Team Internet Group (TIG) Q2 2025 earnings summary

Executive summary

• H1 2025 marked a strategic transformation, with all segments repositioned for resilience, modernized products, and streamlined costs, while management focused on cost discipline, product modernization, and regaining market trust.

• DIS secured major new contracts, Comparison scaled internationally, and Search advanced RSOC transition with strong validation.

• Group-wide efficiency initiatives and cost optimization enhanced resilience and future profitability.

• The group remains focused on sustainable growth, margin improvement, and shareholder value creation.

Financial highlights

• Gross revenue declined 35.6% year-over-year to $263.9m; net revenue fell 25.5% to $72.8m, with gross margin improving to 27.6%.

• Adjusted EBITDA dropped 47% to $24.6m, with margin at 33.8% of net revenue; adjusted EPS (diluted) at 5.93 cents.

• Operating loss of $7.0m (vs. $22.9m profit in H1 2024) due to lower EBITDA and non-cash items including impairment and FX losses.

• Net debt reduced to $93.3m despite $6.7m in share buybacks; leverage at 1.7x TTM adjusted EBITDA; cash conversion at 109%.

• Adjusted operating cash flow was $26.9m in H1 2025.

Outlook and guidance

• Most transformation benefits expected to materialize in H2 2025, with profitability to exceed H1 due to seasonal uplift, cost base reductions, and internationalization.

• DIS segment to see continued net revenue growth into 2026 and beyond, supported by new contracts and platform consolidation.

• Search segment recovery anticipated as RSOC and next-gen monetisation models scale, now nearly 25% of segment revenue.

• No significant change in full-year guidance since last market update; board remains confident in resilience and growth trajectory.