Team Internet Group (TIG) Publishes Audited 2025 Annual Report as Search Segment Impairment Drives USD 62.5m Full-Year Loss

FY2025 Revenue and Gross Profit Reflect Deliberate Reduction in Search Volume

Team Internet reported gross revenue of USD 481.9 million for the financial year ended 31 December 2025, representing a 40% decline compared with USD 802.8 million in FY2024. The announcement states that this reduction was, in large part, intentional, with the Group prioritising the quality and durability of its revenue over headline volume during what management describes as a transition year. The Search segment bore the brunt of this shift, with Search gross revenue falling 59% to USD 222.0 million from USD 537.1 million in the prior year.

Net revenue, which the company reports as gross profit, fell 27% to USD 136.2 million from USD 187.5 million. Notably, the gross Margin improved from 23.4% to 28.3%, suggesting that the revenue being retained is of higher quality in margin terms. The Domains, Identity and Software (DIS) segment delivered a 3% increase in net revenue to USD 75.6 million, while the Comparison segment saw a modest 7% decline in net revenue to USD 20.8 million. The Search segment's net revenue fell 57% to USD 39.8 million.

USD 41.7 Million Search Segment Impairment Dominates the Statutory Loss Figure

The most significant driver of the statutory operating loss of USD 49.9 million (compared with a profit of USD 8.2 million in FY2024) was the recognition of USD 41.7 million of impairment charges relating to the Search segment's intangible Assets. These charges reflect a reassessment of the carrying value of assets within a segment undergoing fundamental structural change in its monetisation model. An additional USD 36.0 million of impairment charges had already been recognised in FY2024, indicating that management has been progressively writing down Search segment asset values over two consecutive years.

The loss after tax for FY2025 was USD 62.5 million, compared with a loss after tax of USD 17.7 million in FY2024. Basic and Earnings-per-share/">Diluted Earnings per Share on a reported basis stood at negative 25.71 cents (FY2024: negative 6.98 cents). On an adjusted basis, which strips out impairment charges, non-core operating expenses, foreign exchange movements, and share-based payments, diluted earnings per share were USD 9.18 cents (FY2024: USD 21.22 cents), representing a 57% decline on this measure.

Adjusted EBITDA Falls Sharply but Cash Conversion Reaches 155%

Adjusted EBITDA for the Group fell 54% to USD 42.7 million from USD 91.9 million in FY2024. The Search segment's contribution to adjusted EBITDA collapsed by 84% to USD 9.0 million from USD 56.4 million, while the Comparison segment fell 23% to USD 12.3 million. The DIS segment was the standout performer at the adjusted EBITDA level, increasing by 10% to USD 21.4 million from USD 19.4 million, demonstrating the resilience of its subscription-based revenue model.

Despite the fall in EBITDA, one of the more striking aspects of the FY2025 financial statements is the Group's adjusted operating cash conversion ratio of 155%, up significantly from 108% in FY2024. Adjusted Operating Cash Flow was USD 66.0 million. The company's net cash flow from Operating Activities on a statutory basis was USD 35.0 million. The strong cash conversion underscores that, despite the headline losses, the Business retained meaningful cash generation capabilities during the transition period, which the announcement notes enabled the Group to reduce net debt by USD 8.8 million to USD 87.6 million even while returning USD 6.9 million to shareholders through share repurchases.

Covenant Breaches Waived and Debt Facilities Renegotiated in June 2026

A disclosure of particular significance to investors relates to the Group's banking covenants. The announcement confirms that Team Internet did not meet its financial covenants for the quarters ended 31 December 2025 and 31 March 2026, with the breach at 31 December 2025 arising from adjustments identified during the year-end close process. Both breaches were subsequently waived by the Group's lenders in June 2026. As a consequence of the covenant breach at the Balance Sheet date, the Group's debt facilities of USD 170.0 million have been classified as current liabilities in the 31 December 2025 statement of financial position, reflecting that they were immediately repayable at that date, even though they have since been renegotiated.

The renegotiation, completed in June 2026, has aligned all debt Facility repayment maturities to October 2027 and secured wider covenant headroom. The revised Leverage covenant schedule runs from 4.00x at 30 June 2026, rising to a peak of 4.25x at 30 September 2026, before stepping down to 2.50x by 30 September 2027. The Interest Cover covenant is set at 2.25x for 30 June 2026, rising to 3.00x by 30 June 2027. As part of the amendment, the Group is required to make quarterly repayments of USD 2.5 million on its USD 150.0 million term Loan commencing June 2026, and the revolving Credit facility has been reduced from USD 100.0 million to USD 50.0 million. The Group states that it expects to be compliant with the amended covenants at 30 June 2026 and throughout the Going Concern review period to 30 June 2027.

Leverage Ratio Rises Sharply to 2.9x Adjusted EBITDA

The combination of lower adjusted EBITDA and the unchanged absolute level of net debt resulted in the Group's leverage ratio increasing materially to 2.9x adjusted EBITDA at 31 December 2025, compared with 1.2x at 31 December 2024. Interest cover fell to 2.7x from 5.9x over the same period. The announcement states that both changes primarily reflect the lower adjusted EBITDA recorded during the transition year, rather than deterioration in the Group's absolute debt position, and notes that the Group remained strongly cash generative and reduced net debt during the period.

Net debt at 31 December 2025 was USD 87.6 million, comprising cash of USD 81.2 million, bank debt and prepaid finance costs of USD 168.4 million, and hedging liabilities of USD 0.4 million. This compares with net debt of USD 96.4 million at 31 December 2024. The Group's total Equity contracted sharply to USD 43.7 million from USD 93.1 million at the start of the year, principally reflecting the USD 62.5 million statutory loss for the period, partially offset by a USD 19.9 million favourable foreign exchange translation movement.

Search Segment Undergoes Structural Transformation Towards Next-Generation Monetisation

The Search segment's financial results reflect a business in the midst of deliberate structural change. Segment revenue fell 59% to USD 222.0 million, and visitor sessions declined 19% to 5.5 billion from 6.8 billion in FY2024. Revenue per thousand impressions fell 51% to USD 34 from USD 69, a decline that the announcement attributes directly to the change in monetisation mix during the ongoing transition rather than to market deterioration alone.

The key indicator of progress cited by management is the growth of next-generation monetisation, which increased from 4.7% of segment revenue in FY2024 to 39.1% in FY2025. The announcement positions this as the Group being at the forefront of Related Search on Content and commerce media monetisation, and describes the Search segment's repositioning as placing it for the next phase of high-intent Digital Marketing. Investors may be watching the rate at which next-generation monetisation continues to scale, and whether associated revenue per impression metrics begin to recover as the transition matures.

DIS Segment Secures Ten-Year .co Registry Contract and Delivers Margin Improvements

The Domains, Identity and Software segment demonstrated stable underlying performance in FY2025, with gross revenue declining just 4% to USD 194.6 million. The segment's net revenue grew 3% to USD 75.6 million and adjusted EBITDA rose 10% to USD 21.4 million, reflecting the flow-through of cost benefits from the integration of the Unity Acquisition made in prior periods. Average revenue per domain year increased by 2% to USD 12.64, and value-added services revenue rose to 17.8% of segment revenue from 16.1% in FY2024.

The announcement highlights two notable operational developments within DIS. First, the Group secured the ten-year .co registry contract, which the disclosure suggests extends the segment's long-duration earnings base and provides revenue visibility over an extended horizon. Second, processed domain registration years declined by 7% to 12.3 million from 13.2 million, a trend the company does not explicitly address as a concern but which investors may monitor for further developments. The segment's continued margin improvement and the .co contract win are presented by management as evidence of DIS's strategic resilience.

Comparison Segment Expands Internationally Beyond the Core DACH Region

The Comparison segment reported gross revenue growth of 4% to USD 65.3 million in FY2025, though net revenue edged down 7% to USD 20.8 million and adjusted EBITDA fell 23% to USD 12.3 million. The announcement attributes the segment's softer profitability partly to Investment in international expansion, noting that the segment recovered from a challenging start to the year and returned to year-on-year growth in the second half.

The most striking operational metric in the Comparison segment is the growth in gross merchandise value generated outside the core DACH region, which increased more than tenfold to 4.8% of total GMV from just 0.4% in FY2024. The segment delivered its first positive contributions in France, Italy, and Spain during the year, and launched a UK portal. Revenue per thousand impressions increased by 3% to USD 257 from USD 249, while visitor sessions fell 10% to 169.4 million from 188.5 million. Investors may be watching whether the nascent international markets can reach meaningful scale and contribute positively to segment-level profitability in 2026.

Auditors Issue Unqualified Opinion; Going Concern Basis Adopted with Covenant Waiver Context

The announcement confirms that the statutory accounts for the year ended 31 December 2025 were approved by the Board on 25 June 2026 and received an unqualified audit opinion. The accounts were prepared under UK-adopted international accounting standards in accordance with the Companies Act 2006. The auditors did not include statements under section 498(2) or (3) of the Companies Act 2006, and the accounts will be delivered to the Registrar of Companies in England and Wales in accordance with section 441 of the Act.

The financial statements have been prepared on a going concern basis. The Directors carried out a going concern assessment covering the period to 30 June 2027, considering cash flow forecasts, covenant compliance, and available financing facilities. The assessment was based on a Board-approved base case and a severe but plausible downside scenario, under both of which the Group is projected to comply with the amended financial covenants throughout the review period. The announcement makes clear that the covenant waiver and renegotiated facilities were central considerations in reaching the going concern conclusion, and that the newly amended covenant structure and extended October 2027 maturities materially strengthen the Group's financial position and flexibility.

AGM Scheduled for 24 July 2026 with Remote Participation Available via Investor Meet Company

Team Internet has confirmed that its 2026 Annual General Meeting will be held at 15:00 BST on Friday 24 July 2026 at the company's registered office at 4th Floor, Saddlers House, 44 Gutter Lane, London, EC2V 6BR. The notice of AGM document will be made available on the company's website, and shareholders who have opted to receive hard copies will be sent the document by post. The company is offering conference call facilities for shareholders to attend remotely and ask questions in real time.

Shareholders may also follow proceedings via the Investor Meet Company online platform, with advance registration required via the link provided in the announcement. The company notes, however, that shareholders participating via the Investor Meet Company platform will not be able to speak or vote on AGM resolutions, and strongly encourages shareholders to exercise their voting rights by completing and submitting a Form of Proxy. The announcement recommends appointing the Chairman as proxy to ensure votes are counted in the event of any restrictions on in-person attendance. Questions may be submitted in advance until 09:00 BST on 23 July 2026 or during the meeting via the platform. The immediate share price impact of the annual report publication and AGM notice was not clear from available public information.