Internet utility firm System1 Q1 revenue falls, net loss widens

System1

12/05/2026 21:17

Overview

US internet utilities operator's Q1 revenue fell sharply yr/yr to $37.2 mln

Company posted GAAP net loss of $57.6 mln and adjusted EBITDA of $2.7 mln

Revenue decline driven by reduced marketing for search monetization and cost-saving focus

Outlook

Company expects recent cost-saving actions to improve its financial profile going forward

System1 says it is well-positioned to drive stronger operating performance in the year ahead

Company sees greater flexibility to invest across highest-return opportunities after right-sizing capital structure

Result Drivers

MARKETING REDUCTION - Co said it significantly reduced marketing activities for search monetization to operate with greater focus and lower costs

PRODUCT UPDATES - MapQuest delivered 14% organic traffic growth and 23% site-wide revenue growth, driven by product releases focused on consumer experience

AI ENHANCEMENTS - CouponFollow enhanced its content management system with AI-powered tools to deliver fresher content and higher-quality coupons

Company press release: ID:nBw596jCHa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Miss
$37.23 mln
$55.17 mln (1 Analyst)
Q1 Net Income
-$57.60 mln
Q1 Adjusted EBITDA
$2.70 mln
Q1 Adjusted Gross Profit
$28.2 mln
Q1 Gross Profit
$23.3 mln


Analyst Coverage

The one available analyst rating on the shares is "buy"

The average consensus recommendation for the it services & consulting peer group is "buy"

Wall Street's median 12-month price target for System1 Inc is $8.00, about 108.9% above its May 11 closing price of $3.83

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)