Truecaller to cut 15% of workforce amid revenue decline

Sweden-based caller ID company Truecaller announced it will cut 70 jobs, representing roughly 15% of its workforce, in the second quarter. The decision follows the release of its Q1 2026 earnings results, which showed a decline in revenue and profits.

The company’s financial performance for Q1 2026 included:

• Net sales dropped 27% to 362 million SEK (Swedish Krona), equivalent to $39.34 million.
• Net sales in India, Truecaller’s largest market, dipped by 41% year-on-year.
• Advertising revenues declined by 44%.

Truecaller attributed the revenue slide to regulatory changes in India, algorithmic shifts by an advertising partner, and conflict in the Middle East. Specifically, the company pointed to India’s ban last August on real-money gaming apps—such as Dream 11 and MPL—which allowed users to wager money on fantasy sports. The real-money gaming industry in India was estimated to be worth $23 billion, and the ban deprived advertising platforms of significant revenue. Truecaller also attributed the decline in its advertising business to algorithm changes by a programmatic partner, which was identified as Google.

“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,” said Truecaller CEO Rishit Jhunjhunwala.

While advertising revenues fell, Truecaller saw growth in other areas. The company crossed the milestone of 500 million active users. Additionally, subscription revenue increased by 27%, now representing 31% of total net sales. Truecaller has been adding features like an AI Assistant and Family Protection to make its paid offerings more attractive to users.

The company is also navigating regulatory and competitive headwinds. TechCrunch reported last month that Truecaller faces challenges from India’s telecom-led solutions, such as the Calling Name Presentation (CNAP) identification service, alongside a 5% year-on-year decline in downloads last year. These pressures have impacted the company’s valuation. Truecaller’s stock has dipped by over 26% this year and by over 79% in the last 12 months, though it experienced some recovery following the Q1 results.

Why it matters

Truecaller’s struggle highlights the volatility of ad-dependent business models when faced with sudden regulatory shifts in key markets like India and algorithmic changes from major partners like Google.