10-K · April 30, 2026
System1, Inc. reported a fiscal 2025 marked by declining revenue and increasing operating losses. The company's revenue decreased from $89M in Q3 2024 to $52M in Q4 2025, while gross margins fluctuated with a notable…
Earnings analysis · 10-Q
SST earnings analysis
Filed May 12, 2026 · Our reading of the company's report
The latest report
System1, Inc. posted a significant revenue decline of 50% in Q1 2026 compared to Q1 2025, totaling $37.2 million. This decline was driven primarily by a reduction in marketing activities and the termination of key…
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System1, Inc. posted a significant revenue decline of 50% in Q1 2026 compared to Q1 2025, totaling $37.2 million. This decline was driven primarily by a reduction in marketing activities and the termination of key monetization agreements, resulting in a net loss of $57.6 million, a substantial increase from the prior period. Management signals a strategic pivot toward AI-driven opportunities amidst ongoing liquidity challenges.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-57.591
What stood out
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Significant Revenue Decline
Revenue dropped to $37.2 million, down 50% from $74.5 million in Q1 2025.
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High Impairment Expenses
An impairment of long-lived assets totaled $36.8 million in Q1 2026, compared to none reported in the prior period.
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Dramatic Net Loss
Net loss surged to $57.6 million, compared to a loss of $19.9 million in Q1 2025.
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Decreased Operating Cash Flow
Net cash used in operating activities increased to $26.1 million from $15.9 million in the prior year.
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Decline in Cash Reserves
Unrestricted cash and cash equivalents stood at $51.5 million as of March 31, 2026.
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Decreased Marketing Partners
Active Marketing Partners decreased from 149 to 56 due to the termination of key agreements.
What to watch
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Substantial Net Loss
The company faced a net loss of $57.6 million compared to a $19.9 million loss in the previous year.
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Increased Debt Levels
Total debts include $50 million under the revolving facility and $252.6 million in term debt.
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Liquidity Concerns
Management expresses doubt about the company's ability to continue as a going concern due to negative working capital of $14.1 million.
Management's outlook
Management anticipates improved operational performance as they pivot towards AI-driven strategies, though significant challenges remain.
Earlier filings 4
10-K · March 11, 2026
System1 describes an omnichannel, AI-driven customer acquisition platform built on a portfolio of ~40 owned websites and >560 million distinct search queries per month. Financially the business is contracting: quarterly…
10-Q · November 5, 2025
System1 reported Q3 revenue of $61,561 (thousands), down materially versus both prior quarter and prior-year quarter, with operating loss widening to $(15,565) (thousands) and GAAP EPS of $(2.30). Liquidity shows a…
10-Q · August 7, 2025
System1 reported Q2 revenue of $78,115,000 (Q2 2024: $94,581,000), beating consensus and improving sequentially vs Q1 2025 ($74,513,000). Gross profitability improved (derived gross margin ~35.7%) and operating loss…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.