Truecaller to lay off 15% of staff as Q1 revenue, profit slump
Sweden-based caller identification platform Truecaller has announced plans to cut about 70 jobs, representing roughly 15% of its workforce, after reporting a sharp decline in revenue and profitability in the first quarter of 2026.
The company disclosed the planned layoffs alongside its Q1 2026 earnings report, citing weakening advertising revenues, India’s crackdown on real-money gaming, changes to advertising partner algorithms, and ongoing tensions in the Middle East as key factors behind the downturn.
Truecaller’s net sales for the quarter fell 27% year-on-year to 362 million Swedish krona (approximately $39.3 million), while revenue from its largest market, India, dropped by 41%.
Advertising revenue, one of the company’s biggest income sources, also declined significantly, falling 44% during the period.
Speaking during the earnings call, Truecaller CEO Rishit Jhunjhunwala said the year-on-year comparison appeared especially weak because the company had benefited heavily from advertising spending by India’s real-money gaming sector during the 2025 Indian Premier League (IPL) season.
“The year-on-year comparison looks especially weak given that Q1 and Q2 last year included a large contribution coming from the real money gaming sector in India in connection with the IPL season that takes place around this time. The situation in the Middle East also reduced our revenues from that region,” he said.
India last year tightened restrictions on real-money gaming platforms such as Dream11 and MPL, which allow users to wager money on fantasy sports and online gaming activities.
Industry estimates previously valued India’s real-money gaming market at about $23 billion, making it a major advertising segment for digital platforms like Truecaller.
The company also attributed part of the advertising revenue decline to changes implemented by one of its major programmatic advertising partners.
Analysts previously identified the partner as Google, whose algorithm adjustments reportedly affected ad performance and monetisation.
Truecaller is also facing growing competition in India from telecom-led caller identification services, particularly Calling Name Presentation (CNAP), which allows telecom operators to display caller identities directly through mobile networks.
The company had earlier reported a 5% year-on-year decline in app downloads amid rising competitive pressure.
Despite the weak earnings, Truecaller recorded several milestones during the quarter.
The platform surpassed 500 million active users globally, while subscription revenue rose 27% year-on-year and accounted for 31% of total net sales.
The company has continued expanding its premium offerings with features such as AI Assistant and Family Protection in a bid to strengthen paid subscriptions and reduce dependence on advertising income.
Truecaller’s stock has fallen more than 26% since the start of the year and is down over 79% over the past 12 months, although shares posted a modest recovery after the release of the Q1 results.
Last year, while announcing that it had crossed 500 million users, the company said it added more than 50 million users in 2025 and surpassed 150 million users outside India.
Truecaller also revealed earlier this year that it had crossed 4 million paying subscribers globally, further strengthening one of its key revenue streams.
In 2024, the company said it was recording its fastest growth in emerging markets across Africa and Latin America, highlighting strong user acquisition in countries including Nigeria, Kenya, South Africa, Malaysia, and the United States.
