Truecaller Posts Third-Quarter Sales of SEK 464 Million and a Net Loss
Key Facts
Truecaller said on November 3 that net sales were SEK 464.0 million in the third quarter of 2026, down 1% year on year but up 3% at constant currencies and 18% from the second quarter. The company said it swung to a net loss of SEK 22.6 million, from a profit of SEK 108.5 million in the year-earlier period. The quarter’s result included a SEK 92 million provision related to a transfer pricing audit in India. The sequential comparison shows sales improving after they fell 21% year on year to SEK 393.2 million in the second quarter. Second-quarter net profit was SEK 51.7 million, compared with SEK 118.0 million a year earlier.
By revenue stream, subscriptions grew 32% at constant currencies year on year, Truecaller for Business revenue rose 14%, while advertising revenue fell 12%. Recurring revenue increased 26% at constant currencies, accounting for 47% of net sales, compared with 38% in the third quarter of 2025. This reflects an expansion in recurring income sources alongside continued weakness in advertising, although subscriptions and business services grew during the quarter. The company linked slower user growth to declining phone shipments and platform issues, after reporting in the second quarter that monthly active users increased by 8 million during that quarter.
Operating earnings before interest, taxes, depreciation and amortization, excluding non-recurring items, fell 9% to SEK 148.5 million, with a margin of 32.0% compared with 34.7% a year earlier. Including non-recurring items, the measure fell 20% to SEK 130 million, with a margin of 28.1% versus 34.7% in the year-earlier period. The company said the measure excluding non-recurring items included one-off costs related to the acquisition of text+. The difference between the two measures highlights the impact of non-recurring items on the reading of operating performance for the quarter. The reported net loss remains affected by the Indian provision, which the company included in its post-tax result.
The company added 5 million monthly active users during the quarter, and average monthly active users excluding iOS users reached about 476.2 million, up 8% from 441.7 million a year earlier. This follows the addition of 8 million monthly active users in the second quarter, while the company said slower user growth was linked to declining phone shipments and platform issues. Sales had declined more sharply year on year in the first quarter, falling 27% to SEK 361.6 million, compared with SEK 496.9 million in the year-earlier period. First-quarter net profit was SEK 32.5 million, compared with SEK 101.7 million a year earlier. Third-quarter results place the sequential sales improvement alongside growth in subscriptions and recurring revenue, while nominal sales continue to decline year on year.
The Indian tax audit remains an issue alongside the quarterly results. Truecaller said the tax assessment order following the audit order will include a formal claim for tax and interest for fiscal year 2022/2023. It added that it intends to challenge the claims, which it describes as unsupported. In an announcement in July, the company said it had secured an SEK 850 million term loan facility from SEB and extended an undrawn SEK 500 million revolving credit facility through 2028. It said the financing supports management of the Indian tax audit, as well as share buybacks and the exploration of acquisition opportunities. The company’s shares rose 3.4% on October 19 after it announced preliminary third-quarter sales of SEK 464 million, above the company-compiled average forecast of SEK 430 million.