Strong growth in recurring revenue and users, ads impacted by external challenges

STOCKHOLM, Oct. 28, 2025 /PRNewswire/ -- 

Interim report January-September 2025

Truecaller, the leading global platform for verifying contacts and blocking unwanted communication, report an increase in net sales with 2% to SEK 467.9 million (457.3), in constant currencies the increase was 14%. In constat currencyies subscription revenues grew with 55%, Truecaller for Business with 39% while revenue from ads declined with 1%. EBITDA excluding incentive costs decreased with 1% and the EBITDA margin was 39.8% (41.0%), in constant currencies the increase was approximately 14%. EBITDA including costs for incentive programs decreased with 3% and the margin was 34.8% (36.6%), in constant currencies the increase was approximately 14%. During the quarter average number of monthly active users grew with 15 million.

CEO Word:

"During the third quarter, we continued to see very strong growth in both our recurring revenue streams. Premium subscription revenues grew by 55% in constant currency, on the back of increasing conversions of non-paying users on both Android and iOS. We achieved an all-time high growth in the number of subscribers during the quarter, reflecting strong product engagement and continued consumer demand.

We also saw continuing robust growth of Truecaller for Business, where revenues grew with 39% in constant currency, supported by continued low churn, increasing enterprise adoption and geographical diversification. Growing recurring revenues continues to be one of our most important strategic goals, and we will intensify our efforts here even further going forward.

Our ads business experienced a challenging environment and revenues declined with 1% in constant currency. The quarter started really well, with increasing demand in July to mid-August. However, factors outside of our control, namely, macro-economic uncertainty due to the ongoing trade tariff discussions and the regulatory ban on Real Money Gaming (RMG) in India, then started to have a negative impact on the overall demand in the Indian ads market. Effects from FX continued to be part of the headwinds we faced as well. On top of this, our largest advertising network partner made a change in their algorithm in relation to click through tracking, without prior notice or detailed clarification, causing a downturn in revenues to us and several other large publishers. This, despite no change in user behaviour or ad delivery on our platform. This issue significantly contributed to weaker ad revenues toward the second half of the quarter. Of course, we have been and will continue working tirelessly to recover from this and will not rest until it is fully resolved.

Albeit having a negative revenue effect now, these developments strengthen the conviction in our strategy to diversify our revenue streams and our revenue sources within ads, and focus on a less volatile growth trajectory that we are in full control of. Our ads business fundamentals are healthy, but what got us this far will not take us to the next phase of growth. We continue to execute towards our long-term strategic targets; a material pivot towards more direct ad sales, more ads traffic based on our own ads platform and a more diversified geographical mix. We are strengthening our capacity to execute on those targets and are signing up both more direct ads customers from a wider range of verticals and new demand partners continuously. Another important component in this strategy was the launch in Q3 of adVantage, our proprietary AI-powered recommendation engine which allows for precise segmentation and targeting using AI. The platform has been tested during the year and has consistently delivered improved ROI to both, our ads business and Truecaller for Business, and is now being scaled up further.

During the last three years we have significantly reduced our dependency on our two largest ad partners, from 71% of total revenues in 2022 to approximately 45% in Q3 2025. We will continue this diversification, which over time will enhance our ability to navigate market fluctuations while creating a more robust growth foundation for the future.

In terms of financials, total net sales grew by 2% during the quarter (14% in constant currency). EBITDA decreased by 3% (14% growth in constant currency) while maintaining an EBITDA-margin of 34.7 % (36.6% in constant currency).

User engagement and adoption continue to be very strong, highlighting the relevance and trust in our platform. We have now surpassed 450 million active users globally on Android, and subscription growth remains strong across both iOS and Android, demonstrating widespread demand for safer and more reliable communication

We're at a stage where our long-term ambitions remain fully attainable—but they demand sustained focus and commitment. External headwinds, such as FX fluctuations and advertising market fluctuations, mean that meeting our financial target for 2025 has become more challenging than initially expected. At the same time, our user base and overall growth opportunities have expanded beyond what we anticipated. Consequently, we continue to invest — both in our advertising business and, even more strategically, in our recurring revenue streams, as well as product development for our existing customers. We are confident that this over time will translate into higher overall ARPU and revenue growth which will benefit our shareholders.

Since I took over as CEO at the beginning of this year, we have had our fair share of market volatility and external challenges, and there is work to be done to overcome those fully. But the team and I are laser focused on aspects of our business that we can control — global user growth, premium subscriber growth, enterprise ARR, direct ad sales, and partner diversification — all of which are progressing well. This accelerates our strategic progress and positions Truecaller for renewed ads momentum. Our recurring revenue streams continue to grow at a high and steady rate, and disregarding the FX headwinds, we continue to show good overall growth.

I am confident that our products and services will continue to see increasing demand, and that we will continue to be the best solution globally for safe and secure voice and messaging communication, says Rishit Jhunjhunwala CEO of Truecaller."

July-September 2025 (Q3)

Comparative figures refer to July-September 2024

• Net sales increased by 2 percent to SEK 467.9m (457.3). Net sales in constant currencies increased by approximately 14 percent.
• EBITDA excluding the costs of incentive programs decreased by 1 percent to SEK 186.2m (187.3), equivalent to an EBITDA margin of 39.8 (41.0) percent. In constant currencies the EBITDA increase was approximately 14 percent.
• EBITDA including the costs of incentive programs decreased by 3% to SEK 162.6m (167.4), corresponding to an EBITDA margin of 34.8 (36.6) percent. In constant currencies the EBITDA increase was approximately 14 percent.
• Profit after tax was SEK 108.5m (117.8).
• Basic earnings per share was SEK 0.32 (0.34) and diluted earnings per share were SEK 0.32 (0.34).
• The average number of active non-iOS users (MAU) increased by 56.3 million to approximately 441.7 million (385,4).
• Net sales increased by 14 percent in the Middle East and Africa, by 21 percent in the rest of the world and decreased by 4 percent in India.

January-September 2025

Comparative figures refer to January-September 2024

• Net sales increased by 9 percent to SEK 1,461.2m (1,304.4). Net sales in constant currencies increased by approximately 18 percent.
• EBITDA excluding the costs of incentive programs increased by 13 percent to SEK 596.4m (526.5), equivalent to an EBITDA margin of 40.8 (39.3) percent. In constant currencies the EBITDA increase was approximately 26 percent.
• EBITDA including the costs of incentive programs was stable at SEK 484.4m (483.1), corresponding to an EBITDA margin of 33.1 (36.0) percent. In constant currencies the EBITDA increase was approximately 14 percent.
• Profit after tax was SEK 328.2m (373.9).
• Basic earnings per share was SEK 0.96 (1.08) and diluted earnings per share were SEK 0.96 (1.08).
• Net sales increased by 5 percent in India, by 22 percent in the Middle East and Africa and by 19 percent in the rest of the world.

Presentation of the report

Rishit Jhunjhunwala, CEO and Odd Bolin, CFO presents the report and answers questions in a webcast and conference call on the 28^th of October at 13.00 CET. The presentation will be held in English.

If you wish to participate via webcast please use the link below.

https://truecaller.events.inderes.com/q3-report-2025

If you wish to participate via teleconference please register on the link below. After registration you will be provided phone numbers and a conference ID to access the conference. You can ask questions verbally via the teleconference.

https://conference.inderes.com/teleconference/?id=50051980

For more information, please contact:
Odd Bolin, CFO
[email protected]

This information is information that Truecaller is obliged to make public pursuant to the EU Market Abuse Regulation 596/2014. The information was submitted for publication, through the agency of the contact persons set out above, at the time stated by the Company's news distributor, Cision, at the publication of this press release.

About Truecaller:

Truecaller (TRUE B) is the leading global platform for verifying contacts and blocking unwanted communication. We enable safe and relevant conversations between people and make it efficient for businesses to connect with consumers. Fraud and unwanted communication are endemic to digital economies. especially in emerging markets. We are on a mission to build trust in communication. Truecaller is an essential part of everyday communication for more than 450 million active users. Truecaller is listed on Nasdaq Stockholm since 8 October 2021. For more information. please visit corporate.truecaller.com

This information was brought to you by Cision http://news.cision.com

https://news.cision.com/truecaller-ab/r/strong-growth-in-recurring-revenue-and-users--ads-impacted-by-external-challenges,c4257527

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SOURCE Truecaller AB