Sweden-based caller identification platform Truecaller has announced plans to cut about 70 jobs, representing roughly 15% of its workforce, following a decline in revenue and profitability in the first quarter of 2026.
The company disclosed the planned layoffs alongside its Q1 2026 earnings report, where it cited weakening advertising revenues, disruptions linked to India’s real-money gaming crackdown, changes in advertising partner algorithms, and ongoing tensions in the Middle East as major factors behind the downturn.
Truecaller’s net sales for the quarter dropped by 27% year-on-year to 362 million Swedish krona (about $39.3 million), while revenue from its largest market, India, declined by 41%.
Advertising revenue, a major source of income for the company, also fell sharply by 44% during the period.
What the company is saying
Speaking during the earnings call, Truecaller CEO Rishit Jhunjhunwala said comparisons with the previous year appeared particularly weak because the company had benefited significantly from advertising spending by India’s real-money gaming sector during the Indian Premier League (IPL) season in 2025.
- “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 intensified restrictions on real-money gaming applications such as Dream11 and MPL, which allowed 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 significant advertising segment for digital platforms such as Truecaller.
The company also blamed part of its advertising revenue decline on changes made by one of its major programmatic advertising partners.
Analysts earlier identified the partner as Google, whose algorithm adjustments reportedly affected ad performance and monetization.
Get up to speed
Truecaller has also been facing increasing competition in India from telecom-led caller identification services, particularly Calling Name Presentation (CNAP), which enables telecom operators to display caller identities directly on mobile networks.
- The company had earlier reported a 5% year-on-year decline in app downloads amid the growing competitive pressure.
- Despite the weak earnings performance, Truecaller recorded some positive milestones during the quarter.
- The platform crossed 500 million active users globally, while subscription revenue rose by 27% year-on-year and accounted for 31% of total net sales.
The company has been expanding its premium offerings with features such as AI Assistant and Family Protection in a bid to boost paid subscriptions and reduce reliance on advertising income.
Truecaller’s stock has fallen more than 26% since the start of the year and is down over 79% over the last 12 months, although shares recorded a modest recovery following the release of the Q1 results.
What you should know
While announcing a new feat of crossing 500 million users last year, Truecaller said the platform was seeing significant user growth, as it added over 50 million users in 2025, and surpassed 150 million users outside of India
Truecaller also reported that it crossed 4 million paying subscribers globally earlier in the year, further strengthening one of its key revenue streams.
In 2024, the company said it was seeing its fastest growth in emerging markets across Africa and Latin America.
Truecaller specifically highlighted strong user acquisition in Nigeria, Kenya, South Africa, Malaysia, and the United States.
