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Team Internet Group plc (AIM: TIG, OTCQX: TIGXF), a global internet company specializing in recurring revenue from identity and discovery services online, has reported that its trading performance for the first half of 2026 met market consensus. The company highlighted that its Search segment became profitable again in June 2026 after completing the transition away from legacy AdSense for Domains revenue, while the Comparison and Domains, Identity & Software segments sustained strong momentum with notable margin growth.
Key Points
- Team Internet Group plc (AIM: TIG, OTCQX: TIGXF) operates globally in domain name management, identity software, and digital advertising sectors.
- H1 2026 gross revenue was USD 179.1 million, down from USD 263.9 million in H1 2025 but higher than USD 218.0 million reported in H2 2025.
- Net revenue improved to USD 61.0 million with gross margin expanding to 34.1% in H1 2026, compared to 27.6% in H1 2025 and 29.1% in H2 2025.
- Adjusted EBITDA reached USD 19.5 million for H1 2026, with the Comparison segment’s adjusted EBITDA growing 54% year-on-year and the DIS segment increasing by 28% year-on-year.
- Search segment returned to profitability in June 2026 following the completion of its shift away from AdSense for Domains revenue, driven by efficiency improvements and disciplined yield management.
- Net debt rose to USD 117.5 million as of 30 June 2026 from USD 87.6 million at 31 December 2025, mainly due to corporation tax settlements and non-renewal of a registry contract.
- The strategic review of the Domains, Identity & Software business is progressing with selected parties, with transaction completion expected in 2026.
- Non-Executive Director Claire MacLellan will retire from the Board immediately after the Annual General Meeting on 24 July 2026.
Team Internet’s Business Model and Market Positioning
Team Internet Group plc operates globally across two main sectors: domain name management, identity and software solutions (DIS segment), and digital advertising via its Comparison and Search segments. The DIS segment serves as a vital distribution channel for domain names and related digital products, catering to businesses, brands, and consumers establishing their online presence. Meanwhile, the Comparison and Search segments deliver privacy-safe, AI-driven consumer journeys that convert general media users into engaged consumers through advertorial and review platforms.
The company’s revenue model is heavily based on recurring subscription revenues within the DIS segment and rolling revenue-share contracts in the Comparison and Search segments, providing earnings stability across market cycles. Listed on AIM (ticker: TIG) and OTCQX (ticker: TIGXF), Team Internet is accessible to investors in both the UK and North America. Its strategic shift away from legacy revenue streams towards advanced monetization solutions in search advertising underscores its focus on technology-driven, efficient business models.
H1 2026 Financial Overview: Revenue Decline Offset by Margin Expansion
In H1 2026, Team Internet’s gross revenue decreased to USD 179.1 million from USD 263.9 million in H1 2025, a 32% year-on-year drop. This decline was anticipated and aligned with market expectations, primarily due to the near elimination of legacy AdSense for Domains revenue by mid-2026 after a continuing decline through H2 2025. The company noted that while H1 2026 revenue was behind H1 2025, it was ahead of H2 2025, indicating improving sequential performance.
Despite lower gross revenue, net revenue (gross profit) increased to USD 61.0 million in H1 2026 compared to USD 63.4 million in H2 2025, though down from USD 72.8 million in H1 2025. Crucially, gross margin expanded significantly to 34.1% in H1 2026 from 27.6% in H1 2025 and 29.1% in H2 2025, reflecting successful cost optimization and operational efficiencies, especially in the Search segment. Adjusted EBITDA was USD 19.5 million, down from USD 24.6 million in H1 2025 but above USD 18.0 million in H2 2025, positioning the company well for the typically stronger second half.
Domains, Identity & Software Segment Maintains Growth
The DIS segment, encompassing domain management and identity software, sustained strong momentum during H1 2026 and amid the ongoing strategic review. It generated USD 97.9 million in revenue, a 6% decline from USD 103.9 million in H1 2025 but above USD 90.8 million in H2 2025. Net revenue rose 8% year-on-year to USD 40.8 million, matching the H2 2025 figure, demonstrating steady improvement.
Adjusted EBITDA for DIS grew 28% year-on-year to USD 13.7 million in H1 2026 from USD 10.7 million in H1 2025, despite flat revenue, highlighting significant operating leverage and margin gains. The segment’s subscription-based recurring revenue model offers predictable earnings, supporting its attractiveness in the ongoing strategic review announced on 15 June 2026.
Comparison Segment Drives Revenue and Profit Growth
The Comparison segment delivered strong growth in H1 2026, with revenue increasing 18% year-on-year to USD 32.9 million from USD 27.9 million in H1 2025, though down 12% from USD 37.4 million in H2 2025. The company reported that the segment combined revenue growth with significant margin expansion. Net revenue rose 36% year-on-year to USD 12.4 million, surpassing USD 11.8 million in H2 2025.
Adjusted EBITDA surged 54% year-on-year to USD 8.4 million from USD 5.5 million in H1 2025, and increased 22% compared to USD 6.9 million in H2 2025. This profitability growth alongside revenue gains reflects efficient capital use and disciplined cost control, confirming the Comparison segment’s sustainable growth trajectory.
Search Segment Returns to Profitability After Transition
The Search segment completed its transition away from legacy AdSense for Domains revenue in H1 2026, returning to profitability in June 2026. Revenue dropped 63% year-on-year to USD 48.3 million from USD 132.1 million in H1 2025, and declined 46% from USD 89.8 million in H2 2025, reflecting the planned wind-down of legacy revenue streams.
Net revenue fell to USD 7.8 million in H1 2026 from USD 25.9 million in H1 2025 but improved over USD 13.9 million in H2 2025. Adjusted EBITDA was negative USD 2.6 million in H1 2026, down from positive USD 8.5 million in H1 2025; however, the segment’s return to profitability in June 2026 underscores the success of efficiency initiatives, disciplined yield management, and growth in Related Search on Content. This positions Search as a promising long-term growth area following the transition.
Operational Efficiencies Drive Margin Expansion
Team Internet’s gross margin expanded by 650 basis points year-on-year to 34.1% in H1 2026 from 27.6% in H1 2025, and by 500 basis points compared to 29.1% in H2 2025. This improvement reflects the elimination of low-margin legacy revenue, enhanced monetization in newer segments, and successful cost optimization across the group.
The Search segment benefited from a significant cost optimization and automation program, reducing reliance on headcount while boosting gross margin. The consistent margin improvements across periods and segments indicate structural enhancements rather than temporary measures, offering investors potential for substantial operating leverage as revenue growth resumes.
Net Debt and Cash Flow Management Amid Strategic Review
Net debt increased to USD 117.5 million at 30 June 2026 from USD 87.6 million at 31 December 2025, mainly due to cash used for corporation tax settlements and the non-renewal of a registry contract, which reduced working capital financing with minimal impact on profitability. The company expects net debt to decline significantly in the second half of 2026 and remain aligned with market expectations by year-end, assuming no transaction from the strategic review.
As of 30 June 2026, cash holdings were USD 52.0 million against bank debt and prepaid finance costs totaling USD 169.5 million. This financial position supports the company’s confidence in positive cash generation and deleveraging prospects during H2 2026.
Strategic Review of Domains, Identity & Software Business Advances
Announced on 15 June 2026, the strategic review of the DIS business is progressing with selected parties, with transaction completion anticipated during 2026, subject to conditions and regulatory approvals. The Board remains focused on maximizing value and will provide further updates by the interim results announcement on 7 September 2026. While no certainty exists regarding transaction outcomes, the DIS segment’s strong financial performance and recurring revenue model make it an attractive asset for potential acquirers.
Board Update: Claire MacLellan to Retire Post-AGM
Non-Executive Director Claire MacLellan will retire immediately after the Annual General Meeting on 24 July 2026. Since joining in 2022, MacLellan contributed significantly, including service on the Audit & Risk Committee during a transformative period. Post-retirement, the Audit & Risk Committee will be chaired by Marie Holive, with Iain McDonald also serving, ensuring continuity in governance during the strategic review.
Interim Results Release and Investor Engagement
Team Internet will publish its unaudited interim report for the six months ending 30 June 2026 on Monday, 7 September 2026. A webinar and conference call for equity analysts will be held at 10:00am UK time, hosted by CEO Michael Riedl and CFO William Green. Interested parties can register via SEC Newgate at [email protected].
An Investor Meet Company session will follow at 12:00pm UK time on the same day. Investors can register for free at https://www.investormeetcompany.com/team-internet-group-plc/register-investor. Questions may be submitted in advance until 9:00am on 6 September 2026 or during the live event, facilitating comprehensive engagement on H1 2026 results, the strategic review, and outlook.
This article is for informational purposes only and does not constitute investment advice. It is based on the official Investegate RNS announcement by Team Internet Group plc on 24 July 2026. While efforts have been made to ensure accuracy, forward-looking statements are subject to risks and uncertainties, and outcomes cannot be guaranteed. All financial data are as disclosed by the company and should not be interpreted as forecasts. Investors should perform independent research and consult qualified financial advisors before making investment decisions regarding Team Internet Group plc or related securities.
