---
title: "SYSTEM1 INC C/WTS 27/01/2027 (TO PUR COM) | 8-K: FY2026 Q1 Revenue: USD 37.23 M"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/286149079.md"
datetime: "2026-05-12T20:07:14.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/286149079.md)
  - [en](https://longbridge.com/en/news/286149079.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/286149079.md)
generator: "portal-rs"
---

# SYSTEM1 INC C/WTS 27/01/2027 (TO PUR COM) | 8-K: FY2026 Q1 Revenue: USD 37.23 M

Revenue: As of FY2026 Q1, the actual value is USD 37.23 M.

EBIT: As of FY2026 Q1, the actual value is USD -44.41 M.

### Financial Highlights for Q1 2026

#### Revenue and Profitability

-   Revenue for the first quarter of 2026 was $37.2 million, a decrease from $74.5 million in the first quarter of 2025.
-   GAAP Gross Profit was $23.3 million, with a margin of 63%.
-   Adjusted Gross Profit was $28.2 million, achieving a margin of 76%.
-   GAAP Net Loss was - $57.6 million.
-   Adjusted EBITDA stood at $2.7 million.

#### Operating Performance (Three Months Ended March 31, 2026 vs. 2025)

-   Cost of revenue was $13,860 thousand in 2026, down from $46,077 thousand in 2025.
-   Salaries and benefits decreased to $20,800 thousand in 2026 from $24,988 thousand in 2025.
-   Selling, general, and administrative expenses were $16,789 thousand in 2026, slightly up from $16,574 thousand in 2025.
-   Impairment of long-lived assets was $36,822 thousand in 2026, compared to $0 thousand in 2025.
-   Total operating expenses increased to $88,271 thousand in 2026 from $87,639 thousand in 2025.
-   Operating loss widened to - $51,037 thousand in 2026 from - $13,126 thousand in 2025.
-   Net interest expense was $6,629 thousand in 2026, a slight decrease from $7,085 thousand in 2025.
-   Net loss for the period was - $57,591 thousand in 2026, compared to - $19,856 thousand in 2025.
-   Net loss attributable to System1, Inc. was - $47,067 thousand in 2026, versus - $15,883 thousand in 2025.

#### Balance Sheet (March 31, 2026 vs. December 31, 2025)

-   Cash and cash equivalents decreased to $51,514 thousand as of March 31, 2026, from $86,887 thousand as of December 31, 2025.
-   Accounts receivable, net, was $53,257 thousand at March 31, 2026, down from $57,289 thousand at December 31, 2025.
-   Total assets decreased to $320,325 thousand at March 31, 2026, from $404,972 thousand at December 31, 2025.
-   Total liabilities decreased to $359,349 thousand at March 31, 2026, from $387,553 thousand at December 31, 2025.
-   Total stockholders’ equity was - $39,024 thousand at March 31, 2026, a decrease from $17,419 thousand at December 31, 2025.

#### Operational Metrics and Highlights

-   System1, Inc. significantly reduced marketing activities for search monetization during the quarter to enable greater focus, improved execution, and a lower go-forward cost structure.
-   CouponFollow.com enhanced its Content Management System with AI-powered tools, leading to fresher content, smarter code testing, and higher-quality coupons.
-   Startpage.com added new features to its consumer experience, including sports updates, flight status, and booking functionality.
-   MapQuest.com achieved year-over-year organic traffic growth of 14% and site-wide revenue growth of 23%, driven by product releases.

#### Outlook / Guidance

System1, Inc. is resetting its focus on AI and consumer intent, anticipating thriving as AI agents become a primary interface for shopping, search, and travel. Management expects meaningful cost savings and an improved financial profile from recent actions, alongside progress in right-sizing the capital structure for greater investment flexibility. The company believes it is well-positioned for stronger operating performance and long-term shareholder value in the year ahead and future.

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> **Disclaimer: This article is for reference only and does not constitute any investment advice.**