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System1 Inc. Class A (SST-10.79%) has submitted its Form 10-K filing for the fiscal year ended December 31, 2024.
The filing details the company's operations, which include an omnichannel customer acquisition platform through its proprietary responsive acquisition marketing platform (RAMP). System1 monetizes user traffic via relationships with third-party advertisers and advertising networks.
Revenue for the year was $343.9 million, a decrease from $402 million the previous year. The decline was attributed to reduced consumer sessions and a shift to lower revenue per session traffic.
Cost of revenue, excluding depreciation and amortization, was $191.6 million, down from $248.7 million. This decrease was directionally consistent with the reduced revenue.
Operating expenses included $113.5 million in salaries and benefits, a 7% increase due to share-based compensation expenses, and $47.3 million in selling, general, and administrative expenses, a 13% decrease primarily due to reduced advisory and consulting fees.
Depreciation and amortization expenses were $80.1 million, slightly up from $78.4 million the previous year.
The company reported an operating loss of $88.6 million, compared to a loss of $86 million the previous year.
Interest expense was $31.6 million, a decrease from $48.7 million, due to lower outstanding debt.
The company recognized a gain of $20.1 million on the extinguishment of debt, related to the repurchase of principal debt balances at a discount.
System1's net loss from continuing operations was $97.3 million, compared to $111.3 million the previous year. The company also reported a net loss from discontinued operations of $174.3 million in 2023, related to the sale of its Protected business segment.
As of December 31, 2024, System1 had $63.6 million in cash and cash equivalents and $50 million available under its revolving credit facility.
The company identified material weaknesses in its internal control over financial reporting, including insufficient accounting personnel and ineffective controls over financial reporting risks. Remediation efforts are ongoing.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the System1 Inc. Class A annual 10-K report dated March 10, 2025. To report an error, please email earnings@qz.com.