| Metric | Value ($ M) | Q2 FY25 | Q3 FY24 |
|---|---|---|---|
| Revenue | 61.56 | 21.2% | 30.7% |
| Total Income | 61.56 | 21.2% | 30.7% |
| Expenditure | 77.13 | 18.0% | 30.3% |
| PBT | -22.55 | 2.3% | 25.0% |
| Net Profit | -18.52 | 6.1% | 21.5% |
| OPM | -25.28% | 4.92pp | 0.72pp |
| NPM | -30.08% | 7.72pp | 3.51pp |
| EPS | -2.30 | 3.1% | 576.5% |
System1 Announces Q3 2025 Revenue of $61.6 million
04 May 2026 · 4 May, 8:06 am
Summary
System1 reported a decrease in revenue for the third quarter of 2025, with revenue declining by 31% year-over-year to $61.6 million. The company's GAAP gross profit also decreased by 8% to $22.8 million. However, the adjusted gross profit margin increased to 59% from 42% year-over-year. The company is shifting its business towards higher margin products and integrating AI to drive gains.
Key Highlights
- 1
System1's revenue decreased by 31% year-over-year to $61.6 million in the third quarter of 2025.
- 2
GAAP gross profit decreased by 8% year-over-year to $22.8 million.
- 3
Adjusted gross profit decreased by 4% year-over-year to $36.1 million.
- 4
Adjusted gross profit margin increased to 59% from 42% year-over-year.
- 5
GAAP net loss improved by 28% year-over-year to $22.0 million.
- 6
Adjusted EBITDA decreased by 4% year-over-year to $9.9 million.
- 7
CouponFollow.com extended its reach in the European market by launching beta versions in Germany, France and Poland.
Management Comments
Michael Blend
System1's business shift towards our higher margin Products segment continued, as Products are now a majority of our gross profit. Integrating AI across our business continues to drive meaningful gains, as we saw a significant improvement in overall gross margin and a continued higher reduction in operating expenses. While our marketing business was challenged due to product changes at our largest advertising partner Google, we are making strong progress shifting our marketing focus to a newer Google product where we believe we are the market leader. I’m proud of how our organization continues to adapt, innovate, and position System1 for long-term growth.
Tridivesh Kidambi
While recent results in our marketing business have been negatively impacted by product changes at our largest advertising partner, we remain confident in the underlying strength of our platform and strategy. Our ongoing investments in AI-driven automation and decision-making are already delivering operational efficiencies, and we believe these advancements position us strongly to navigate this dynamic landscape and deliver long-term value.
Informational and educational content only. Not investment advice.