System1 Consolidates in Q1 after Boom Year

Ad testing and marketing decision-making platform System1 Group has announced results for its full year ending March 31st, with total revenue up 25% to £37.4m, and adjusted EBITDA up 50% to £6.6m. A trading update for the subsequent quarter was also released, with flatter figures.

Revenue for the company's 'Predict and Improve' ad testing platform grew 39% in the full year, to £34.5m, while revenue from bespoke consultancy, now a much smaller part of the business, fell 45% to £2.9m.System1 added a net 135 new clients to the 428 it had a year earlier.

The firm also issued an update on trading for the most recent quarter, Q1 of its FY 2026, with revenue some 7% down on the previous Q1, to £8.8m - platform revenue fell 3% and non-platform consultancy 47% to £0.5m. System1 says this reflects 'the caution we have seen from certain clients, particularly in Europe with automotive and premium drinks brands, following the announcement of the US trade tariffs.' It notes however that FX effects dented the comparisons by around 4%, and that there are a number of positive signs. Its revenue from Innovation work was strong, up 19%; and new business performance was encouraging despite wider economic conditions, with over 80 new client wins in Q1 driving over £1m of revenue; and the US performed well, with Platform revenue there up 16% year-on-year despite losing 7% to a weaker dollar..

For FY 26 the firm says it expects strength in its US and UK businesses together with a slower recovery in Europe, giving overall revenue growth of around 15% year on year, with H2 stronger than H1.

CEO James Gregory (pictured) says of the results: 'We are confident that the business remains on track to achieve its medium-term objectives. I am greatly encouraged by the progress already made this year in our key target areas, specifically the US market and the Innovation product space. New business growth remains strong, however existing client spending has tightened in the past few months in response to US tariffs, as we said it might in April, and exchange rates have worked against us by reducing the Sterling value of our top line. We believe these are relatively short-term effects and remain focused on winning for our clients and shareholders over the medium and long term. In the near term we are focused on continuing to deliver strong growth in FY26.'

The firm rebranded from Brainjuicer in 2017, and clocked unspectacular results the following year, a theme which continued until last year, with revenue up by only around 10% net between 2018 and 2023 despite a high-profile, pioneering and regularly evolving proposition. The latest results reflect the fact that whereas its legacy consulting business can't shrink much more, it's platform business has plenty of room to grow (cf. Rentrak) - making it one to watch now, in DRNO's opinion.

Web site: www.system1group.com .