System1 (SST) AI Stock Analysis

• Market Cap: $61.27M
• Dividend Yield: N/A
• Average Volume (3M): 261.74K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.22
• Revenue Growth: -19.84%
• EPS Growth: 49.40%
• Country: US
• Employees: 300
• Sector: Industrials
• Sector Strength: 91
• Industry: Specialty Business Services
• EPS (TTM): -1.70
• Shares Outstanding: 8,011,882
• 10 Day Avg. Volume: 94,392
• 30 Day Avg. Volume: 261,740
• PEG Ratio: 1.23
• Price to Book (P/B): 6.90
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -9.52
• Enterprise Value/Market Cap: 4.66
• Enterprise Value/Revenue: 0.20
• Enterprise Value/Gross Profit: 2.98
• Enterprise Value/Ebitda: 7.98
• 1Y Price Target: $5.00
• Price Target Upside: -19.35% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 52 Neutral
• Price Target: $6.50 ▲(4.84%Upside)

The overall stock score for System1 is primarily impacted by its weak financial performance, with declining revenues and high leverage posing significant risks. Technical analysis provides some positive signals, while recent earnings call details highlight both successes and challenges. Valuation metrics are notably negative, further weighing on the overall score.

System1 Business Overview & Revenue Model

Company Description

System1, Inc. (SST) operates as a leading digital marketing and consumer acquisition company. It leverages its proprietary technology platform, the RAMP (Responsive Acquisition Marketing Platform), to connect with customers across various digital channels. The company is primarily focused on sectors such as advertising technology and data-driven marketing, offering a suite of services that enhance customer acquisition and engagement strategies for businesses.

How the Company Makes Money

System1 makes money through its advanced digital marketing and customer acquisition services, which are powered by the RAMP platform. The platform utilizes artificial intelligence and machine learning algorithms to effectively target and acquire high-intent customers for its clients. Key revenue streams include performance-based marketing services, where the company earns revenue based on the success of customer acquisition campaigns it manages. Additionally, System1 partners with various advertisers and publishers to enhance its reach and optimize the performance of its marketing efforts. These partnerships, along with its data-driven approach, are significant contributors to the company's earnings.

System1 Financial Statement Overview

Summary

System1 faces significant financial challenges, including declining revenues, high leverage, and negative cash flows. Despite minor improvements in EBITDA margin, the overall financial health is concerning, with risks in liquidity and operational sustainability.

Income Statement

System1 has experienced declining revenues and profitability over recent periods, with a negative net profit margin and EBIT margin in TTM (Trailing-Twelve-Months). This reflects challenges in generating profit from its operations, despite a slight improvement in EBITDA margin. Revenue growth has been negative, indicating a downward trajectory.

Balance Sheet

The balance sheet shows high leverage with a substantial debt-to-equity ratio, which poses a risk in volatile market conditions. The return on equity is negative due to consistent net losses, and the equity ratio has been decreasing, indicating a weakening equity position. However, the company maintains some liquidity with cash equivalents available.

Cash Flow

Cash flow metrics indicate significant challenges, with negative free cash flow and operating cash flow to net income ratio suggesting inefficiencies in converting revenue to cash. Free cash flow has been decreasing, highlighting potential liquidity issues and limitations in funding operations without external financing.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	343.93M	401.97M	826.65M	688.39M	475.98M
Gross Profit	152.36M	46.72M	305.54M	675.06M	134.98M
EBITDA	14.00M	-4.48M	-427.61M	64.72M	52.92M
Net Income	-74.67M	-227.22M	33.00M	21.03M	16.36M
Balance Sheet
Total Assets	459.13M	605.47M	1.16B	517.62M	218.68M
Cash, Cash Equivalents and Short-Term Investments	63.61M	135.34M	24.61M	53.15K	29.01M
Total Debt	274.98M	355.42M	422.55M	450.00K	179.97M
Total Liabilities	374.13M	436.15M	687.67M	60.43M	266.91M
Stockholders Equity	80.26M	135.28M	383.98M	457.19M	-48.23M
Cash Flow
Free Cash Flow	-5.29M	-32.70M	-17.66M	-7.78M	40.42M
Operating Cash Flow	-5.25M	-24.74M	-7.29M	-1.24M	46.55M
Investing Cash Flow	-6.25M	203.18M	-454.45M	-6.54M	68.17M
Financing Cash Flow	-63.96M	-74.07M	-27.73M	450.00K	-128.07M

System1 Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SST, the sentiment is Positive. The current price of 6.2 is below the 20-day moving average (MA) of 6.79, above the 50-day MA of 5.26, and below the 200-day MA of 6.88, indicating a neutral trend. The MACD of 0.20 indicates Positive momentum. The RSI at 51.95 is Neutral, neither overbought nor oversold. The STOCH value of 38.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SST.

System1 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SGRP	67 Neutral	$27.95M	2.10	-32.31%	―	-12.74%	751.07%
Sector *	65 Neutral	$10.94B	15.63	5.27%	1.90%	3.14%	-27.13%
OMEX	55 Neutral	$47.32M	―		―	-2.44%	―
SST	52 Neutral	$61.27M	―	-80.45%	―	-19.84%	49.40%
NTIP	48 Neutral	$32.44M	―	-5.44%	7.04%	-87.89%	-44.93%

System1 Corporate Events

System1 Announces Reverse Stock Split Implementation

On June 11, 2025, System1, Inc. announced the implementation of a reverse stock split for its Class A and Class C Common Stock at a ratio of one post-split share for every ten shares, effective at 5:00 p.m. Eastern Time. This move, aimed at regaining compliance with NYSE listing standards, will see the company’s Class A Common Stock begin trading on a split-adjusted basis on June 12, 2025, under the existing symbol ‘SST’ with a new CUSIP number. The reverse stock split reduces the number of issued and outstanding shares and proportionally adjusts the number of shares issuable under equity incentive plans, without affecting the par value or authorized shares. Stockholders will receive cash in lieu of fractional shares, and the split does not alter any stockholder’s percentage interest in the company’s equity.

The most recent analyst rating on (SST) stock is a Buy with a $5.00 price target. To see the full list of analyst forecasts on System1 stock, see the SST Stock Forecast page.

System1 Announces Reverse Stock Split Effective June 11

On June 10, 2025, System1, Inc. held its Annual Meeting of Stockholders, where several key proposals were approved, including amendments to its 2022 Incentive Award Plan and 2024 Stock Appreciation Rights Plan. The company also announced a reverse stock split at a 1-for-10 ratio, effective June 11, 2025, to increase the trading price of its Class A Common Stock and maintain its NYSE listing. These changes aim to enhance System1’s market positioning and operational flexibility.

The most recent analyst rating on (SST) stock is a Buy with a $5.00 price target. To see the full list of analyst forecasts on System1 stock, see the SST Stock Forecast page.

System1 Approves Base Salary for President Ursini

On May 22, 2025, System1, Inc. announced that its Compensation Committee approved a base salary of $450,000 per annum for Charles Ursini, the company’s President and Chief Operating Officer, effective May 19, 2025. Previously, Mr. Ursini did not receive a base salary for his role, but he will continue to receive the same benefits as other employees, such as medical and dental coverage.

The most recent analyst rating on (SST) stock is a Buy with a $5.00 price target. To see the full list of analyst forecasts on System1 stock, see the SST Stock Forecast page.

System1 Releases Q1 2025 Financial Information

On May 6, 2025, System1, Inc. released supplemental financial information for the quarter ending March 31, 2025, on its website. The company also made available an investor presentation, which may be used for future investor engagements. This release provides stakeholders with detailed insights into the company’s financial performance and strategic positioning, potentially impacting investor perceptions and market positioning.