---
title: "System1 | 8-K: FY2026 Q1 Revenue Misses Estimate at USD 37.23 M"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/286149148.md"
datetime: "2026-05-12T20:07:35.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/286149148.md)
  - [en](https://longbridge.com/en/news/286149148.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/286149148.md)
---

# System1 | 8-K: FY2026 Q1 Revenue Misses Estimate at USD 37.23 M

Revenue: As of FY2026 Q1, the actual value is USD 37.23 M, missing the estimate of USD 55.17 M.

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

#### Gross Profit

GAAP Gross Profit for System1, Inc. was $23.3 million for Q1 2026, with a margin of 63%, compared to $28.4 million for Q1 2025.Adjusted Gross Profit was $28.2 million for Q1 2026, with a margin of 76%, compared to $41.5 million for Q1 2025.

#### Net Loss

GAAP Net Loss was - $57.6 million for Q1 2026, compared to - $19.9 million for Q1 2025.Net loss attributable to System1, Inc. was - $47,067 thousand for Q1 2026, compared to - $15,883 thousand for Q1 2025.

#### Adjusted EBITDA

Adjusted EBITDA was $2.7 million for Q1 2026, compared to $12.1 million for Q1 2025.

#### Operating Expenses (Three Months Ended March 31)

Cost of revenue was $13,860 thousand in 2026, compared to $46,077 thousand in 2025.Salaries and benefits amounted to $20,800 thousand in 2026, down from $24,988 thousand in 2025.Selling, general, and administrative expenses were $16,789 thousand in 2026, compared to $16,574 thousand in 2025.Impairment of long-lived assets was $36,822 thousand in 2026, compared to $0 in 2025.Total operating expenses were $88,271 thousand in 2026, compared to $87,639 thousand in 2025.

#### Operating Loss

Operating loss was - $51,037 thousand for Q1 2026, compared to - $13,126 thousand for Q1 2025.

#### Other Financial Metrics

Interest expense, net, was $6,629 thousand for Q1 2026, compared to $7,085 thousand for Q1 2025.Income tax benefit was - $75 thousand for Q1 2026, compared to - $387 thousand for Q1 2025.

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

Cash and cash equivalents were $51,514 thousand as of March 31, 2026, down from $86,887 thousand as of December 31, 2025.Total liabilities were $359,349 thousand as of March 31, 2026, a decrease from $387,553 thousand as of December 31, 2025.Total stockholders’ equity was - $39,024 thousand as of March 31, 2026, compared to $17,419 thousand as of December 31, 2025.

#### Outlook / Guidance

Management anticipates that actions taken this quarter will result in meaningful cost savings and an improved financial profile.System1, Inc. is also working to optimize its capital structure to allow for greater investment flexibility in high-return opportunities.This quarter is viewed as a pivotal moment for driving stronger operating performance and long-term shareholder value for the company.

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