System1(SST) - 2025 Q4 - Annual Results

Financial Performance - Full-year 2025 revenue decreased by 23% year-over-year to $266.1 million, with a fourth-quarter revenue decline of 31% to $51.9 million[5] - Adjusted Gross Profit for the full year increased by 1% to $153.4 million, with an Adjusted Gross Profit Margin rising to 58% from 44% year-over-year[5] - GAAP Net Loss for the full year decreased by 17% to $81.2 million, while the fourth-quarter GAAP Net Loss decreased by 1% to $17.8 million[5] - Adjusted EBITDA for the full year increased by 9% to $41.9 million, despite a 54% decrease in fourth-quarter Adjusted EBITDA to $8.2 million[5] - For Q4 2025, the company reported a net loss of $17.8 million, compared to a net loss of $18.0 million in Q4 2024[19] - Adjusted EBITDA for Q4 2025 was $8.2 million, an increase from $17.9 million in Q4 2024[19] - Revenue for Q4 2025 was $51.9 million, down from $75.6 million in Q4 2024, representing a decrease of approximately 31.4%[20] - Gross profit for Q4 2025 was $21.3 million, compared to $31.8 million in Q4 2024, reflecting a decline of about 33.0%[20] - Adjusted Gross Profit for Q4 2025 was $34.9 million, down from $44.7 million in Q4 2024, a decrease of approximately 21.8%[20] - For the full year 2025, the company reported a net loss of $81.2 million, compared to a net loss of $97.3 million in 2024[19] - Total revenue for the year 2025 was $266.1 million, a decrease from $343.9 million in 2024, representing a decline of about 22.7%[20] - The company incurred interest expenses of $27.6 million for the year 2025, down from $31.6 million in 2024[19] - Amortization related to cost of revenue for the year 2025 was $53.0 million, compared to $51.0 million in 2024[20] - Acquisition and restructuring costs for the year 2025 totaled $9.6 million, significantly lower than $31.4 million in 2024[19] User Engagement - Daily active users for Startpage.com reached 1.6 million in December 2025, representing a 42% increase year-over-year[6] - Mapquest.com recorded 36 million sessions in December 2025, up 24% year-over-year[6] Strategic Focus - The company is focusing on continued investment in AI capabilities to drive long-term growth[4] - System1 is evaluating opportunities to strengthen its balance sheet and optimize its capital structure[4] Assets and Liabilities - Total assets decreased to $404.972 million in 2025 from $459.129 million in 2024[18] - Total liabilities increased to $387.553 million in 2025 from $374.133 million in 2024[18]