System1 Q3 2026 revenue falls to $26M as loss widens
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
8-K
Rhea-AI Filing Summary
System1, Inc. (SST) posted supplemental, unaudited financial information for the quarter ended September 30, 2026. Revenue was $25.950 million, compared with $61.561 million in the quarter ended September 30, 2025. Operating loss was $72.887 million, versus $15.565 million; the quarter included a $63.605 million impairment of goodwill and other long-lived assets.
Net loss was $51.276 million, compared with $18.517 million a year earlier. Adjusted EBITDA, a non-GAAP measure, was negative $716,000 versus positive $9.882 million. Marketing revenue was $8.252 million versus $39.064 million, while products revenue was $17.699 million versus $22.496 million.
0 points · 0 major2 major · 4 points
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- None.
Negative
- Major pointQuarterly revenue was $25.950 million, versus $61.561 million a year earlier.
- Major pointOperating loss was $72.887 million, versus $15.565 million in Q3 2025.
- Moderate pointAdjusted EBITDA was negative $716,000, versus $9.882 million in Q3 2025.
- Minor pointGoodwill and long-lived-asset impairment was $63.605 million in Q3 2026.
8-K Event Classification
2 items: 7.01, 9.01
2 items
Item 7.01
Regulation FD Disclosure
Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Revenue: $25.950 million (Q3 2026); $61.561 million (Q3 2025)
Operating loss: $72.887 million (Q3 2026); $15.565 million (Q3 2025)
Impairment of goodwill and other long-lived assets: $63.605 million
+4 more
7 metrics
Revenue
$25.950 million (Q3 2026); $61.561 million (Q3 2025)
Quarters ended September 30, 2026 and September 30, 2025
Operating loss
$72.887 million (Q3 2026); $15.565 million (Q3 2025)
Quarters ended September 30, 2026 and September 30, 2025
Impairment of goodwill and other long-lived assets
$63.605 million
Quarter ended September 30, 2026
Net loss
$51.276 million (Q3 2026); $18.517 million (Q3 2025)
Quarters ended September 30, 2026 and September 30, 2025
Adjusted EBITDA
Negative $716,000 (Q3 2026); positive $9.882 million (Q3 2025)
Quarters ended September 30, 2026 and September 30, 2025; non-GAAP measure
Marketing revenue
$8.252 million (Q3 2026); $39.064 million (Q3 2025)
Quarters ended September 30, 2026 and September 30, 2025
Products revenue
$17.699 million (Q3 2026); $22.496 million (Q3 2025)
Quarters ended September 30, 2026 and September 30, 2025
Key Terms
Adjusted EBITDA, Active Marketing Partners, Revenue per Active Marketing Partner, RPS, +2 more
6 terms
Adjusted EBITDA financial
"Adjusted EBITDA"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
Active Marketing Partners financial
"partners who monetize user traffic on our platform"
Revenue per Active Marketing Partner financial
"Revenue per Active Marketing Partner"
RPS financial
"RPS is Revenue divided by Sessions"
Noncontrolling Interest financial
"Net Income (Loss) Attributable to Noncontrolling Interest"
The portion of a business owned by investors other than the controlling owner when one company has control of another; it represents outside shareholders’ share of the subsidiary’s assets and profits. For investors, it matters because those outside claims reduce the amount of profit and net assets attributable to the parent owner — similar to saying part of a pizza belongs to someone else — and thus affects earnings, book value and valuation.
Impairment of Goodwill and other long lived assets financial
"Impairment of Goodwill and other long lived assets"
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What was System1 (SST) revenue in Q3 2026?
System1's revenue for the quarter ended September 30, 2026 was $25.950 million, compared with $61.561 million for the quarter ended September 30, 2025. The supplemental figures are unaudited.
What was System1 (SST) adjusted EBITDA in Q3 2026?
Adjusted EBITDA was negative $716,000 for the quarter ended September 30, 2026, compared with positive $9.882 million for the quarter ended September 30, 2025. Adjusted EBITDA is a non-GAAP measure.
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): November 12, 2026
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer Identification Number) | ||||||||||||
(Address of principal executive offices) | (Zip Code) | |||||||||||||
(
(Registrant's telephone number, including area code)
N/A
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Section 7 - Regulation FD
Item 7.01 - Regulation FD Disclosure
Supplemental Financial Information
On November 12, 2026 , System1, Inc. (the "Company") posted supplemental financial information for its quarter ended September 30, 2026 on the Company’s website at https://ir.system1.com. A copy of the supplemental financial information is furnished herewith as Exhibit 99.1.
The Company’s website and the information contained on, or that can be accessed through, the Company’s website will not be deemed to be incorporated by reference in, and are not considered part of, this Current Report.
In accordance with General Instruction B.2 of Form 8-K, the foregoing supplemental financial information and related information (including the exhibit set forth in Item 9.01 hereto) in this Item 7.01 is being furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended regardless of any general incorporation language in such filing, except as expressly set forth by specific reference in such a filing. This Current Report will not be deemed an admission as to the materiality of any information in this Current Report that is required to be disclosed solely by Regulation FD.
Section 9 - Financial Statements and Exhibits
Item 9.01 - Financial Statements and Exhibits
(d) Exhibits.
Exhibit No. | Description | |||||||
99.1 | Third Quarter 2026 Supplemental Financial Information | |||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). | |||||||
1
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
System1, Inc. | |||||||||||
Date: | By: | /s/ Tridivesh Kidambi | |||||||||
Name: | Tridivesh Kidambi | ||||||||||
Title: | Chief Financial Officer | ||||||||||
2
System1, Inc. Unaudited Statements of Operations (in thousands) QTD QTD QTD QTD QTD QTD QTD QTD QTD QTD QTD YTD YTD YTD YTD YTD YTD YTD YTD 30-Sep-26 30-Jun-26 31-Mar-26 31-Dec-25 30-Sep-25 30-Jun-25 31-Mar-25 31-Dec-24 30-Sep-24 30-Jun-24 31-Mar-24 30-Sep-26 30-Jun-26 31-Dec-25 30-Sep-25 30-Jun-25 31-Dec-24 30-Sep-24 30-Jun-24 Revenue 25,950 30,201 37,234 51,940 61,561 78,116 74,513 75,594 88,832 94,581 84,917 93,385 67,434 266,129 214,189 152,628 343,925 268,330 179,498 Operating cost and expenses: Cost of revenues 5,324 5,927 13,860 30,626 38,818 50,213 46,077 43,777 63,999 68,507 66,319 25,111 19,786 165,734 135,108 96,290 242,602 198,825 134,826 Salaries, commissions, and benefits 15,896 17,113 20,800 20,108 21,354 26,297 24,988 25,915 29,177 33,937 24,483 53,809 37,913 92,747 72,639 51,285 113,512 87,597 58,420 Selling, general, and administrative 14,012 14,540 16,789 18,651 16,953 17,510 16,574 17,806 17,472 21,223 19,911 45,342 31,330 69,688 51,038 34,085 76,411 58,606 41,134 Impairment of Goodwill and other long lived assets 63,605 911 36,822 - - - - - - - - 101,338 37,733 - - - - - - Total operating costs and expenses 98,837 38,492 88,271 69,385 77,125 94,020 87,639 87,498 110,648 123,667 110,712 225,599 126,762 328,169 258,785 181,659 432,525 345,028 234,379 Operating income (72,887) (8,291) (51,037) (17,445) (15,565) (15,904) (13,127) (11,903) (21,816) (29,086) (25,795) (132,215) (59,328) (62,040) (44,596) (29,031) (88,601) (76,698) (54,881) - Loss (gain) on fair value of warrants - - - (304) (71) 68 32 (915) 281 (1,501) (251) - - (275) 29 100 (2,386) (1,471) (1,752) Loss on extinguishment of related-party debt - - - - - - - - - (433) (19,676) - - - - - (20,109) (20,109) (20,109) Loss (Gain) on troubled debt restructuring (13,395) - - - - - - - - - - (13,395) - - - - - - - Realized tax benefit - - - (5,253) - - (5,253) - - - - - Interest expense 1,685 7,116 6,628 6,304 7,052 7,116 7,085 7,764 7,957 7,871 7,970 15,430 13,744 27,557 21,253 14,201 31,562 23,799 15,841 Income (loss) from continuing operations before income tax (61,177) (15,407) (57,666) (18,191) (22,547) (23,087) (20,244) (18,752) (30,054) (35,023) (13,839) (134,249) (73,072) (84,069) (65,878) (43,331) (97,668) (78,916) (48,862) Income tax expense 299 (75) (75) (398) (543) (1,547) (387) (729) 585 (178) (48) 149 (150) (2,875) (2,477) (1,934) (370) 359 (226) Net income (loss) from continuing operations (61,476) (15,332) (57,591) (17,793) (22,004) (21,540) (19,857) (18,023) (30,639) (34,845) (13,791) (134,399) (72,923) (81,193) (63,400) (41,397) (97,298) (79,275) (48,636) Net Income (Loss) Attributable to Noncontrolling Interest (10,200) (2,733) (10,524) (4,309) (3,487) (4,079) (3,973) (3,862) (7,037) (8,472) (3,254) (23,457) (13,257) (15,848) (11,539) (8,052) (22,625) (18,763) (11,726) Net income (51,276) (12,599) (47,067) (13,484) (18,517) (17,461) (15,884) (14,161) (23,602) (26,373) (10,537) (110,942) (59,666) (65,345) (51,861) (33,345) (74,673) (60,512) (36,910) Deprecation and amortization expense in Cost of revenues and Selling, general, and administrative: Cost of Revenues - D&A 1,197 1,223 4,909 13,557 13,343 13,091 13,050 12,884 12,828 12,709 12,620 7,328 6,131 53,041 39,484 26,141 51,041 38,157 25,329 SG&A - D&A 5,506 5,573 7,237 7,473 7,446 7,475 7,427 7,348 7,300 7,234 7,183 18,316 12,810 29,821 22,348 14,902 29,065 21,717 14,418 Total Depreciation & Amortization 6,703 6,795 12,146 21,030 20,789 20,566 20,477 20,232 20,128 19,943 19,804 25,644 18,941 82,862 61,832 41,042 80,107 59,875 39,747
System1, Inc Non-GAAP Financials (in thousands) QTD QTD QTD QTD QTD QTD QTD QTD QTD QTD QTD YTD YTD YTD YTD YTD YTD YTD YTD 30-Sep-26 30-Jun-26 31-Mar-26 31-Dec-25 30-Sep-25 30-Jun-25 31-Mar-25 31-Dec-24 30-Sep-24 30-Jun-24 31-Mar-24 30-Sep-26 30-Jun-26 31-Dec-25 30-Sep-25 30-Jun-25 31-Dec-24 30-Sep-24 30-Jun-24 Net income (loss) from continuing operations (61,476)$ (15,332)$ (57,591)$ (17,793)$ (22,004)$ (21,540)$ (19,857)$ (18,023)$ (30,639)$ (34,845)$ (13,791)$ (134,399)$ (72,923)$ (81,193)$ (63,401)$ (41,397)$ (97,298)$ (79,275)$ (48,636)$ Income tax expense 299 (75) (75) (398) (543) (1,547) (387) (729) 585 (178) (48) 149 (150) (2,875) (2,477) (1,934) (370) 359 (226) Interest expense 1,685 7,116 6,628 6,304 7,052 7,116 7,085 7,764 7,957 7,871 7,970 15,430 13,744 27,557 21,253 14,201 31,562 23,799 15,841 Depreciation & amortization 6,703 6,795 12,146 21,030 20,789 20,566 20,477 20,232 20,128 19,943 19,804 25,644 18,941 82,862 61,832 41,042 80,107 59,875 39,747 Impairment of Goodwill and other long lived assets 63,605 911 36,822 - - - - - - - - 101,338 37,733 Other income/expense (1) 21 (49) (196) 86 (209) 246 (39) (111) 127 (36) (97) (224) (245) 84 (2) 207 (117) (6) (133) Stock-based compensation and distributions to Members (2) 1,239 1,355 1,264 1,286 2,833 4,542 2,651 4,567 3,783 3,442 3,971 3,859 2,619 11,312 10,025 7,193 15,763 11,197 7,413 Revaluation of non-cash warrant liability - - - (304) (71) 68 32 (915) 281 (1,501) (251) - - (275) 29 100 (2,386) (1,471) (1,752) Loss on Extinguishment of related-party debt - - - - - - - - - (433) (19,676) - - - - - (20,109) (20,109) (20,109) Loss (Gain) on troubled debt restructuring (13,395) - - - - - - - - - - (13,395) - - - - - - - Realized tax receivable agreement - - - (5,253) - - - - - - - - - (5,253) - - - - - Costs related to acquisitions/business combinations - - 225 1,384 955 715 1,034 3,028 7,441 11,854 2,244 225 225 4,087 2,704 1,749 24,567 21,539 14,098 Other costs, including restructuring and legal settlements 603 1,215 3,492 1,828 1,079 1,557 1,091 2,067 683 3,810 297 5,310 4,707 5,554 3,727 2,648 6,857 4,790 4,107 Adjusted EBITDA (716)$ 1,937$ 2,716$ 8,170$ 9,882$ 11,722$ 12,085$ 17,880$ 10,346$ 9,927$ 423$ 3,937$ 4,653$ 41,859$ 33,689$ 23,807$ 38,577$ 20,697$ 10,350$ (1) Non-cash adjustments related to foreign exchange and asset disposals (2) Comprised of distributions to equity holders and non-cash stock-based compensation
Non-Financial Metrics (In thousands except ratios) QTD QTD QTD QTD QTD QTD QTD QTD QTD QTD QTD QTD YTD YTD YTD YTD YTD YTD YTD YTD 30-Sep-26 30-Jun-26 31-Mar-26 31-Dec-25 30-Sep-25 30-Jun-25 31-Mar-25 31-Dec-24 30-Sep-24 30-Jun-24 31-Mar-24 31-Dec-23 30-Sep-26 30-Jun-26 31-Dec-25 30-Sep-25 30-Jun-25 31-Dec-24 30-Sep-24 30-Jun-24 Marketing Marketing Revenue 8,252$ 10,724$ 18,391$ 27,432$ 39,064$ 54,143$ 52,250$ 48,520$ 68,083$ 76,654$ 70,131$ 79,204$ 37,366$ 29,114$ 172,889$ 145,457$ 106,392$ 263,388$ 214,868$ 146,785$ Owned & Operated Marketing Revenue 790$ 1,579$ 6,836$ 17,167$ 25,730$ 36,314$ 35,658$ 37,631$ 50,049$ 59,470$ 54,243$ 62,506$ 9,205$ 8,415$ 114,869$ 97,702$ 71,972$ 201,393$ 163,762$ 113,713$ Partner Marketing Revenue 7,462$ 9,145$ 11,555$ 10,265$ 13,334$ 17,828$ 16,592$ 10,889$ 18,035$ 17,184$ 15,888$ 16,698$ 28,161$ 20,699$ 58,019$ 47,754$ 34,420$ 61,995$ 51,106$ 33,072$ Active Marketing Partners (1) 55 59 56 70 108 133 149 179 165 164 146 149 63 65 125 144 156 164 157 157 Revenue per Active Marketing Partner (2) 136$ 155$ 206$ 147$ 123$ 134$ 111$ 61$ 109$ 105$ 109$ 112$ 451$ 321$ 466$ 333$ 221$ 378$ 326$ 211$ Products Revenue 17,699$ 19,477$ 18,843$ 24,508$ 22,496$ 23,973$ 22,263$ 27,074$ 20,749$ 17,927$ 14,787$ 16,916$ 56,019$ 38,320$ 93,241$ 68,732$ 46,236$ 80,536$ 53,462$ 32,713$ Sessions (3) 667,564 686,860 653,681 590,316 584,651 522,452 475,741 520,015 473,428 464,929 435,850 405,872 2,008,105 1,340,541 2,173,160 1,582,844 998,193 1,894,221 1,374,206 900,779 RPS (4) $0.03 $0.03 $0.03 $0.04 $0.04 $0.05 $0.05 $0.05 $0.04 $0.04 $0.03 $0.04 $0.03 $0.03 $0.04 $0.04 $0.05 $0.04 $0.04 $0.04 (1) Active Marketing Partners are partners who monetize user traffic on our platform and generate at least $5,000 in revenue per quarter. Averages are used for YTD metrics (2) Revenue per Active Marketing Partner is Revenue from Marketing Partners divided by Active Marketing Partners. (3) Sessions are the total number of monetizable user visits to Products websites (4) RPS is Revenue divided by Sessions