Truecaller's Q3 confirmed the return to growth: net sales grew in constant currency, all three revenue streams rose sequentially, and the restructuring lifted the adjusted EBITDA margin back above 30 percent. The SEK92m tax provision turned net income negative, but it is clearly a one-off: accounting rules require Truecaller to quantify the risk, the provision covers all audited years and will not recur, and the company still believes no additional tax should be paid. The share fell 15 percent intraday, likely on the tax provision and the slower q/q user growth. In our view, the reaction is overdone. The slower user growth is mainly driven by a weak smartphone market rather than lower demand for Truecaller, and with a still under-monetised user base, initiatives such as the ad auction model, Premium pricing, eSIM, text+ and new B2B products should keep revenues growing even as user growth slows. We raise our estimates, now including text+, and our DCF Base Case increases to SEK33 (31). The share is trading at c.8.5x EV/EBIT for 2027e and screens as Attractively Priced.
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