System1 Q4 revenue falls 31% on macro and sector headwinds

System1

11/03/2026 20:33

Overview

Omnichannel marketing platform's Q4 revenue fell 31% yr/yr amid macro and market headwinds

Q4 adjusted EBITDA dropped 54% yr/yr to $8.2 mln

Adjusted gross profit margin rose to 67% from 59% yr/yr

Outlook

Company says continued investment in products and AI aims to position business for long-term growth

System1 says it is evaluating opportunities to strengthen balance sheet and optimize capital structure

Result Drivers

MACRO & MARKET HEADWINDS - Co said Q4 results were affected by macroeconomic and market-specific headwinds

USER GROWTH - Startpage.com daily active users rose 42% yr/yr and Mapquest.com sessions up 24% yr/yr in December 2025

Company press release: ID:nBwbwYStQa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Miss
$51.9 mln
$53.04 mln (1 Analyst)
Q4 Net Income
-$17.8 mln
Q4 Adjusted EBITDA
$8.2 mln
Q4 Adjusted Gross Profit
$34.9 mln
Q4 Gross Profit
$21.3 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 185.7% above its March 10 closing price of $2.80

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.)