Truecaller (TRUE-B.ST) issued an update on its revenue performance for the fourth quarter of 2025, noting a continued impact on advertising revenue following an algorithm change implemented by its largest demand partner in mid-August.
Based on current trends, Truecaller expects fourth-quarter ad revenue to range between SEK 210 million and SEK 230 million, representing an approximate 30 percent decline in constant currency terms.
The company said the change, combined with a weaker advertising market in India, led to lower ad revenues from that point onward. While the impact has reduced significantly since then, it has not been fully resolved.
Despite advertising pressure, Truecaller said its recurring revenue streams, premium subscriptions, and Truecaller for Business continue to show strong growth, alongside sustained expansion in monthly active users during the quarter.
CEO Rishit Jhunhjhunwala said ad revenues stabilized and showed slight improvement from their lowest levels in November, though the recovery has not yet been meaningful. He noted that ad revenues are expected to remain subdued in the near term until the effects of the algorithm change are fully eliminated.
He added that the company is progressing with a longer-term advertising strategy aimed at reducing dependence on individual partners and markets, expanding growth outside India, and increasing direct sales and reseller partnerships. Management expects these initiatives to contribute gradually to performance over time.
Outside of advertising, the company said it remains on track with user growth and recurring revenue expansion. Jhunhjhunwala stated that changes to the revenue mix and the revised advertising strategy are intended to create a more stable foundation for long-term growth. He also said Truecaller has tightened its cost focus in response to lower revenues while preserving profitability and long-term ambitions, and highlighted that the platform is nearing 500 million users globally.
The company also disclosed that the fourth quarter will include an additional incentive-related cost of approximately SEK 30 million, driven by the expected achievement of performance criteria under its LTIP 2022 program. Total incentive costs for the quarter, excluding share price-related social security charges, are expected to be around SEK 70 million. These costs are non-cash and will not affect cash flow.
TRUE-B.ST currently trades at SEK18.03 or 21.2% lower on the Stockholm Stock Exchange.
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