One-glance verdict
Not enough data
Fair value unavailable
Not enough cash-flow history to value this one with our method.
Fundamentals snapshot
System1, Inc.
SST · NYQ · Industrials · Specialty Business Services
Current price
$3.47
52-week range
$1.35 - $9.30
Market cap
$30.22M
Balance sheet
Distressed
-2.25x Concerning
Net debt $260.16M. Interest coverage shows how many times profit covers the interest bill.
What stands out
0 Rewards
2 Risks
0 rewards · 2 risks
- Risk Return on equity was -51235.5% last year — the company lost money on shareholders' equity.
- Risk Operating margin compressed from 7.4% to -17.2% over 3 years.
What this company does
System1, Inc.
System1 is an online advertising company that owns a collection of websites you might know, like MapQuest and HowStuffWorks. It makes money by paying to attract visitors to its sites and then selling advertising space to other businesses that want to reach those people. The company's success depends on its advertising margin (the profit left over after subtracting the cost of attracting visitors from the ad money it brings in).
How the company got here
System1 was founded in 2013 by two entrepreneurs and started as an internet advertising company called OpenMail. Over the years, it grew by purchasing well-known internet brands that many people use, including the search engine Info.com, the explanation website HowStuffWorks, and the driving directions service MapQuest. The company also acquired privacy-focused products like the Startpage search engine and the coupon-finding site CouponFollow. In early 2022, System1 became a publicly-traded company on the New York Stock Exchange, meaning anyone can now buy a small piece (or share) of the company.
What it actually does
System1 is in the business of connecting advertisers with people browsing the internet. The company uses its special technology, called a Responsive Acquisition Marketing Platform (RAMP), to figure out what users might be interested in and then shows them relevant ads. Think of it as a digital matchmaker that helps other businesses find customers online. System1 makes money when people click on these ads or buy something after seeing them. This entire process is designed to turn website traffic into revenue (money earned from business activities).
Owned and Operated Advertising
This part of the business is made up of all the websites and online services that System1 owns directly. This includes brands you might recognize, like MapQuest for directions, CouponFollow for discount codes, and Startpage for private web searches. System1 makes money from these properties by placing ads on their pages and in their search results. When you use one of their sites and click on an ad, the advertiser pays System1 for sending a potential customer their way. This segment is a major focus for the company's growth.
Partner Network
Besides its own websites, System1 also offers its advertising technology to other companies that own websites and apps. These other companies are called partners, and they use System1's platform to place ads on their own sites to make money from their visitors. In this arrangement, System1 acts as a service provider, helping its partners monetize (turn into cash) their internet traffic. System1 then gets to keep a share of the money generated from the ads shown on these partner sites.
What management is betting on now
The company's leadership is currently focused on growing the businesses it owns directly, like MapQuest and CouponFollow, because they are more profitable. They are deliberately reducing their reliance on buying traffic from search engines like Google, which has become more expensive and unpredictable. Management is also investing in new artificial intelligence (AI) features to improve its services and find new ways to use its large amount of user data. By strengthening its finances and focusing on its most profitable segments, the company aims to build a more stable and valuable business for the long term.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$-36.00K
FY2024 Q4
$772.00K
FY2025 Q1
$-15.99M
FY2025 Q2
$24.49M
FY2025 Q3
$-2.05M
FY2025 Q4
$-10.64M
FY2026 Q1
$-26.13M
Revenue
$30.20M
Net income
$-12.60M
Diluted EPS
-1.54
Operating cash flow
$-2.04M
Free cash flow
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Fetching…
Sources
Revenue
$37.23M
Net income
$-47.07M
Diluted EPS
-5.82
Operating cash flow
$-26.13M
Free cash flow
$-26.13M
Fetching…
Sources
Revenue
$51.94M
Net income
$-13.48M
Diluted EPS
-3.58
Operating cash flow
$-10.64M
Free cash flow
$-10.64M
Fetching…
Sources
Revenue
$61.56M
Net income
$-18.52M
Diluted EPS
-2.30
Operating cash flow
$-2.05M
Free cash flow
$-2.05M
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Sources
Revenue
$78.11M
Net income
$-17.46M
Diluted EPS
-2.23
Operating cash flow
$24.49M
Free cash flow
$24.49M
Fetching…
Sources
Revenue
$74.51M
Net income
$-15.88M
Diluted EPS
-0.21
Operating cash flow
$-15.95M
Free cash flow
$-15.99M
Fetching…
Sources
Revenue
$75.59M
Net income
$-14.16M
Diluted EPS
-0.19
Operating cash flow
$772.00K
Free cash flow
$772.00K
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Sources
Revenue
$88.83M
Net income
$-23.60M
Diluted EPS
-0.34
Operating cash flow
$-5.00K
Free cash flow
$-36.00K
Fetching…
Sources
Is it cheap or expensive?
Fair value — vs current price $3.47
We couldn't calculate a fair value right now.
Is it drowning in debt?
Distressed
Net debt $260.2M. Interest coverage -2.3x.
Net debt
$260.16M
Interest coverage
-2.25x
System1, Inc.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 3 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Distressed
Worse cushion
Baseline
Better cushion
SST
BASELINE
System1, Inc.
Total debt $300.64M Interest coverage -2.25x This is the baseline the peer rows are being compared against.
Total debt $22.09M Interest coverage -20.30x Neither company has much profit cushion over interest right now.
Total debt $77.66M Interest coverage 8.06x This peer still has a real interest-payment cushion, while SST does not.
Total debt $157.40M Interest coverage 9.38x This peer still has a real interest-payment cushion, while SST does not.
Total debt $356.09M Interest coverage 0.58x This peer still has a real interest-payment cushion, while SST does not.
Total debt $189.89M Interest coverage -4.30x Neither company has much profit cushion over interest right now.
What you should know
The case for and against SST
0 Rewards
2 Risks
Rewards
Risks
-
Return on equity was -51235.5% last year — the company lost money on shareholders' equity.
-
Operating margin compressed from 7.4% to -17.2% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
-3.21x
P/B
-1.07x
P/S
0.17x
EV/EBITDA
-101.87x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
6.8%
Operating margin
-17.2%
Net margin
-50.7%
ROE
-51,235.5%
ROA
-9.5%
Health
Liquidity and balance-sheet strength
Debt / equity
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Current ratio
0.77x
Quick ratio
0.70x
Total debt
$300.64M
Total cash
$40.48M
Growth
How the business has been compounding
Revenue TTM
$180.94M
Revenue 5Y CAGR
-29.9%
EPS TTM
-11.29
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$-40.86M
Free CF TTM
$-4.19M
FCF margin
-2.3%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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