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SST (System1) Degree of Operating Leverage : -1.28 (As of Mar. 2025)


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What is System1 Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. System1's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -1.28. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for System1's Degree of Operating Leverage or its related term are showing as below:

SST's Degree of Operating Leverage is ranked better than
74.57% of 999 companies
in the Business Services industry
Industry Median: 0.97 vs SST: -1.28

System1 Degree of Operating Leverage Historical Data

The historical data trend for System1's Degree of Operating Leverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

System1 Degree of Operating Leverage Chart

System1 Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial -0.98 0.43 19.01 -11.71 1.40

System1 Quarterly Data
Dec19 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
Degree of Operating Leverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.16 27.07 1.44 1.40 -1.28

Competitive Comparison of System1's Degree of Operating Leverage

For the Specialty Business Services subindustry, System1's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


System1's Degree of Operating Leverage Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, System1's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where System1's Degree of Operating Leverage falls into.


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System1 Degree of Operating Leverage Calculation

System1's Degree of Operating Leverage for the quarter that ended in Mar. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( -73.395 (Mar. 2025) / -65.931 (Mar. 2024) - 1 )/( 333.521 (Mar. 2025) / 365.769 (Mar. 2024) - 1 )
=0.1132/-0.0882
=-1.28***

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.


System1  (NYSE:SST) Degree of Operating Leverage Explanation

Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.

A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.

Be Aware

The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.


System1 Degree of Operating Leverage Related Terms

Thank you for viewing the detailed overview of System1's Degree of Operating Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.


System1 Business Description

Industry
Traded in Other Exchanges
N/A
Address
4235 Redwood Avenue, Marina Del Rey, CA, USA, 90066
System1 Inc develops technology and data science to operate a responsive acquisition marketing platform. It serves customers in the areas of health and wellness, automotive, finance, travel, and entertainment. The company's segment includes Owned and Operated Advertising (O&O); and Partner Network. It generates maximum revenue from the Owned and Operated Advertising (O&O) segment. Geographically, it operates in United States and Other countries.
Executives
Lone Star Friends Trust 10 percent owner 2301 BROADWAY STREET, SAN ANTONIO TX 78215
L Michael Blend director, officer: See Remarks C/O TREBIA ACQUISITION CORP., 41 MADISON AVENUE, SUITE 2020, NEW YORK NY 10010
Stanley Blend 10 percent owner C/O TREBIA ACQUISITION CORP., 41 MADISON AVENUE, SUITE 2020, NEW YORK NY 10010
Cannae Holdings, Inc. 10 percent owner C/O CANNAE HOLDINGS, INC., 1701 VILLAGE CENTER CIRCLE, LAS VEGAS NV 89134
Taryn Jogi Naidu director C/O DEMAND MEDIA, INC., 1299 OCEAN AVENUE, FIFTH FLOOR, SANTA MONICA CA 90401
Tridivesh Kidambi officer: CFO & Treasurer C/O TREBIA ACQUISITION CORP., 41 MADISON AVENUE, SUITE 2020, NEW YORK NY 10010
Christopher Stephen Phillips director, 10 percent owner C/O TREBIA ACQUISITION CORP., 41 MADISON AVENUE, SUITE 2020, NEW YORK NY 10010
Ryan R. Caswell director 1701 VILLAGE CENTER CIRCLE, LAS VEGAS NV 89134
Cannae Holdings, Llc 10 percent owner 1701 VILLAGE CENTER CIRCLE, LAS VEGAS NV 18934
John Civantos director C/O TREBIA ACQUISITION CORP., 41 MADISON AVENUE, SUITE 2020, NEW YORK NY 10010
Moujan Kazerani director C/O TAILWIND ACQUISITION, 1545 COURTNEY AVENUE, LOS ANGELES CA 90046
Just Develop It Ltd 10 percent owner LARCH HOUSE PARKLANDS BUSINESS PARK, DENMEAD, HAMPSHIRE X0 PO7 6XP
Jdi & Afh Ltd 10 percent owner LARCH HOUSE PARKLANDS BUSINESS PARK, DENMEAD, HAMPSHIRE X0 PO7 6XP
Daniel J Weinrot officer: General Counsel C/O TREBIA ACQUISITION CORP., 41 MADISON AVENUE, SUITE 2020, NEW YORK NY 10010
Jennifer Lynn Robinson officer: Chief Technology Officer C/O TREBIA ACQUISITION CORP., 41 MADISON AVENUE, SUITE 2020, NEW YORK NY 10010