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]

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].