System1 Inc. ( (SST) ) has released its Q3 earnings. Here is a breakdown of the information System1 Inc. presented to its investors.
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System1 Inc., a leading omnichannel customer acquisition marketing platform, operates across various consumer verticals such as shopping, travel, and search, leveraging AI and machine learning to enhance its services. In its third quarter of 2025, System1 reported a significant 31% decline in revenue year-over-year, totaling $61.6 million, while GAAP gross profit decreased by 8% to $22.8 million. Despite these declines, the company saw an improvement in its adjusted gross profit margin, which rose to 59% from 42% the previous year, indicating a strategic shift towards higher-margin products.
Key financial metrics revealed a mixed performance, with adjusted EBITDA decreasing by 4% to $9.9 million, and a GAAP net loss of $22.0 million, which marked a 28% improvement from the previous year. The company continues to face challenges in its marketing business due to changes in Google’s product offerings, but it remains optimistic about its leadership position in newer Google products. Furthermore, System1 is making strides in integrating AI across its operations, which has contributed to improved gross margins and reduced operating expenses.
Strategically, System1 has made several advancements, including the expansion of CouponFollow.com into Europe, the launch of redesigned MapQuest apps, and the introduction of the Vanish Private AI Chat app by Startpage.com. Additionally, the company is addressing traffic quality issues with a key partner and is committed to recovering losses through all available channels.
Looking ahead, System1’s management remains confident in the company’s platform and strategic direction, despite uncertainties in the advertising market. With ongoing investments in AI-driven automation and decision-making, System1 is well-positioned to navigate the dynamic landscape and deliver long-term value to its shareholders.