📊 SSTPW Key Takeaways
Is System1, Inc. (SSTPW) a Good Investment?
System1 exhibits severe financial distress with persistent unprofitability (-24.6% net margin), negative operating cash flow, and collapsing revenue (-22.6% YoY). With a debt-to-equity ratio of 10.01x, minimal equity cushion (7.5% of assets), and negative interest coverage, the company lacks the operational capacity to service its $305.1M debt burden and faces acute solvency risk.
System1, Inc. Key Strengths (SSTPW)
- Cash balance of $86.9M provides near-term liquidity buffer
- Net loss improving YoY (19.5% reduction, though still deeply negative)
- Minimal capex requirements ($46K) reduce cash burn rate
SSTPW Stock Risks: System1, Inc. Investment Risks
- Negative operating cash flow (-$4.1M) indicates cash burn from core operations with no profitability path visible
- Extreme leverage (10.01x debt-to-equity) with negative interest coverage (-7.8x); unable to cover interest from operations
- Severe revenue contraction (-22.6% YoY) combined with operating losses (-$62.0M) suggests structural business deterioration
- Liquidity crisis threshold approaching (current ratio 1.02x with $387.6M liabilities vs. $86.9M cash)
- Equity base eroded to only $30.5M against $405.0M assets, leaving minimal margin for error
Key Metrics to Watch
- Operating cash flow trend and path to positive FCF
- Revenue stabilization and quarterly revenue run-rate
- Debt refinancing status and near-term debt maturities
- Operating margin improvement trajectory and cost structure reductions
- Cash burn rate and estimated runway relative to debt obligations
System1, Inc. (SSTPW) Financial Metrics & Key Ratios
💡 AI Analyst Insight
System1, Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
SSTPW Profit Margin, ROE & Profitability Analysis
SSTPW vs Technology Sector: How System1, Inc. Compares
How System1, Inc. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is System1, Inc. Stock Overvalued? SSTPW Valuation Analysis 2026
Based on fundamental analysis, System1, Inc. shows some fundamental concerns relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
System1, Inc. Balance Sheet: SSTPW Debt, Cash & Liquidity
SSTPW Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: System1, Inc.'s revenue has declined by 56% over the 5-year period, indicating business contraction. The most recent EPS of $-10.74 indicates the company is currently unprofitable.
SSTPW Revenue Growth, EPS Growth & YoY Performance
SSTPW Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $37.2M | -$15.9M | $-2.14 |
| Q3 2025 | $61.6M | -$18.5M | $-2.30 |
| Q2 2025 | $78.1M | -$17.5M | $-2.23 |
| Q1 2025 | $74.5M | -$10.5M | $-0.16 |
| Q3 2024 | $87.8M | -$23.6M | $-0.34 |
| Q2 2024 | $94.6M | -$26.4M | $-0.37 |
| Q1 2024 | $84.9M | -$10.5M | $-0.16 |
| Q3 2023 | $52.7M | -$37.1M | $-1.40 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
System1, Inc. Dividends, Buybacks & Capital Allocation
SSTPW SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for System1, Inc. (CIK: 0001805833)
📋 Recent SEC Filings
❓ Frequently Asked Questions about SSTPW
What is the AI rating for SSTPW?
System1, Inc. (SSTPW) has an AI grade of D with 88% confidence, based on fundamental analysis of SEC EDGAR filings.
What are SSTPW's key strengths?
Claude: Cash balance of $86.9M provides near-term liquidity buffer. Net loss improving YoY (19.5% reduction, though still deeply negative).
What are the risks of investing in SSTPW?
Claude: Negative operating cash flow (-$4.1M) indicates cash burn from core operations with no profitability path visible. Extreme leverage (10.01x debt-to-equity) with negative interest coverage (-7.8x); unable to cover interest from operations.
What is SSTPW's revenue and growth?
System1, Inc. reported revenue of $266.1M.
Does SSTPW pay dividends?
System1, Inc. does not currently pay dividends.
Where can I find SSTPW SEC filings?
Official SEC filings for System1, Inc. (CIK: 0001805833) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is SSTPW's EPS?
System1, Inc. has a diluted EPS of $-8.32.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is SSTPW's fundamental grade?
Based on our AI fundamental analysis in May 2026, System1, Inc. has a D grade with 88% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is SSTPW stock overvalued or undervalued?
Valuation metrics for SSTPW: ROE of -214.5% (sector avg: 22%), net margin of -24.6% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
What is SSTPW's AI grade for 2026?
Our dual AI analysis gives System1, Inc. a combined D grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is SSTPW's free cash flow?
System1, Inc.'s operating cash flow is $-4.1M, with capital expenditures of $46.0K. FCF margin is -1.6%.
How does SSTPW compare to other Technology stocks?
Vs Technology sector averages: Net margin -24.6% (avg: 18%), ROE -214.5% (avg: 22%), current ratio 1.02 (avg: 2.5).
Is System1, Inc. carrying too much debt?
SSTPW has a debt-to-equity ratio of 10.01x, which is above the Technology sector average of 0.5x. However, the current ratio of 1.02 suggests adequate short-term liquidity.