Overview
System1 Q2 revenue falls 17% yr/yr but beats analyst expectations
Adjusted EBITDA for Q2 rises 18% yr/yr, beating analyst estimates
Co's turnaround driven by AI adoption and organic product growth
Outlook
System1 not providing Q3 2025 guidance due to advertising market uncertainties
Company cites volatility in online advertising demand as reason for no Q3 guidance
System1 cites evolving tariff policies impacting Q3 2025 guidance decision
Result Drivers
AI ADOPTION - Co attributes turnaround to AI adoption across the company, enhancing performance
ORGANIC PRODUCT GROWTH - Products like Startpage and CouponFollow showed strong growth, contributing to results
ADVERTISING VOLATILITY - Marketing division faces challenges due to a volatile advertising landscape
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Beat | $78.10 mln | $73.30 mln (1 Analyst) |
Q2 Net Income | Beat | -$21.50 mln | -$28.30 mln (1 Analyst) |
Q2 Adjusted EBITDA | Beat | $11.70 mln | $11 mln (1 Analyst) |
Q2 Adjusted Gross Profit | $41 mln | ||
Q2 Gross Profit | $27.90 mln |
Analyst Coverage
The one available analyst rating on the shares is "buy"
The average consensus recommendation for the it services & consulting peer group is "buy"
Wall Street's median 12-month price target for System1 Inc is $50.00, about 89.5% above its August 6 closing price of $5.24
Press Release: ID:nBw1SsLZVa
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)
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