newsfilter
← Latest News
Business Wire·

System1 Announces Third Quarter 2026 Financial Results

SST
  • System1, Inc. reported third-quarter 2026 revenue of $26.0 million, a decline from $61.6 million in the same period in 2025.
  • GAAP gross profit totaled $20.7 million (80% margin) while adjusted gross profit reached $21.9 million (84% margin).
  • The company recorded a GAAP net loss of $61.5 million, driven primarily by $51.5 million in goodwill impairment and $12.1 million in long-lived asset impairment.
  • Adjusted EBITDA for the quarter was $(0.7) million, down from $9.9 million in the prior-year quarter.
  • System1 announced its intention to voluntarily delist from the New York Stock Exchange to move to the OTC Venture Market.
  • Management attributed financial pressures to Google AI overviews reducing traffic for publishers and lowering monetization for independent search engines like Startpage.
  • MapQuest achieved the #1 ranking on both the App Store and Android Play Store, generating over 3 million new app installs.
  • Startpage traffic on its mobile browser app increased 47% year-over-year, reaching an all-time high of 712,000 daily searches.
  • CouponFollow's extension, Cently, launched new features to simplify savings by surfacing higher-success coupons and organizing saved products.
  • The company's cash and cash equivalents decreased to $12.4 million from $86.9 million at the end of 2025.
  • Total liabilities rose to $274.8 million while total stockholders' equity turned negative to $(113.9) million.
  • CEO Michael Blend stated the strategic review focuses on reallocating resources to AI tailwinds while lowering costs.
  • CFO Tridivesh Kidambi emphasized priorities to maximize cash flow, preserve liquidity, and invest selectively in high-return opportunities.