System1 Q3 revenue falls on Google impact
SST•System1’s third-quarter revenue fell to $26 million, below the $30.34 million estimate, and it posted a $61.5 million net loss. The company cited Google-related traffic and monetization pressure and said it will voluntarily delist from the NYSE to reduce costs and focus on growth.
1. Quarterly results
System1 reported third-quarter revenue of $26 million, adjusted EBITDA of negative $700,000 and a net loss of $61.5 million. Adjusted gross profit was $21.9 million, while gross profit was $20.7 million.
2. Google pressure
The company said Google AI Overviews siphoned traffic from publishers and reduced monetization for independent search engines. It said CouponFollow lost monetizable organic traffic as Google displaced organic links with AI Overviews.
3. Company priorities
System1 said it is prioritizing cash flow and liquidity amid ongoing Google monetization pressure, reallocating resources toward offerings where AI is a tailwind, and will voluntarily delist from the NYSE to reduce costs and focus on growth.
