Sweden-based caller ID company Truecaller plans to cut 70 jobs, about 15% of its workforce, in the second quarter after reporting a decrease in its Q1 2026 revenue and profits. The company attributed the drop to real-money gaming in India, changes in advertising partner algorithms, and conflict in the Middle East.
Truecaller faces challenges from telecom-led solutions in India, like the Calling Name Presentation (CNAP) service, and a 5% year-on-year fall in downloads last year.
In Q1 2026, Truecaller’s net sales fell by 27% to 362 million SEK ($39.34 million). In its primary market, India, net sales decreased by 41% year-on-year, and ad revenues were down by 44%.
“The year-on-year comparison looks particularly weak because Q1 and Q2 last year saw significant contributions from the real-money gaming sector in India during the IPL season. Additionally, the Middle East situation reduced revenues from that area,” CEO Rishit Jhunjhunwala explained during the earnings call.
India banned real-money gaming apps last August, affecting platforms that advertised these apps. Analysts earlier this year identified a programmatic partner, Google, as having changed its algorithms, impacting ad revenue.
Despite challenges, the company reached 500 million active users, and its subscription revenue rose by 27%, making up 31% of net sales. Truecaller has introduced features like an AI Assistant and Family Protection to enhance its paid offerings.
Truecaller’s stock has dropped by over 26% this year and more than 79% in the past 12 months but showed some recovery after the Q1 results.