Sweden-based caller identification company Truecaller said it will reduce its workforce by about 70 employees, representing roughly 15% of staff, after reporting declines in revenue and profits during the first quarter of 2026.
The company attributed the weaker performance to several factors, including the collapse of India’s real-money gaming advertising market, changes in advertising partner algorithms, and conflict-related disruptions in the Middle East.
Truecaller’s first-quarter results showed net sales falling 27% year over year to 362 million Swedish kronor, or approximately $39.34 million.
The company’s largest market, India, recorded a 41% decline in net sales compared with the same period last year.
Advertising revenue also dropped sharply, declining 44%.
India Gaming Restrictions Hit Advertising Revenue
Rishit Jhunjhunwala said the company faced unusually difficult year-over-year comparisons because of advertising demand tied to India’s real-money gaming sector during last year’s Indian Premier League 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,” Jhunjhunwala said during the earnings call.
India banned several real-money gaming apps in August last year, including platforms such as Dream11 and MPL that allowed users to wager money in fantasy sports competitions.
Industry organizations previously estimated India’s real-money gaming sector at approximately $23 billion.
The shutdown affected advertising spending across platforms that previously hosted gaming-related promotions.
Algorithm Changes Added Pressure
Truecaller also said changes implemented by one of its advertising partners reduced ad revenue further.
An analyst earlier this year identified the partner as Google.
According to the company, updates to advertising algorithms affected programmatic advertising performance during the quarter.
In addition, Truecaller said ongoing instability in the Middle East negatively affected revenue generated from that region.
The company has also been facing broader challenges in India tied to telecom industry alternatives.
Telecommunications operators in India have increasingly promoted services such as Calling Name Presentation, or CNAP, which offers caller identification functionality directly through telecom infrastructure.
TechCrunch previously reported that Truecaller’s downloads declined 5% year over year last year.
Subscription Revenue Continues Growing
Despite the revenue decline, the company reported several areas of growth.
Truecaller said it surpassed 500 million active users during the quarter.
Subscription revenue also increased 27% and now accounts for 31% of total net sales.
The company has been expanding its paid offerings with features including AI Assistant and Family Protection services in an effort to increase subscription adoption.
Truecaller’s stock price has fallen more than 26% since the beginning of the year and over 79% during the past 12 months.
However, the company’s shares showed some recovery following the release of its first-quarter earnings report.
Featured image credits: Wikimedia Commons
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