System1 Inc. Class A Common Stock (SST)

FairStock Score: 38/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach System1 as a Graham-style asset and a Buffett-style business. The asset side is superficially tempting: at the 2026-10-13 close of $2.16, FairStock calculates price-to-book at 0.80 and market cap at just $17.6M. But this is not a cheap claim on stable earning power. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $30.2M and net loss was $12.6M, versus revenue of $78.1M and net loss of $17.5M in fiscal Q2 2025, the quarter ended 2025-06-30. The annual filings show the same pressure: in fiscal year 2025, the year ended 2025-12-31, revenue fell to $266.1M from $343.9M in fiscal year 2024, the year ended 2024-12-31, and $402.0M in fiscal year 2023, the year ended 2023-12-31. Net loss was $65.3M in fiscal year 2025, narrower than $74.7M in fiscal year 2024 and $227.2M in fiscal year 2023, but losses continue. Cash generation is negative: trailing free cash flow is -$48.3M and FCF yield is -274.1%, per FairStock. Financial health is poor: Altman Z-score -4.42, Piotroski F-score 3/9, D/E 18.07, and ROE -51235.46%. The Lynch category is TURNAROUND, based on a loss in the latest year after earlier profits. The moat looks thin; customer acquisition and owned websites are competitive, and MapQuest is known but not clearly a pricing-power franchise. At a 38/100 FairStock score, the low price may reflect eroding asset value, not safety. I see speculation, not investment, without evidence of stabilized revenue and positive free cash flow.

In plain English: System1 helps businesses find customers online and owns sites like MapQuest. It is losing money, sales are falling sharply, and it burns cash, so the business looks weak right now. The stock price looks low compared with its accounting value, but that low price mainly reflects the troubles rather than a clear bargain.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer