Truecaller announces preliminary numbers for the fourth quarter 2025

Core Insights - Truecaller has released preliminary and unaudited financial results for Q4 2025, indicating a focus on transparency and follow-up on previous revenue estimates [1] Financial Performance - Ad revenues are projected to be SEK 255.2 million, reflecting a decrease of 22% in constant currencies compared to the same period in 2024 [2] - Recurring revenues are expected to reach SEK 193.7 million, marking a significant increase of 51% year-over-year, with Premium revenues anticipated at SEK 106.0 million, up 53% in constant currencies [2] - Total net sales for Q4 2025 are expected to be SEK 451 million, a slight decrease of 1% in constant currencies compared to the previous year [2] - EBITDA is projected at SEK 103 million, representing a decrease of approximately 34% in constant currencies, with a preliminary EBITDA margin of 22.8% [3] Adjusted Financial Metrics - When adjusting for items affecting comparability, net sales decreased by 8%, EBITDA by 22%, and ad revenues by 30%, while recurring revenues grew by 46% in constant currencies [4] - The gross margin, excluding these items, would have been 75.6%, and the EBITDA margin approximately 30% [4] User Growth - Average non-iOS Monthly Active Users (MAU) reached 454.2 million, an increase of 54.5 million users year-over-year, with a growth of 12.5 million users during Q4 [3] Business Strategy and Challenges - The company is facing ongoing challenges with its largest demand partner, but has managed to minimize the impact of algorithm changes while working on long-term ad strategy improvements [6] - Cost efficiency initiatives have been implemented to maintain profitability during this transition period, with an expected annualized effect of approximately SEK 90 million once fully realized [7] Premium Subscriptions and Business Growth - Premium subscriptions grew by approximately 39%, with a conversion rate increase to 0.75% [8] - Truecaller for Business continues to show strong growth, particularly in regions outside of India, with revenues expected to reach SEK 87.7 million, a 48% increase in constant currencies [2][9] Financial Health - The company maintains a healthy cash flow position, with approximately SEK 1 billion in cash and short-term interest-bearing investments at year-end, allowing for flexibility in capital allocation [12]