---
title: "System1 | 8-K: FY2026 Q2 Revenue Misses Estimate at USD 30.2 M"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/295048350.md"
datetime: "2026-08-06T03:13:32.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/295048350.md)
  - [en](https://longbridge.com/en/news/295048350.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/295048350.md)
generator: "portal-rs"
---

# System1 | 8-K: FY2026 Q2 Revenue Misses Estimate at USD 30.2 M

Revenue: As of FY2026 Q2, the actual value is USD 30.2 M, missing the estimate of USD 58.64 M.

EBIT: As of FY2026 Q2, the actual value is USD -8.291 M.

### Financial Highlights for Q2 2026 (Three Months Ended June 30)

#### Gross Profit

-   GAAP Gross Profit for Q2 2026 was $24.3 million, with a margin of 80%. For Q2 2025, GAAP Gross Profit was $27.9 million.
-   Adjusted Gross Profit for Q2 2026 was $25.5 million, with a margin of 85%. For Q2 2025, Adjusted Gross Profit was $41.0 million.

#### Net Loss and Adjusted EBITDA

-   GAAP Net Loss for Q2 2026 was -$15.3 million, an improvement from -$21.5 million in Q2 2025.
-   Adjusted EBITDA for Q2 2026 was $1.9 million, down from $11.7 million in Q2 2025.

#### Operating Expenses (in thousands)

-   Cost of revenue was $5,926 in 2026, compared to $50,212 in 2025.
-   Salaries and benefits were $17,113 in 2026, compared to $26,297 in 2025.
-   Selling, general, and administrative expenses were $14,541 in 2026, compared to $17,511 in 2025.
-   Impairment of long-lived assets was $911 in 2026, compared to $0 in 2025.
-   Total operating expenses were $38,491 in 2026, compared to $94,020 in 2025.

#### Operating Loss (in thousands)

-   Operating loss was -$8,291 in 2026, an improvement from -$15,905 in 2025.

#### Other Expense (in thousands)

-   Interest expense, net, was $7,116 in both 2026 and 2025.
-   Change in fair value of warrant liabilities was $0 in 2026, compared to $68 in 2025.
-   Total other expense, net, was $7,116 in 2026, compared to $7,184 in 2025.

#### Loss Before Income Tax and Net Loss Attributable to System1, Inc. (in thousands)

-   Loss before income tax was -$15,407 in 2026, an improvement from -$23,089 in 2025.
-   Income tax benefit was -$75 in 2026, compared to -$1,547 in 2025.
-   Net loss attributable to System1, Inc. was -$12,599 in 2026, compared to -$17,463 in 2025.

### Balance Sheet Highlights (as of June 30, 2026, vs. December 31, 2025, in thousands)

-   Cash and cash equivalents were $40,484 in 2026, compared to $86,887 in 2025.
-   Accounts receivable, net, were $40,980 in 2026, compared to $57,289 in 2025.
-   Total current assets were $89,521 in 2026, compared to $149,480 in 2025.
-   Total assets were $291,371 in 2026, compared to $404,972 in 2025.
-   Total liabilities were $344,375 in 2026, compared to $387,553 in 2025.
-   Total stockholders’ equity was -$53,004 in 2026, compared to $17,419 in 2025.

### Operational Metrics

-   System1, Inc. launched a new suite of agentic AI products, including MCP servers for MapQuest, its Dogpile search engine, and its new IntentStream audience data platform.
-   CouponFollow.com became the second-largest organic coupon site in Q2 2026.
-   Startpage continued user growth, with Startpage.com user sessions and mobile app sessions growing 31% and 63% year-over-year, respectively.

### Outlook / Guidance

System1, Inc. is focused on capitalizing on the tailwinds and initiatives powering its Products business and aims to return its Partner Network to growth mode in the second half of 2026. The recent debt exchange transaction enables continued investment in the Products business for the long-term, alongside a focus on operational efficiencies and cost structure in the Partner Network business in the short-term.

### Related Stocks

- [SST.US](https://longbridge.com/en/quote/SST.US.md)

## Related News & Research

- [System1 Reports Q2 Revenue Amid Ongoing Operating Losses](https://longbridge.com/en/news/295022134.md)
- [System1 Completes Debt Exchange and Governance Restructuring](https://longbridge.com/en/news/293763616.md)
- [Malaysia considering consumption tax reform, PM says](https://longbridge.com/en/news/296181747.md)
- [Canaccord Genuity Sticks to Its Buy Rating for System1 (SYS1)](https://longbridge.com/en/news/283539595.md)
- [System1 to report Q2 results after market close, host conference call](https://longbridge.com/en/news/293514731.md)

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