System1 announces 1-for-10 reverse stock split effective June 11

LOS ANGELES - System1, Inc. (NYSE: SST), currently trading at $0.43 with a market capitalization of $40.65 million, announced Tuesday that its board of directors has approved a 1-for-10 reverse stock split of its Class A and Class C Common Stock, effective June 11, 2025, at 5:00 p.m. Eastern Time. According to InvestingPro analysis, the company’s stock has declined nearly 70% over the past year.

Shares of the company’s Class A Common Stock are expected to begin trading on a split-adjusted basis on the New York Stock Exchange on June 12, 2025, under the same symbol "SST" but with a new CUSIP number.

The reverse split aims to increase the per share trading price to meet NYSE continued listing requirements. The company’s stockholders approved the proposal at the Annual Meeting held on Tuesday.

Following the split, every 10 shares of common stock will be automatically reclassified into one new share. The split will also affect the company’s outstanding warrants, with every 10 warrants becoming exercisable for one share of Class A Common Stock at an adjusted exercise price of $115.00 per share.

No fractional shares will be issued. Holders of Class A Common Stock will receive cash payments for fractional shares based on the closing price on June 11, 2025.

Registered stockholders are not required to take any action to receive their adjusted shares. Those who own shares through brokers or other nominees will have their positions automatically adjusted according to those organizations’ processes.

System1 operates an omnichannel customer acquisition marketing platform, generating annual revenue of $333.5 million but currently operating at a loss. The information in this article is based on a company press release statement. For comprehensive analysis and additional insights, including 11 more ProTips, visit InvestingPro.

In other recent news, System1 Inc reported its first-quarter 2025 earnings, revealing a revenue of $74.5 million, which fell short of the $88.19 million forecast by analysts. Despite the revenue miss, the company showed significant operational improvements, with adjusted EBITDA increasing from $400,000 to $12.1 million. The company also reported a 33% year-over-year rise in adjusted gross profit, indicating better profitability margins. System1’s owned and operated advertising revenue declined by 16% year-over-year to $57.9 million, while network revenue saw a slight increase to $16.6 million. The company did not provide specific guidance for the next quarter due to uncertainties related to a Google product transition. CEO Michael Blend highlighted productivity gains from AI-powered automation, emphasizing their strategic importance for System1’s future. The company remains cautiously optimistic about growth, focusing on AI and agentic coding to maintain a competitive edge.

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