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Throughout this report, the "Company," "System1," "we," "us," "our" and other similar terms refer to System1, Inc. and its subsidiaries. We operate several flagship brands across multiple consumer verticals, including shopping, travel and search, and a best-in-class customer acquisition and marketing platform powered by Artificial Intelligence ("AI") and machine learning.
The business is unprofitable at the operating level (-23.31% margin). The thesis depends entirely on whether and when it reaches sustainable profitability.
Revenue declined 22.6% YoY. The question is whether this is cyclical or a structural shift.
Negative free cash flow of -$4M. The business is consuming cash, not generating it.
Profitability & Returns
Revenue (TTM)
$229M
▼ -22.6% YoY
Net Income (TTM)
-$93M
▲ +12.5% YoY
Op. Margin
-43.68%
▲ +2.4pp YoY
ROIC
-25.53%
▲ +1.2pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
-$14M
▲ +20.7% YoY
Op. Cash Flow (TTM)
-$14M
▲ +21.1% YoY
Net Debt
$256M
Cash & Equiv.
$52M
3Y CAGR: -24.2%
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