System1, Inc. (SST) Financials
A multiple compares the market's price with a filed figure; it says what the market pays, not how the business is doing. The market capitalization is the vendor's as of Oct 15, 2026; every other figure is from the SEC filings on this page. Not financial advice.
Newest figures come from the 10-Q for Q2 FY2026, filed Aug 5, 2026. Each column of the statement tables below links to the filing it was taken from, and every filing is listed on the SST SEC filings page.
System1, Inc. (SST) reported $266.1M in revenue for fiscal year 2025, down 22.6% from the prior fiscal year. This page shows its income statement, balance sheet, cash flow statement, and key financial ratios. View 6 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
System1 is shrinking while gross margins remain uneven, but depreciation and leverage keep losses and cash outflows in place.
FY2025 EBITDA turned positive at$13.1M , yet operating income remained negative. D&A was$75.1M while operating cash flow remained-$4.1M ; the EBITDA improvement therefore did not reach reported operating earnings or cash generation.
Revenue fell from
Leverage rose from 3.2x to 7.5x even as long-term debt declined, indicating that the thinner equity base—not simply additional borrowing—is driving the ratio higher. The current ratio also moved from 1.3x to 1.0x, narrowing the short-term balance between current assets and current liabilities.
Financial Health Signals
Scored against operating companies for FY2025. Each of the six dimensions is a percentile rank within that peer group; the overall is their average, with missing dimensions counted as zero out of six. A high score means strong standing among peers, not absolute cross-industry strength. How this score is calculated →
Health score ≠ stock price. This rates the quality of System1, Inc.'s business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
System1, Inc. has an operating margin of -23.3%, meaning the company loses $23 on every $100 of revenue. This results in a profitability score of 18/100. This is up from -25.8% the prior year.
System1, Inc.'s revenue declined 22.6% year-over-year, from $343.9M to $266.1M. This contraction results in a growth score of 5/100.
System1, Inc. has elevated debt relative to equity (D/E of 7.50), meaning the company relies heavily on borrowed funds. This high leverage results in a low score of 4/100, reflecting increased financial risk.
System1, Inc.'s current ratio of 1.02 is below the typical benchmark, resulting in a score of 19/100. However, the company holds substantial cash reserves (59% of current liabilities), which buffers actual liquidity risk. Large mature operators often run tight current ratios by design.
System1, Inc.'s operations used $4.1M of cash, and capex of $46K added to the outflow, for a free cash flow shortfall of $4.2M. This results in a cash flow score of 20/100.
System1, Inc. posts a -214.5% return on equity (ROE), meaning it loses $214 for every $100 of shareholders' equity. This results in a returns score of 25/100. This is down from -93.0% the prior year.
System1, Inc. scores -2.74, below the 1.81 distress threshold. The score is driven primarily by a large market capitalization ($19.4M) relative to total liabilities ($387.6M). This indicates elevated financial distress risk and warrants close attention to liquidity and debt levels.
Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.
System1, Inc. passes 2 of 8 computable financial strength tests (1 of the nine could not be computed from available data). 2 of 4 profitability signals pass, no leverage/liquidity signals pass (rising debt, declining liquidity, or share dilution), neither operating efficiency signal passes.
System1, Inc. reported a net loss of $65.3M while operations used $4.1M of cash. With neither figure positive, the ratio between the two carries no quality signal.
System1, Inc. reported an operating loss of $62.0M against $27.6M in interest expense. There is no operating profit to cover interest, so interest must be met from cash reserves or from financing rather than from operations.
Key Financial Metrics
Earnings & Revenue
System1, Inc. generated $30.2M in revenue in Q2 2026. This represents a decrease of 61.3% from the same quarter a year earlier. Against the prior quarter it is down 18.9%.
System1, Inc. reported -$12.6M in net income in Q2 2026. This represents an increase of 27.9% from the same quarter a year earlier. Against the prior quarter it is up 73.2%.
System1, Inc. earned -$1.54 per diluted share (EPS) in Q2 2026. This represents an increase of 30.9% from the same quarter a year earlier. Against the prior quarter it is up 73.5%.
Not reported for Q2 2026.
Cash & Balance Sheet
System1, Inc. held $40.5M in cash against $214.9M in long-term debt as of Q2 2026.
Not reported for Q2 2026.
Not reported for Q2 2026.
Margins & Returns
System1, Inc.'s gross margin was 80.4% in Q2 2026, indicating the percentage of revenue retained after direct costs. This is up 44.7 percentage points from the same quarter a year earlier. Against the prior quarter it is up 17.6 percentage points.
System1, Inc.'s operating margin was -27.5% in Q2 2026, reflecting core business profitability. This is down 7.1 percentage points from the same quarter a year earlier.
System1, Inc.'s net profit margin was -41.7% in Q2 2026, showing the share of revenue converted to profit. This is down 19.4 percentage points from the same quarter a year earlier.
Not reported for Q2 2026.
Capital Allocation
None of these metrics is reported for Q2 2026.
SST Income Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q2'2610-Q | Q1'2610-Q | Q4'2510-Q | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K | Q3'2410-Q |
|---|---|---|---|---|---|---|---|---|
| Revenue | $30.2M-61.3% | $37.2M-50.0% | $51.9M-31.3% | $61.6M-30.7% | $78.1M-17.4% | $74.5M-12.3% | $75.6M-21.4% | $88.8M+1.2% |
| Cost of Revenue | $5.9M-88.2% | $13.9M-69.9% | $30.6M+304.6% | $38.8M-39.3% | $50.2M-26.7% | $46.1M-30.5% | -$15.0M-129.5% | $64.0M+26.5% |
| Gross Profit | $24.3M-13.0% | $23.4M-17.8% | $21.3M-76.5% | $22.7M-8.4% | $27.9M+7.0% | $28.4M+52.9% | $90.6M+99.2% | $24.8M-33.3% |
| SG&A Expenses | $14.5M-17.0% | $16.8M+1.3% | $18.6M+4.7% | $17.0M-3.0% | $17.5M-17.5% | $16.6M-16.8% | $17.8M+44.7% | $17.5M+48.0% |
| Operating Income | -$8.3M+47.9% | -$51.0M-288.8% | -$17.4M-46.6% | -$15.6M+28.7% | -$15.9M+45.3% | -$13.1M+49.1% | -$11.9M+37.6% | -$21.8M-4.6% |
| EBITDA | N/A | N/A | N/A | N/A | N/A | N/A | $8.3M+1165.8% | -$1.7M-32.9% |
| Interest Expense | $7.1M0.0% | $6.6M-6.4% | $6.3M-18.8% | $7.1M-11.4% | $7.1M-9.6% | $7.1M-11.1% | $7.8M-35.0% | $8.0M-39.0% |
| Income Tax | -$75K+95.2% | -$75K+80.6% | -$398K+45.4% | -$543K-192.8% | -$1.5M-769.1% | -$387K-706.3% | -$729K+91.7% | $585K+152.4% |
| Net Income | -$12.6M+27.9% | -$47.1M-196.3% | -$13.5M+4.8% | -$18.5M+21.5% | -$17.5M+33.8% | -$15.9M-50.7% | -$14.2M+48.7% | -$23.6M+82.1% |
| EPS (Basic) | -$1.54+30.9% | -$5.82-172.0% | -$1.65-768.4% | -$2.30+31.8% | -$2.23+41.3% | -$2.14-1237.5% | -$0.19+45.7% | -$3.37-142.4% |
| EPS (Diluted) | -$1.54+30.9% | -$5.82-172.0% | -$1.65 | -$2.30+31.8% | -$2.23+41.3% | -$2.14 | -$0.19+45.7% | -$3.37 |
| Diluted Shares (Avg) | 8M+4.4% | 8M+8.8% | N/A | 8M+15.0% | 8M+12.7% | 7M | N/A | 7M |
Not reported in any period shown, so not listed: R&D Expenses.
SST Balance Sheet
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q2'2610-Q | Q1'2610-Q | Q4'2510-Q | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K | Q3'2410-Q |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $291.4M-32.1% | $320.3M-23.6% | $405.0M-11.8% | $385.2M-19.6% | $429.2M-16.1% | $419.2M-19.6% | $459.1M-24.2% | $479.3M-48.3% |
| Current Assets | $89.5M-36.7% | $111.7M-2.1% | $149.5M+11.2% | $116.6M-13.7% | $141.4M-4.9% | $114.2M-18.3% | $134.5M-33.4% | $135.2M+49.4% |
| Cash & Equivalents | $40.5M-36.4% | $51.5M+17.3% | $86.9M+36.6% | $54.6M-21.0% | $63.6M-15.9% | $43.9M-37.2% | $63.6M-53.0% | $69.1M+1323.7% |
| Short-Term Investments | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Accounts Receivable | $41.0M-41.6% | $53.3M-13.8% | $57.3M-8.9% | $54.4M-5.6% | $70.2M+13.4% | $61.8M+17.1% | $62.9M+12.2% | $57.6M-3.0% |
| Long-Term Investments | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Goodwill | $82.4M0.0% | $82.4M0.0% | $82.4M0.0% | $82.4M0.0% | $82.4M0.0% | $82.4M0.0% | $82.4M0.0% | $82.4M0.0% |
| Total Liabilities | $344.4M-8.4% | $359.3M+2.2% | $387.6M+3.6% | $350.9M-6.8% | $375.8M-1.6% | $351.5M-2.5% | $374.1M-14.2% | $376.5M-45.2% |
| Current Liabilities | $117.0M-2.4% | $125.9M+40.3% | $146.4M+39.3% | $102.1M+3.0% | $119.9M+17.9% | $89.7M+15.0% | $105.1M+21.6% | $99.2M-58.3% |
| Non-Current Liabilities | $227.4M-11.1% | $233.5M-10.8% | $241.1M-10.4% | $248.8M-10.3% | $255.9M-8.7% | $261.8M-7.4% | $269.0M-23.1% | $277.3M-38.3% |
| Long-Term Debt | $214.9M-11.1% | $221.6M-10.8% | $228.4M-10.5% | $235.1M-9.3% | $241.8M-8.2% | $248.5M-7.5% | $255.1M-23.7% | $259.2M-33.2% |
| Total Equity | -$26.7M-145.8% | -$15.4M-123.0% | $30.5M-62.0% | $42.7M-52.7% | $58.2M-46.8% | $67.2M-49.0% | $80.3M-40.7% | $90.3M-55.5% |
| Retained Earnings | -$907.3M-11.2% | -$894.7M-12.1% | -$847.7M-8.4% | -$834.2M-8.6% | -$815.7M-9.6% | -$798.2M-11.1% | -$782.3M-10.6% | -$768.2M-18.9% |
Not reported in any period shown, so not listed: Inventory.
SST Cash Flow Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q2'2610-Q | Q1'2610-Q | Q4'2510-Q | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K | Q3'2410-Q |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | -$2.0M-108.3% | -$26.1M-63.9% | -$10.6M-1478.0% | -$2.1M-40940.0% | $24.5M+145.8% | -$15.9M+0.2% | $772K+104.1% | -$5K+99.9% |
| Depreciation & Amortization | N/A | N/A | N/A | N/A | N/A | N/A | $20.2M+2.5% | $20.1M+2.8% |
| Stock-Based Compensation | $1.4M-70.2% | $1.3M-52.3% | N/A | $2.8M-25.1% | $4.5M+32.0% | $2.7M-33.2% | N/A | $3.8M-28.2% |
| Capital Expenditures | N/A | $0-100.0% | $0 | $0-100.0% | $0 | $46K | $0-100.0% | $31K-92.9% |
| Free Cash Flow | N/A | -$26.1M-63.4% | -$10.6M-1478.0% | -$2.1M-5600.0% | $24.5M+145.8% | -$16.0M-0.1% | $772K+104.0% | -$36K+99.5% |
| Investing Cash Flow | -$1.4M+12.4% | -$2.2M-40.5% | -$1.6M-25.8% | -$2.0M-14.0% | -$1.6M+2.3% | -$1.5M+4.6% | -$1.3M-100.6% | -$1.7M+2.6% |
| Financing Cash Flow | -$7.5M-168.6% | -$7.7M-46.0% | $44.4M+986.3% | -$5.0M+0.2% | -$2.8M+51.7% | -$5.3M+89.0% | -$5.0M+93.1% | -$5.0M-160.4% |
| Share Buybacks | N/A | $202K | N/A | N/A | N/A | $0 | N/A | N/A |
Not reported in any period shown, so not listed: Dividends Paid.
SST Financial Ratios
Margins and returns are percentages; the remaining ratios are unitless multiples. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q2'2610-Q | Q1'2610-Q | Q4'2510-Q | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K | Q3'2410-Q |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 80.4%+44.7pp | 62.8%+24.6pp | 41.0% | 36.9%+9.0pp | 35.7%+8.2pp | 38.2%+16.3pp | 119.8% | 28.0%-14.4pp |
| Operating Margin | -27.5%-7.1pp | -137.1% | -33.6%-17.8pp | -25.3%-0.7pp | -20.4%+10.4pp | -17.6%+12.8pp | -15.8%+4.1pp | -24.6%-0.8pp |
| Net Margin | -41.7%-19.4pp | -126.4% | -26.0%-7.2pp | -30.1%-3.5pp | -22.4%+5.5pp | -21.3%-8.9pp | -18.7%+10.0pp | -26.6% |
| Return on Equity | N/A | N/A | -44.3%-26.6pp | -43.4%-17.3pp | -30.0%-5.9pp | -23.6%-15.6pp | -17.6%+2.8pp | -26.1%+38.7pp |
| Return on Assets | -4.3%-0.3pp | -14.7%-10.9pp | -3.3%-0.3pp | -4.8%+0.1pp | -4.1%+1.1pp | -3.8%-1.8pp | -3.1%+1.5pp | -4.9%+9.3pp |
| Current Ratio | 0.77-0.4x | 0.89-0.4x | 1.02-0.3x | 1.14-0.2x | 1.18-0.3x | 1.27-0.5x | 1.28-1.1x | 1.36+1.0x |
| Debt-to-Equity | N/A | N/A | 7.50+4.3x | 5.51+2.6x | 4.15+1.7x | 3.70+1.7x | 3.18+0.7x | 2.87+1.0x |
| Asset Turnover | 0.10-0.1x | 0.12-0.1x | 0.130.0x | 0.160.0x | 0.180.0x | 0.180.0x | 0.160.0x | 0.19+0.1x |
| FCF Margin | N/A | -70.2%-48.7pp | -20.5%-21.5pp | -3.3%-3.3pp | 31.4%+20.8pp | -21.5%-2.6pp | 1.0%+21.0pp | 0.0%+8.7pp |
Reported as filed but not readable as a share of revenue in the periods where the ratio runs further from zero than a revenue base allows; no change figure is given where either compared period is one of those: Gross Margin, Operating Margin, Net Margin.
Similar Companies
Newest fiscal year on record for each company. The health score is the peer-relative Financial Health Score for that year; a dash means no score is published for it.
| Company | Fiscal year | Revenue | Net income | Net margin | Market cap | Health score |
|---|---|---|---|---|---|---|
| System1, Inc. SST | FY2025 | $266.1M | -$65.3M | -24.6% | $19.4M | 15/100 |
| DLH Holdings Corp. DLHC | FY2025 | $344.5M | $1.4M | 0.4% | $58.4M | 37/100 |
| Team, Inc. TISI | FY2025 | $896.5M | -$49K | 0.0% | $113.0M | 34/100 |
| Primech Holdings Ltd. PMEC | FY2025 | $74.3M | -$1.9M | -2.6% | $20.7M | 54/100 |
| Where Food Comes From, Inc. WFCF | FY2025 | $24.9M | $1.5M | 6.2% | $70.7M | 58/100 |
| Network-1 Technologies, Inc. NTIP | FY2025 | $150K | -$2.4M | N/A | $35.7M | — |
Where System1, Inc. Ranks
Frequently Asked Questions
What is System1, Inc.'s annual revenue?
System1, Inc. (SST) reported $266.1M in total revenue for fiscal year 2025. This represents a -22.6% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is System1, Inc.'s revenue growing?
System1, Inc. (SST) revenue declined by 22.6% year-over-year, from $343.9M to $266.1M in fiscal year 2025.
Is System1, Inc. profitable?
No, System1, Inc. (SST) reported a net income of -$65.3M in fiscal year 2025, with a net profit margin of -24.6%.
What is System1, Inc.'s EBITDA?
System1, Inc. (SST) had EBITDA of $13.1M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
How much debt does System1, Inc. have?
As of fiscal year 2025, System1, Inc. (SST) had $86.9M in cash and equivalents against $228.4M in long-term debt.
What is System1, Inc.'s gross margin?
System1, Inc. (SST) had a gross margin of 37.7% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.
What is System1, Inc.'s operating margin?
System1, Inc. (SST) had an operating margin of -23.3% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.
What is System1, Inc.'s net profit margin?
System1, Inc. (SST) had a net profit margin of -24.6% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
What is System1, Inc.'s return on equity (ROE)?
System1, Inc. (SST) has a return on equity of -214.5% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.
What is System1, Inc.'s free cash flow?
System1, Inc. (SST) recorded an outflow of $4.2M in free cash flow during fiscal year 2025. This represents a 20.7% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is System1, Inc.'s operating cash flow?
System1, Inc. (SST) recorded an outflow of $4.1M in operating cash flow during fiscal year 2025, representing cash used by core business activities.
What are System1, Inc.'s total assets?
System1, Inc. (SST) had $405.0M in total assets as of fiscal year 2025, including both current and long-term assets.
What are System1, Inc.'s capital expenditures?
System1, Inc. (SST) invested $46K in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
What is System1, Inc.'s current ratio?
System1, Inc. (SST) had a current ratio of 1.02 as of fiscal year 2025, which is considered adequate.
What is System1, Inc.'s debt-to-equity ratio?
System1, Inc. (SST) had a debt-to-equity ratio of 7.50 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is System1, Inc.'s return on assets (ROA)?
System1, Inc. (SST) had a return on assets of -16.1% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
What is System1, Inc.'s P/E ratio?
System1, Inc. (SST) has no price-to-earnings ratio at the moment: net loss, so no earnings multiple (trailing 12 months to June 30, 2026). The market capitalization is $19.4M as of Oct 15, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.
What is System1, Inc.'s price-to-sales ratio?
System1, Inc. (SST) trades at 0.1x sales, its market capitalization divided by revenue of $180.9M revenue, trailing 12 months to June 30, 2026. The market capitalization is $19.4M as of Oct 15, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.
What is System1, Inc.'s Altman Z-Score?
System1, Inc. (SST) has an Altman Z-Score of -2.74, placing it in the Distress Zone (elevated bankruptcy risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is System1, Inc.'s Piotroski F-Score?
System1, Inc. (SST) has a Piotroski F-Score of 2 out of 8 computable signals; 1 of the nine could not be computed from available data, so the full-scale strength rating is not shown. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are System1, Inc.'s earnings high quality?
System1, Inc. (SST) reported a net loss of $65.3M while operations used $4.1M of cash. With neither figure positive, the ratio between the two carries no quality signal. This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
Can System1, Inc. cover its interest payments?
System1, Inc. (SST) reported an operating loss of $62.0M against $27.6M in interest expense. There is no operating profit to cover interest, so interest must be met from cash reserves or from financing rather than from operations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.
How financially healthy is System1, Inc.?
System1, Inc. (SST) scores 15 out of 100 on our Financial Health Score, indicating weak standing within its operating companies peer group. The score is a 0-100 composite of six dimensions (Profitability, Growth, Leverage, Liquidity, Cash Flow, Returns), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.