System1, Inc. Financials
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).
Shrinking revenue has not repaired profitability: margin compression, heavy non-cash costs, and rising leverage dominate FY2025.
Gross margin fell from40.1% in FY2023 to37.7% in FY2025, yet EBITDA turned positive while operating income remained negative; that gap points to depreciation and amortization weighing heavily below the gross-profit line. With operating cash flow near the net loss, the EBITDA improvement has not translated into cash generation.
Revenue contracted from
Debt-to-equity rose from 2.5x in FY2023 to 7.5x in FY2025, showing a materially more leveraged capital structure. Equity fell from
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 21/100. 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 6/100.
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 23/100.
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 28/100. 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 ($16.5M) 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 $266.1M in revenue in fiscal year 2025. This represents a decrease of 22.6% from the prior year.
System1, Inc.'s EBITDA was $13.1M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 254.1% from the prior year.
System1, Inc. reported -$65.3M in net income in fiscal year 2025. This represents an increase of 12.5% from the prior year.
System1, Inc. earned -$8.32 per diluted share (EPS) in fiscal year 2025. This represents an increase of 22.5% from the prior year.
Cash & Balance Sheet
System1, Inc. recorded an outflow of $4.2M in free cash flow in fiscal year 2025, representing a cash shortfall after capex. This represents an increase of 20.7% from the prior year.
System1, Inc. held $86.9M in cash against $228.4M in long-term debt as of fiscal year 2025.
Not reported for fiscal year 2025.
Margins & Returns
System1, Inc.'s gross margin was 37.7% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is down 8.8 percentage points from the prior year.
System1, Inc.'s operating margin was -23.3% in fiscal year 2025, reflecting core business profitability. This is up 2.4 percentage points from the prior year.
System1, Inc.'s net profit margin was -24.6% in fiscal year 2025, showing the share of revenue converted to profit. This is down 2.8 percentage points from the prior year.
System1, Inc.'s ROE was -214.5% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is down 121.5 percentage points from the prior year.
Capital Allocation
System1, Inc. spent $557K on share buybacks in fiscal year 2025, returning capital to shareholders by reducing shares outstanding.
System1, Inc. invested $46K in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents an increase of 48.4% from the prior year.
Not reported for fiscal year 2025.
SST Income Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $30.2M-18.9% | $37.2M-28.3% | $51.9M-15.6% | $61.6M-21.2% | $78.1M+4.8% | $74.5M-1.4% | $75.6M-14.9% | $88.8M |
| Cost of Revenue | $5.9M-57.2% | $13.9M-54.7% | $30.6M-21.1% | $38.8M-22.7% | $50.2M+9.0% | $46.1M+407.9% | -$15.0M-123.4% | $64.0M |
| Gross Profit | $24.3M+3.9% | $23.4M+9.7% | $21.3M-6.3% | $22.7M-18.5% | $27.9M-1.9% | $28.4M-68.6% | $90.6M+264.7% | $24.8M |
| SG&A Expenses | $14.5M-13.4% | $16.8M-10.0% | $18.6M+10.0% | $17.0M-3.2% | $17.5M+5.7% | $16.6M-6.9% | $17.8M+1.9% | $17.5M |
| Operating Income | -$8.3M+83.8% | -$51.0M-192.6% | -$17.4M-12.1% | -$15.6M+2.1% | -$15.9M-21.2% | -$13.1M-10.3% | -$11.9M+45.4% | -$21.8M |
| Interest Expense | $7.1M+7.3% | $6.6M+5.2% | $6.3M-10.6% | $7.1M-0.9% | $7.1M+0.4% | $7.1M-8.7% | $7.8M-2.4% | $8.0M |
| Income Tax | -$75K0.0% | -$75K+81.2% | -$398K+26.7% | -$543K+64.9% | -$1.5M-299.7% | -$387K+46.9% | -$729K-224.6% | $585K |
| Net Income | -$12.6M+73.2% | -$47.1M-249.1% | -$13.5M+27.2% | -$18.5M-6.0% | -$17.5M-9.9% | -$15.9M-12.2% | -$14.2M+40.0% | -$23.6M |
| EPS (Diluted) | -$1.54+73.5% | -$5.82-252.7% | -$1.65+28.3% | -$2.30-3.1% | -$2.23-4.2% | -$2.14 | -$0.19 | -$3.37 |
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.
| Metric | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $291.4M-9.0% | $320.3M-20.9% | $405.0M+5.1% | $385.2M-10.3% | $429.2M+2.4% | $419.2M-8.7% | $459.1M-4.2% | $479.3M |
| Current Assets | $89.5M-19.9% | $111.7M-25.2% | $149.5M+28.2% | $116.6M-17.5% | $141.4M+23.8% | $114.2M-15.1% | $134.5M-0.5% | $135.2M |
| Cash & Equivalents | $40.5M-21.4% | $51.5M-40.7% | $86.9M+59.2% | $54.6M-14.2% | $63.6M+44.9% | $43.9M-31.0% | $63.6M-7.9% | $69.1M |
| Accounts Receivable | $41.0M-23.1% | $53.3M-7.0% | $57.3M+5.4% | $54.4M-22.6% | $70.2M+13.7% | $61.8M-1.8% | $62.9M+9.2% | $57.6M |
| Goodwill | $82.4M0.0% | $82.4M0.0% | $82.4M0.0% | $82.4M0.0% | $82.4M0.0% | $82.4M0.0% | $82.4M0.0% | $82.4M |
| Total Liabilities | $344.4M-4.2% | $359.3M-7.3% | $387.6M+10.4% | $350.9M-6.6% | $375.8M+6.9% | $351.5M-6.1% | $374.1M-0.6% | $376.5M |
| Current Liabilities | $117.0M-7.1% | $125.9M-14.1% | $146.4M+43.4% | $102.1M-14.8% | $119.9M+33.7% | $89.7M-14.7% | $105.1M+6.0% | $99.2M |
| Long-Term Debt | $214.9M-3.1% | $221.6M-3.0% | $228.4M-2.9% | $235.1M-2.8% | $241.8M-2.7% | $248.5M-2.6% | $255.1M-1.6% | $259.2M |
| Total Equity | -$26.7M-72.9% | -$15.4M-150.6% | $30.5M-28.6% | $42.7M-26.7% | $58.2M-13.4% | $67.2M-16.3% | $80.3M-11.1% | $90.3M |
| Retained Earnings | -$907.3M-1.4% | -$894.7M-5.6% | -$847.7M-1.6% | -$834.2M-2.3% | -$815.7M-2.2% | -$798.2M-2.0% | -$782.3M-1.8% | -$768.2M |
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.
| Metric | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | -$2.0M+92.2% | -$26.1M-145.7% | -$10.6M-418.4% | -$2.1M-108.4% | $24.5M+253.6% | -$15.9M-2165.9% | $772K+15540.0% | -$5K |
| Capital Expenditures | N/A | $0 | $0 | $0 | $0-100.0% | $46K | $0-100.0% | $31K |
| Free Cash Flow | N/A | -$26.1M-145.7% | -$10.6M-418.4% | -$2.1M-108.4% | $24.5M+253.1% | -$16.0M-2171.9% | $772K+2244.4% | -$36K |
| Investing Cash Flow | -$1.4M+37.2% | -$2.2M-33.7% | -$1.6M+18.2% | -$2.0M-27.6% | -$1.6M-0.7% | -$1.5M-19.7% | -$1.3M+25.9% | -$1.7M |
| Financing Cash Flow | -$7.5M+3.2% | -$7.7M-117.4% | $44.4M+985.9% | -$5.0M-79.7% | -$2.8M+47.4% | -$5.3M-5.8% | -$5.0M+0.2% | -$5.0M |
| 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.
| Metric | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 80.4%+17.6pp | 62.8%+21.7pp | 41.0%+4.1pp | 36.9%+1.2pp | 35.7%-2.4pp | 38.2% | 119.8% | 28.0% |
| Operating Margin | -27.5% | -137.1% | -33.6%-8.3pp | -25.3%-4.9pp | -20.4%-2.7pp | -17.6%-1.9pp | -15.8%+8.8pp | -24.6% |
| Net Margin | -41.7% | -126.4% | -26.0%+4.1pp | -30.1%-7.7pp | -22.4%-1.0pp | -21.3%-2.6pp | -18.7%+7.8pp | -26.6% |
| Return on Equity | N/A | N/A | -44.3%-0.9pp | -43.4%-13.4pp | -30.0%-6.4pp | -23.6%-6.0pp | -17.6%+8.5pp | -26.1% |
| Return on Assets | -4.3%+10.4pp | -14.7%-11.4pp | -3.3%+1.5pp | -4.8%-0.7pp | -4.1%-0.3pp | -3.8%-0.7pp | -3.1%+1.8pp | -4.9% |
| Current Ratio | 0.77-0.1x | 0.89-0.1x | 1.02-0.1x | 1.140.0x | 1.18-0.1x | 1.270.0x | 1.28-0.1x | 1.36 |
| Debt-to-Equity | N/A | N/A | 7.50+2.0x | 5.51+1.4x | 4.15+0.5x | 3.70+0.5x | 3.18+0.3x | 2.87 |
| FCF Margin | N/A | -70.2%-49.7pp | -20.5%-17.2pp | -3.3%-34.7pp | 31.4%+52.8pp | -21.5%-22.5pp | 1.0%+1.1pp | 0.0% |
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
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 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 17 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.