Core Insights - Truecaller has experienced a decline in ad revenues since mid-August 2025, primarily due to an algorithm change from its largest demand partner and a weaker advertising market in India. The company estimates fourth-quarter ad revenues to be between SEK 210-230 million, reflecting a decline of approximately 30% in constant currencies [1][3]. Revenue Streams - Truecaller’s recurring revenue streams, including premium subscriptions and Truecaller for Business, are expected to show robust growth in the fourth quarter, alongside user growth [2]. Ad Revenue Challenges - The company noted that while there has been some stabilization and minor improvements in ad revenues since November, the issues stemming from the algorithm change have not been fully resolved. Ad revenues are expected to remain muted in the near term until the issue is completely addressed [3][4]. Long-term Strategy - Truecaller is focusing on a revamped ads strategy aimed at reducing dependency on specific partners and markets, increasing growth outside of India, and enhancing direct sales and reseller partnerships. Progress is being made in restructuring the ads business for long-term stability [4][5]. User Growth and Profitability - The company is on track to reach 500 million users and is committed to maintaining solid profitability despite lower revenues. There is an increased focus on cost management without compromising long-term ambitions [6]. Incentive Costs - The fourth quarter is expected to incur additional costs of approximately SEK 30 million due to performance criteria being met in the incentive program LTIP 2022. Total incentive costs, excluding share-price dependent social security costs, are projected to be around SEK 70 million for the fourth quarter [7].