This article first appeared on GuruFocus.
Release Date: November 05, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
System1 Inc (NYSE:SST) reported strong growth in its product segment, with revenue increasing by 8% year over year.
The company successfully launched new features across its major products, including MapQuest and StartPage, enhancing user engagement.
System1 Inc (NYSE:SST) is making significant progress in integrating AI across its operations, with plans to launch new AI-powered products.
The company is focusing on international expansion for its Coupon Follow service, launching language-specific sites in Germany and France.
Despite challenges, System1 Inc (NYSE:SST) maintained healthy profitability with an adjusted gross profit of $36 million.
System1 Inc (NYSE:SST) faced a significant disruption due to Google’s reduction in monetization on its AdSense for Domains product, impacting its marketing business.
The company’s marketing revenue declined by 43% year over year, reflecting volatility in the segment.
Revenue per session decreased, driven by weaker advertiser demand, particularly affecting the coupon follow-up business.
The transition away from Google’s AFD product occurred sooner than expected, causing short-term challenges.
System1 Inc (NYSE:SST) identified invalid traffic from a large advertising partner, leading to ongoing disputes and potential legal action.
Q: Can you talk about your efforts with Microsoft and if you’re able to capitalize on Bing’s market share gains? A: Michael Blend, CEO: We work closely with Bing, similar to our partnership with Google. Historically, Google’s network outperformed Bing’s, but recently, Bing’s performance has improved. We’ve been shifting more efforts towards Bing as monetization increases. We maintain strong partnerships with Bing and Yahoo and aim to expand our business with them.
Q: In your earnings release, you mentioned StartPage.com’s efforts with ChatGPT and cloud. Are there other ways you’re working with OpenAI and Anthropic? A: Michael Blend, CEO: We launched Vanish, a private AI product, addressing consumer concerns about privacy when using AI for sensitive matters. We’re working with various AI models to rebuild our platform and develop new products. While Vanish is our current AI product, we plan to introduce more consumer-focused AI agents in specific verticals over the next year.
