System1(US:SST)2025-11-05 21:20Financial Performance - Revenue for the three months ended September 30, 2025, was $61,561, a decrease of 31% compared to $88,832 in the same period in 2024[108] - Revenue for the nine months ended September 30, 2025, was $214,189, a decline of 20% from $268,330 in 2024[109] - Total revenue decreased by 31% to $61.6 million for the three months ended September 30, 2025, compared to $88.8 million in the same period of 2024[113] - Marketing revenue decreased by 43% to $39.1 million for the three months ended September 30, 2025, compared to $68.1 million in the same period of 2024[113] - Products revenue increased by 8% to $22.5 million for the three months ended September 30, 2025, compared to $20.7 million in the same period of 2024[113] Operating Expenses - Operating expenses for the three months ended September 30, 2025, totaled $77,126, down 30% from $110,648 in 2024[108] - Total operating expenses for the nine months ended September 30, 2025, were $258,785, down 25% from $345,028 in 2024[109] - Salaries and benefits for the three months ended September 30, 2025, were $21,354, a decrease of 27% from $29,177 in 2024[108] - Traffic Acquisition Cost (TAC) decreased by $26.8 million to $84.0 million for the three months ended September 30, 2025, from $110.8 million in the prior year[114] Net Loss - The net loss attributable to System1, Inc. for the three months ended September 30, 2025, was $18,516, a reduction of 22% from $23,602 in 2024[108] - The net loss attributable to System1, Inc. for the nine months ended September 30, 2025, was $51,862, a decrease of 14% from $60,512 in 2024[109] Cash Flow and Liquidity - Cash provided by operating activities was $6.5 million for the nine months ended September 30, 2025, compared to cash used of $6.0 million in the same period of 2024[134] - As of September 30, 2025, the company had unrestricted cash and cash equivalents of $54.6 million and $50.0 million available to borrow on its 2022 Revolving Facility[132] - The company expects existing cash and cash equivalents and cash flows from operating and financing activities to be sufficient to fund its operating and cash commitments for at least the next twelve months[130] Business Operations - The company operates approximately 40 websites, including leading search engines and digital media publishing sites[94] - As of September 30, 2025, the company processes daily advertising campaign optimizations across approximately 40 advertising vertical categories[93] Segment Performance - Segment adjusted gross profit for Marketing decreased by 14% to $16.6 million for the three months ended September 30, 2025, compared to $19.4 million in the same period of 2024[120] - Segment adjusted gross profit for Products increased by 6% to $21.2 million for the three months ended September 30, 2025, compared to $20.1 million in the same period of 2024[120] Product Metrics - Products sessions increased by 111.3 million to 584.7 million for the three months ended September 30, 2025, compared to 473.4 million in the same period of 2024[115] Regulatory Classification - The company is classified as a "smaller reporting company" and is not required to provide quantitative and qualitative disclosures about market risk[147]