System1 (SST)
NYSE:SST
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System1
(NYSE:SST)
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Rating:48Neutral
Price Target:
$3.00
▼(-16.20% Downside)
Action:Reiterated
Date:06/01/26
The score is held down primarily by weak financial performance (declining revenue, large losses, and negative free cash flow) and bearish technical positioning. Corporate events provide partial support through a major debt-and-maturity improvement, but valuation offers limited help due to negative earnings and no dividend yield.
Positive Factors
Material debt restructuring
The exchange materially reduces near-term maturities and total funded debt while extending the amortization schedule to 2031. That change should lower refinancing risk, free management to focus on operations, and lengthen the cash runway—durable improvements to capital structure if closed.
Negative Factors
Declining revenue trend
Persisting top-line declines shrink scale and reduce the firm’s ability to absorb fixed costs. Loss of revenue erodes operating leverage, pressures margins and makes cash generation harder; absent a durable reversal, the business faces structural headwinds to profitability and reinvestment.
Read all positive and negative factors
Positive Factors
Negative Factors
Material debt restructuring
The exchange materially reduces near-term maturities and total funded debt while extending the amortization schedule to 2031. That change should lower refinancing risk, free management to focus on operations, and lengthen the cash runway—durable improvements to capital structure if closed.
Read all positive factors
System1 (SST) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$33.00M
Dividend YieldN/A
Average Volume (3M)29.66K
Price to Earnings (P/E)―
Beta (1Y)1.00
Revenue Growth-31.38%
EPS Growth-7.02%
CountryUS
Employees300
SectorIndustrials
Sector Strength72
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)-12.02
Shares Outstanding8,150,474
10 Day Avg. Volume21,441
30 Day Avg. Volume29,656
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)1.01
Price to Sales (P/S)0.12
P/FCF Ratio-7.34
Enterprise Value/Market Cap-0.38
Enterprise Value/Revenue-0.05
Enterprise Value/Gross Profit-0.13
Enterprise Value/Ebitda0.63
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-7.92
Revenue Forecast (FY)$235.90M
System1 Business Overview & Revenue Model
Company Description
System1, Inc. develops technology and data science to operate responsive acquisition marketing platform. The company also operates a real-time coupon code search engine and directory that offers coupon destinations for online shoppers. It serves c...
How the Company Makes Money
System1 primarily makes money by selling digital advertising and marketing services, monetizing consumer intent and engagement across its owned-and-operated properties and distribution partners. Key revenue streams generally include: (1) performan...
System1 Earnings Call Summary
Earnings Call Date:Nov 05, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Neutral
The earnings call presents a mixed view with significant challenges in the Marketing segment due to Google's product discontinuation and traffic quality issues, but there is optimism in the Product segment's growth, AI integration, and new product launches. The company aims to rebound from marketing setbacks and continue product expansion.Positive Updates
Product Segment Growth
The Product segment showed strong year-over-year growth with revenue increasing by 8% from Q3 2024. Adjusted gross profit was $21.2 million, up 6% year-over-year. Sessions increased by 23% year-over-year and 12% sequentially.
Negative Updates
Marketing Revenue Decline
Marketing revenue fell to $39 million, down 43% year-over-year and 28% sequentially. The decline was attributed to the discontinuation of Google's AFD product.
Read all updates
Q3-2025 Updates
Positive
Negative
Product Segment Growth
The Product segment showed strong year-over-year growth with revenue increasing by 8% from Q3 2024. Adjusted gross profit was $21.2 million, up 6% year-over-year. Sessions increased by 23% year-over-year and 12% sequentially.
Read all positive updates
Company Guidance
During the third quarter of 2025 earnings call for System1, the company provided guidance reflecting both challenges and opportunities. Revenue for Q3 was approximately $61.6 million, a decrease of 31% year-over-year, largely due to the disruption in their Marketing segment following Google's transition away from the AdSense for Domains (AFD) product, which previously contributed significantly to their marketing revenue. Despite the marketing volatility, System1 reported an adjusted gross profit of $36.1 million and adjusted EBITDA of $9.9 million, both down 4% year-over-year. The Product segment showed resilience with an 8% increase in revenue year-over-year, driven by the growth in their higher-margin products like Startpage, MapQuest, and CouponFollow, which saw a 23% increase in sessions. The company is focusing on Google's new Related Search On Content (RSOC) product and anticipates greater stability heading into 2026. System1 is also investing in AI innovations and planning new AI-powered product launches to strengthen its core business areas and drive long-term growth.System1 Financial Statement Overview
Summary
Income Statement
22
Negative
Balance Sheet
28
Negative
Cash Flow
24
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 228.85M | 266.13M | 343.93M | 401.97M | 664.94M | 688.39M |
| Gross Profit | 95.33M | 100.39M | 152.36M | 46.72M | 15.37M | 86.64M |
| EBITDA | -19.88M | 20.82M | 14.00M | -4.48M | -51.95M | 64.72M |
| Net Income | -96.53M | -65.34M | -74.67M | -227.22M | -367.45M | 33.00M |
Balance Sheet | ||||||
| Total Assets | 320.32M | 404.97M | 459.13M | 605.47M | 1.16B | 256.91M |
| Cash, Cash Equivalents and Short-Term Investments | 51.51M | 86.89M | 63.61M | 135.34M | 8.90M | 47.90M |
| Total Debt | 9.22M | 9.61M | 274.98M | 355.42M | 422.55M | 170.45M |
| Total Liabilities | 359.35M | 387.55M | 374.13M | 436.15M | 689.78M | 285.31M |
| Stockholders Equity | -15.42M | 30.47M | 80.26M | 135.28M | 392.02M | -28.40M |
Cash Flow | ||||||
| Free Cash Flow | -19.38M | -4.19M | -5.29M | -32.70M | -17.66M | 54.17M |
| Operating Cash Flow | -14.33M | -4.15M | -5.25M | -24.74M | -7.29M | 60.70M |
| Investing Cash Flow | -7.35M | -6.72M | -6.25M | 203.18M | -454.45M | -6.54M |
| Financing Cash Flow | 28.87M | 31.30M | -63.96M | -74.07M | -27.73M | -34.59M |
System1 Technical Analysis
Positive
3.58
Price Trends
3.19
Positive
3.26
Positive
4.57
Negative
Market Momentum
>-0.01
Negative
52.52
Neutral
66.15
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SST, the sentiment is Positive. The current price of 3.58 is above the 20-day moving average (MA) of 3.25, above the 50-day MA of 3.19, and below the 200-day MA of 4.57, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 52.52 is Neutral, neither overbought nor oversold. The STOCH value of 66.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SST.
System1 Risk Analysis
System1 disclosed 63 risk factors in its most recent earnings report. System1 reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
System1 Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | $1.04B | 88.93 | 6.38% | ― | 12.87% | -63.11% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | $448.17M | -24.72 | -3.42% | ― | -3.31% | -73.22% | |
51 Neutral | $765.77M | 13.73 | 0.21% | ― | -36.17% | ― | |
50 Neutral | $79.86M | -18.08 | -4.00% | ― | -22.39% | -181.54% | |
48 Neutral | $33.00M | -0.28 | -333.08% | ― | -31.38% | -7.02% | |
48 Neutral | $77.71M | -2.65 | -237.34% | ― | 7.23% | 27.75% |
* Industrials Sector Average
SST
System1
3.37
-0.52
-13.37%
ACTG
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4.70
0.87
22.72%
TISI
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17.93
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-3.96%
DLHC
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5.64
0.14
2.55%
SPIR
Spire Global
20.04
8.60
75.17%
LZ
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5.80
-3.37
-36.75%
System1 Corporate Events
Business Operations and StrategyLegal ProceedingsPrivate Placements and Financing
System1 Announces Major Debt Restructuring and Capital Overhaul
Positive
Jun 1, 2026
On May 29, 2026, System1 entered into a comprehensive exchange agreement with all of its term loan and revolver lenders to restructure its capital stack and settle ongoing litigation between the parties. The transaction, announced on June 1, 2026,...
Business Operations and StrategyFinancial Disclosures
System1 Reports Q1 2026 Revenue Decline and Loss
Negative
May 12, 2026
On May 12, 2026, System1, Inc. released unaudited supplemental financial information for the quarter ended March 31, 2026, showing revenue of $37.2 million, down from prior quarters, and continued operating losses driven by high operating costs an...
Business Operations and StrategyFinancial Disclosures
System1 Reports Ongoing Revenue Declines and Profitability Pressures
Negative
Mar 12, 2026
On March 11, 2026, System1 posted supplemental financial information for the quarter and year ended Dec. 31, 2025, showing a continued decline in GAAP revenue versus the prior year and persistent operating losses despite meaningful non-cash expens...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.