Team Internet Group (AIM:TIG), the AIM-listed internet company that generates recurring revenue from domain identity and discovery services, posted an operating profit of $3 million for the six months to 30 June, its first half-year operating profit since the first half of 2024.
That compares with an operating loss of $7 million in the same period last year and a $42.9 million loss in the second half of 2025.
Gross revenue fell to $179.1 million from $263.9 million a year earlier, reflecting the completed transition of the Search segment, while net revenue dropped to $61 million from $72.8 million as gross margin rose to 34.1% from 27.6%. Adjusted EBITDA came in at $19.5 million, down from $24.6 million, with the higher-margin DIS (Domains, Identity and Search) segment accounting for a larger share of overall results.
Net debt rose to $117.6 million from $87.6 million at the end of December, driven by the non-renewal of a registry contract within DIS and $14.8 million of scheduled corporate tax payments tied to record profits in 2022 and 2023.
The board said it expects net debt to fall significantly in the second half and to be broadly in line with market consensus by year-end.
The strategic review of the business is at an "advanced stage", with the board reaffirming its expectation of a valuation materially exceeding $160 million and any transaction expected to complete around year-end.
"Trading in the first half was in line with market expectations", said chief executive Michael Riedl, adding that the Comparison division is "growing into our second earnings pillar" and Search "returned to profit in June".
News Intelligence what this means for the company
Team Internet swung to a $3 million operating profit in H1 2026—its first half-year profit since H1 2024—as its Search division turned profitable in June and gross margin expanded to 34.1% from 27.6% year-on-year. The strategic review, initiated in November 2025, is now at an advanced stage with the board reaffirming a valuation target materially exceeding $160 million and an expected close around year end, marking tangible progress toward a potential exit.
Return to operating profit and margin expansion demonstrate the business model is working after restructuring, but net debt rose to $117.6 million (up $30 million since year-end), driven partly by a registry contract non-renewal and $14.8 million in deferred tax payments. The board's confidence in H2 debt reduction and the advanced sale process are material, though execution risk on both fronts remains until completion.
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