Q4 and Full Year Trading Update

System1 Group PLC

21 April 2026

 

21 April 2026

System1 Group PLC (AIM: SYS1)

 ("System1", or "the Company", or "the Group")

Q4 and Full Year Trading Update

Strong H2 and confident FY27 outlook

System1, the marketing decision-making platform www.system1group.com today issues an update on trading for the final quarter ("Q4") and financial year ended 31 March 2026 ("FY26"), confirming a record H2 revenue performance and positive FY27 outlook.

FY26 Financial Highlights (unaudited)

·    Group revenue was steady at £37m (FY25: £37.4m) in line with previous guidance, demonstrating a strong recovery in Platform revenues in H2

·    H2 revenues increased 4% year on year, marking a record 6-month revenue performance, driven by growth in data and data-led offerings and new client revenue

·    Adjusted EBITDA of £3.6m (FY25: £6.6m) reflecting previously announced investment to support future growth, and restructuring costs of £0.5m (FY25: £0.2m)

·    Adjusted PBT of £2.1m (FY25: £5.2m), in line with previous guidance

·    Cost savings implemented in H2, reducing operating expenses by approximately £1m on an annualised basis

·    Year-end cash position of £12.4m (FY25: £12.9m) provides continued balance sheet strength

FY26 Strategic Highlights

·    Good progress against all three strategic pillars, demonstrating positive result from investment programme

o  Revitalising Innovation: Innovation revenue up 19%, Platform revenue up 58%, expanded range of solutions, new go-to-market partnership with BionicX AI

o  Winning in the USA: 7% platform revenue growth, 1% total growth, driven by strong new business performance

o  World's largest brands: Worked with 48 of the world's top 100 Brands measured by advertising media spend (FY25: 44); restructured go-to-market operation to focus on strategic customer repeat revenue and retention

Outlook

·    The strong level of new business wins secured throughout FY26 and particularly in the final quarter, provide confidence in delivering revenue and profit growth in FY27, in line with consensus market expectations

·    Cost savings implemented in FY26 position the business for an improved EBITDA margin of no less than 15% in FY27, with the opportunity for further margin expansion as revenue scales  

Commenting on the results, CEO James Gregory said: "FY26 has seen the successful delivery on our plans to grow in the USA, revitalise our Innovation product offering and increase the number of the world's largest brands as customers. This progress against a challenging macro-economic environment delivered a resilient FY26 performance, a record H2 performance and places the business on an upwards trajectory into FY27. With deep advertising and innovation experience, an increasingly powerful offering, a talented and committed team and growing customer base of the world's largest brands, we are confident in the near- and long-term opportunities for the business."

Q4 and FY26 Trading Update

Revenue £ million - unaudited	Q4	Q4	Q4	H2	H2	H2	Full Year	Full Year	Full Year
	FY26	FY25	% YoY	FY26	FY25	% YoY	FY26	FY25	% YoY
Predict Your (data)	8.4	6.6	+28%	16.5	14.7	+12%	29.9	28.1	+7%
Improve Your (data-led consultancy)	1.4	1.8	-24%	2.8	3.1	-10%	5.6	6.5	-13%
Platform Revenue	9.8	8.4	+17%	19.3	17.9	+8%	35.5	34.6	+3%
Other consultancy (non-platform)	0.3	0.5	-53%	0.5	1.2	-57%	1.4	2.9	-51%
Total Revenue	10.1	8.9	+13%	19.8	19.1	+4%	37.0	37.4	-1%

The Board is pleased to confirm trading in FY26 in line with guidance and slightly ahead of consensus¹. Group revenue remained steady at approximately £37m (FY25: £37.4m), reflecting an improved H2 performance as existing customers recommenced Adtesting spend and new client wins contributed to revenue. Platform Revenue increased 3% to £35.6m (FY25: £34.6m), reversing the decline seen in H1. Non-platform bespoke consultancy revenue decreased 51% to £1.4m, reflecting customers' growing adoption of standard platform-based solutions

In total, over 300 new platform clients were secured in the year, providing revenue of £10.7m, being 30% of full year Platform Revenue.  New customers included a global media business, a global financial services group, a world-famous leisure business and an American multinational soft drink company. New clients in the USA contributed £3.5m of Platform Revenue, in line with the Group's focus of growing the Group's USA business. While existing customer spend was reduced during the year, due partly to the global macro-economic conditions in H1, as reflected in an FY26 Platform NRR of 72% (FY2025: 106%) this was offset by the Group's consistent success in securing new Adtesting and Innovation clients. Retention by customer number was broadly in line with prior years.

The number of active clients during the year increased to 626 (FY25: 536, restated), providing the Group with the potential for growth in revenues from new clients in future years. The Company strengthened its go-to-market activities in January 2026 with the signing of a partnership with BionicX AI, to combine AI-driven insight discovery with independent, emotion-based testing, helping brands explore ideas faster while retaining confidence in innovations that will succeed in market.

Adjusted EBITDA is expected to be approximately £3.6m (FY25: £6.6m), following the previously announced investment in the Group's sales and innovation capability. The Group incurred an elevated level of restructuring costs during the year, as part of a cost saving and efficiency plan, which included some changes to the Group's organisational structure, and go-to-market approach. This restructuring of the cost base, while incurring one-off costs of approximately £0.5m in FY26, represents annualised cost savings of approximately £1m, providing the opportunity for greater operational leverage and improved margins.

The Group closed the year with net cash of £12.4m (FY25: £12.9m), reflecting continued good cash collection and cost discipline, including a £0.5m reduction in the additional investment programme that was announced for FY26. The strength of the balance sheet provides the Board with the ability to continue to selectively invest in revenue growth initiatives.

Positive outlook

The Board is confident that the improved H2 performance is sustainable in FY27, given the number of large new customers secured during FY26, for whom projects will be delivered in FY27 and the positive impact of fame-building campaigns, including The Long and Short (form) of it and The Creative Dividend. System1 concluded its biggest ever sales contract with a new US client in the final quarter which is expected to produce sales revenue in FY27. As a result, the Board remains comfortable with consensus Revenue forecasts for FY27 and the recently upgraded adjusted EBITDA expectations¹.

The Board is confident that System1's leadership in emotion-based creative effectiveness testing, the scalability of its offering, its growing number of blue-chip customers and significant addressable market provide it with the foundations to deliver increased shareholder value and achieve its ambitions.

Notice of Results

The Company intends to publish its FY26 results on 8 July 2026. Details of the Investor Meet Company presentation will follow closer to the day of the results.

This announcement contains inside information for the purposes of article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of domestic law in the United Kingdom by virtue of the European Union (Withdrawal) Act 2018 and as amended by regulation 11 of the Market Abuse (Amendment) (EU Exit) Regulations 2019/310. With the publication of this announcement, this information is now considered to be in the public domain.

1.     For the purpose of this announcement, the Company believes consensus forecast to be FY26 Revenue of £36.4 million, Adjusted Profit before Taxation of £2.0 million and FY27 Revenue of £38.8 million, and Adjusted Profit before Taxation of £4.2 million.

For further information, please contact:

System1 Group PLC	via Alma
James Gregory, Chief Executive Officer
Chris Willford, Chief Financial Officer
Canaccord Genuity Limited (Nominated Adviser & Broker)	Tel: [phone]
Simon Bridges / Andrew Potts / Harry Rees
Singer Capital Markets (Joint Broker)	Tel: [phone]
James Moat / James Fischer
Alma Strategic Communications	Tel: [phone]
Caroline Forde / Rebecca Sanders-Hewett / Robyn Fisher	[e-mail]

About System1 Group plc

System1 is a marketing decision-making platform business, utilised by some of the world's largest brands, across 81 markets globally. Since 2000, System1 has helped marketers tap into consumers' emotions to predict and improve the commercial impact of ads and ideas. Drawing on the world's largest database of emotional norms, our advertising and idea tests measure emotion to give our customers the most accurate predictions of the business impact of creativity. We 'predict' (provide research results) and work with our customers and 'improve' (provide insight and consultancy on those results) advertising effectiveness, innovation effectiveness and brand effectiveness. 

We work for more than 500 customers, including 5 of the top 10 US and 8 of the top 10 UK advertisers. Customers include Pfizer, Amazon, TikTok, Sky, Lego, Pladis and Natura.

Further information on the Company can be found at www.system1group.com.

 

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