Truecaller announces preliminary numbers for the third quarter 2026

Truecaller’s Q3 profit and margins fell sharply despite modest revenue growth.

What the company is saying

Truecaller is presenting preliminary, unaudited Q3 2026 results, emphasizing a return to year-over-year net sales growth in local currency and sequential improvement across all three revenue streams. CEO Rishit Jhunjhunwalam frames the quarter as a positive inflection, highlighting 3% net sales growth in constant currencies, 18% sequential growth, and a focus on monetising the existing user base. The company points to a 23% quarter-over-quarter rebound in ad revenues, 32% year-over-year growth in Premium, and 14% growth in Truecaller for Business, attributing ad improvement to a transition to a proprietary ad platform and higher Business Messaging volumes to a multi-partner model. Management acknowledges slower user growth but claims profitability is now at a 'healthy level.' The tone is upbeat, but the announcement buries the fact that net profit fell 37% year-over-year and margins compressed. The company stresses that these results are preliminary and unaudited, with final statements due November 3, 2026.

What the data suggests

The disclosed figures show SEK 464 million in Q3 net sales, up 3% in constant currencies year-over-year and 18% sequentially, but total revenues actually declined 2% year-over-year. Ad revenues dropped 12% year-over-year to SEK 245.6 million, though they rebounded 23% from the previous quarter. Premium revenues rose 32% to SEK 127.1 million, and Truecaller for Business grew 14% to SEK 85.1 million. Gross profit fell 7% to SEK 331.0 million, with gross margin compressing from 75.7% to 71.3%. EBITDA excluding non-recurring items was SEK 147.6 million, down 6% in constant currencies year-over-year but up 68% quarter-over-quarter. Net profit fell sharply by 37% to SEK 68.8 million. Staff costs excluding incentives fell 18%, but incentive costs rose 11%. Average non-iOS MAU increased 8% to 476.2 million. The numbers reveal that while some revenue streams are growing, overall profitability and margins are under pressure, and the company’s positive framing does not fully reflect the year-over-year deterioration.

Analysis

The announcement is largely factual and data-driven, with detailed preliminary financials for Q3 2026, including revenue, profit, margin, and user metrics. However, the CEO's commentary uses positive framing ('profitability is at a healthy level', 'sustained solid revenue growth', 'gradual revenue improvement') despite clear year-over-year declines in key profitability metrics: net profit is down 37%, EBITDA down 20%, and gross margin has compressed. While some revenue streams (Premium, Business) grew, overall revenues and profits deteriorated. Most claims are realised and supported by numbers, but qualitative statements about monetisation improvements and platform transitions are not directly evidenced. The hype level is moderate due to selective emphasis on quarter-over-quarter improvements and positive language that downplays the negative year-over-year trends.

Risk flags

• ●Profitability risk is elevated, as net profit declined 37% year-over-year to SEK 68.8 million and gross margin compressed by over 4 percentage points, indicating that cost pressures or revenue mix shifts are eroding bottom-line performance.
• ●Ad revenue volatility is a concern: while ad revenues grew 23% sequentially, they remain 12% below last year’s level, suggesting that the new proprietary ad platform and auction process have not yet fully offset prior declines.
• ●The company’s positive narrative selectively emphasizes quarter-over-quarter improvements while downplaying year-over-year declines in key metrics, raising the risk that underlying structural challenges are being masked by short-term gains.
• ●All figures are preliminary and unaudited, so there is a risk that final audited results due November 3, 2026, may differ materially, potentially impacting investor expectations.

Bottom line

Truecaller’s Q3 2026 preliminary results show modest revenue growth in constant currencies, but profitability and margins have deteriorated sharply year-over-year. Net profit fell 37% to SEK 68.8 million, and gross margin dropped from 75.7% to 71.3%, despite sequential improvement in ad revenues and continued growth in Premium and Business segments. Management’s upbeat commentary focuses on quarter-over-quarter gains and operational initiatives, but the data points to persistent cost pressures and a challenging ad market. The results are unaudited and subject to change, with final numbers due November 3, 2026. Investors should focus on whether margin compression and profit declines persist in the audited results and watch for evidence that operational changes are translating into sustainable profitability. The most important takeaway is that Truecaller’s core profitability is weakening even as some revenue streams recover.

Announcement summary

(LSE:0AA7) Truecaller announced its preliminary and unaudited financial results for the third quarter of 2026. Total net sales for Q3 2026 are expected to amount to SEK 464 million, representing an increase of 3% in constant currencies compared to the same period last year and an increase of 18% compared to the second quarter of 2026. Ad revenues are expected to be SEK 245.6 million, a decrease of 12% in constant currencies compared to Q3 2025 but an increase of 23% compared to the previous quarter. Premium revenues are expected to reach SEK 127.1 million, an increase of 32% in constant currencies compared to Q3 2025. Revenues from Truecaller for Business are expected to be SEK 85.1 million, an increase of 14% in constant currencies compared to Q3 2025 and an increase of 15% compared to the previous quarter. Other net sales are SEK 6.2 million, up more than 100% from Q3 2025. Other revenues are SEK 5.3 million, down 40% from Q3 2025. Total revenues are SEK 469.3 million, a decrease of 2% from Q3 2025 but an increase of 2% in constant currencies. Cost of goods sold increased by 17% to SEK 133.0 million. Gross profit is SEK 331.0 million, down 7% from Q3 2025 and down 4% in constant currencies. Gross margin is 71.3%, compared to 75.7% in Q3 2025. Staff costs excluding incentives decreased by 18% to SEK 72.3 million. Incentive costs increased by 11% to SEK 26.1 million. Other expenses increased by 2% to SEK 90.3 million. EBITDA excluding non-recurring items associated with the acquisition of TextPlus is expected to be SEK 147.6 million, a decrease of approximately 6% in constant currencies compared to Q3 2025 but an increase of 68% compared to the previous quarter. The preliminary EBITDA margin is 31.8%, compared to 34.7% in Q3 2025. EBITDA and margin excluding incentive costs and non-recurring items is SEK 173.7 million and 37.4%, compared to SEK 186.2 million and 39.8% in Q3 2025. EBITDA is SEK 129.6 million with a margin of 27.9%, compared to SEK 162.5 million and 34.7% in Q3 2025, a decrease of 20% and 17% respectively. Profit after net financial items is SEK 108.6 million, down 27% from Q3 2025. Net profit is SEK 68.8 million, down 37% from Q3 2025. Average monthly active users (MAU), non-iOS, was 476.2 million, an increase of 8% from Q3 2025. Average daily active users (DAU), non-iOS, was 411.1 million, also up 8% from Q3 2025. The CEO, Rishit Jhunjhunwalam, commented that all three revenue streams grew compared to the previous quarter, total net sales returned to year-over-year growth in local currency, profitability is at a healthy level, and the user base continued to grow, though at a slower pace. The company focused on improving monetisation of the existing user base and expanding beyond established markets. Within Ads, the transition to a new proprietary ad platform and auction process led to gradual revenue improvement, while Premium delivered sustained solid revenue growth. For Truecaller for Business, message volumes for Business Messaging are now higher than a year ago due to a shift to a multi-partner model, and Verified Business had stable development. The financial information is preliminary and unaudited, with final reviewed financial statements for January-September 2026 expected to be published on November 3, 2026.

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