Sparks

System1 Group’s platform revenues accounted for 93% of total group revenues in Q325, with the strongest growth in Predict Your (data) at +57%, as the group continues to build its presence in the substantial ad-testing market. Over the nine months, the data-led consultancy Improve Your has posted faster growth (61% vs 51%), accounting for 17% of year-to-date platform revenues. The de-emphasis of the other non-platform consultancy revenue stream means this is in decline and will naturally become less of a drag.

System1 Group’s statement highlights wins of over 120 new clients in Q3, contributing to more than a quarter of platform revenues during the period (c £2.4m) and underpinning full-year market revenue expectations of £37m (compared with £28.5m for 9M25). The new business pipeline is described in the statement as ‘encouraging,’ reflecting good prospects in the crucial North American market, although conditions in the UK and Europe remain challenging.

The successful shift to a platform-based operation is having a very positive impact on margins, with System1 Group achieving a 9M25 gross margin of 88%. New full-year guidance indicates an adjusted PBT of c £5m, well in excess of the current market forecast of £4.4m.

System1 Group’s balance sheet is also healthy, with cash at end-December of £10.2m. A £2m investment programme focusing on the US and innovation, announced with the interims, is now underway.