceeded 100 million, according to a separate announcement issued by Truecaller in August 2025. That represented annual growth of 19% in the region, which forms part of the user base the company seeks to monetize.
The preliminary sales figures follow a second quarter in which Truecaller reported a 21% year-on-year decline in net sales. Net sales then totaled 393.2 million Swedish kronor, compared with 496.4 million kronor in the comparable period, according to the company's report. In September 2026, Truecaller announced the completion of its acquisition of textPlus to expand its presence in the United States. The acquisition adds additional phone number and internet calling services to its business. The purchase price was based on a valuation of the acquired company of 15.0 million U.S. dollars on a cash-free and debt-free basis, according to the deal completion statement.
The restructuring was part of Truecaller's efforts to improve cost efficiency while expanding its services through the acquisition. Growth in paid subscriptions comes within a business that also relies on advertising revenue. Advertising improved from the previous quarter after a period in which it was affected by restrictions at the main demand partner. In the market, the shares rose during trading on the day of the announcement as net sales exceeded the company-compiled consensus. Truecaller is scheduled to publish its full interim report on November 3, 2026.