Looking ahead, the CEO said the company enters 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.
Truecaller reported a decline in second-quarter revenue and profit as weakness in its advertising business continued to weigh on financial performance, although the company said growth in subscriptions, business services and its user base signals improving momentum heading into the second half of the year.
For the quarter ended June 2026, the caller identification and communications platform posted net sales of SEK 393.2 million, down 21% from SEK 496.4 million in the same period last year. On a constant currency basis, revenue declined by 14%.
The company’s recurring revenue streams continued to strengthen during the quarter. Subscription revenue grew 41% in constant currencies, while revenue from Truecaller for Business increased 8%. Advertising revenue, however, fell 34%, reflecting ongoing challenges in the digital advertising market. As a result, recurring revenues rose 26% year-on-year in constant currencies and accounted for 49% of total net sales, up from 33% a year earlier.
Profitability also came under pressure. EBITDA excluding incentive programme costs fell 50% to SEK 105.8 million, representing an EBITDA margin of 26.9%, compared with 42.6% a year earlier. Excluding a one-off restructuring cost of SEK 23.5 million, EBITDA declined 39%, with a margin of 32.9%. Profit after tax for the quarter dropped to SEK 51.7 million, down from SEK 118 million in the corresponding period of 2025.
Despite the weaker financial results, Truecaller continued to expand its user base. The company added 8 million average monthly active users during the quarter, bringing its average monthly active users on Android and other non-iOS platforms to 471 million, up from 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 in the same period last year. Average monthly active users during the six-month period increased to 405.9 million, compared with 361.2 million a year earlier.
Chief Executive Officer Rishit Jhunjhunwala said the quarter marked an important step forward for the company despite difficult year-on-year comparisons, noting that all revenue streams improved sequentially from the first quarter as strategic initiatives began to deliver results.
He said the advertising business showed encouraging signs of recovery, with revenue increasing 6% 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% increase in average daily revenue from that partner. According to Jhunjhunwala, the positive trend has continued into the third quarter.
Subscription services remained the company’s strongest growth engine, with Premium revenue rising 41% year-on-year in constant currencies and 6% from the previous quarter. Jhunjhunwala said the performance reflected continued customer conversion, stable monetisation and increasing demand for the Premium offering, while highlighting the significant long-term opportunity given that only a small proportion of Truecaller’s global users currently subscribe to the service.
Truecaller also reported stronger momentum in its enterprise business. Revenue from Truecaller for Business grew 24% compared with the first quarter, driven by improved sales of its Verified Business offering and higher volumes in Business Messaging as new partners expanded their activity and a former exclusive partner returned on a non-exclusive basis.
The company also expanded its product portfolio during the quarter with the launch of travel eSIMs, 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 Truecaller’s global user base.
Looking ahead, the CEO said the company enters 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. He added that the company remains focused on building a more diversified and predictable revenue base and delivering sustainable, profitable growth over time.
