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System1 (SST)

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Earnings summaries and quarterly performance for System1.

Recent press releases and 8-K filings for SST.

System1 Reports Q3 2025 Results Amid Marketing Segment Volatility
SST
Earnings
Guidance Update
Demand Weakening
  • System1 reported Q3 2025 revenue of $61.6 million, a 31% year-over-year decrease, with adjusted gross profit of $36.1 million and adjusted EBITDA of $9.9 million, both down 4% year-over-year.
  • The product segment demonstrated strong growth, with revenue increasing 8% year-over-year to $22.5 million and adjusted gross profit up 6% year-over-year to $21.2 million.
  • The marketing segment experienced a significant decline, with revenue down 43% year-over-year to $39.1 million and adjusted gross profit down 14% year-over-year to $16.6 million, primarily due to Google's deprecation of its AdSense for Domains (AFD) product. AFD contributed 27% of total marketing revenue in Q2 2025 and $12 million of gross profit for the six months ended June 30, 2025.
  • The company is transitioning its marketing business to Google's new RSoC product and expects greater stability and a return to growth in the marketing segment heading into 2026, while also increasing investment in its product segment.
  • System1 ended Q3 2025 with $54.6 million in unrestricted cash and $265 million in term-loan debt, with $50 million available under its revolver.
Nov 5, 2025, 10:00 PM
System1, Inc. Announces Third Quarter 2025 Financial Results
SST
Earnings
Guidance Update
Demand Weakening
  • System1, Inc. reported Q3 2025 revenue of $61.6 million, a 31% decrease year-over-year, and a GAAP net loss of $22.0 million, an improvement of 28% year-over-year.
  • Adjusted EBITDA decreased 4% year-over-year to $9.9 million, while Adjusted Gross Profit decreased 4% to $36.1 million, with the Adjusted Gross Profit Margin increasing to 59% from 42%.
  • The company's business is shifting towards its higher-margin Products segment, which now accounts for a majority of gross profit, driven by AI integration leading to improved gross margin and reduced operating expenses.
  • The marketing business faced challenges due to product changes at Google, its largest advertising partner, prompting a shift in marketing focus to a newer Google product.
  • System1 will not provide financial guidance for Q4 2025 due to uncertainty related to a key advertising partner's marketplaces and broader volatility in online advertising demand.
Nov 5, 2025, 9:06 PM
System1 Announces Third Quarter 2025 Financial Results
SST
Earnings
Guidance Update
Demand Weakening
  • System1 reported a 31% year-over-year decrease in revenue to $61.6 million for the third quarter of 2025, while GAAP net loss improved 28% year-over-year to $22.0 million.
  • The company's Adjusted Gross Profit Margin increased to 59% from 42% year-over-year, attributed to a strategic shift towards higher-margin Products and the integration of AI.
  • System1 will not provide financial guidance for the fourth quarter of 2025 due to uncertainty related to a key advertising partner's marketplaces and potential volatility in online advertising demand.
  • The marketing business faced challenges from product changes at Google, prompting a shift in focus to a newer Google product.
Nov 5, 2025, 9:05 PM