Earnings report 📈 Stocks 🌍 Sweden ISIN SE0017486889

Truecaller Reports 18% Sequential Revenue Growth in Q3 2026 Recovery

Truecaller signals a return to growth as recurring revenue climbs 26% and sequential revenue jumps 18%, offsetting broader market headwinds in smartphone shipments.

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TRUE B
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Truecaller reported a strong sequential recovery in Q3 2026, with revenue growing 18% compared to Q2 and 3% year-over-year in constant currency. The company is successfully shifting its revenue mix toward recurring income, which now accounts for 47% of total revenue, driven by a 32% increase in premium subscriptions and a recovery in the Truecaller for Business segment.

Catalysts
  • ▲ Sequential revenue growth of 18% compared to Q2 2026
  • ▲ 32% year-over-year growth in premium subscription revenue
Risk Factors
  • ▼ Global decline in smartphone shipments (20-22% in Q3) impacting pre-installation rates
  • ▼ Product quality issues currently being addressed by management
▼ Show FAQ (2) ▲ Hide FAQ
How did the acquisition of text+ impact the company?

The acquisition added 1.5 million monthly active users and provides a platform to accelerate growth in the US market through integration within the Truecaller app.

What is the current status of the advertising business?

After a challenging period, the advertising business saw a progressive stabilization, with revenue increasing 23% sequentially from Q2 and returning to positive year-over-year growth in September.

🎯 Key Takeaways

  • Recurring revenue grew 26% in constant currency, now accounting for 47% of total net sales.
  • Subscription revenue rose 32% annually, while Truecaller for Business returned to year-over-year growth.
  • The company acquired text+ to accelerate its expansion into the US market.
  • EBITDA margin reached 32% excluding one-off costs, reflecting disciplined cost control.

📝 Executive Summary

Truecaller reports a strong sequential recovery in Q3 2026, with net revenue rising 18% compared to the second quarter. While annual net revenue saw a marginal 1% decline to 464 MSEK, the company achieved 3% growth in constant currency, driven by a 32% surge in subscription revenue and a rebound in its business segment.

❓ FAQ

What drove Truecaller's sequential growth in Q3?

Growth was driven by a strong recovery across all revenue streams, specifically a 32% increase in subscription revenue and a 15% sequential increase in Truecaller for Business revenue.

How did external market factors impact Truecaller's user growth?

User growth was dampened by a 20-22% global decline in smartphone shipments and reduced pre-installations by OEMs, particularly affecting price-sensitive markets like India and Nigeria.