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Financial statements

System1, Inc. financial statements

Income statement, balance sheet and cash flow statement for the last 4 fiscal years, taken from the XBRL data System1, Inc. files with the SEC in its annual reports.

In USD millions, except per-share amounts. Outflows in the cash flow statement are negative.

Income statement

FY2021FY2023FY2024FY2025
Revenue688402344266
Cost of revenue521241243166
Gross profit167161101100
Selling, general and administrative35.854.376.469.7
Operating income50.8-86-88.6-62
Interest expense16.948.731.627.6
Other non-operating income-16.9-45.6-9.07-22
Pre-tax income34-132-97.7-84.1
Income tax0.97-20.4-0.37-2.88
Income from continuing operations-85.7-74.7
Net income to minority interests0-22.6-15.8
Net income33-227-74.7-65.3
EBITDA64.7-7.59-8.49-61.4
EPS, basic-24.89-10.74-8.32
EPS, diluted-24.89-10.74-8.32
Shares, basic (weighted)9.116.967.85
Shares, diluted (weighted)9.116.967.85

Balance sheet

FY2021FY2023FY2024FY2025
Cash and equivalents47.913563.686.9
Receivables90.256.162.957.3
Other current assets7.696.753.984.06
Total current assets146202134149
Property, plant and equipment0.833.082.11.56
Lease right-of-use assets04.732.649.12
Goodwill44.882.482.482.4
Intangible assets50.4297222148
Other non-current assets0.680.520.350.26
Total assets257605459405
Accounts payable72.89.510.422
Accrued liabilities13.815.97.55
Deferred revenue1.97
Short-term debt17015.316.476.7
Total current liabilities27786.4105146
Long-term debt0334255228
Lease liabilities03.581.378.18
Other non-current liabilities0.970.936.360.52
Total liabilities285436374388
Total debt0350272305
Paid-in capital0843863879
Retained earnings0-708-782-848
Treasury stock0-0.56
Other comprehensive income0.43-0.18-0.44-0.16
Shareholders' equity-28.413580.330.5
Minority interests0344.73-13
Total equity-28.41698517.4
Total liabilities and equity257605459405
Shares outstanding2.14

Cash flow statement

FY2021FY2023FY2024FY2025
Net income33-286-97.3-81.2
Depreciation and amortization13.978.480.10.6
Stock-based compensation0.4153.115.811.3
Deferred income tax-0.98-21.1-2.1-2.19
Change in receivables-19.120.9-6.84.93
Change in payables20.8-6.80.912
Cash from operations60.7-24.7-5.26-4.15
Capital expenditures-0.05-2.35-0.03-0.05
Acquisitions00
Cash from investing-6.54203-6.26-6.72
Debt issued0050
Debt repaid-20-61.8-20
Share buybacks000-0.56
Cash from financing-34.6-74.1-6431.3
Exchange rate effect0.040.01-0.030.13
Net change in cash19.6104-75.520.6
Free cash flow60.7-27.1-5.29-4.19
Interest paid14.742.930.725.6
Income taxes paid2.757.1-0.81-0.04

Key metrics

Worked out from the statements above. Latest values use the trailing twelve months to June 30, 2026; growth uses fiscal years. Valuation uses the share price of $2.71 on September 28, 2026.

Profitability

MetricValueHow it is calculated
Gross margin50.7%Gross profit / revenue.
Operating margin-51.0%Operating income / revenue.
Pre-tax margin-62.9%Pre-tax income / revenue.
Net margin-50.7%Net income / revenue.
Operating cash flow margin-22.6%Cash from operations / revenue.
Return on assets (ROA)-31.5%Net income / average total assets.
Return on invested capital (ROIC)-32.5%Approximation: operating income x (1 - tax rate) / average (total debt + equity - cash). Tax rate is the effective rate when between 0% and 50%, else 21%.
SG&A / revenue37.0%Selling, general and administrative expense / revenue.
Stock-based pay / revenue3.7%Stock-based compensation (from the cash flow statement) / revenue.

Growth

MetricValueHow it is calculated
Revenue growth, 1y-22.6%Revenue vs the same period a year earlier. Only from a positive base.
Gross profit growth, 1y-0.9%Gross profit vs the same period a year earlier. Only from a positive base.
Book value growth, 1y-62.0%Book value vs the same period a year earlier. Only from a positive base.
Total assets growth, 1y-11.8%Total assets vs the same period a year earlier. Only from a positive base.
Share count change, 1y12.9%Change in diluted weighted shares vs a year earlier. Negative means buybacks shrank the share count; positive means dilution.

Balance sheet health

MetricValueHow it is calculated
Current ratio0.77xCurrent assets / current liabilities.
Quick ratio0.70x(Cash + short-term investments + receivables) / current liabilities.
Cash ratio0.35x(Cash + short-term investments) / current liabilities.
Debt / assets100.1%Total debt / total assets.
Liabilities / assets118.2%Total liabilities / total assets.
Net debt$251.3MTotal debt - cash - short-term investments. Negative means more cash than debt.
Interest coverage-3.41xOperating income / interest expense.
Working capital-$27.4MCurrent assets - current liabilities.
Goodwill and intangibles / assets61.2%(Goodwill + intangible assets) / total assets.
Tangible book value-$205.1MShareholders' equity - goodwill - intangible assets.

Efficiency

MetricValueHow it is calculated
Asset turnover0.62xRevenue / average total assets.
Fixed asset turnover133xRevenue / average property, plant and equipment.
Receivables turnover4.42xRevenue / average receivables.
Days sales outstanding83 days365 x average receivables / revenue.
Days payables62 days365 x average accounts payable / cost of revenue.

Per share

MetricValueHow it is calculated
EPS, diluted-$11.23Net income per diluted share, as reported (split-adjusted). Over the last twelve months: the four quarters summed, or net income / latest diluted shares when a quarter has no reported EPS.
Revenue per share$22.16Revenue / diluted weighted shares.
Operating cash flow per share-$5.00Cash from operations / diluted weighted shares.
Book value per share-$3.27Shareholders' equity / shares outstanding (diluted weighted shares when not reported).
Tangible book per share-$25.12Tangible book value / shares outstanding.
Cash per share$4.96(Cash + short-term investments) / shares outstanding.

Valuation

MetricValueHow it is calculated
Market cap$28.4MShare price x shares outstanding.
Enterprise value$279.7MMarket cap + total debt - cash - short-term investments.
P/S0.16xMarket cap / revenue.
EV/Sales1.55xEnterprise value / revenue.
Earnings yield-322.5%Net income / market cap (the inverse of P/E).
What was System1, Inc.'s revenue in fiscal 2025?

System1, Inc. reported revenue of $266.1M for fiscal 2025, 22.6% lower than the year before.

Was System1, Inc. profitable in fiscal 2025?

No. It reported a net loss of $65.3M.

How much free cash flow did System1, Inc. generate in fiscal 2025?

Cash from operations of $4.1M minus capital expenditures of $46.0K left free cash flow of -$4.2M.

Source: SEC EDGAR XBRL company facts. Where a company tags only year-to-date figures, quarters are worked out as differences. Where a line is not tagged it is left empty, never estimated.

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