Revenue growth has collapsed with a 50% year-over-year decline in 2026Q1, while operating margins remain deeply negative at -38.2%.
System1, Inc. (SST) annual income statement — 7-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 |
|---|
| Sales/Revenue | 180.94M | 266.13M | 343.93M | 401.97M | 664.94M | 688.39M | 0 | 407.49M |
| Revenue Growth % | -42.93% | -22.62% | -14.44% | -39.55% | -3.41% | - | -100% | - |
| Cost of Goods Sold | 173.63M | 288.3M | 385.18M | 433.65M | 720.04M | 601.75M | 0 | 275.77M |
| COGS % of Revenue | - | 108.33% | 112% | 107.88% | 108.29% | 87.41% | - | 67.67% |
| Gross Profit | 7.3M | -22.17M | -41.26M | -31.68M | -55.1M | 86.64M | 0 | 131.72M |
| Gross Margin % | 4.04% | -8.33% | -12% | -7.88% | -8.29% | 12.59% | - | 32.33% |
| Gross Profit Growth % | - | 46.26% | -30.22% | 42.5% | -163.59% | - | -100% | - |
| Operating Expenses | 62.82M | 39.87M | 47.35M | 54.31M | 66.5M | 35.81M | 806.03K | 79.59M |
| OpEx % of Revenue | - | 14.98% | 13.77% | 13.51% | 10% | 5.2% | - | 19.53% |
| Selling, General & Admin | 44.79M | 39.87M | 47.35M | 54.31M | 66.5M | 35.81M | 806.03K | 68.35M |
| SG&A % of Revenue | - | 14.98% | 13.77% | 13.51% | 10% | 5.2% | - | 16.77% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 1000K | 0 | 0 | 0 | 0 | 0 | 0 | 11.24M |
| Operating Income | -55.52M | -62.04M | -88.6M | -85.99M | -121.6M | 50.83M | -806.03K | 52.13M |
| Operating Margin % | -30.68% | -23.31% | -25.76% | -21.39% | -18.29% | 7.38% | - | 12.79% |
| Operating Income Growth % | - | 29.98% | -3.04% | 29.28% | -339.22% | 6406.36% | -101.55% | - |
| EBITDA | 17.38M | 20.82M | -8.49M | 19.22M | -51.13M | 64.72M | 13.03M | 63.37M |
| EBITDA Margin % | 9.61% | 7.82% | -2.47% | 4.78% | -7.69% | 9.4% | - | 15.55% |
| EBITDA Growth % | -6.73% | 345.14% | -144.2% | 137.59% | -179% | 396.82% | -79.45% | - |
| D&A (Non-Cash Add-back) | 72.9M | 82.86M | 80.11M | 105.21M | 70.47M | 13.88M | 13.83M | 11.24M |
| EBIT | -55.52M | -62.04M | -88.6M | -85.99M | -121.6M | 50.83M | -806.03K | 50.98M |
| Net Interest Income | -27.1M | -27.56M | -31.56M | -48.74M | -32.66M | -16.87M | 0 | -26.03M |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 27.1M | 27.56M | 31.56M | 48.74M | 32.66M | 16.87M | 0 | 26.03M |
| Other Income/Expense | -58.29M | -22.03M | -9.07M | -45.64M | -409.14M | -16.87M | -29.11M | -27.18M |
| Pretax Income | -113.81M | -84.07M | -97.67M | -131.63M | -530.73M | 33.96M | -29.91M | 24.95M |
| Pretax Margin % | -62.9% | -31.59% | -28.4% | -32.75% | -79.82% | 4.93% | - | 6.12% |
| Income Tax | -1.09M | -2.88M | -370K | -20.37M | -109.31M | 965K | 0 | 702K |
| Effective Tax Rate % | 0.96% | 3.42% | 0.38% | 15.48% | 20.6% | 2.84% | 0% | 2.81% |
| Net Income | -91.67M | -65.34M | -74.67M | -222.97M | -367.45M | 33M | -29.91M | 8.79M |
| Net Margin % | -50.66% | -24.55% | -21.71% | -55.47% | -55.26% | 4.79% | - | 2.16% |
| Net Income Growth % | -28.91% | 12.49% | 66.51% | 39.32% | -1213.63% | 210.3% | -440.13% | - |
| Net Income (Continuing) | -112.72M | -81.19M | -97.3M | -111.26M | -421.42M | 33M | -29.91M | 24.25M |
| Discontinued Operations | 0 | 0 | 0 | -137.25M | -45.87M | 0 | 0 | -15.45M |
| Minority Interest | -26.33M | -13.05M | 4.73M | 34.04M | 78.65M | 0 | 0 | 2.42M |
| EPS (Diluted) | -11.23 | -8.32 | -1.07 | -2.44 | -3.81 | 16.11 | -0.46 | 0.27 |
| EPS Growth % | -282.77% | -677.57% | 56.15% | 35.96% | -123.65% | 3602.17% | -270.37% | - |
| EPS (Basic) | - | -8.32 | -1.07 | -2.44 | -3.81 | 16.11 | -0.46 | 0.27 |
| Diluted Shares Outstanding | 8.16M | 7.85M | 69.55M | 91.45M | 91.67M | 84.15M | 64.69M | 89.25M |
| Basic Shares Outstanding | 8.16M | 7.85M | 69.55M | 91.45M | 91.67M | 84.15M | 64.69M | 89.25M |
| Dividend Payout Ratio | - | - | - | - | - | 44.18% | - | 98.41% |
Quick answers to the most common questions about buying SST stock.
For fiscal year 2025, System1, Inc. (SST) reported total revenue of $266.1M. This represents a 34.7% decline compared to $407.5M in 2019.
System1, Inc. (SST) reported a net loss of $65.3M for the fiscal year ending 2025.
System1, Inc. (SST) reported an operating income of $-62.0M, resulting in an operating profit margin of -23.3%. This margin reflects the operational efficiency of the business before interest and taxes.
System1, Inc. (SST) generated $-22.2M in gross profit for the year, representing a gross profit margin of -8.3%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Arbitrage spread compression
Metrics are mathematically derived from official filings.
Persistent Revenue Contraction Trends
According to the most recent quarterly data, System1 experienced a severe 50% year-over-year revenue decline in 2026Q1, signaling that the company's core intent-marketing model is struggling to maintain scale in an increasingly competitive digital advertising environment where traffic acquisition costs frequently outpace monetization yields.
The consistent downward trajectory in top-line performance suggests that the RAMP platform is losing its ability to effectively arbitrage consumer intent. Investors should monitor whether this decline reflects a structural loss of market share or a broader cyclical pullback in high-intent advertising spend.
Volatility in Gross Margin Efficiency
As reported in financial statements, System1's gross margin profile has exhibited extreme instability, swinging from a negative 12.5% in 2026Q1 to a peak of 59.1% in 2024Q4, which highlights the inherent fragility of an arbitrage-based business model highly sensitive to fluctuating traffic acquisition costs.
The inability to maintain consistent gross margins indicates that the company lacks significant pricing power over its primary traffic sources. This volatility suggests that the spread between what the company pays for clicks and what it earns from monetization is highly susceptible to external platform algorithm changes.
Operating Leverage Remains Deeply Negative
Based on the provided income statement data, System1's operating margin has remained consistently negative, reaching -38.2% in 2026Q1, which demonstrates that the company has failed to achieve the necessary operating leverage to cover its fixed cost base as revenue continues to shrink.
The decoupling of fixed operating expenses from a declining revenue base suggests that management has not yet successfully right-sized the organization. This trend implies that without a significant pivot in operational efficiency, the company will continue to face substantial pressure on its bottom line.
Arbitrage Model Sustainability Under Scrutiny
Data from recent filings indicates that System1's reliance on a high-variable-cost arbitrage model may be fundamentally flawed, as evidenced by the company's inability to generate positive operating income even during periods of higher revenue, raising concerns about the long-term viability of its current monetization strategy.
Short-sellers would likely focus on the persistent negative net margins and the potential for goodwill impairment given the recent revenue contraction. The current financial performance warrants investigation into whether the RAMP platform can ever achieve a sustainable, profitable scale in a post-cookie digital landscape.