System1, Inc. filed its Form 10-Q for the quarterly period ended September 30, 2026 with the Securities and Exchange Commission on November 12, 2026, reporting a net loss of $134.4 million for the first nine months of the year alongside significant asset impairments.

Key Highlights

  • Revenue declined sharply: Revenue for the nine months ended September 30, 2026 was $93.4 million, compared to $214.2 million for the same period in 2025, according to the filing.
  • Goodwill impairment recorded: The company recorded a goodwill impairment charge of $51.5 million in the third quarter of 2026, with no comparable charge in 2025.
  • Long-lived asset impairment: Impairment of long-lived assets totaled $49.8 million for the nine months ended September 30, 2026, also with no comparable charge in the prior-year period.
  • Troubled debt restructuring gain: The company reported a gain on troubled debt restructuring of $13.4 million in the three months ended September 30, 2026.
  • Cash position fell: Cash and cash equivalents stood at $12.4 million as of September 30, 2026, down from $86.9 million at December 31, 2025.
  • Accumulated deficit widened: The accumulated deficit reached $958.6 million as of September 30, 2026, compared to $847.7 million at December 31, 2025.
  • Shares outstanding: As of November 6, 2026, there were 8,908,732 shares of Class A common stock and 1,778,219 shares of Class C common stock outstanding.

System1's Financial Position Through September 2026

According to the filing, System1, Inc. (NYSE:SST) reported revenue of $25.9 million for the three months ended September 30, 2026, a decline from $61.6 million in the same quarter of 2025. For the nine-month period, revenue fell to $93.4 million from $214.2 million year over year. The company reported a net loss attributable to System1, Inc. of $51.3 million for the third quarter and $110.9 million for the nine months ended September 30, 2026, compared to losses of $18.5 million and $51.9 million in the respective prior-year periods.

The filing disclosed two notable impairment charges during the period. Goodwill impairment of $51.5 million and long-lived asset impairment of $12.1 million were both recorded in the third quarter alone, contributing to total operating expenses of $98.8 million for that quarter against revenue of $25.9 million. Total assets decreased to $192.5 million as of September 30, 2026, from $404.9 million at December 31, 2025, with goodwill falling to $30.9 million from $82.4 million and intangible assets, net, declining to $79.6 million from $148.1 million over the same period.

The balance sheet reflects total liabilities of $274.8 million against total assets of $192.5 million as of September 30, 2026, resulting in a total stockholders' equity deficit of $114.0 million. The filing also noted the issuance of Series A preferred stock during the period, with 39 thousand shares issued as of September 30, 2026, carrying a liquidation preference of $40.7 million. Long-term debt, net, stood at $210.1 million as of September 30, 2026, compared to $228.4 million at December 31, 2025.

What Was Disclosed

System1, Inc. disclosed its unaudited condensed consolidated financial results for the nine months ended September 30, 2026, including significant declines in revenue, large impairment charges on goodwill and long-lived assets, a gain on troubled debt restructuring, and a materially reduced cash position relative to year-end 2025.