Team Internet Group (TIG) Q4 2025 earnings summary

Executive summary

• 2025 was a transitional year with lower revenue and profitability due to the Search division's pivot, but the business is now positioned for growth, with DIS and Comparison contributing ~80% of EBITDA and showing strong performance into 2026.

• The Search division has completed its transition and is expected to return to profitability in H2 2026, benefiting from industry consolidation and a next-generation monetisation model.

• Strategic review is progressing, with offers for DIS materially above $160 million (GBP 120m), exceeding gross debt and providing surplus for shareholder returns; disposal outcome expected in Q3 2026.

• An antitrust claim is being pursued, potentially material relative to market capitalization, with outcome and timing uncertain.

Financial highlights

• 2025 adjusted EBITDA was $42.7 million, with adjusted operating cash flow of $66 million and adjusted free cash flow at $24.5 million, reflecting strong cash generation despite lower profitability.

• FY25 gross revenue declined 40% year-over-year to $481.9 million, net revenue down 27% to $136.2 million, and adjusted EBITDA fell 54% to $42.7 million.

• Gross margin improved to 28.3% from 23.4% in FY24, reflecting efficiency gains and a better revenue mix.

• Net debt decreased by $8.8 million (down 9% to $87.6 million), even after $6.7 million was returned to shareholders via buybacks.

• Cash conversion reached 155% in 2025, driven by working capital release from the Search business.

Outlook and guidance

• H2 2026 is expected to be stronger, with year-on-year growth anticipated after the 2025 decline; sustainable double-digit earnings growth is forecasted as Search transition annualises.

• DIS and Comparison divisions are expected to continue strong growth, delivering mid-teens net revenue growth and over 40% EBITDA growth year-over-year; Search is forecasted to return to EBITDA profitability in H2.

• Strategic review of DIS is expected to conclude in Q3 2026, with transaction completion possible within the year.

• Guidance reaffirmed for value creation and further updates promised.