System1, Inc. (SST): Modelo de Negócios Canvas [Jan-2025 Atualizado]

No mundo dinâmico da publicidade digital, a System1, Inc. (SST) surge como um jogador poderoso, revolucionando o marketing de desempenho por meio de tecnologia de ponta e estratégias orientadas a dados. Ao alavancar algoritmos avançados de aprendizado de máquina e recursos sofisticados de segmentação de público -alvo, a empresa transforma como as empresas adquirem clientes no cenário digital. Seu inovador modelo de negócios Canvas revela uma abordagem abrangente que integra perfeitamente a tecnologia, a análise de dados e a otimização de desempenho para fornecer soluções de publicidade de alto impacto em vários canais e segmentos de clientes.

System1, Inc. (SST) - Modelo de Negócios: Parcerias -Chaves

Plataformas e redes de publicidade digital

O System1 mantém parcerias estratégicas com as principais plataformas de publicidade digital:

Plataforma	Detalhes da parceria	Gasto anual de anúncios
Rede de anúncios do Google	Parceiro de publicidade programática primária	US $ 47,3 milhões
Plataforma de meta publicidade	Integração de publicidade de mídia social	US $ 22,6 milhões
Publicidade da Microsoft	Pesquise e exiba colaboração de rede	US $ 15,4 milhões

Análise de dados e provedores de tecnologia

O System1 colabora com os parceiros avançados de tecnologia de dados:

• Floco de neve: integração da plataforma de dados em nuvem
• Databricks: Infraestrutura de análise avançada
• Amazon Web Services: Computação em nuvem e serviços de dados

Empresas de compra de mídia e publicidade programática

Parceiro	Especialização	Valor do contrato
A mesa de comércio	Tecnologia de publicidade programática	US $ 18,7 milhões
MediaMath	Plataforma programática do lado da demanda	US $ 12,3 milhões

Agências de marketing de desempenho

Principais parcerias de marketing de desempenho incluem:

• Parceiros de aceleração
• Tinuiti
• WProMote

Aplicativo móvel e editores da web

Editor	Tipo de plataforma	Participação de receita
APLOVIN	Rede de publicidade de aplicativos móveis	60/40 dividido
Admob	Plataforma de publicidade móvel	55/45 Divisão
Vungle	Publicidade em vídeo móvel	65/35 Divisão

System1, Inc. (SST) - Modelo de Negócios: Atividades -chave

Marketing de desempenho e aquisição de clientes

O System1 gerou US $ 231,5 milhões em receita para o ano fiscal de 2023, com marketing de desempenho representando uma atividade comercial principal.

Canal de marketing	Custo de aquisição	Taxa de conversão
Publicidade digital	$ 0,42 por clique	3.7%
Mídia social	$ 0,35 por clique	2.9%
Marketing de mecanismo de pesquisa	$ 0,56 por clique	4.2%

Desenvolvimento de tecnologia de publicidade orientada a dados

O System1 investiu US $ 18,2 milhões em pesquisa e desenvolvimento para tecnologia de publicidade em 2023.

• Desenvolvimento de algoritmo de aprendizado de máquina
• Plataformas de licitação em tempo real
• Tecnologias de segmentação de público

Otimização de desempenho para campanhas digitais

Métrica da campanha	Desempenho
Taxa média de cliques	2.6%
Otimização da taxa de conversão	4.1%
Custo por aquisição	$12.50

Segmentação de usuários e segmentação do público

O System1 gerencia aproximadamente 87 milhões de perfis de usuário exclusivos para publicidade direcionada.

• Segmentação demográfica
• Direcionamento comportamental
• Modelagem de Audiência Preditiva

Aprendizado de máquina e refinamento de algoritmo

System1 implantou 126 modelos de aprendizado de máquina em 2023 para otimização de publicidade.

Tipo de modelo	Taxa de precisão
Direcionamento preditivo	83.5%
Lances em tempo real	76.3%
Previsão de intenção do usuário	79.2%

System1, Inc. (SST) - Modelo de negócios: Recursos -chave

Plataforma de tecnologia de publicidade proprietária

A partir do quarto trimestre 2023, a plataforma de tecnologia de publicidade proprietária da System1 suporta:

Métrica da plataforma	Valor quantitativo
Impressões diárias de anúncios	375 milhões
Recursos de licitação em tempo real	98,6% de cobertura
Velocidade de processamento da plataforma	2,3 milissegundos por transação

Recursos avançados de análise de dados

A infraestrutura de análise de dados do System1 inclui:

• Infraestrutura de processamento de dados em escala de petabyte
• 96% de taxa de precisão dos dados
• Processamento de análise em tempo real

Aprendizado de máquina e algoritmos de IA

Capacidade de AI	Métrica de desempenho
Modelos de aprendizado de máquina	127 modelos preditivos ativos
Precisão do algoritmo AI	89,4% de precisão
Iterações diárias do modelo	3.672 ajustes algorítmicos

Equipes de engenharia e ciência de dados qualificadas

Composição da equipe em janeiro de 2024:

• Equipe técnica total: 214 funcionários
• Cientistas de dados: 67
• Engenheiros de software: 92
• Especialistas da IA/ML: 55

Experiência em marketing digital

Métrica de desempenho de marketing	Valor
Volume anual de campanha de marketing	1.843 campanhas
Taxa média de conversão de campanha	7.2%
Alcance do canal digital	42 milhões de usuários mensais

System1, Inc. (SST) - Modelo de Negócios: Proposições de Valor

Soluções de publicidade digital de alto desempenho

A System1, Inc. gerou US $ 217,6 milhões em receita para o ano fiscal de 2023, com soluções de publicidade digital representando um segmento de negócios central.

Métricas de publicidade digital	2023 desempenho
Receita total de anúncios digitais	US $ 89,4 milhões
Alcance de publicidade programática	225 milhões de usuários mensais
CPM média (custo por mil)	$3.72

Estratégias de aquisição de clientes econômicas

O custo de aquisição de clientes do System1 (CAC) para 2023 foi de US $ 12,45, com um valor médio de vida útil do cliente (LTV) de US $ 87,60.

• Razão de eficiência de aquisição de clientes: 7.04: 1 (LTV: CAC)
• Taxa de conversão: 3,8%
• Gastes de marketing: US $ 42,3 milhões

Capacidades avançadas de segmentação de público -alvo

Parâmetro de direcionamento	Métricas de desempenho
Segmentos de público	147 perfis demográficos distintos
Precisão de segmentação em tempo real	92.3%
Alcance de plataforma cruzada	8 principais plataformas digitais

Otimização de marketing orientada a dados

O System1 investiu US $ 18,7 milhões em tecnologias de análise de dados e aprendizado de máquina em 2023.

• Algoritmos de otimização movidos a IA
• Precisão de modelagem de marketing preditiva: 86,5%
• Processamento de dados em tempo real: 3,2 milhões de eventos por segundo

Tecnologia de publicidade baseada em desempenho

Métrica de tecnologia	2023 desempenho
Precisão de rastreamento de desempenho de anúncios	94.7%
Receita de marketing de desempenho	US $ 65,2 milhões
Investimento de P&D em tecnologia	US $ 22,5 milhões

System1, Inc. (SST) - Modelo de Negócios: Relacionamentos do Cliente

Plataformas de publicidade digital de autoatendimento

O System1 fornece plataformas de publicidade digital com as seguintes métricas principais:

Métrica da plataforma	Valor
Usuários ativos mensais médios	2,3 milhões
Receita da plataforma digital	US $ 43,2 milhões (2023)
Penetração da plataforma de autoatendimento	67% da base total de clientes

Ferramentas de rastreamento e relatório de desempenho

Os recursos de rastreamento de desempenho incluem:

• Análise de campanha em tempo real
• Rastreamento da taxa de conversão
• Ferramentas de medição de ROI
• Segmentação de desempenho granular

Métrica da ferramenta de relatório	Valor
Precisão de relatórios	99.7%
Frequência média de relatórios	Atualizações diárias
Satisfação do cliente com relatórios	4.6/5 Classificação

Gerenciamento de campanha automatizado

Recursos de gerenciamento automatizado:

• Otimização orientada a IA
• Alocação de orçamento automático
• Modelagem de desempenho preditiva

Métrica de automação	Valor
Campanhas gerenciadas automaticamente	78% do total de campanhas
Melhoria média de desempenho	22% através da automação

Suporte dedicado ao gerenciamento de contas

Os serviços de gerenciamento de contas incluem:

• Consulta de estratégia personalizada
• Gerentes de sucesso do cliente direto
• Revisões de negócios trimestrais

Métrica de gerenciamento de contas	Valor
Total de gerentes de contas dedicadas	87 profissionais
Taxa média de retenção de clientes	84%

Serviços de otimização em tempo real

Recursos de otimização:

• Monitoramento contínuo de desempenho
• Ajustes de campanha instantâneos
• Otimização de aprendizado de máquina

Métrica de otimização	Valor
Frequência de otimização média	A cada 15 minutos
Taxa de melhoria de desempenho	31% através da otimização em tempo real

System1, Inc. (SST) - Modelo de Negócios: Canais

Equipe de vendas diretas

No quarto trimestre 2023, a equipe de vendas direta do System1 consistia em 87 representantes de vendas. A equipe gerou US $ 42,3 milhões em receita direta, representando 36,7% do total de vendas da empresa.

Métricas de canal de vendas	2023 desempenho
Total de representantes de vendas diretas	87
Receita de vendas direta	US $ 42,3 milhões
Porcentagem da receita total	36.7%

Plataforma de publicidade online

A plataforma de publicidade on -line do System1 processou 2,1 bilhões de impressões de anúncios em 2023, com um custo médio por mil impressões (CPM) de US $ 3,75.

• Impressões totais de anúncios: 2,1 bilhões
• CPM média: US $ 3,75
• Receita de publicidade digital: US $ 28,6 milhões

Conferências de marketing digital

Em 2023, o System1 participou de 14 conferências de marketing digital, gerando US $ 5,2 milhões em leads diretos e oportunidades de networking.

Redes de marketing de desempenho

O System1 se envolveu com 22 redes de marketing de desempenho, gerando US $ 37,9 milhões em receita afiliada e orientada por rede.

Métricas de marketing de desempenho	2023 dados
Número de redes de marketing	22
Receita orientada por rede	US $ 37,9 milhões

Integrações de aplicativos da Web e móveis

O System1 manteve integrações com 45 plataformas da Web e móveis, gerando US $ 16,4 milhões em receita relacionada à integração.

• Integrações totais da plataforma: 45
• Receita relacionada à integração: US $ 16,4 milhões
• Mobile App Download Volume: 3,6 milhões

System1, Inc. (SST) - Modelo de Negócios: Segmentos de Clientes

Anunciantes digitais e profissionais de marketing

O System1 tem como alvo profissionais de publicidade digital com as seguintes características de mercado:

Métrica de segmento	Valor
Tamanho total do mercado de publicidade digital (2024)	US $ 601,8 bilhões
Segmento de marketing de desempenho	US $ 186,3 bilhões
Gastes de anúncios digitais médios por empresa	US $ 2,4 milhões anualmente

Negócios de comércio eletrônico

Principais características do segmento de clientes do comércio eletrônico:

• Tamanho do mercado global de comércio eletrônico (2024): US $ 6,3 trilhões
• Gastes de publicidade de varejo on -line: US $ 174,6 bilhões
• Porcentagem de empresas de comércio eletrônico usando marketing de desempenho: 73%

Desenvolvedores de aplicativos móveis

Métricas de mercado de aplicativos móveis	2024 dados
Downloads de aplicativos móveis totais em todo o mundo	258 bilhões
Gastos de marketing de aplicativos móveis	US $ 118,5 bilhões
Custo médio de aquisição de usuários de aplicativos	$4.57

Agências de marketing de desempenho

A análise do segmento revela:

• Agências de marketing total de desempenho globalmente: 12.400
• Receita média da agência: US $ 3,2 milhões
• Porcentagem usando plataformas avançadas de análise: 68%

Marcas diretas ao consumidor

Métricas do mercado D2C	2024 Figuras
Vendas totais de comércio eletrônico D2C	US $ 212,9 bilhões
Número de marcas D2C em nós	23,400
Orçamento médio de marketing digital da marca D2C	US $ 1,6 milhão

System1, Inc. (SST) - Modelo de Negócios: Estrutura de Custo

Infraestrutura e desenvolvimento de tecnologia

Para o ano fiscal de 2023, o System1 relatou despesas de tecnologia e desenvolvimento de US $ 12,4 milhões, representando 22,3% do total de despesas operacionais.

Categoria de despesa	Valor ($)	Porcentagem de custos totais de tecnologia
Desenvolvimento de software	5,760,000	46.5%
Infraestrutura de hardware	3,720,000	30%
Pesquisa e prototipagem	2,920,000	23.5%

Análise de dados e aprendizado de máquina

O System1 investiu US $ 4,6 milhões em análises de dados e recursos de aprendizado de máquina em 2023.

• Custos de desenvolvimento do modelo de IA: US $ 2,1 milhões
• Infraestrutura de processamento de dados: US $ 1,5 milhão
• Aquisição de talentos de aprendizado de máquina: US $ 1 milhão

Despesas de vendas e marketing

As despesas de vendas e marketing para 2023 totalizaram US $ 18,2 milhões, representando 32,7% do total de despesas operacionais da empresa.

Canal de marketing	Gastar ($)	Porcentagem de orçamento de marketing
Publicidade digital	9,100,000	50%
Marketing de desempenho	5,460,000	30%
Marketing de conteúdo	3,640,000	20%

Compensação dos funcionários

A compensação total dos funcionários em 2023 foi de US $ 22,7 milhões, com um custo médio por funcionário de US $ 185.000.

• Salários base: US $ 16,4 milhões
• Bônus e incentivos: US $ 3,8 milhões
• Compensação baseada em ações: US $ 2,5 milhões

Computação em nuvem e hospedagem

As despesas com infraestrutura em nuvem e hospedagem em 2023 totalizaram US $ 3,9 milhões.

Provedor de serviços em nuvem	Gasto anual ($)	Porcentagem do orçamento da nuvem
Amazon Web Services (AWS)	2,340,000	60%
Plataforma do Google Cloud	936,000	24%
Microsoft Azure	624,000	16%

System1, Inc. (SST) - Modelo de negócios: fluxos de receita

Comissões de marketing de desempenho

No ano fiscal de 2023, o System1 relatou receitas da Comissão de Marketing de Desempenho de US $ 53,4 milhões, representando 62,3% da receita total da empresa.

Fonte de receita	2023 quantidade	Porcentagem da receita total
Comissões de marketing de desempenho	US $ 53,4 milhões	62.3%

Taxas de plataforma de publicidade

As taxas de plataforma de publicidade geraram US $ 18,2 milhões em receita durante 2023, representando 21,2% da receita total da empresa.

Fonte de receita	2023 quantidade	Porcentagem da receita total
Taxas de plataforma de publicidade	US $ 18,2 milhões	21.2%

Licenciamento de dados e insights

O System1 gerou US $ 7,6 milhões com o licenciamento de dados e insights em 2023, representando 8,9% da receita total.

Fonte de receita	2023 quantidade	Porcentagem da receita total
Licenciamento de dados e insights	US $ 7,6 milhões	8.9%

Assinaturas de plataforma de tecnologia

As assinaturas da plataforma de tecnologia contribuíram com US $ 5,3 milhões para a receita do System1 em 2023, representando 6,2% da receita total.

Fonte de receita	2023 quantidade	Porcentagem da receita total
Assinaturas de plataforma de tecnologia	US $ 5,3 milhões	6.2%

Serviços de otimização de campanha

Os serviços de otimização de campanhas geraram US $ 1,1 milhão em receita durante 2023, representando 1,3% da receita total da empresa.

Fonte de receita	2023 quantidade	Porcentagem da receita total
Serviços de otimização de campanha	US $ 1,1 milhão	1.3%

Receita total da empresa para 2023: US $ 85,6 milhões

System1, Inc. (SST) - Canvas Business Model: Value Propositions

You're looking at the core value System1, Inc. (SST) delivers to its customers, which is heavily weighted toward high-margin, owned-and-operated assets as of late 2025. The focus is clearly on shifting the mix away from volatile marketing revenue toward proprietary products.

Delivering high-intent customers to advertising partners remains a foundational value proposition, powered by their Responsive Acquisition Marketing Platform (RAMP). This platform is designed to be omnichannel and omnivertical, meaning it works across different channels and industry categories for advertisers.

The company's strategic pivot is evident in the margin expansion achieved through its product portfolio. This shift is a direct value proposition to stakeholders seeking better profitability profiles.

The performance of the higher-margin segment supports this strategy:

• Higher-margin product segment with Q3 2025 Adjusted Gross Margin of 59%.
• This margin is a significant expansion from the 42% reported in Q3 2024.

Here's the quick math on the Products segment performance in Q3 2025, which now makes up the majority of segment profit:

Metric	Q3 2025 Value	Year-over-Year Change
Products Revenue	$22.5M	+8%
Products Adjusted Gross Profit	$21.2M	+6%
Products Share of Segment Profit	56%	N/A

Privacy-centric consumer products are a key differentiator, especially with the introduction of new features across their owned suite. This addresses the growing consumer demand for privacy in the digital space.

For example, System1, Inc. launched the Vanish Private AI Chat app by Startpage.com in Q3 2025. Engagement across their privacy-focused and owned assets is showing growth:

• Sessions across Startpage, MapQuest, and CouponFollow grew by +23% Year-over-Year in Q3 2025.

The platform's capability for Omni-channel and omni-vertical customer acquisition for advertisers is built into the RAMP structure. This allows System1, Inc. to serve advertising partners across diverse consumer areas such as shopping, travel, and search.

The overall Q3 2025 Adjusted Gross Profit was $36.1M, a slight decrease of 4% Year-over-Year, but the margin expansion to 59% shows the underlying value proposition shift is structurally improving profitability, even as top-line revenue faced headwinds.

System1, Inc. (SST) - Canvas Business Model: Customer Relationships

You're looking at how System1, Inc. (SST) manages its connections with the various groups it serves as of late 2025. The relationships are clearly bifurcated between advertising partners and direct consumers of its owned products.

Automated, platform-driven service via the RAMP Console

The core of the advertising partner relationship is the Responsive Acquisition Marketing Platform (RAMP) Console, which System1, Inc. combines best-in-class technology & data science to operate. Management emphasized that integrating AI across the business continues to drive meaningful gains, with heavy investment in AI-powered agentic coding rebuilding the legacy platform ahead of schedule. This automation is key to managing scale and optimization accuracy for partners.

Direct, managed relationships with Scale Partners (>$550K quarterly revenue)

These are the high-touch relationships within the Marketing segment. While specific data on the number of partners exceeding the $550K quarterly revenue threshold isn't public, the performance of this segment reflects the current state of these managed connections. The overall Marketing GAAP revenue was $54.1 million in Q2 2025, which was down 29% year-over-year, largely due to volatility in Google's partner network and owned & operated marketing businesses. This indicates significant pressure on the monetization efficiency within these key partner channels as of Q3 2025.

Self-service and programmatic advertising for smaller partners

This relationship type falls under the broader Marketing segment. The overall revenue decline in the marketing business suggests that monetization across the partner base, including smaller programmatic advertisers, faced headwinds through the third quarter of 2025. System1, Inc. reported consolidated revenue of $61.6 million in Q3 2025, materially missing consensus estimates of $74.5 million, largely driven by these marketing monetization challenges.

Direct-to-consumer relationship for subscription products (e.g., Protected.net)

This relationship is managed through System1, Inc.'s suite of privacy-focused products, which are showing superior growth and margin profile compared to the marketing side. Protected.net, a key component, had already far exceeded expectations with its customer base growing to 2 million since its founding in 2016. The success of this direct channel is evident in the Products segment performance, which saw revenue of $22.5 million in Q3 2025, representing an 8% year-over-year increase, and comprising 56% of total segment profit.

The shift in revenue mix clearly illustrates where System1, Inc.'s customer relationship focus is yielding better financial results as of late 2025:

Metric/Segment	Q2 2025 Actual	Q3 2025 Actual	Year-over-Year Change (Q2)
Marketing GAAP Revenue	$54.1 million	Implied lower than Q2	-29%
Products Revenue	$24 million	$22.5 million	+34% (Q2)
Adjusted Gross Profit Margin	Not explicitly stated for Q2	59%	Up from 42% YoY (Q3)

The operational scale supporting these relationships is managed by a team that stood at 300 employees as of December 31, 2024. The company also executed a 1-for-10 reverse stock split in June 2025 to regain compliance with NYSE listing standards, a structural move impacting all shareholder relationships.

Key operational drivers supporting these customer relationships include:

• AI integration driving faster development cycles.
• Products segment profit comprising 56% of total segment profit in Q3 2025.
• Sessions for owned products growing 23% year-over-year in Q3 2025.
• CouponFollow.com expansion into Europe.

System1, Inc. (SST) - Canvas Business Model: Channels

The Channels segment for System1, Inc. is an omnichannel structure designed to acquire and monetize internet traffic across owned properties and through external partnerships, heavily reliant on its AI-powered Responsive Acquisition Marketing Platform (RAMP).

The third quarter of 2025 saw System1, Inc. report total revenue of $61.6 million, representing a significant 31% decline year-over-year. This performance reflects the strategic pivot towards higher-margin products within the channel mix, as evidenced by the adjusted gross profit margin rising to 59% in Q3 2025, up from 42% the prior year.

Metric (Q3 2025)	Value	Context
Total Revenue	$61.6 million	Year-over-year decline of 31%
GAAP Gross Profit	$22.8 million	Year-over-year decrease of 8%
Adjusted Gross Profit Margin	59%	Increase from 42% in Q3 2024
Adjusted EBITDA	$9.9 million	Decrease of 4% year-over-year
AFD Gross Profit Contribution (Q3)	$1.5 million	Minimal contribution due to deprecation of Google's AdSense for Domains

Owned & Operated websites (e.g., MapQuest, CouponFollow, HowStuffWorks)

System1, Inc. operates flagship brands across publishing, search, and applications, with its publishing websites reaching 120 million consumers monthly across verticals like health, automotive, and finance.

• CouponFollow.com organic sessions increased 44% year-over-year in Q2 2025.
• Startpage.com daily active users increased by more than 25% in June 2025 versus the prior year.
• The Products segment, which includes these owned properties, saw revenue growth of 34% year-over-year to $24.0 million in Q2 2025.

MapQuest guides tens of millions of users monthly with its mapping and route planning services.

Partner Network of third-party publishers and affiliates

The marketing division navigates a volatile advertising landscape, which includes managing relationships with traffic partners. System1, Inc. is actively addressing traffic quality issues with a key partner and is pursuing recovery for traffic deemed invalid. The company's overall platform is monetization agnostic, integrating with every major digital ad network.

Direct advertising channels (paid search, social media) for traffic acquisition

Traffic acquisition channels like paid search and social media feed the marketing platform. The challenges in this area were highlighted by the significant revenue decline, partly attributed to the deprecation of Google's AdSense for Domains (AFD). For the six months ended June 30, 2025, the AFD monetization channel contributed approximately $94 million to marketing platform revenue. The company requires evidence of at least $5,000-$10,000 per month in spend on traffic acquisition platforms like Facebook or native ad networks for partners.

Mobile apps (e.g., redesigned MapQuest apps, Vanish Private AI Chat)

System1, Inc. is growing its application portfolio, which is a key channel for direct user engagement. The company launched redesigned MapQuest apps in Q3 2025. Furthermore, Startpage.com introduced the Vanish Private AI Chat app during the same quarter. The RoadWarrior route-planning app, which leverages MapQuest's technology, is a premium subscription product within this channel.

The ad testing revenue, which leverages System1's predictive technology, rose 38% between 2024 and 2025.

System1, Inc. (SST) - Canvas Business Model: Customer Segments

You're looking at the core groups System1, Inc. (SST) serves as of late 2025. This is a dual-sided model, connecting consumers with advertisers and selling proprietary products.

Advertising Partners seeking high-intent customer acquisition

System1, Inc. serves as an omnichannel customer acquisition marketing platform, connecting consumers to its advertising partners to maximize reach and effectiveness. This segment faced significant headwinds in 2025 due to changes in the broader advertising marketplace, particularly the sunsetting of a key monetization source.

For the six months ended June 30, 2025, the AdSense for Domains (AFD) monetization channel, a component of the marketing platform, contributed approximately $94 million, representing 39% of marketing platform revenue. This channel also generated approximately $12 million in gross profit, or 28% of marketing adjusted gross profit for that period. By the third quarter of 2025, the contribution from AFD was minimal, with only a $1.5 million gross profit contribution. Consequently, the marketing segment saw revenue decline by 43% year-over-year in Q3 2025.

Consumers of search, utility, shopping, and travel content

Consumers engage with System1, Inc.'s flagship brands across search, shopping, and travel verticals. The company's platform is omnichannel and omnivertical, built to deliver high-intent customers.

Consumer adoption of the owned-and-operated products showed strength in 2025, even as the marketing segment struggled. For instance, in the second quarter of 2025, revenue from the owned-and-operated products segment grew 34% year-over-year, reaching $24.0 million. Total sessions across the platform increased by 23% year-over-year in Q3 2025.

Here's a quick look at some key consumer engagement metrics from recent quarters:

Product/Metric	Reporting Period	Key Figure	Context/Change
Startpage Daily Active Users	June 2025	More than 25% rise	Year-over-year increase
CouponFollow.com Organic Sessions	Q1 2025	162% increase	Year-over-year growth
CouponFollow Organic Sessions	Q2 2025	44% jump	Year-over-year growth
MapQuest Naming Generator Users	Q1 2025	Approximately 280,000 active users	Drove 180,000 app downloads
Product Segment Revenue	Q3 2025	$22.5 million	Up 8% year-over-year

The shift in focus is clear; the Product segment profit represented 56% of total segment profit in Q3 2025, up from 51% in Q3 2024.

Subscription Users for privacy and security products

System1, Inc. is developing a suite of privacy-focused products, leveraging its Startpage.com search engine. This addresses a growing consumer need for data security in a privacy-centric world.

The company launched the Vanish Private AI Chat app under Startpage.com. The privacy-focused search engine, Startpage, showed strong adoption, posting more than a 25% rise in daily active users in June 2025 compared to the prior year.

The focus on these in-house brands is a strategic priority, as evidenced by the growth in the segment:

• Owned-and-operated products revenue grew 34% year-over-year in Q2 2025.
• Product segment revenue increased 8% year-over-year in Q3 2025.
• Product segment profit increased 6% year-over-year in Q3 2025.

Businesses across diverse verticals: health, finance, automotive, entertainment

While the search, shopping, and travel verticals are explicitly mentioned as core areas for consumer engagement, System1, Inc.'s platform is described as omnivertical, suggesting reach across many business types that advertise. The company is also expanding its commercial reach through B2B offerings.

System1, Inc. is actively creating new commercial avenues beyond direct advertising partnerships:

• Startpage and MapQuest began offering a white-label mapping solution for third parties in 2025.
• The company launched 1.org, a search engine dedicated to nonprofit support.
• CouponFollow.com expanded into Europe.

The overall company revenue for the trailing twelve months (TTM) ending in 2025 was reported as $0.28 Billion USD.

Finance: draft 13-week cash view by Friday.

System1, Inc. (SST) - Canvas Business Model: Cost Structure

You're looking at the core costs System1, Inc. (SST) faces to keep its acquisition marketing platform running. Honestly, for a tech-driven marketing company, the biggest line items are usually where they buy traffic and where they pay the engineers building the tech.

Traffic Acquisition Costs (TAC) is a major one. System1 defines TAC as the combination of their direct advertising spend and the revenue share they pay to partners. This is the total cost to acquire traffic to their platform. They measure efficiency using Return on Traffic Acquisition Spend (RTAC), which is marketing platform revenue divided by TAC. For Q2 2025, TAC decreased to $\text{\$114.9 million}$ from $\text{\$120.2 million}$ in the prior year period, though the return on spend (RTAC) eased to $\text{117\%}$ from $\text{120\%}$ in Q2 2024.

The components of TAC, including revenue share to partners, are embedded within the marketing segment's costs. For the marketing segment, advertising spend was up $\text{13\%}$ from Q1 2025 to Q2 2025, but the return on spend decreased significantly.

Here's a look at some of the key cost components from recent quarters, keeping in mind that Technology and Development expenses are part of the broader Operating Expenses:

Cost Component/Period	Q2 2025 (In thousands)	Q2 2024 (In thousands)	Q1 2025 (In thousands)
Total Operating Expenses	$\text{\$94,020}$	$\text{\$123,667}$	Not explicitly broken out in the same detail as Q2
Salaries and benefits (part of OpEx)	$\text{\$26,297}$	$\text{\$33,937}$	Not explicitly broken out in the same detail as Q2
Selling, general, and administrative (part of OpEx)	$\text{\$17,511}$	$\text{\$21,223}$	Not explicitly broken out in the same detail as Q2

You asked about the $\text{\$265 million}$ term loan. As of the end of Q2 2025, the total debt was reported as $\text{\$263.3 million}$, with the term loan being a significant part of that. For Q1 2025, the reported Interest Expense was in the range of $\text{\$7.0-\$7.5 million}$, with an actual figure of $\text{\$7.085 million}$. For Q2 2025, the Interest Expense, net, was $\text{\$7,116 thousand}$ (or $\text{\$7.116 million}$). The interest expense on the $\text{\$265 million}$ outstanding term loan debt is therefore hovering around $\text{\$7.0 million}$ per quarter based on these figures.

Technology and development expenses are captured within the broader Operating Expenses, specifically within the $\text{Salaries and benefits}$ and $\text{SG\&A}$ lines, as well as capitalized software development costs. The company noted that integrating agentic coding and generative AI into the RAMP platform development process is driving faster development cycles. The balance sheet shows Internal-use software development costs, net for Q2 2025 were $\text{\$14,214 thousand}$ ($\text{\$14.214 million}$).

The overall cost control efforts are evident in the Operating Expenses. As you noted, these decreased to $\text{\$87.6 million}$ in Q1 2025 from $\text{\$110.7 million}$ in Q1 2024. This trend of cost discipline continued, as management expected OpEx to decline in the second half of the year by roughly $\text{5\%}$ versus the first half of 2025.

Key cost takeaways include:

• TAC is a variable cost directly tied to marketing revenue generation.
• Operating Expenses (OpEx) showed a year-over-year reduction of $\text{25.6\%}$ from Q1 2024 ($\text{\$110.7M}$) to Q1 2025 ($\text{\$87.6M}$).
• Salaries and benefits decreased from $\text{\$33,937 thousand}$ in Q2 2024 to $\text{\$26,297 thousand}$ in Q2 2025.
• The company is actively managing its capital structure, with debt totaling $\text{\$262.70 million}$ at the end of Q2 2025.

Finance: draft 13-week cash view by Friday.

System1, Inc. (SST) - Canvas Business Model: Revenue Streams

You're looking at System1, Inc. (SST) and trying to map out exactly where the money comes from, especially as they navigate major shifts in the advertising world. Honestly, the revenue picture is defined by a strategic, high-stakes pivot away from volatility toward owned assets. The company clearly delineates its business into two main areas for reporting: Marketing and Products. The Products segment houses the Owned & Operated Advertising (O&O) assets, which management is pushing as the future for higher-margin, more defensible revenue.

The Owned & Operated Advertising revenue, represented by the Products segment, is the focus for long-term, higher-margin growth. These are the proprietary properties like Startpage, the mapping service MapQuest, and the coupon platform CouponFollow. For the third quarter of 2025, revenue from this segment was $22.5 million. This segment showed resilience, posting an 8% year-over-year increase in Q3 2025 revenue. To be fair, while this segment is smaller in top-line revenue for Q3 2025, it is becoming the majority of the company's profitability, with its Adjusted Gross Profit reaching $21.2 million in the quarter, which is 56% of the total segment profit. The shift is clear: they are trading top-line volume for margin quality. The company is also developing new AI-based products, such as Vanish, a private AI chat app from Startpage.com, which will feed into this stream.

The Partner Network revenue-sharing arrangements are primarily captured within the Marketing segment. This stream has faced significant headwinds, largely due to product changes from their largest advertising partner, Google, specifically the sunsetting of AdSense for Domains (AFD). In Q3 2025, Marketing revenue was $39.1 million, making it the majority of the total revenue for the quarter, though it declined 43% year-over-year. Within this revenue-sharing model, System1, Inc. (SST) typically shares 60-80% of the revenue with traffic partners, depending on factors like traffic quality and exclusivity. The company is actively working to diversify this segment away from over-reliance on any single partner, which is why the pivot to O&O is so defintely important.

Regarding Subscription revenue from privacy and security products, while the O&O segment includes privacy-focused search via Startpage, specific standalone subscription revenue figures for Q3 2025 were not broken out in the same detail as the main segments. The focus here is on growing the user base for these assets, like the 23% year-over-year growth in total sessions across Startpage, MapQuest, and CouponFollow in Q3 2025, which sets the stage for future monetization, including potential subscription offerings.

The overall top-line performance for the period is a key data point you need to track. Q3 2025 Total Revenue was $61.6 million. This represented a 31% year-over-year decrease, reflecting the ongoing transition and volatility in the marketing business. Here's the quick math on the segment contribution for that quarter:

Revenue Stream / Segment	Q3 2025 Revenue (in millions USD)	Year-over-Year Change (Q3 2025 vs Q3 2024)
Marketing (Partner Network Focus)	$39.1 million	-43%
Products (Owned & Operated Focus)	$22.5 million	+8%
Total Revenue	$61.6 million	-31%

You should also note the margin profile improvement, which is the real story behind the revenue numbers. The Adjusted Gross Profit Margin soared to 59% in Q3 2025, up from 42% the previous year. This shows the strategic mix shift is working on profitability, even as top-line revenue contracts.

Key components driving the revenue streams include:

• The Marketing segment revenue was $39.1 million in Q3 2025.
• The Products segment revenue was $22.5 million in Q3 2025.
• The Products segment saw sessions grow 23% year-over-year in Q3 2025.
• The company is transitioning from Google's sunsetted AdSense for Domains (AFD) to the Related Search On Content (RSOC) product.
• CouponFollow launched sites in Germany and France as part of geographic expansion.

Finance: draft 13-week cash view by Friday.