System1, Inc. (SST) AI Stock Analysis

Headquartered in Los Angeles, California, System1, Inc. develops technology and uses data science to run an acquisition marketing platform. Founded in 2013, the company offers responsive marketing solutions designed to optimize customer acquisition across sectors including health, finance, insurance, subscription services, travel, automotive, and business and technology. System1 also operates a real-time coupon code search engine and directory that connects online shoppers with discounts and promotional offers. The company employs 250 people and provides services aimed at enhancing digital visibility and consumer engagement for direct-to-consumer and business clients.

System1 has experienced continuous revenue contraction since FY2021. Annual revenue declined from $688.4M in FY2021 to $266.1M in FY2025, reflecting a 5-year revenue CAGR of -11.0%. The company reported net losses in four consecutive years, including -$367.5M in FY2022, -$223.0M in FY2023, -$74.7M in FY2024, and -$65.3M in FY2025. Operating margin remained negative over this timeframe, registering -23.3% in FY2025. For the trailing twelve months ended June 30, 2026, revenue stood at $180.9M with an operating margin of -17.2%. In the latest quarter, quarterly revenue fell 61.3% year-over-year, and earnings declined 95.0%.

As of June 30, 2026, System1 held $40.5M in cash and short-term investments against total debt of $300.6M, resulting in net debt of $260.2M. The company has negative shareholders' equity of -$26.7M, total assets of $291.4M, and a current ratio of 0.77. Operating cash flow has been negative since FY2022, including -$4.1M in FY2025 with free cash flow of -$4.2M. In FY2025, cash deployment included capital expenditures of $46,000, share buybacks of $557,000, and dividends paid of $32,000.

With a market cap of $18.3M and an enterprise value of $290.4M, System1 trades at a price-to-sales multiple of 0.1x, lower than the median of 1.5x for its US-listed Industrials peers. Its EV to EBITDA ratio is 10.0x compared to 13.9x for the peer group. Over the past year, the stock fell 70.5%, trailing the S&P 500 (SPY) gain of 16.8%. Over a 5-year period, the stock dropped 97.9% compared to an 83.0% gain for the S&P 500.

One analyst covers System1 with a Strong Buy rating. The mean price target is $6.50, representing an upside of 209.5% from the last close of $2.10 on October 16, 2026. For the fiscal year ending December 31, 2026, analysts estimate revenue of $131.8M and an EPS of -$8.85. For the next fiscal year, estimates project revenue of $159.6M and an EPS of -$1.08. System1 beat EPS estimates in 2 of the last 4 quarters, and its next earnings date is November 4, 2026.

This page is an AI-written research summary of System1, Inc. (SST). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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