Assessing the Strategic Value of Truecaller’s B Share Buyback in Week 35, 2025

Truecaller AB’s share buyback program, initiated in May 2025, has emerged as a pivotal element of its capital allocation strategy. By Week 35 of 2025, the company had repurchased 230,000 B shares at a weighted average price of 46.80 SEK per share, totaling 10,764,340 SEK in expenditure for that week alone [1]. This activity, part of a broader program authorized to repurchase up to 10% of outstanding shares, underscores a deliberate effort to optimize capital efficiency and enhance shareholder value.

The immediate impact of the Week 35 buyback is evident in its contribution to reducing the float. With 1,155,000 shares repurchased by mid-August 2025, the program has already neutralized 0.38% of the outstanding capital [1]. This reduction is critical for boosting earnings per share (EPS), a metric that directly benefits shareholders. By shrinking the denominator in the EPS calculation, Truecaller can signal stronger financial performance without necessarily increasing net income. The company’s 2024 cash flow of 623 million SEK [2] provides a robust foundation for sustaining such repurchases while maintaining flexibility for strategic investments, such as AI-driven growth initiatives.

From a capital efficiency perspective, the buyback program reflects a disciplined approach to surplus cash. Truecaller’s decision to allocate 60,397,509 SEK to repurchases by Week 35 suggests confidence in the intrinsic value of its stock, particularly as the price remains below analyst targets. This strategy not only mitigates dilution risks from long-term incentive plans (LTIPs) but also aligns with the company’s commitment to a 25% dividend yield [3]. By prioritizing buybacks over alternative uses of capital—such as debt reduction or new projects—Truecaller is effectively signaling that its shares are undervalued and that returning cash to shareholders is the most value-creating option.

A to further assess the program’s efficacy might explore the correlation between repurchase activity and stock price performance. For instance, analyzing the price trajectory of Truecaller’s B shares from May to September 2025 could reveal whether the buybacks have acted as a catalyst for investor confidence. Additionally, comparing the cost of repurchases to the company’s weighted average cost of capital (WACC) would provide insight into whether the program is accretive to long-term value.

Critics may argue that the buyback’s impact is diluted by the relatively small percentage of shares repurchased to date (0.38% as of Week 35). However, the program’s scale—authorized to reach 10% of outstanding shares—suggests a long-term commitment. By extending the timeline to the 2026 AGM, Truecaller can execute repurchases at favorable prices, avoiding market volatility and ensuring a steady, measured approach to capital return.

In conclusion, Truecaller’s Week 35 buyback exemplifies a strategic, well-resourced initiative to enhance shareholder value. By leveraging strong cash reserves, reducing share count, and signaling confidence in its stock, the company is positioning itself to deliver superior returns in a competitive market. The program’s success will ultimately depend on its ability to maintain disciplined execution and align with broader financial goals, such as AI innovation and dividend sustainability.

**Source:[1] Repurchase of Truecaller B shares in week 34, 2025 [https://www.prnewswire.com/news-releases/repurchase-of-truecaller-b-shares-in-week-34-2025-302537433.html][2] Truecaller's board has decided to resume share buybacks [https://corporate.truecaller.com/newsroom/press-release/615DDC0DDCEB5986][3] Truecaller's Share Buyback Strategy: A Catalyst for Long-Term Creation [https://www.ainvest.com/news/truecaller-share-buyback-strategy-catalyst-long-term-creation-2507/]