Team Internet Group Provides FY25 and 2026 YTD Trading Update, Strategic Review Progressing, and Antitrust Claim Pursued

Team Internet FY25 trading update: ugly headline profits, but the underlying story is more interesting

Team Internet Group has issued a FY25 and 2026 year-to-date trading update, and the first thing to say is this: the headline numbers look rough, but the message from management is that the business is now in much better shape than those backward-looking figures suggest.

FY25 revenue fell sharply, profits dropped, and the group reported an operating loss. But that weakness was driven mainly by the Search division transition and a hefty impairment charge – basically an accounting write-down of asset values – rather than a sudden cash collapse across the whole business.

For retail investors, this is one of those updates where you need to separate what has happened from what happens next. The past year was painful. The current trading, refinancing progress and strategic review are what the market will really focus on now.

Team Internet FY25 results explained: revenue down hard, margins up, cash still solid

Metric	FY25	FY24
Gross revenue	USD 481.9 million	USD 802.8 million
Net revenue (gross profit)	USD 136.2 million	USD 187.5 million
Gross margin	28.3%	23.4%
Adjusted EBITDA	USD 42.7 million	USD 91.9 million
Operating profit/(loss)	Loss of USD 49.9 million	Profit of USD 8.2 million
Loss after tax	USD 62.5 million	USD 17.7 million
Net debt	USD 87.6 million	USD 96.4 million

The obvious negative is scale. Gross revenue dropped 40% and adjusted EBITDA more than halved. That is not a small wobble. It shows just how disruptive the Search reset has been.

But there are two clear offsets. First, gross margin improved from 23.4% to 28.3%, which suggests management really did prioritise better-quality revenue over chasing volume. Second, adjusted operating cash conversion hit 155%, up from 108%, which is a strong sign that the business still throws off cash even in a difficult year.

That matters because cash gives management room to manoeuvre. Team Internet reduced net debt by USD 8.8 million in FY25, despite making USD 6.9 million of shareholder distributions. In plain English, this is not a business that looks financially broken.

Search segment problems hit Team Internet results, but management says the reset is now complete

The Search segment was the main drag, and the figures show it clearly. Search revenue fell 59% to USD 222.0 million, net revenue dropped 57% to USD 39.8 million, and adjusted EBITDA collapsed 84% to USD 9.0 million.

That is the bad news. The better news is that the business says the transition away from AdSense for Domains and into next-generation monetisation is now complete. Next-generation monetisation rose to 39.1% of segment revenue, up from just 4.7% in FY24.

There was a cost to getting there. Search revenue per thousand impressions fell 51% to USD 34, and visitor sessions were down 19% to 5.5 billion. So investors have effectively sat through a deliberate rebuild of the engine while output dropped.

Management now says Search is set towards a profitable second half of 2026 after cost optimisation and automation work. That is promising, but it is still guidance rather than proof. I would call this cautiously positive, not fully de-risked.

DIS and Comparison performance shows where Team Internet’s stronger assets sit

If you want the more reassuring part of the update, it sits in DIS and Comparison.

DIS – Domains, Identity & Software – delivered revenue of USD 194.6 million, down 4%, but net revenue rose 3% to USD 75.6 million and adjusted EBITDA increased 10% to USD 21.4 million. Average revenue per domain year improved 2% to USD 12.64, while value-added services rose to 17.8% of segment revenue from 16.1%.

That is a decent mix shift. It suggests DIS is becoming a better-quality earnings stream even if processed domain registration years fell 7% to 12.3 million.

Comparison was more mixed in FY25, with revenue up 4% to USD 65.3 million but net revenue down 7% to USD 20.8 million and adjusted EBITDA down 23% to USD 12.3 million. However, the company says the segment recovered in the second half and has started 2026 strongly. International growth also looks encouraging, with gross merchandise value outside the core DACH region rising to 4.8% from 0.4%.

The key takeaway is simple: the parts of Team Internet not tied to the Search disruption still look operationally healthy.

2026 YTD trading update: Team Internet says current trading is in line with expectations

For the five months to 31 May 2026, Team Internet reported gross revenue of USD 148 million, net revenue of USD 50 million and adjusted EBITDA of USD 16 million.

The company says trading is in line with expectations, with Search profitability improving and DIS plus Comparison delivering strong growth. More specifically, DIS and Comparison posted strong mid-teens net revenue growth and about 40% EBITDA growth year-on-year.

That is a pretty important signal. Investors have been staring at ugly FY25 numbers, but the business is effectively saying the recovery is already underway in 2026.

Of course, the update does not disclose divisional 2026 figures in full, so you cannot model each segment precisely from this statement alone. Still, the tone is clearly more upbeat than the FY25 headline accounts.

Strategic review and DIS disposal: why this could be the real share price driver

The strategic review is still progressing, and discussions continue with selected parties about a potential disposal of the DIS segment. The board expects an outcome in the first half of Q3 2026, with any transaction potentially completing during 2026, subject to usual conditions and regulatory approvals.

This is probably the biggest single catalyst in the whole RNS. Why? Because management believes the market is undervaluing the business, and DIS appears to be the crown jewel investors can put a cleaner value on.

The board also confirmed prior guidance on valuation quantum. Footnote disclosure says that since 11 November 2025, the board has consistently guided to a level materially above the company’s market capitalisation at that time of around USD 160 million. That does not guarantee a deal, and it does not disclose final terms, but it does tell you management thinks DIS could fetch a meaningful number.

The risk is obvious: there is still no certainty that a transaction will happen. Until there is a signed deal, this remains potential rather than fact.

Refinancing and antitrust claim add two more angles for Team Internet investors

The refinancing news is quietly important. Team Internet has renegotiated its debt facilities, extending maturities to October 2027 and securing wider covenant headroom. A covenant is a lender rule the borrower has to stay within, so more headroom means less pressure if trading stays volatile.

Management also says the revised arrangements should reduce commitment fees and financing costs on a like-for-like basis. With leverage at 2.9x adjusted EBITDA versus 1.2x a year earlier, that extra breathing room is welcome.

Then there is the antitrust claim. The group is pursuing substantial damages from a major technology company over anti-competitive conduct established by a final regulatory decision. No asset has been recognised, which is the sensible accounting treatment because the timing, amount and outcome are uncertain.

Still, management says a successful result could be material compared with the current market capitalisation. That is upside optionality, but I would not build an investment case around court money until something more concrete lands.

What this Team Internet RNS means for retail investors

My read is that this is a better update than the ugly FY25 profit line makes it look. The historical damage is clear, especially in Search, but the company now has three things investors usually want after a rough transition: stabilising current trading, a stronger financing position, and a live strategic catalyst.

The negatives are also real. Profitability is still well below prior levels, leverage has risen, and the DIS sale is not done. There is still execution risk, particularly around proving that Search can genuinely recover in the second half of 2026.

Overall, this RNS feels moderately positive. Not because FY25 was good – it was not – but because management seems to have moved from firefighting into value-unlocking mode. If DIS is sold at an attractive valuation and Search does return to profit, the market may have to reassess the whole story.

The audited 2025 annual report is due during the week ending 26 June, so investors should expect a fuller set of numbers very soon. That may be the next chance to see whether this recovery story is getting properly backed up.