Fiserv earnings missed by $0.61, revenue fell short of estimates
Investing.com - Canaccord Genuity downgraded System1 Group PLC (LSE:SYS1) from Buy to Speculative Buy and lowered its price target to GBP5.50 from GBP8.65 following an unscheduled trading update from the company.
System1 Group reported challenging trading conditions with several of its larger customers spending "lower and slower" amid uncertain macroeconomic conditions. The company’s top 10 customers accounted for 31% of sales in fiscal year 2025, while the top 20 represented 42% of sales.
The company is also experiencing foreign exchange headwinds due to weakness in the U.S. dollar and Australian dollar, creating additional drag on top-line performance. Second-quarter trading continued the subdued activity seen in the first quarter.
System1 now expects first-half fiscal 2026 revenue to be 5% lower than the prior year, estimated at approximately £17.4 million. For the full fiscal year 2026, revenue is anticipated to be broadly flat year-over-year, while adjusted profit before tax is guided to be between £2-2.5 million after a planned £2 million investment program.
The company reported cash holdings of £10.8 million as of August 2025, representing a burn of approximately £0.9 million since the first quarter, with an additional £1.4 million outflow expected in October 2025 for the fiscal year 2025 dividend payment.
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