The communications app Truecaller is giving up on its ad problem and sees no solution in the near future. This was the message from CEO Rishit Jhunjhunwala to Dagens industri.

The issue arose this past summer when an advertising partner changed its algorithms, and according to the company, it is expected to have a negative impact at least through the first half of 2026.

“We have now realized that it is wrong to continue dedicating significant resources to solving this problem. We do not believe it will be resolved in the near term,” the CEO told Di, adding that they will not completely end their partnership with the company in question.

Going forward, Truecaller instead plans to shift its advertising business towards increased direct sales without third parties, and to prioritize long-term investments over short-term revenue growth and profitability.

Dagens industri considers the communication to be “a complete turnaround that borders on capitulation” based on what the company has previously stated. But even more concerning is the future hope Truecaller for Business, a subscription service for companies. Here, Truecaller has flagged for slower growth due to increased competition. “It is a worrying signal for the segment that was expected to be a cornerstone of the company's next growth phase,” writes Di.

The new announcements caused Truecaller to plummet to a record-low level on Tuesday.

“Even though the stock looks cheap on paper, there is reason to believe in further downside for the battered share. Trust is spent and the road back to growth appears to be long,” Di writes in its commentary.