The caller ID firm Truecaller, based in Sweden, announced it will reduce its workforce by 70 positions, which is about 15%, in the second quarter, coinciding with the release of its Q1 2026 financial results showcasing a drop in both revenue and profits. The company attributed this downturn to factors such as real-money gaming in India, modifications in advertising partner algorithms, and the ongoing conflict in the Middle East.

As reported by TechCrunch last month, Truecaller is currently encountering difficulties from the telecom-driven solutions in India, including the Calling Name Presentation (CNAP) identification service, alongside a 5% year-on-year decline in downloads recorded last year.

In its Q1 2026 results, Truecaller reported a 27% decrease in net sales, amounting to 362 million SEK ($39.34 million). In its primary market, India, net sales plummeted by 41% compared to last year. Additionally, advertising revenues saw a 44% decline.

“The year-on-year comparison appears particularly weak considering that Q1 and Q2 from the previous year benefitted significantly from the real money gaming sector in India during the IPL season, which occurs at this time. Furthermore, the conflict in the Middle East has also impacted our revenues from that area,” stated Truecaller CEO Rishit Jhunjhunwala during the earnings call.

In August of last year, India prohibited real-money gaming applications like Dream 11 and MPL, which enabled users to wager money on fantasy sports. Industry associations have estimated the real-money gaming market to be worth $23 billion in India. The cessation of these apps has led to a loss of revenue for platforms where they were advertised.

Truecaller mentioned that the revenue drop in its advertising business also stemmed from a programmatic partner, identified as Google by an analyst earlier this year, altering its algorithms.

This quarter brought only a few highlights for the company. Firstly, it surpassed 500 million active users. Additionally, subscription revenues rose by 27%, accounting for 31% of net sales. The company has been enhancing its paid services by introducing features like AI Assistant and Family Protection to attract more subscribers.

Truecaller’s stock has decreased by more than 26% this year and by over 79% over the past year. However, it has experienced some recovery following the Q1 results.