Can Truecaller's (OM:TRUE B) Shift to Subscriptions Offset Weaker Ad Revenue Over Time?

• Truecaller AB (publ) recently announced its third quarter 2025 results, reporting sales of SEK 476.62 million and net income of SEK 108.51 million, reflecting higher overall revenue but lower profitability compared to the previous year.
• A unique highlight was the strong 55% increase in subscription revenues and 39% growth in Truecaller for Business revenue, which helped counter a 1% fall in ad income amid regulatory and economic pressures.
• We'll examine how the surge in subscription and business revenues shapes Truecaller’s long-term investment appeal through growing recurring income streams.

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Truecaller Investment Narrative Recap

For Truecaller, the big picture hinges on whether you believe in the company’s ability to transition from ad-driven growth to building sustainable recurring income through subscriptions and B2B services, especially outside its core Indian market. The latest results reinforce this narrative, with subscription and business revenue gains buffering ad softness, though the near-term catalyst of driving higher-margin recurring revenue appears intact. The company’s ongoing exposure to foreign exchange volatility against the Swedish krona remains the most unresolved risk for reported financials right now, and this quarter’s news does not materially shift that concern.

The recent launch of the Verified Business (VB) platform, announced in mid-October, stands out in the context of these results. This offering promises added value for enterprise customers and supports the surge in B2B revenue, directly aligning with Truecaller’s focus on deepening recurring, less cyclical income sources, for now, this is a key offset to the pressures on traditional ad revenues.

However, in contrast, investors should be aware that growing concentration of revenue in high-tax markets like India could pressure profit margins over time...

Read the full narrative on Truecaller (it's free!)

Truecaller's outlook predicts SEK 3.5 billion in revenue and SEK 1.1 billion in earnings by 2028. This scenario assumes annual revenue growth of 20.2% and an increase in earnings by SEK 612 million from the current SEK 488 million.

Uncover how Truecaller's forecasts yield a SEK64.00 fair value, a 126% upside to its current price.

Exploring Other Perspectives

Ten individual fair value estimates from the Simply Wall St Community range from SEK52.81 up to SEK105.06, with strong opinions on both ends. As many users look for recurring revenue growth, keep in mind how shifting revenue streams and regional tax rates can matter for your view.

Explore 10 other fair value estimates on Truecaller - why the stock might be worth just SEK52.81!

Build Your Own Truecaller Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Truecaller research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Truecaller research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Truecaller's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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