Could be stuck rings, a valve that isn't closing all the way, or a burnt valve. a little Kroil or Marvel Mystery oil squirted into the cylinder and allowed to soak may free rings that are stuck with carbon.
Swap a quart of oil for a quart of Rislone in the crankcase and run it for 20 or 30 minutes to free things up as well.
Your rocker arms may have been cranked down too far during a botched adjustment causing a valve not to close all the way. Could also be that a valve face or seat is eroded away and bypassing pressure.
If you remove the manifold, you can get one of those inexpensive endoscope cameras in there to see the valves. Inspect the open valves, and then crank it to open the others, and repeat. For the cost of a gasket, and a $20 eBay camera you can inspect your valve faces without removing the head.
Shine a bright light in each port on that #1 cylinder with the valves closed while looking in the spark plug hole. If light leaks, so will compression.