System1 completes 1-for-10 reverse stock split to maintain NYSE listing

NEW YORK - System1, Inc. (NYSE: SST) implemented a 1-for-10 reverse stock split of its Class A and Class C common stock effective Wednesday, according to a company press release statement. The move comes as the stock has declined over 70% in the past year, with InvestingPro data showing high price volatility and challenging market conditions.

The split, which took effect at 5:00 p.m. Eastern Time on Wednesday, reduced System1’s outstanding Class A shares from 79.8 million to 7.98 million and Class C shares from 18.7 million to 1.87 million. The company’s stock is expected to begin trading on a split-adjusted basis when markets open Thursday under the same SST ticker but with a new CUSIP number. With a current market capitalization of approximately $36 million, System1 maintains a current ratio of 1.27, indicating sufficient liquid assets to meet short-term obligations.

The reverse split was approved by System1’s board of directors on June 10 as a measure to regain compliance with NYSE listing standards, which require companies to maintain minimum share price requirements.

As a result of the split, every 10 shares held by stockholders were consolidated into one share. No fractional shares were issued, with stockholders entitled to receive cash in lieu of fractional shares.

The split also affected the company’s outstanding warrants, with every 10 warrants now exercisable for one share of Class A common stock at an adjusted exercise price of $115.00 per share.

System1, which operates an omnichannel customer acquisition marketing platform, made proportionate adjustments to outstanding equity awards, including exercise prices and strike prices where applicable.

The reverse split did not alter the par value of the company’s common stock or the total number of authorized shares.

In other recent news, System1 Inc. reported its first-quarter 2025 earnings, revealing a revenue of $74.5 million, which fell short of analysts’ forecasts of $88.19 million. Despite the revenue miss, the company showed significant operational improvements, with adjusted EBITDA increasing from $400,000 to $12.1 million year-over-year. System1 also announced a 1-for-10 reverse stock split for its Class A and Class C Common Stock, effective June 11, 2025, aiming to meet NYSE listing requirements. The company’s stockholders approved this proposal at the Annual Meeting. Additionally, System1 has been focusing on AI-powered automation to boost productivity and enhance future prospects. The company did not provide specific guidance for Q2 2025 due to uncertainties related to a Google product transition. Furthermore, System1’s CEO, Michael Blend, emphasized the productivity gains from AI initiatives, while CFO Trudhavish Kadambi expressed confidence in the company’s fundamentals.

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