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System1 Group plc (GB:SYS1)
:SYS1
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System1 (SYS1) AI Stock Analysis

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GB:SYS1

System1

(LSE:SYS1)

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Neutral 67 (OpenAI - 4o)
Rating:67Neutral
Price Target:
234.00p
▼(-2.50% Downside)
System1's overall stock score is primarily driven by its strong financial performance and attractive valuation. However, the technical analysis indicates bearish momentum, which poses a risk to short-term price movements. The lack of earnings call data and corporate events means these factors do not influence the score.
Positive Factors
Revenue Growth
Consistent revenue growth indicates System1's ability to expand its market presence and enhance its service offerings, supporting long-term business sustainability.
Profitability Margins
High profitability margins reflect System1's effective cost control and pricing strategies, which contribute to sustained earnings performance and competitive advantage.
Balance Sheet Health
A strong balance sheet with minimal leverage enhances System1's financial stability, providing flexibility for strategic investments and resilience against economic fluctuations.
Negative Factors
Market Momentum
Bearish market momentum may affect investor perception and stock performance, potentially impacting capital raising and strategic initiatives.
Earnings Volatility
Significant earnings volatility can create uncertainty about future performance, potentially affecting investor confidence and long-term planning.
Lack of Recent Corporate Events
The absence of recent corporate developments may indicate a lack of strategic initiatives or market engagement, potentially hindering growth opportunities.

System1 (SYS1) vs. iShares MSCI United Kingdom ETF (EWC)

System1 Business Overview & Revenue Model

Company DescriptionSystem1 (SYS1) is a technology-driven company that specializes in digital advertising and consumer insights. Operating primarily in the digital marketing sector, System1 leverages its proprietary technology to optimize advertising campaigns and enhance customer engagement. The company provides a suite of products and services including programmatic advertising, search engine marketing, and data analytics, catering to a diverse range of clients looking to improve their online presence and drive conversions.
How the Company Makes MoneySystem1 generates revenue primarily through digital advertising services. Its revenue model is centered around performance-based advertising, where clients pay for the results achieved, such as clicks or conversions. Key revenue streams include programmatic ad placements, search engine marketing campaigns, and affiliate marketing partnerships. Additionally, System1 benefits from partnerships with various platforms and publishers, allowing it to expand its reach and enhance the effectiveness of its advertising solutions. The company's focus on data-driven marketing strategies and optimization tools also contributes significantly to its earnings, as clients are increasingly looking for measurable and effective advertising solutions.

System1 Financial Statement Overview

Summary
System1 exhibits strong financial performance with robust revenue growth, high profitability margins, and a stable balance sheet with low leverage. The company's cash flow generation is solid, supporting its operational and strategic initiatives.
Income Statement
85
Very Positive
System1 has demonstrated strong revenue growth with a 6.79% increase in the latest year, alongside impressive profitability metrics. The gross profit margin is high at 87.80%, indicating efficient cost management. The net profit margin improved significantly to 11.95%, reflecting enhanced operational efficiency. EBIT and EBITDA margins are robust at 14.24% and 17.91%, respectively, showcasing strong earnings performance.
Balance Sheet
78
Positive
The company's balance sheet is stable with a low debt-to-equity ratio of 0.037, indicating minimal leverage and financial risk. Return on equity is strong at 31.72%, suggesting effective use of equity to generate profits. The equity ratio stands at 64.16%, highlighting a solid equity base relative to total assets.
Cash Flow
72
Positive
System1's cash flow position is healthy, with a 7.38% growth in free cash flow, indicating strong cash generation capabilities. The operating cash flow to net income ratio is 0.70, suggesting efficient conversion of income into cash. The free cash flow to net income ratio is high at 89.21%, reflecting strong cash profitability.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue37.43M37.43M30.02M23.41M24.10M22.84M
Gross Profit31.48M32.86M26.12M19.72M20.20M19.11M
EBITDA6.71M6.70M4.40M2.04M2.06M4.33M
Net Income4.47M4.47M2.03M404.00K955.00K1.69M
Balance Sheet
Total Assets21.98M21.98M19.09M14.98M18.59M17.41M
Cash, Cash Equivalents and Short-Term Investments12.83M12.83M9.61M5.72M11.17M9.01M
Total Debt526.00K526.00K346.00K1.46M5.01M5.08M
Total Liabilities7.88M7.88M8.52M6.37M10.33M10.17M
Stockholders Equity14.10M14.10M10.57M8.61M8.26M7.23M
Cash Flow
Free Cash Flow5.42M4.92M5.10M-1.88M3.90M3.71M
Operating Cash Flow5.55M5.51M5.93M-628.00K4.04M3.91M
Investing Cash Flow-595.00K-595.00K-833.00K-1.25M-138.00K-198.00K
Financing Cash Flow-1.37M-1.33M-1.12M-3.82M-1.95M-1.09M

System1 Technical Analysis

Technical Analysis Sentiment
Negative
Last Price240.00
Price Trends
50DMA
230.70
Negative
100DMA
319.90
Negative
200DMA
397.79
Negative
Market Momentum
MACD
-9.93
Negative
RSI
24.47
Positive
STOCH
56.64
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SYS1, the sentiment is Negative. The current price of 240 is above the 20-day moving average (MA) of 217.10, above the 50-day MA of 230.70, and below the 200-day MA of 397.79, indicating a bearish trend. The MACD of -9.93 indicates Negative momentum. The RSI at 24.47 is Positive, neither overbought nor oversold. The STOCH value of 56.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:SYS1.

System1 Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
67
Neutral
£26.39M9.3221.43%2.64%3.32%-10.58%
61
Neutral
£70.42M12.807.09%3.89%1.24%7.54%
60
Neutral
$48.67B4.58-11.27%4.14%2.83%-41.78%
60
Neutral
£148.48M19.3818.23%1.15%-21.19%-29.54%
54
Neutral
£63.76M-5.98-32.35%4.00%-13.72%-361.92%
48
Neutral
£20.15M-1.61-37.24%-0.79%-100.22%
47
Neutral
£146.52M-0.44-45.75%5.98%-14.27%-15466.67%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:SYS1
System1
204.00
-395.54
-65.97%
GB:CAU
Centaur Media
45.00
24.26
116.97%
GB:EBQ
Ebiquity
13.25
-9.25
-41.11%
GB:SAA
M&C Saatchi plc
122.50
-64.67
-34.55%
GB:SFOR
S4 Capital Plc
16.24
-20.83
-56.19%
GB:PEBB
Pebble Group PLC
47.50
6.52
15.91%

System1 Corporate Events

Business Operations and StrategyFinancial Disclosures
System1 Group Reports Revenue Decline Amid Economic Uncertainty
Neutral
Oct 22, 2025

System1 Group PLC reported a 6% decrease in Q2 FY26 revenue compared to the previous year, primarily due to reduced spending by major clients amid economic uncertainty. Despite this, the company saw strong new business growth, including partnerships with major US and UK firms. For H1 FY26, total revenue fell by 7%, with platform revenue comprising 95% of the total. The company maintained a strong cash balance and expects full-year results to align with previous guidance, highlighting progress in innovation and US market expansion.

The most recent analyst rating on (GB:SYS1) stock is a Buy with a £478.00 price target. To see the full list of analyst forecasts on System1 stock, see the GB:SYS1 Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
System1 Group PLC to Host Capital Markets Day on AI Strategy
Neutral
Oct 14, 2025

System1 Group PLC announced it will host a Capital Markets Day on October 22, 2025, to discuss its AI strategy and plans for its key products, ‘Test Your Innovation’ and ‘Test Your Ad’. The event will include a review of H1 trading and feature presentations from top executives, providing an opportunity for investors to engage and learn about the company’s future direction.

The most recent analyst rating on (GB:SYS1) stock is a Buy with a £478.00 price target. To see the full list of analyst forecasts on System1 stock, see the GB:SYS1 Stock Forecast page.

Regulatory Filings and Compliance
System1 Director Increases Shareholding, Reflecting Confidence in Market Position
Positive
Oct 6, 2025

System1 Group PLC announced that Sophie Tomkins, a non-executive director, purchased 5,000 shares of the company at £2.20 each, increasing her total holdings to 13,000 shares, which represents 0.1% of the company’s total voting rights. This transaction, conducted on the London Stock Exchange, is part of the company’s regulatory compliance with the EU Market Abuse Regulation and reflects confidence in the company’s market position.

The most recent analyst rating on (GB:SYS1) stock is a Buy with a £478.00 price target. To see the full list of analyst forecasts on System1 stock, see the GB:SYS1 Stock Forecast page.

Regulatory Filings and Compliance
System1 Group PLC Updates Director Shareholding Disclosure
Neutral
Sep 30, 2025

System1 Group PLC announced an amendment to a previous disclosure regarding shareholding details. The amendment corrects the aggregate shareholding by including the shares held by Hannah Gregory, associated with CEO James Gregory. Following the purchase of 7,500 shares by James Gregory, the combined shareholding of James and Hannah Gregory now stands at 22,884 shares, representing 0.18% of the company’s total voting rights. This update ensures compliance with the EU Market Abuse Regulation, reflecting transparency in the company’s operations.

The most recent analyst rating on (GB:SYS1) stock is a Buy with a £478.00 price target. To see the full list of analyst forecasts on System1 stock, see the GB:SYS1 Stock Forecast page.

Other
System1 CEO Increases Stake with Share Purchase
Positive
Sep 29, 2025

System1 Group PLC announced that its CEO, James Gregory, has purchased 7,500 ordinary shares of the company at a price of £2.55 per share, representing 0.06% of the company’s total voting rights. This transaction, conducted on the London Stock Exchange, is in compliance with the EU Market Abuse Regulation and signifies a vote of confidence in the company’s future prospects by its leadership.

The most recent analyst rating on (GB:SYS1) stock is a Buy with a £478.00 price target. To see the full list of analyst forecasts on System1 stock, see the GB:SYS1 Stock Forecast page.

Other
System1 CFO Increases Stake with Share Purchase
Positive
Sep 26, 2025

System1 Group PLC announced that its Chief Financial Officer, Chris Willford, has purchased 6,000 ordinary shares at a price of £2.60 each. This transaction increases Willford’s total shareholding to 39,666 shares, representing 0.31% of the company’s total voting rights. The purchase reflects confidence in the company’s future prospects and complies with the EU Market Abuse Regulation, potentially impacting stakeholder perceptions positively.

The most recent analyst rating on (GB:SYS1) stock is a Buy with a £478.00 price target. To see the full list of analyst forecasts on System1 stock, see the GB:SYS1 Stock Forecast page.

Executive/Board ChangesDividendsShareholder Meetings
System1 Group PLC Announces Successful AGM Results
Positive
Sep 24, 2025

System1 Group PLC announced the successful outcome of its Annual General Meeting held on September 24, 2025, where all proposed resolutions were passed. Key resolutions included the re-election of directors, approval of the directors’ remuneration report, and the declaration of ordinary and special dividends. This outcome reflects strong shareholder support and positions the company for continued stability and growth, potentially impacting its market positioning positively.

The most recent analyst rating on (GB:SYS1) stock is a Buy with a £478.00 price target. To see the full list of analyst forecasts on System1 stock, see the GB:SYS1 Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
System1 Group PLC Reports Q2 Trading Update Amid Market Challenges
Negative
Sep 23, 2025

System1 Group PLC’s Q2 trading update reveals that the company’s revenue is expected to be approximately 5% lower than the previous year due to reduced spending from major clients and exchange rate challenges. Despite the challenging market conditions, System1 has maintained a strong cash position and continues to invest in future growth, with new business wins expected to match last year’s levels. However, the full-year financial performance is anticipated to fall below market expectations, with revenue projected to align with last year’s figures, reflecting increased investment in growth opportunities.

The most recent analyst rating on (GB:SYS1) stock is a Buy with a £478.00 price target. To see the full list of analyst forecasts on System1 stock, see the GB:SYS1 Stock Forecast page.

Regulatory Filings and Compliance
System1 Group CEO Transfers Shares to Spouse
Neutral
Sep 15, 2025

System1 Group PLC announced a share transaction involving its CEO, James Gregory, who transferred 15,384 ordinary shares to his wife, Hannah Gregory, at no cost. This transaction does not alter the overall beneficial interest of James Gregory in the company, maintaining his holding at 0.12% of the total voting rights. The transaction was conducted in compliance with the EU Market Abuse Regulation and took place on the London Stock Exchange.

The most recent analyst rating on (GB:SYS1) stock is a Buy with a £492.00 price target. To see the full list of analyst forecasts on System1 stock, see the GB:SYS1 Stock Forecast page.

Financial DisclosuresShareholder Meetings
System1 Group PLC Releases Annual Report and Announces AGM
Neutral
Aug 27, 2025

System1 Group PLC has announced the distribution of its Annual Report and Accounts for the fiscal year ending 31 March 2025, along with the Notice of its Annual General Meeting (AGM) scheduled for 24 September 2025. The AGM will be held in London, with options for remote attendance. This announcement underscores the company’s commitment to transparency and shareholder engagement, providing stakeholders with essential information about its financial performance and strategic direction.

The most recent analyst rating on (GB:SYS1) stock is a Buy with a £485.00 price target. To see the full list of analyst forecasts on System1 stock, see the GB:SYS1 Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Nov 18, 2025