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System1, Inc., a company specializing in computer programming and data processing with a market capitalization of $28.9 million, received a formal notice from the New York Stock Exchange (NYSE) today regarding the delisting of its redeemable warrants. According to InvestingPro data, the company operates with a significant debt burden, with a debt-to-equity ratio of 3.43. The NYSE has initiated proceedings to delist the warrants, which were issued during the initial public offering of Trebia Acquisition Corp. and are exercisable for shares of System1's Class A common stock at $11.50 per share.
The delisting process was triggered by the warrants' "abnormally low" selling price, as per the NYSE Listed Company Manual's Section 802.01D. Consequently, the NYSE has also immediately suspended trading of these warrants, which trade under the ticker "SST.WS."
This action does not affect the trading of System1's Class A common stock, which will continue to be listed on the NYSE under the symbol "SST." The company's stock, currently trading at $0.33, remains subject to the exchange's continued listing requirements. InvestingPro analysis shows the stock has declined 62.57% year-to-date, with the platform's Financial Health Score indicating a weak overall position.
System1, previously known as Trebia Acquisition Corp., has its principal executive offices in Los Angeles, California. The company's fiscal year ends on December 31, and it operates under the Central Index Key (CIK) number 0001805833.
This development comes directly from an 8-K filing with the Securities and Exchange Commission, which details the delisting notice and the immediate suspension of the warrants' trading. The company's Chief Financial Officer, Tridivesh Kidambi, signed the SEC filing on behalf of System1, Inc., confirming the information provided in the document. For deeper insights into System1's financial health and future prospects, access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 US stocks with expert analysis and actionable intelligence.
In other recent news, System1 reported its fourth-quarter 2024 financial results, revealing a revenue of $76 million, which fell short of the forecasted $94.71 million. Despite this 21% year-over-year revenue decrease, the company achieved a significant 79% increase in adjusted EBITDA, reflecting improvements in operational efficiency. System1 ended the quarter with $63.6 million in unrestricted cash and provided revenue guidance of $69-71 million for the first quarter of 2025. Benchmark analysts maintained their Buy rating for System1, highlighting a 17% year-over-year growth in revenue excluding Traffic Acquisition Costs (TAC) for Q4 2024. The analysts project a 25% growth in revenue ex-TAC for the first quarter of 2025, noting the company's potential for sustainable double-digit growth. CEO Michael Blend expressed optimism for the company's future, emphasizing the role of AI in increasing efficiency and productivity. Despite challenges in the advertising market and changes from Google (NASDAQ:GOOGL), System1 remains focused on scaling its owned and operated products. Benchmark analysts acknowledged the company's leverage profile as a concern but anticipate $50 million in EBITDA becoming a baseline for System1.
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