System1 (SST) Q4 2025 earnings summary

Executive summary

• Revenue for fiscal year 2025 declined 23% year-over-year to $266.1 million, reflecting a challenging operating environment.

• Adjusted Gross Profit for the year rose 1% to $153.4 million, with margin improving to 58% from 44% year-over-year.

• GAAP Net Loss for the year decreased 17% to $81.2 million, while Adjusted EBITDA increased 9% to $41.9 million.

• Fourth quarter revenue dropped 31% year-over-year to $51.9 million, with Adjusted EBITDA down 54% to $8.2 million.

• Platform brands like Startpage.com and Mapquest.com saw strong user growth, and new AI-powered tools were launched on CouponFollow.com.

Financial highlights

• Full-year gross profit decreased 1% to $100.4 million, while adjusted gross profit margin improved to 58%.

• Fourth quarter gross profit fell 33% to $21.3 million, but adjusted gross profit margin rose to 67%.

• Operating loss for the year was $62.0 million, an improvement from $88.6 million the prior year.

• Net loss attributable to the company for the year was $65.3 million, down from $74.7 million in 2024.

Outlook and guidance

• Management emphasized ongoing investment in products and AI capabilities to position the business for long-term growth.

• The company is evaluating opportunities to strengthen the balance sheet and optimize capital structure.