Truecaller (TRUE) Q3 2025 earnings summary

Executive summary

• Recurring revenues grew 32% year-over-year (48% in constant currencies), driven by Truecaller for Business and premium subscriptions, while ad revenues declined 10% due to algorithm changes and regulatory headwinds.

• Premium subscriptions and Truecaller for Business achieved record growth, with premium conversion rates up to 8% in some markets and iOS revenue up 65% year-over-year.

• User base expanded by 15 million, reaching 450 million Android users globally, with high engagement (86% daily active ratio) and strong growth in LATAM, Southeast Asia, Middle East & Africa.

• EBITDA margin remained healthy at 34.7%–35%, despite ad revenue volatility and increased incentive costs.

• Net sales for Q3 2025 increased by 2% to SEK 468 million (14% in constant currencies).

Financial highlights

• Net sales reached SEK 468 million in Q3, up 2% year-over-year (14% in constant currencies).

• EBITDA excluding incentive costs was SEK 186 million, down 1% year-over-year, with a margin of 39.8%.

• Gross margin declined to 75.7%, impacted by higher server and verification costs.

• Premium subscription revenue grew 43% in SEK (55% in constant currencies), reaching SEK 96 million and 3.3 million average users.

• Truecaller for Business revenue grew 21% in SEK (39% in constant currencies), with 75% growth outside India.

• Cash and short-term funds: ~SEK 1 billion, with no financial debt.

Outlook and guidance

• Near-term ad revenue headwinds expected to persist due to external factors, but mitigation strategies and diversification are underway.

• The company is unlikely to fully achieve its 2025 EBITDA margin target of 35% due to ad volatility and currency headwinds, but remains confident in long-term margin potential above 35%.

• Focus remains on growth over profitability, with continued investment in products, marketing, and geographic expansion.

• Several new product launches are planned in the coming months.