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/Mis Actual Consensu

s s

Estimate

Q2 Beat $78.10 $73.30

Revenue mln mln (1

Analyst)

Q2 Net Beat -$21.50 -$28.30

Income mln mln (1

Analyst)

Q2 Beat $11.70 $11 mln

Adjusted mln (1

EBITDA Analyst)

Q2 $41 mln

Adjusted

Gross

Profit

Q2 Gross $27.90

Profit 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 ( SST ) is $50.00, about 89.5% above its August 6 closing price of $5.24

Press Release:

(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.)