Quarterly Earnings Report Conference Call Transcript for System1, Inc. in the year 2025's second quarter
System1, Inc. Reports Q2 2025 Earnings: Moderate Revenue Decline, Improved Profitability
System1, Inc. (NYSE: SST) reported its Q2 2025 earnings, showing a 17% year-over-year decrease in revenue to $78.1 million. Despite the decline, the company demonstrated significant improvements in profitability metrics.
GAAP gross profit increased by 7% to $27.9 million, while adjusted gross profit rose 6% to $41.0 million. Adjusted EBITDA grew 18% to $11.7 million, indicating better cost management and operational efficiency. The GAAP net loss improved by 38% year-over-year to $21.5 million[1][2][4].
During the earnings conference call, Thomas Ferris Forte from Maxim Group LLC, Research Division, and Daniel Louis Kurnos from The Benchmark Company, LLC, Research Division, among others, participated. Co-Founder and CEO of System1, Inc., Michael Blend, was present, along with Chief Financial Officer, Tridivesh Kidambi, and Vice President of Finance, Kyle Ostgaard[2][3][5].
Blend cited AI adoption as a key driver behind the company’s turnaround and growth, with strong performance in its organic products like Startpage, MapQuest, and CouponFollow. The marketing division faces volatility in the advertising landscape, but continued investments in the marketing platform position System1 for sustained value delivery[1][2].
Looking forward, the discussion during the call included non-GAAP financial measures. The company's forward-looking statements are subject to known and unknown risks and uncertainties that could cause System1's actual results to differ materially. The risks and uncertainties described in System1's annual report on Form 10-K for fiscal year 2024, filed on March 10, are relevant to these statements[2][6].
The current uncertainty and unpredictability in System1's business, the markets, and the global economy are also relevant to the forward-looking statements made during the call. These statements are based on management's assumptions and beliefs as of the date of the call, and System1 disclaims any obligation to update any forward-looking statements, except as required by law[7].
A recording of the conference call will be available on System1, Inc.'s Investor Relations website shortly after the call ends. The conference call took place at 5:00 PM ET on August 7, 2025[8].
In summary, while revenue declined moderately, System1 improved its profitability and operating metrics substantially in Q2 2025, showing resilience amid industry challenges and strategic focus on AI and marketing platform investments[1][2][3][4].
Investors might be interested in the improved profitability metrics, even with a moderate revenue decline, as reported by System1, Inc. in its Q2 2025 earnings. The stock-market performance could potentially reflect these enhanced financials, if investors consider the company's stock-market worth.
