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System1 cash flow, quarter by quarter

Latest: Q2 2026 · from the cash-flow statements filed with the SEC

Free cash flow−$2.0M in Q2 2026 · −$40.9M over twelve months

Operating cash flow−$2.0M
Free cash flow−$2.0M
Cash conversion cycle-84 days

Analysis

In Q2 2026, System1 generated −$2.0M of operating cash flow. That is $26.5M less than in Q2 2025 ($24.5M).

Over the twelve months to Jun 30, 2026, operating cash flow was −$40.9M; the largest uses were operating cash flow ($40.9M), net borrowing (+) / repaid (−) ($25.0M), other investing ($7.2M); besides operations, cash came from other financing ($49.2M); the cash balance fell by $23.9M.

Operating cash flow was −$2.0M against net income of −$15.3M. The largest differences: receivables +$12.3M, accrued liabilities −$9.8M, stock-based pay +$1.4M.

Its cash conversion cycle was -84 days (receivables 142 + inventory 0 − payables 226): suppliers fund its working capital.

Free cash flow

System1: free cash flow by quarterSystem1: free cash flow by quarter−$36KQ3 2024$772KQ4 2024−$16.0MQ1 2025$24.5MQ2 2025−$2.1MQ3 2025−$10.6MQ4 2025−$26.1MQ1 2026−$2.0MQ2 2026
Operating cash flow less capital spending.
System1: operating cash flow against capital spendingSystem1: operating cash flow against capital spendingOperating cash flowCapital spending−$5K$31KQ3 2024$772K$0Q4 2024−$15.9M$46KQ1 2025$24.5M$0Q2 2025−$2.1M$0Q3 2025−$10.6M$0Q4 2025−$26.1M$0Q1 2026−$2.0M$0Q2 2026
Latest (Q2 2026): Operating cash flow −$2.0M, Capital spending $0.

Capital allocation, year by year

System1: where the cash came from (up) and went (down), by fiscal yearSystem1: where the cash came from (up) and went (down), by fiscal yearOperating cash flowNet borrowingAsset salesCapital spendingBuybacksFY2021: Operating cash flow $60.7MFY2021: Net borrowing −$11.6MFY2021: Capital spending −$49K$60.7MFY2021FY2023: Operating cash flow −$24.7MFY2023: Net borrowing −$20.0MFY2023: Asset sales $211MFY2023: Capital spending −$2.4M$211MFY2023FY2024: Operating cash flow −$5.3MFY2024: Net borrowing −$61.8MFY2024: Capital spending −$31KFY2024FY2025: Operating cash flow −$4.1MFY2025: Net borrowing $30.0MFY2025: Capital spending −$46KFY2025: Buybacks −$557K$30.0MFY2025
Over these 4 years operating cash flow totalled $26.6M; the largest uses were net borrowing ($93.4M) and operating cash flow ($34.1M). Cash-flow statements as filed.

Cash runway and the debt wall

Cash & investments$40.5M
Debt$292M
Net debt$251M
Due within a year$20.0M
Cash runway12 months

System1 is burning cash: its operations consume cash, a free cash flow of −$40.9M a year at the current rate against $40.5M of cash and investments: a runway of about 12 months; $20.0M of debt also comes due within a year, which would need refinancing or new money before any new financing.

System1: debt maturities by year (FY2024)System1: debt maturities by year (FY2024)$20.0MYear 1$30.0MYear 2$230MYear 3
Principal due in each year as disclosed in the annual report, against $40.5M of cash and investments now.

Where the cash came from and went

System1: sources (+) and uses (−) of cash, Q2 2026System1: sources (+) and uses (−) of cash, Q2 2026Cash drawn (+) / kept (−)$11.0MNet borrowing (+) / repaid (−)−$7.5MOperating cash flow−$2.0MOther investing−$1.4MExchange rates−$136KOther financing$6K
System1: sources (+) and uses (−) of cash, TTM to Q2 2026System1: sources (+) and uses (−) of cash, TTM to Q2 2026Other financing$49.2MOperating cash flow−$40.9MNet borrowing (+) / repaid (−)−$25.0MCash drawn (+) / kept (−)$23.9MOther investing−$7.2MExchange rates−$53K

From profit to cash

System1: net income to operating cash flow, Q2 2026System1: net income to operating cash flow, Q2 2026Net income−$15.3MStock-based pay$1.4MDeferred taxes$20KImpairments$911KReceivables$12.3MPayables$850KAccrued liabilities−$9.8MPrepaid and other assets−$1.0MOperating cash flow−$2.0M
Non-cash charges are added back; money tied up in receivables or inventory is subtracted.
QuarterReceivable daysInventory daysPayable daysCash conversion cycle
Q2 2026142—226-84
Q1 2026134—11816
Q4 202599—6831
Q3 202593—6133
Q2 202577—3245
Q1 202575—1858
Q4 202473—2153
Q3 202462—1151

Every quarter

QuarterOperating cash flowCapital spendingBuybacksNet borrowing (+) / repaid (−)Cash drawn (+) / kept (−)Free cash flow
Q2 2026−$2.0M——−$7.5M$11.0M−$2.0M
Q1 2026−$26.1M—−$202K−$7.5M$36.1M−$26.1M
Q4 2025−$10.6M——−$5.0M−$32.3M−$10.6M
Q3 2025−$2.1M——−$5.0M$9.1M−$2.1M
Q2 2025$24.5M——−$5.0M−$20.1M$24.5M
Q1 2025−$15.9M−$46K—−$5.0M$22.8M−$16.0M
Q4 2024$772K——−$5.0M$5.6M$772K
Q3 2024−$5K−$31K—−$5.0M$6.7M−$36K

System1: income statement and cash flow

System1, Q2 2026: revenue $30.2M (-61% year over year), operating margin -27.5%. The chart follows the revenue to costs, profit and cash.

System1: every quarter, Q/Q and Y/Y → Open in the app

Read automatically from the company’s XBRL cash-flow statements; quarterly figures for the fourth quarter are the year less the first three. Errors are possible. Not investment advice.