System1 Group PLC Reports Q3 Trading Update: Platform Revenue Growth and Maintained FY26 Guidance

System1 Q3 FY26 trading update: platform revenue rebounds and guidance stays put

System1 has reported a steadier third quarter to 31 December 2025. Platform revenue – the engine room made up of its “Predict Your” data products and “Improve Your” data-led consultancy – was higher than in the first two quarters and matched last year’s record Q3. On a constant currency basis (stripping out exchange rate moves), platform revenue grew 1% year-on-year.

Total Group revenue fell 4% to £9.8 million, mainly because non-platform consultancy dropped versus last year’s bumper Q3. Despite that, the Board has maintained full-year guidance for FY26: revenue broadly in line with FY25’s £37 million and Adjusted Profit before Taxation of £2.0-£2.5 million.

Platform momentum: Adtesting recovery in UK and Europe

The key positive is that platform revenue improved quarter-on-quarter thanks to increased Adtesting demand in the UK and Europe. Management says many large clients normalised their advertising testing budgets after a reduced first half amid wider macro uncertainty. That adds some momentum heading into Q4.

By region, US platform revenue was in line with H1, and the Innovation platform continued to show momentum. The steady US read-across plus European rebound suggests the platform proposition is holding up even as budgets move around.

Revenue mix: non-platform drag masks a stable core

While platform revenue matched last year’s record Q3, non-platform (other consultancy) was £0.4 million lower year-on-year. That’s what pulled total revenue down 4% (3% at constant currency) in the quarter. The picture here is familiar: System1 is leaning into scalable, data-led platform revenues and away from lower-margin, episodic consultancy.

Constant currency matters because System1 operates internationally, and currency swings can blur the underlying trend. On that basis, the core platform growth of 1% in the quarter is a small but tidy positive against a tough comparator.

New client wins: growing contribution and future opportunity

New client revenue rose 10% in the first nine months of FY26 versus the same period last year. Those wins contributed £7.4 million of the £25.7 million platform revenue year-to-date, with around a third coming from the US. That’s an encouraging indicator for future cross-sell and retention as these accounts embed.

The bigger the slice of platform revenue coming from new logos, the better the medium-term growth opportunity. It’s not disclosed how many new clients this represents or their churn rates, but the revenue contribution is meaningful.

Cash and dividends: £8.3 million net cash after payout

System1 ended December with £8.3 million of net cash (December 2024: £10.2 million), after paying a £1.4 million dividend in October. The cash balance provides strategic flexibility as the company leans into the platform and invests in growth areas like Adtesting and Innovation.

The update doesn’t disclose working capital movements or cash conversion in the quarter. The year-on-year cash decline is at least partly explained by the dividend.

FY26 guidance maintained: what Q4 needs to deliver

The Board has reiterated FY26 guidance: revenue broadly in line with FY25’s £37 million and Adjusted Profit before Taxation in a £2.0-£2.5 million range. Adjusted Profit here means profit before tax excluding share-based payments.

Year-to-date revenue stands at £26.9 million, which implies System1 needs about £10.1 million in Q4 to meet the “broadly in line” revenue guidance. For context, Q3 revenue was £9.8 million, so Q4 would need to be a touch stronger than Q3. Management’s comment about Q3 recovery and momentum for Q4 is consistent with that requirement, but delivery remains key.

System1 Q3 and YTD: key numbers at a glance

£ million – unaudited	Q3 FY26	Q3 FY25	% YoY	YTD FY26	YTD FY25	% YoY
Predict Your (data)	8.1	8.2	-1%	21.5	21.5	0%
Improve Your (data-led consultancy)	1.4	1.3	8%	4.2	4.7	-11%
Platform Revenue	9.5	9.5	0%	25.7	26.2	-2%
Other consultancy (non-platform)	0.3	0.7	-57%	1.2	2.3	-48%
Total Revenue	9.8	10.2	-4%	26.9	28.5	-6%

Why this update matters for investors

• Platform resilience: Matching last year’s record Q3 on platform revenue – and +1% at constant currency – signals the core offering is resonating even after a softer H1.
• Demand normalising in Europe: The recovery in UK and Europe Adtesting points to budgets coming back, which is important for Q4 delivery.
• New logo traction: £7.4 million YTD platform revenue from new clients underpins medium-term growth potential and diversifies the base.
• Guidance intact: Reconfirming revenue and profit guidance reduces near-term uncertainty, but requires a slightly stronger Q4 versus Q3.
• Revenue mix shift: Continued decline in non-platform consultancy depresses total growth yet improves strategic focus on scalable, data-led revenue.
• Cash on hand: £8.3 million net cash after a £1.4 million dividend suggests the balance sheet remains a support, though the update does not detail cash flow dynamics.

What I’m watching into Q4

• Top-line delivery: Achieving roughly £10.1 million revenue in Q4 to align with guidance.
• US platform trends: The US was in line with H1; any acceleration would be a useful confirmatory signal.
• Non-platform stabilisation: A slower rate of decline would help total revenue optics and margin consistency.
• Conversion of new clients: Turning those new wins into repeat platform spend is key for FY27 momentum.

My take: steady core, execution now shifts to Q4

This is a steady update that leans positive on the fundamentals. Platform revenue has stabilised at a high level, European Adtesting is recovering, and new clients are contributing meaningfully. The flip side is that non-platform consultancy remains a headwind and total revenue is down year-on-year against a tough comparator.

With guidance maintained and cash on the balance sheet, the task now is straightforward: deliver a marginally stronger Q4 than Q3. Do that, and System1 should land in the guided range and go into the new year with a cleaner growth narrative centred on its platform.