System1, Inc. Financials
This page shows System1, Inc. (SST) financial statements, including the 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’s core mechanic is persistent revenue shrinkage outrunning cost relief, leaving an asset-light business near cash breakeven but heavily leveraged.
FY2025 showed positive EBITDA of$13.1M while operating cash flow stayed negative at-$4.1M , so the improvement visible above the cash-flow line still did not fund the business. Cash increased only because financing supplied$31.3M , which mattered more than the modest-$4.2M free-cash outflow.
Gross margin remained relatively high at
Capital intensity is minimal: capex was only
Financial Health Signals
Based on FY2025 annual data, averaged across the last 3 years for performance metrics (most-recent year weighted highest). 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 retains $-23 of operating profit per $100 of revenue. This below-average margin results in a low score of 0/100, suggesting thin profitability after operating expenses. 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 2/100.
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 0/100, reflecting increased financial risk.
System1, Inc.'s current ratio of 1.02 is below the typical benchmark, resulting in a score of 15/100. 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.
While System1, Inc. generated -$4.1M in operating cash flow, capex of $46K consumed most of it, leaving -$4.2M in free cash flow. This results in a low score of 19/100, reflecting heavy capital investment rather than weak cash generation.
System1, Inc. generates a -214.5% ROE, indicating limited profit relative to shareholders' investment. This results in a returns score of 0/100. This is down from -93.0% the prior year.
System1, Inc. passes 2 of 9 financial strength tests. 2 of 4 profitability signals pass, no leverage/liquidity signals pass (rising debt, declining liquidity, or share dilution), neither operating efficiency signal passes.
For every $1 of reported earnings, System1, Inc. generates $0.06 in operating cash flow (-$4.1M OCF vs -$65.3M net income). This low ratio suggests earnings are primarily driven by accounting accruals rather than cash generation, which may not be sustainable.
System1, Inc. earns $-2.3 in operating income for every $1 of interest expense (-$62.0M vs $27.6M). This narrow margin raises concern about the company's ability to service its debt if operating income declines.
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. generated -$4.2M in free cash flow in fiscal year 2025, representing cash available 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.
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.
SST Income Statement
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $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-6.1% | $94.6M |
| Cost of Revenue | $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-6.6% | $68.5M |
| Gross Profit | $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-4.8% | $26.1M |
| R&D Expenses | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A Expenses | $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-17.7% | $21.2M |
| Operating Income | -$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+25.0% | -$29.1M |
| Interest Expense | $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+1.1% | $7.9M |
| Income Tax | -$75K+81.2% | -$398K+26.7% | -$543K+64.9% | -$1.5M-299.7% | -$387K+46.9% | -$729K-224.6% | $585K+428.7% | -$178K |
| Net Income | -$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+10.5% | -$26.4M |
| EPS (Diluted) | $-5.82 | N/A | $-2.30-3.1% | $-2.23-4.2% | $-2.14 | N/A | $-3.37+11.3% | $-3.80 |
SST Balance Sheet
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $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-6.3% | $511.3M |
| Current Assets | $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-9.0% | $148.6M |
| Cash & Equivalents | $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-8.7% | $75.7M |
| Inventory | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Accounts Receivable | $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-7.0% | $61.9M |
| 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 | $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-1.5% | $382.1M |
| Current Liabilities | $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-2.5% | $101.7M |
| Long-Term Debt | $221.6M-3.0% | $228.4M-2.9% | $235.1M-2.8% | $241.8M-2.7% | $248.5M-2.6% | $255.1M-7.4% | $275.6M-1.4% | $279.6M |
| Total Equity | -$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-17.5% | $109.4M |
| Retained Earnings | -$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-3.2% | -$744.6M |
SST Cash Flow Statement
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | -$26.1M-145.7% | -$10.6M-418.4% | -$2.1M-108.4% | $24.5M+253.6% | -$15.9M-2165.9% | $772K+15540.0% | -$5K-100.1% | $10.0M |
| Capital Expenditures | $0 | $0 | $0 | $0-100.0% | $46K | $0-100.0% | $31K | $0 |
| Free Cash Flow | -$26.1M-145.7% | -$10.6M-418.4% | -$2.1M-108.4% | $24.5M+253.1% | -$16.0M-2171.9% | $772K+2244.4% | -$36K-100.4% | $10.0M |
| Investing Cash Flow | -$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-9.3% | -$1.6M |
| Financing Cash Flow | -$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+13.0% | -$5.8M |
| Dividends Paid | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | $202K | N/A | N/A | N/A | $0 | N/A | N/A | N/A |
SST Financial Ratios
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 62.8%+21.7pp | 41.0%+4.1pp | 36.9%+1.2pp | 35.7%-2.4pp | 38.2%-81.6pp | 119.8%+91.8pp | 28.0%+0.4pp | 27.6% |
| Operating Margin | -137.1%-103.5pp | -33.6%-8.3pp | -25.3%-4.9pp | -20.4%-2.7pp | -17.6%-1.9pp | -15.8%+8.8pp | -24.6%+6.2pp | -30.8% |
| Net Margin | -126.4%-100.4pp | -26.0%+4.1pp | -30.1%-7.7pp | -22.4%-1.0pp | -21.3%-2.6pp | -18.7%+7.8pp | -26.6%+1.3pp | -27.9% |
| Return on Equity | N/A | -44.3%-0.9pp | -43.4%-13.4pp | -30.0%-6.4pp | -23.6%-6.0pp | -17.6%+8.5pp | -26.1%-2.0pp | -24.1% |
| Return on Assets | -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%+0.2pp | -5.2% |
| Current Ratio | 0.89-0.1 | 1.02-0.1 | 1.14-0.0 | 1.18-0.1 | 1.270.0 | 1.28-0.1 | 1.36-0.1 | 1.46 |
| Debt-to-Equity | -14.37-21.9 | 7.50+2.0 | 5.51+1.4 | 4.15+0.5 | 3.70+0.5 | 3.18+0.1 | 3.05+0.5 | 2.56 |
| FCF Margin | -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%-10.6pp | 10.5% |
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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) generated -$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) generated -$4.1M in operating cash flow during fiscal year 2025, representing cash generated from 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 cash runway?
Based on fiscal year 2025 data, System1, Inc. (SST) had $86.9M in cash against an annual operating cash burn of $4.1M. This gives an estimated cash runway of approximately 251 months at the current burn rate. Cash runway measures how long a company can continue operating before running out of cash, assuming no additional funding.
What is System1, Inc.'s Piotroski F-Score?
System1, Inc. (SST) has a Piotroski F-Score of 2 out of 9, indicating weak financial health. 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) has an earnings quality ratio of 0.06x, considered low quality (accrual-driven). 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) has an interest coverage ratio of -2.3x, meaning it can struggle to cover its interest obligations. 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 6 out of 100 on our Financial Profile, indicating weak overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.