Segment Reporting (Tables)

12 Months Ended

Dec. 31, 2025

Schedule of Segment Reporting Information

The following table summarizes revenue, segment cost of revenue and segment adjusted gross profit by reportable segments (in thousands):


	For The Year Ended December 31, 2025
	Marketing		Products		Total
Revenue	$	172,889	$	93,240	$	266,129
Less: segment cost of revenue	101,403		5,537		106,940
Segment adjusted gross profit	$	71,486	$	87,703	$	159,189
Other cost of revenue					58,794
Salaries and benefits					92,747
Selling, general, and administrative					69,688
Interest expense, net					27,556
Gain on extinguishment of tax receivable agreement liability					(5,253)
Gain on extinguishment of debt					—
Change in fair value of warrant liabilities					(275)
Loss before income tax					$	(84,068)


	For The Year Ended December 31, 2024
	Marketing		Products		Total
Revenue	$	263,388	$	80,537	$	343,925
Less: segment cost of revenue	179,918		3,939		183,857
Segment adjusted gross profit:	$	83,470	$	76,598	$	160,068
Other cost of revenue					58,745
Salaries and benefits					113,512
Selling, general, and administrative					76,412
Interest expense, net					31,562
Gain on extinguishment of debt					(20,109)
Change in fair value of warrant liabilities					(2,386)
Loss before income tax					$	(97,668)

Schedule of Revenues Disaggregated by Geographic Region

The following table summarizes revenue by geographic region (in thousands):


	For the Year Ended
	December 31, 2025		December 31, 2024
United States	$	262,959	$	333,069
Other countries	3,170		10,856
Total revenue	$	266,129	$	343,925

Schedule of Table Illustrates the Level of Concentration as a Percentage of Total Revenues

The following tables illustrate the concentrations as a percentage of total revenue and total accounts receivable for our key Advertising Partners:

Concentration of revenue from key Advertising Partners


	For the Year Ended
	December 31, 2025		December 31, 2024
Google	67	%	78	%

Concentration of accounts receivable from key Advertising Partners

	December 31, 2025		December 31, 2024
Google	38	%	56	%
Microsoft	7	%	8	%
Yahoo	10	%	7	%

- Definition

Tabular disclosure of all significant concentrations of risk, including credit risk and market risk, arising from all financial instruments (as defined), whether from an individual counterparty or groups of counterparties. The disclosure concerning concentrations of risk may consist of the following information: (1) for concentrations of credit risk disclosure may include: (a) information about the (shared) activity, region, or economic characteristic that identifies the concentration, (b) the maximum amount of loss due to credit risk that, based on the gross fair value of the financial instrument, the entity would incur if parties to the financial instruments that make up the concentration failed completely to perform according to the terms of the contracts and the collateral or other security, if any, for the amount due proved to be of no value to the entity, (c) the policy of requiring collateral or other security to support financial instruments subject to credit risk, information about the entity's access to that collateral or other security, and the nature and a brief description of the collateral or other security supporting those financial instruments, and (d) the policy of entering into master netting arrangements to mitigate the credit risk of financial instruments, information about the arrangements for which the entity is a party, and a brief description of the terms of those arrangements, including the extent to which they would reduce the entity's maximum amount of loss due to credit risk and (2) for disclosure of quantitative information about the market risks of financial instruments that is consistent with the way the company manages or adjusts those risks, disclosure may include: (a) more details about current positions and perhaps activity during the period, (b) the hypothetical effects on comprehensive income (or net assets), or annual income, of several possible changes in market prices, (c) a gap analysis of interest rate re-pricing or maturity dates, (d) the duration of the financial instruments, (e) the entity's value at risk from derivatives and from other positions at the end of the reporting period and the average value at risk during the year, or (f) other ways of reporting quantitative information as internally developed.

+ References + Details

System1, Inc. 10-K