SSTK

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management attributed Q2 revenue declines to the cumulative real and opportunity costs of the 18-month Shutterstock merger pursuit, which cost over $100 million in professional and financing fees. The Agency business faces structural headwinds as industry consolidation and AI-driven internal production models reduce external content demand. iStock performance was pressured by search engine algorithm changes that prioritize AI-generated answers, negatively impacting new customer acquisition and affiliate traffic. The company is shifting its iStock strategy to focus on premium offerings with higher lifetime value, intentionally rationalizing marketing spend where returns no longer meet payback requirements. Growth in the corporate and media segments, representing 75% of revenue, was driven by strong demand for exclusive editorial content and event-based coverage like the FIFA World Cup. Management is positioning the company as a provider of 'authentic' and 'rights-cleared' content to counter the IP risks associated with unverified generative AI visuals. Operational efficiency is being targeted through agentic AI, including the rollout of coding assistants for engineers and AI customer service chatbots for iStock. The company has withheld financial guidance while it works with Guggenheim Securities to explore strategic financing alternatives and balance sheet management initiatives through Q4. Management expects the strategic pivot at iStock to adversely impact certain business KPIs through 2026 and into 2027 in favor of improved long-term liquidity. Future growth initiatives focus on expanding beyond traditional customer bases via new single-seat subscriptions for individual creators and podcasters. The company plans to further integrate AI as an enabler, leveraging its Model Content Protocol (MCP) to help third-party tech companies build AI experiences using Getty metadata. Capital allocation will prioritize debt reduction and liquidity enhancement following the termination of the Shutterstock merger and recent warrant litigation judgments. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Free cash flow was significantly impacted by a $110.9 million payment related to the Alta and CRCM warrant litigation judgment, partially offset by $31.5 million in insurance proceeds. The company redeemed $628.4 million of senior secured notes at par in July using escrowed funds originally intended for the Shutterstock merger. A $30 million mandatory repayment of 14% senior unsecured notes and a $30 million draw on the revolving credit facility were executed to manage immediate liquidity needs. Revenue recognition timing for large content licensing deals, including the OpenAI partnership, created difficult year-over-year comparisons for the 'Other' revenue category.

NEW YORK, Aug. 4, 2026 /PRNewswire/ -- Shutterstock, Inc. (NYSE: SSTK) (the "Company"), a family of brands delivering scalable creative and GenAI solutions to help customers fuel great work, today announced financial results for the second quarter ended June 30, 2026. Commenting on the Company's performance, Rik Powell, the Company's Interim Chief Executive Officer and Chief Financial Officer, said, "Following the termination of our proposed merger, we have moved quickly to strengthen our balance sheet, reduce our cost structure, and sharpen our focus on the areas with the greatest potential and are approaching every aspect of the business with discipline and urgency. We have taken significant cost actions over the past 18 months that equate to over $70 million of annualized run-rate operating expense reductions and are targeting an additional $60 million in annualized run-rate operating expense reductions by the end of the year. These actions will give us greater optionality in our capital allocation strategy." He continued, "While we recognize the challenges in front of us, Shutterstock remains a company with meaningful strategic assets, including a globally recognized brand, one of the world's largest and most diverse commercially licensed content libraries, a differentiated Data and AI Services business, our unique GIPHY platform, and strong cash generation. Together, these strengths provide a solid foundation as we refine our long-term strategy and position the business for its next phase of growth which we look forward to discussing in the coming weeks." EARNINGS TELECONFERENCE INFORMATION In light of the pending strategic update, the Company will no longer be hosting the conference call originally scheduled for August 6, 2026 or issuing guidance for the remainder of 2026. Second Quarter 2026 highlights as compared to Second Quarter 2025: Financial Highlights Revenues were $221.8 million compared to $267.0 million. Net loss was $155.9 million compared to net income of $29.4 million. Net loss per diluted common share was $4.25 compared to net income per diluted common share of $0.82. Adjusted net income was $30.0 million compared to $42.9 million. Adjusted net income per diluted common share was $0.82 compared to $1.19. Adjusted EBITDA was $65.1 million compared to $82.2 million. SECOND QUARTER RESULTS Revenue Second quarter revenue of $221.8 million decreased by $45.2 million or 17% as compared to the second quarter of 2025. Revenue from our Content product offering decreased by $34.1 million, or 17%, as compared to the second quarter of 2025, to $165.7 million. The reduction in our Content revenue was driven primarily by weakness in new customer acquisition. Content revenue represented 75% of our total revenue in the second quarter of 2026. Revenue generated from our Data, Distribution, and Services product offering decreased by $11.1 million, or 16%, as compared to the second quarter of 2025, to $56.1 million, and represented 25% of second quarter revenue in 2026. Revenue recognition in our data offering may vary from quarter-to-quarter based on the delivery timing of metadata licenses. Net income and net income per diluted common share Net income decreased by $185.4 million to a net loss of $155.9 million in the second quarter of 2026, compared to net income of $29.4 million for the second quarter of 2025. Net loss per diluted common share was $4.25, as compared to net income per diluted common share of $0.82 for the same period in 2025. In the second quarter of 2026, the Company recorded a non-cash goodwill impairment charge of $173.7 million resulting from the decline in the Company's fair value after the announcement of the terminated merger agreement. Additionally, the Company had further declines in revenue, with operating costs not declining at a similar rate, as well as $3.0 million of unrealized losses related to our investment in Meitu, Inc, $3.7 million of Merger related costs, $5.0 million of legal contingency expenses and $3.0 million of workforce optimizations expenses. Adjusted net income and adjusted net income per diluted common share Adjusted net income of $30.0 million in the second quarter of 2026 decreased by $12.9 million, compared to adjusted net income of $42.9 million for the second quarter of 2025, primarily due to the decline in revenue. Adjusted net income per diluted common share was $0.82, compared to $1.19 for the second quarter of 2025. Adjusted EBITDA Adjusted EBITDA of $65.1 million for the second quarter of 2026 decreased by $17.1 million, or 21%, as compared to the second quarter of 2025, primarily due to the decline in revenue. Net loss margin of 70.3% for the second quarter of 2026 decreased by 81.3%, as compared to net income margin of 11.0% in the second quarter of 2025. The adjusted EBITDA margin of 29.3% for the second quarter of 2026 decreased by 1.5%, as compared to 30.8% in the second quarter of 2025. SECOND QUARTER LIQUIDITY Our cash and cash equivalents decreased by $29.3 million to $133.2 million at June 30, 2026, as compared with $162.5 million as of March 31, 2026. This was driven by $0.6 million of net cash from operating activities, including a $35.0 million payment for the settlement of the FTC's civil investigative demand on the Company's subscription disclosure and enrollment and cancellation practices. In addition, the Company had $18.5 million of net cash used in financing activities and $10.1 million of net cash used in investing activities. Net cash from operating activities was driven by the $35.0 million payment to the FTC. This was offset by cash generation from our business operations and changes in the timing of cash collections from our customers and payments pertaining to operating expenses. In addition, cash flows for the three months ended June 30, 2026 were unfavorably impacted by $3.0 million of expenses related to the Getty Images proposed merger. Cash used in investing activities for the three months ended June 30, 2026 consisted of $10.1 million related to capital expenditures, $0.1 million of content acquisition, partially offset by $0.1 million related to the receipt of the Giphy Retention Compensation, as reimbursed by the Giphy seller. Cash used in financing activities for the three months ended June 30, 2026 consisted of $13.2 million related to the payment of the quarterly cash dividend, $4.5 million paid in settlement of tax withholding obligations related to employee stock-based compensation awards, and $0.8 million used for the repayment of our credit facility. Adjusted free cash flow was $28.5 million for the second quarter of 2026, an increase of $11.0 million from the second quarter of 2025. KEY OPERATING METRICS NON-GAAP FINANCIAL MEASURES To supplement Shutterstock's consolidated financial statements presented in accordance with the accounting principles generally accepted in the United States, or GAAP, Shutterstock's management considers certain financial measures that are not prepared in accordance with GAAP, collectively referred to as non-GAAP financial measures, including adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted net income per diluted share, revenue growth (including by distribution channel) on a constant currency basis (expressed as a percentage), and adjusted free cash flow. Shutterstock defines adjusted EBITDA as net income adjusted for depreciation and amortization, non-cash equity-based compensation, Giphy Retention Compensation Expense - non-recurring, foreign currency transaction gains and losses, severance costs associated with strategic workforce optimizations, goodwill impairment, impairment loss on long-term investment, impairment of lease assets, unrealized losses / gains on investments, legal contingencies, interest income and expense, income taxes and Merger related costs; adjusted EBITDA margin as the ratio of adjusted EBITDA to revenue; adjusted net income as net income adjusted for the impact of non-cash equity-based compensation, amortization of acquisition-related intangible assets, Giphy Retention Compensation Expense - non-recurring, severance costs associated with strategic workforce optimizations (reported in Other), unrealized losses / gains on investments (reported in Other), goodwill impairment, impairment loss on long-term investment, legal contingencies, Merger related costs and the estimated tax impact of such adjustments; adjusted net income per diluted common share as adjusted net income divided by weighted average diluted shares; revenue growth (including by product offering) on a constant currency basis (expressed as a percentage) as the increase in current period revenues over prior period revenues, utilizing fixed exchange rates for translating foreign currency revenues for all periods presented in the comparison; and adjusted free cash flow as net cash provided by operating activities, adjusted for capital expenditures, content acquisition, cash received related to Giphy Retention Compensation in connection with the acquisition of Giphy, cash paid for the settlement of the FTC investigation, and cash paid for costs related to the Getty Images merger. The expense associated with the Giphy Retention Compensation related to (i) the one-time employment inducement bonuses and (ii) the vesting of the cash value of unvested Meta equity awards held by the employees prior to closing, which are reflected in operating expenses (together, the "Giphy Retention Compensation Expense - non-recurring"), are required payments in accordance with the terms of the acquisition. Meta's sale of Giphy was directed by the United Kingdom Competition and Markets Authority (the "CMA") and accordingly, the terms of the acquisition were subject to CMA preapproval. Management considers the operating expense associated with these required payments to be unusual and non-recurring in nature. The Giphy Retention Compensation Expense - non-recurring is not considered an ongoing expense necessary to operate the Company's business. Therefore, such expenses have been included in the below adjustments for calculating adjusted EBITDA, adjusted EBITDA margin, adjusted net income and adjusted net income per diluted common share. These figures have not been calculated in accordance with GAAP and should be considered only in addition to results prepared in accordance with GAAP and should not be considered as a substitute for, or superior to, GAAP results. Shutterstock cautions investors that non-GAAP financial measures are not based on any standardized methodology prescribed by GAAP and are not necessarily comparable to similarly-titled measures presented by other companies. Shutterstock's management believes that adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted net income per diluted common share, revenue growth (including by product offering) on a constant currency basis (expressed as a percentage) and adjusted free cash flow are useful to investors because these measures enable investors to analyze Shutterstock's operating results on the same basis as that used by management. Additionally, management believes that adjusted EBITDA, adjusted EBITDA margin, adjusted net income and adjusted net income per diluted common share provide useful information to investors about the performance of the Company's overall business because such measures eliminate the effects of unusual or other infrequent charges that are not directly attributable to Shutterstock's underlying operating performance; and revenue growth (including by product offering) on a constant currency basis (expressed as a percentage) provides useful information to investors by eliminating the effect of foreign currency fluctuations that are not directly attributable to Shutterstock's operating performance. Management also believes that providing these non-GAAP financial measures enhances the comparability for investors in assessing Shutterstock's financial reporting. Shutterstock's management believes that adjusted free cash flow is useful for investors because it provides them with an important perspective on the cash available for strategic measures, after making necessary capital investments in internal-use software and website development costs to support the Company's ongoing business operations, and provides them with the same measures that management uses as the basis for making resource allocation decisions. Shutterstock's management also uses the non-GAAP financial measures adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted net income per diluted common share, revenue growth (including by product offering) on a constant currency basis (expressed as a percentage), and adjusted free cash flow, in conjunction with GAAP financial measures, as an integral part of managing the business and to, among other things: (i) monitor and evaluate the performance of Shutterstock's business operations, financial performance and overall liquidity; (ii) facilitate management's internal comparisons of the historical operating performance of its business operations; (iii) facilitate management's external comparisons of the results of its overall business to the historical operating performance of other companies that may have different capital structures and debt levels; (iv) review and assess the operating performance of Shutterstock's management team and, together with other operational objectives, as a measure in evaluating employee compensation; (v) analyze and evaluate financial and strategic planning decisions regarding future operating investments; and (vi) plan for and prepare future annual operating budgets and determine appropriate levels of operating investments. Reconciliations of the differences between each of our non-GAAP financial measures (adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted net income per diluted common share, revenue growth (including by product offering) on a constant currency basis (expressed as a percentage), adjusted free cash flow), and each measure's most directly comparable financial measure calculated and presented in accordance with GAAP, are presented under the headings "Reconciliation of Non-GAAP Financial Information to GAAP" and "Supplemental Financial Data" immediately following the Consolidated Balance Sheets. ABOUT SHUTTERSTOCK Shutterstock is in the business of turning ideas into impact. Powered by a global network of millions of creators and our cutting-edge technology, we provide businesses, creatives, and brand leaders with the essential, universal ingredients to make their work more effective. Shutterstock offers access to one of the world's largest and most diverse collections of high-quality licensable assets, specialized training datasets, evaluation tools, and end-to-end strategic partnerships for the full model training lifecycle, as well as advertising and distribution solutions, exclusive editorial content, and full-service studio production—delivering unparalleled resources to fuel great work.Discover our impact at www.shutterstock.com and connect with us on LinkedIn, Instagram, X, Facebook and YouTube. FORWARD-LOOKING STATEMENTS The statements in this press release, and any related oral statements, include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than historical facts, are forward-looking statements. Forward-looking statements may discuss goals, intentions and expectations as to future plans, trends, events, results of operations or financial condition, financings or otherwise, based on current beliefs and involve numerous risks and uncertainties that could cause actual results to differ materially from expectations. Forward-looking statements speak only as of the date they are made or as of the dates indicated in the statements and should not be relied upon as predictions of future events, as there can be no assurance that the events or circumstances reflected in these statements will be achieved or will occur or the timing thereof. Forward-looking statements can often, but not always, be identified by the use of forward-looking terminology including "believes," "expects," "may," "will," "should," "could," "might," "seeks," "intends," "plans," "pro forma," "estimates," "anticipates," "designed," or the negative of these words and phrases, other variations of these words and phrases or comparable terminology, but not all forward-looking statements include such identifying words. Forward-looking statements are based upon current plans, estimates and expectations that are subject to risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary. The forward-looking statements in this press release relate to, among other things, statements regarding industry prospects, future business, future results of operations or financial condition, future dividends, future stock performance, our ability to consummate acquisitions and integrate the businesses we have acquired or may acquire into our existing operations, new or planned features, products or services, management strategies, our ability to offer premier Data Licensing and AI Services, and our competitive position. Important factors that could cause actual results to differ materially from those expressed or implied by the forward-looking statements include, among others, the risks discussed under the caption "Risk Factors" in Shutterstock's Annual Report on Form 10-K for the fiscal year ended December 31, 2025, subsequent Quarterly Reports on Form 10-Q and other filings with the SEC. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward looking statements. While the list of factors presented here is considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. Unlisted factors may present significant additional obstacles to the realization of forward looking statements. Shutterstock does not assume, and hereby disclaims, any obligation to update forward-looking statements, except as may be required by law. Shutterstock, Inc.Reconciliation of Non-GAAP Financial Information to GAAP(In thousands, except per share information)(unaudited) Adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted net income per diluted share, revenue growth (including by distribution channel) on a constant currency basis (expressed as a percentage), and adjusted free cash flow are not financial measures prepared in accordance with United States generally accepted accounting principles (GAAP). Such non-GAAP financial measures should not be construed as alternatives to any other measures of performance determined in accordance with GAAP. Investors are cautioned that non-GAAP financial measures are not based on any standardized methodology prescribed by GAAP and are not necessarily comparable to similarly-titled measures presented by other companies. 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Stock photography and footage provider Shutterstock (NYSE:SSTK) missed Wall Street’s revenue expectations in Q1 CY2026, with sales falling 17.9% year on year to $199.2 million. Its non-GAAP profit of $0.58 per share was 39.6% below analysts’ consensus estimates. Is now the time to buy Shutterstock? Find out in our full research report. Revenue: $199.2 million vs analyst estimates of $221.4 million (17.9% year-on-year decline, 10.1% miss) Adjusted EPS: $0.58 vs analyst expectations of $0.96 (39.6% miss) Adjusted EBITDA: $42.71 million vs analyst estimates of $60.65 million (21.4% margin, 29.6% miss) Operating Margin: -15.5%, down from 4.2% in the same quarter last year Free Cash Flow Margin: 2.9%, down from 11.8% in the previous quarter Market Capitalization: $626.3 million Commenting on the Company's performance, Paul Hennessy, the Company's Chief Executive Officer, said, "During the first quarter, we maintained a strong focus on operational discipline and cost management, delivering $43 million in Adjusted EBITDA in the face of ongoing industry headwinds. While first quarter revenue was impacted by a slower start in our Content business than expected and the timing of revenue recognition associated with data licensing deals, we continue to invest in areas that will drive long-term growth and remain committed to simplifying our product offerings to better meet our customers' needs." Originally featuring a library that included many of founder Jon Oringer’s photos, Shutterstock (NYSE:SSTK) is now a digital platform where customers can license and use hundreds of millions of pieces of content. Examining a company’s long-term performance can provide clues about its quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Regrettably, Shutterstock’s sales grew at a sluggish 3.9% compounded annual growth rate over the last three years. This was below our standard for the consumer internet sector and is a rough starting point for our analysis. This quarter, Shutterstock missed Wall Street’s estimates and reported a rather uninspiring 17.9% year-on-year revenue decline, generating $199.2 million of revenue. Looking ahead, sell-side analysts expect revenue to decline by 4.3% over the next 12 months, a deceleration versus the last three years. This projection is underwhelming and indicates its products and services will see some demand headwinds. ONE MORE THING: 3 Hidden Platforms Growing 3X Faster than Amazon, Google, and PayPal. Amazon, Google, and Meta all followed the same playbook: Dominate an ignored market. Build an unbeatable moat. Scale until you’re unstoppable. These three platforms are running that exact playbook right now. The early investors in Amazon made fortunes. The early investors in these could do the same. Get All 3 Stocks Here for FREE. Although EBITDA is undoubtedly valuable for assessing company performance, we believe cash is king because you can’t use accounting profits to pay the bills. Shutterstock has shown decent cash profitability, giving it some flexibility to reinvest or return capital to investors. The company’s free cash flow margin averaged 6.3% over the last two years, slightly better than the broader consumer internet sector. Taking a step back, we can see that Shutterstock’s margin dropped by 6.6 percentage points over the last few years. It may have ticked higher more recently, but shareholders are likely hoping for its margin to at least revert to its historical level. If the longer-term trend returns, it could signal increasing investment needs and capital intensity. Shutterstock’s free cash flow clocked in at $5.78 million in Q1, equivalent to a 2.9% margin. The company’s cash profitability regressed as it was 3.1 percentage points lower than in the same quarter last year, suggesting its historical struggles have dragged on. We struggled to find many positives in these results. Its revenue missed and its EBITDA fell short of Wall Street’s estimates. Overall, this was a softer quarter. The stock traded down 1.6% to $17.37 immediately after reporting. Shutterstock’s latest earnings report disappointed. One quarter doesn’t define a company’s quality, so let’s explore whether the stock is a buy at the current price. What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it’s free.

NEW YORK, April 28, 2026 /PRNewswire/ -- Shutterstock, Inc. (NYSE: SSTK) (the "Company"), a family of brands delivering scalable creative and GenAI solutions to help customers fuel great work, today announced financial results for the first quarter ended March 31, 2026. Commenting on the Company's performance, Paul Hennessy, the Company's Chief Executive Officer, said, "During the first quarter, we maintained a strong focus on operational discipline and cost management, delivering $43 million in Adjusted EBITDA in the face of ongoing industry headwinds. While first quarter revenue was impacted by a slower start in our Content business than expected and the timing of revenue recognition associated with data licensing deals, we continue to invest in areas that will drive long-term growth and remain committed to simplifying our product offerings to better meet our customers' needs." He continued, "We remain highly confident in the long-term trajectory of our Data Licensing and AI Services division. With a robust pipeline of major opportunities currently in progress, we are making the necessary investments today to expand our commercial execution and position Shutterstock as the premier, go-to provider for end-to-end AI model training data and adjacent services." With regards to the pending merger with Getty Images, Mr. Hennessy said, "Like Getty Images, we disagree with the CMA's most recent assessment and do not believe the merger would substantially lessen competition in Editorial content in the UK. We remain confident in the merits of the merger and will continue working closely with Getty Images and the CMA toward closing." MERGER AGREEMENT UPDATE WITH GETTY IMAGES The Company has been working diligently towards regulator Merger approval. On February 23, 2026, the Company announced the DOJ had concluded its review of the Merger and the applicable waiting period under the Hart-Scott-Rodino Antitrust ("HSR") Act had expired, without conditions. As a result, the Merger condition under the HSR Act has been satisfied. On February 19, 2026, the Company announced that the U.K. Competition and Markets Authority ("CMA") issued its Interim Report and provisionally concluded the Merger is not expected to result in competition issues in the global stock content market, but that the Merger may result in a "substantial lessening of competition" ("SLC") in the U.K. editorial market; and On April 16, 2026, the CMA published the summary of its Interim Report on Remedies ("IRR"), following its interim report of February 19, 2026 which provisionally found that the Merger could be expected to lead to an SLC in the supply of editorial content in the U.K. The IRR states that the remedy proposal offered by Getty Images was unlikely to address the provisional SLC it had identified but that a sale of Shutterstock's Rex Features, Backgrid and Splash News businesses would likely be acceptable. The CMA is now further consulting on that proposition including its view that Rex Features Backgrid and Splash News could be sold to different buyers. The statutory deadline for the CMA to publish its final report is June 14, 2026. The Company remains committed to the proposed Merger and will continue to engage with the CMA, including on its provisional SLC finding, and work with Getty Images to expeditiously secure the necessary clearances on its Editorial business. In 2025, global Editorial revenue was $32.7 million, of which $11.7 million related to our Rex Features related content and Shutterstock brands and $21.0 million was from our Backgrid and Splash branded content. In addition, our 2025 Editorial revenue for customers in the U.K. was $10.6 million, of which $5.4 million related to our Rex Features and Shutterstock brands and $5.2 million was from our Backgrid and Splash branded content. First Quarter 2026 highlights as compared to First Quarter 2025: Financial Highlights Revenues were $199.2 million compared to $242.6 million. Net loss was $47.6 million compared to net income of $18.7 million. Net loss per diluted common share was $1.34 compared to net income per diluted common share of $0.53. Adjusted net income was $20.7 million compared to $36.3 million. Adjusted net income per diluted common share was $0.58 compared to $1.03. Adjusted EBITDA was $42.7 million compared to $63.4 million. FIRST QUARTER RESULTS Revenue First quarter revenue of $199.2 million decreased by $43.5 million or 18% as compared to the first quarter of 2025. Revenue from our Content product offering decreased by $24.8 million, or 12%, as compared to the first quarter of 2025, to $178.1 million. The reduction in our Content revenue was driven primarily by weakness in new customer acquisition. Content revenue represented 89% of our total revenue in the first quarter of 2026. Revenue generated from our Data, Distribution, and Services product offering decreased by $18.7 million, or 47%, as compared to the first quarter of 2025, to $21.0 million, and represented 11% of first quarter revenue in 2026. Revenue recognition in our data offering may vary from quarter-to-quarter based on the delivery timing of metadata licenses. Net income and net income per diluted common share Net income decreased by $66.3 million to a net loss of $47.6 million in the first quarter of 2026, compared to net income of $18.7 million for the first quarter of 2025. Net loss per diluted common share was $1.34, as compared to net income per diluted common share of $0.53 for the same period in 2025. These increased losses were attributable to the decline in revenue with operating costs not declining at a similar rate, $15.3 million of unrealized losses related to our investment in Meitu, Inc, $28.0 million of legal contingency expenses and $6.1 million of workforce optimizations expenses. Adjusted net income and adjusted net income per diluted common share Adjusted net income of $20.7 million in the first quarter of 2026 decreased by $15.6 million, compared to adjusted net income of $36.3 million for the first quarter of 2025, primarily due to the decline in revenue. Adjusted net income per diluted common share was $0.58 as compared to $1.03 for the first quarter of 2025. Adjusted EBITDA Adjusted EBITDA of $42.7 million for the first quarter of 2026 decreased by $20.7 million, or 33%, as compared to the first quarter of 2025, primarily due to the decline in revenue. Net loss margin of 23.9% for the first quarter of 2026 decreased by 31.6%, as compared to net income margin of 7.7% in the first quarter of 2025. The adjusted EBITDA margin of 21.4% for the first quarter of 2026 decreased by 4.7%, as compared to 26.1% in the first quarter of 2025. FIRST QUARTER LIQUIDITY Our cash and cash equivalents decreased by $15.7 million to $162.5 million at March 31, 2026, as compared with $178.2 million as of December 31, 2025. This decrease was driven by $17.4 million of net cash provided by our operating activities, partially offset by $20.0 million of net cash used in financing activities and $11.1 million of net cash used in investing activities. Net cash provided by our operating activities was driven by our operating income and changes in the timing of cash collections from our customers and payments pertaining to operating expenses, offset by payments of year-end bonuses and commissions. In addition, cash flows for the three months ended March 31, 2026 were unfavorably impacted by $7.2 million of expenses related to the Getty Images proposed merger. Cash used in investing activities for the three months ended March 31, 2026 consisted of $11.8 million related to capital expenditures and content acquisition, partially offset by $0.4 million related to the receipt of the Giphy Retention Compensation, as reimbursed by the Giphy seller. Cash used in financing activities for the three months ended March 31, 2026 consisted of $12.8 million related to the payment of the quarterly cash dividend, $6.4 million paid in settlement of tax withholding obligations related to employee stock-based compensation awards, and $0.8 million used for the repayment of our credit facility. Adjusted free cash flow was $13.1 million for the first quarter of 2026, an decrease of $10.3 million from the first quarter of 2025. QUARTERLY CASH DIVIDEND During the three months ended March 31, 2026, the Company declared and paid a cash dividend of $0.36 per common share or $12.8 million. On April 20, 2026, the Board of Directors declared a dividend of $0.36 per share of outstanding common stock, payable on June 18, 2026 to stockholders of record at the close of business on June 4, 2026. KEY OPERATING METRICS NON-GAAP FINANCIAL MEASURES To supplement Shutterstock's consolidated financial statements presented in accordance with the accounting principles generally accepted in the United States, or GAAP, Shutterstock's management considers certain financial measures that are not prepared in accordance with GAAP, collectively referred to as non-GAAP financial measures, including adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted net income per diluted share, revenue growth (including by distribution channel) on a constant currency basis (expressed as a percentage), billings and adjusted free cash flow. Shutterstock defines adjusted EBITDA as net income adjusted for depreciation and amortization, non-cash equity-based compensation, Giphy Retention Compensation Expense - non-recurring, foreign currency transaction gains and losses, severance costs associated with strategic workforce optimizations, impairment loss on long-term investment, impairment of lease assets, unrealized losses / gains on investments, legal contingencies, interest income and expense, income taxes and Merger related costs; adjusted EBITDA margin as the ratio of adjusted EBITDA to revenue; adjusted net income as net income adjusted for the impact of non-cash equity-based compensation, amortization of acquisition-related intangible assets, Giphy Retention Compensation Expense - non-recurring, severance costs associated with strategic workforce optimizations (reported in Other), unrealized losses / gains on investments (reported in Other), impairment loss on long-term investment, impairment of lease assets, legal contingencies Merger related costs and the estimated tax impact of such adjustments; adjusted net income per diluted common share as adjusted net income divided by weighted average diluted shares; revenue growth (including by product offering) on a constant currency basis (expressed as a percentage) as the increase in current period revenues over prior period revenues, utilizing fixed exchange rates for translating foreign currency revenues for all periods in the comparison; billings as revenue adjusted for the change in deferred revenue, excluding deferred revenue acquired through business combinations; and adjusted free cash flow as net cash provided by operating activities, adjusted for capital expenditures, content acquisition, cash received related to Giphy Retention Compensation in connection with the acquisition of Giphy, and cash paid for costs related to the Getty Images merger. The expense associated with the Giphy Retention Compensation related to (i) the one-time employment inducement bonuses and (ii) the vesting of the cash value of unvested Meta equity awards held by the employees prior to closing, which are reflected in operating expenses (together, the "Giphy Retention Compensation Expense - non-recurring"), are required payments in accordance with the terms of the acquisition. Meta's sale of Giphy was directed by the United Kingdom Competition and Markets Authority (the "CMA") and accordingly, the terms of the acquisition were subject to CMA preapproval. Management considers the operating expense associated with these required payments to be unusual and non-recurring in nature. The Giphy Retention Compensation Expense - non-recurring is not considered an ongoing expense necessary to operate the Company's business. Therefore, such expenses have been included in the below adjustments for calculating adjusted EBITDA, adjusted EBITDA margin, adjusted net income and adjusted net income per diluted common share. For the three months ended March 31, 2026, the Company also incurred $3.3 million of Giphy Retention Compensation expense related to recurring employee costs, which is included in operating expenses, and are not included in the below adjustments for calculating adjusted EBITDA, adjusted EBITDA margin, adjusted net income and adjusted net income per diluted common share. These figures have not been calculated in accordance with GAAP and should be considered only in addition to results prepared in accordance with GAAP and should not be considered as a substitute for, or superior to, GAAP results. Shutterstock cautions investors that non-GAAP financial measures are not based on any standardized methodology prescribed by GAAP and are not necessarily comparable to similarly-titled measures presented by other companies. Shutterstock's management believes that adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted net income per diluted common share, revenue growth (including by product offering) on a constant currency basis (expressed as a percentage), billings and adjusted free cash flow are useful to investors because these measures enable investors to analyze Shutterstock's operating results on the same basis as that used by management. Additionally, management believes that adjusted EBITDA, adjusted EBITDA margin, adjusted net income and adjusted net income per diluted common share provide useful information to investors about the performance of the Company's overall business because such measures eliminate the effects of unusual or other infrequent charges that are not directly attributable to Shutterstock's underlying operating performance; and revenue growth (including by product offering) on a constant currency basis (expressed as a percentage) provides useful information to investors by eliminating the effect of foreign currency fluctuations that are not directly attributable to Shutterstock's operating performance. Management also believes that providing these non-GAAP financial measures enhances the comparability for investors in assessing Shutterstock's financial reporting. Shutterstock's management believes that adjusted free cash flow is useful for investors because it provides them with an important perspective on the cash available for strategic measures, after making necessary capital investments in internal-use software and website development costs to support the Company's ongoing business operations and provides them with the same measures that management uses as the basis for making resource allocation decisions. Shutterstock's management also uses the non-GAAP financial measures adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted net income per diluted common share, revenue growth (including by product offering) on a constant currency basis (expressed as a percentage), billings and adjusted free cash flow, in conjunction with GAAP financial measures, as an integral part of managing the business and to, among other things: (i) monitor and evaluate the performance of Shutterstock's business operations, financial performance and overall liquidity; (ii) facilitate management's internal comparisons of the historical operating performance of its business operations; (iii) facilitate management's external comparisons of the results of its overall business to the historical operating performance of other companies that may have different capital structures and debt levels; (iv) review and assess the operating performance of Shutterstock's management team and, together with other operational objectives, as a measure in evaluating employee compensation; (v) analyze and evaluate financial and strategic planning decisions regarding future operating investments; and (vi) plan for and prepare future annual operating budgets and determine appropriate levels of operating investments. Reconciliations of the differences between each of our non-GAAP financial measures (adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted net income per diluted common share, revenue growth (including by product offering) on a constant currency basis (expressed as a percentage), billings, adjusted free cash flow), and each measure's most directly comparable financial measure calculated and presented in accordance with GAAP, are presented under the headings "Reconciliation of Non-GAAP Financial Information to GAAP" and "Supplemental Financial Data" immediately following the Consolidated Balance Sheets. Previously Announced Merger Agreement with Getty Images On January 7, 2025, Shutterstock announced that it entered into a merger agreement with Getty Images to combine in a merger of equals transaction, creating a premier visual content company. The transaction is subject to the satisfaction of customary closing conditions, including receipt of required regulatory approvals. As previously announced, a majority of Shutterstock stockholders approved the adoption of the merger agreement at a special meeting of stockholders held on June 10, 2025. As previously communicated, in light of the pending transaction with Getty Images, Shutterstock will not be hosting a conference call or providing financial guidance in conjunction with its first quarter 2026 results. For additional information associated with the transaction, please see the Company's filings from time to time with the Securities and Exchange Commission. ABOUT SHUTTERSTOCK Shutterstock is in the business of turning ideas into impact. Powered by a global network of millions of creators and our cutting-edge technology, we provide businesses, creatives and brand leaders with the essential, universal ingredients to make their work more effective. Shutterstock is home to the world's largest and most diverse collection of high-quality licensable assets, data and AI solutions, advertising and distribution solutions, exclusive editorial content, and full-service studio production—delivering unparalleled resources to fuel great work. Discover our impact at www.shutterstock.com and connect with us on LinkedIn, Instagram, X, Facebook and YouTube. FORWARD-LOOKING STATEMENTS The statements in this press release, and any related oral statements, include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than historical facts, are forward-looking statements. Forward-looking statements may discuss goals, intentions and expectations as to future plans, trends, events, results of operations or financial condition, financings or otherwise, based on current beliefs and involve numerous risks and uncertainties that could cause actual results to differ materially from expectations. Forward-looking statements speak only as of the date they are made or as of the dates indicated in the statements and should not be relied upon as predictions of future events, as there can be no assurance that the events or circumstances reflected in these statements will be achieved or will occur or the timing thereof. Forward-looking statements can often, but not always, be identified by the use of forward-looking terminology including "believes," "expects," "may," "will," "should," "could," "might," "seeks," "intends," "plans," "pro forma," "estimates," "anticipates," "designed," or the negative of these words and phrases, other variations of these words and phrases or comparable terminology, but not all forward-looking statements include such identifying words. Forward-looking statements are based upon current plans, estimates and expectations that are subject to risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary. The forward-looking statements in this press release relate to, among other things, statements regarding industry prospects, future business, future results of operations or financial condition, future dividends, future stock performance, our ability to consummate acquisitions and integrate the businesses we have acquired or may acquire into our existing operations, new or planned features, products or services, management strategies, our ability to offer premier Data Licensing and AI Services, our competitive position, our ability to obtain applicable regulatory approvals on a timely basis or otherwise for the proposed transaction with Getty Images, our ability to satisfy the other closing conditions of the proposed transaction with Getty Images, on a timely basis or otherwise, and the expected timing and completion of the proposed transaction with Getty Images. Important factors that could cause actual results to differ materially from the forward-looking statements include, among other things: risks and uncertainties associated with our proposed transaction with Getty Images and those risks discussed under the section captioned "Risk Factors" in Shutterstock's Annual Report on Form 10-K for the fiscal year ended December 31, 2025, subsequent Quarterly Reports on Form 10-Q and other filings with the SEC. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward looking statements. While the list of factors presented here is considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. Unlisted factors may present significant additional obstacles to the realization of forward looking statements. Shutterstock does not assume, and hereby disclaims, any obligation to update forward-looking statements, except as may be required by law. Shutterstock, Inc. Reconciliation of Non-GAAP Financial Information to GAAP (In thousands, except per share information) (unaudited) Adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted net income per diluted share, revenue growth (including by distribution channel) on a constant currency basis (expressed as a percentage), billings and adjusted free cash flow are not financial measures prepared in accordance with United States generally accepted accounting principles (GAAP). Such non-GAAP financial measures should not be construed as alternatives to any other measures of performance determined in accordance with GAAP. Investors are cautioned that non-GAAP financial measures are not based on any standardized methodology prescribed by GAAP and are not necessarily comparable to similarly-titled measures presented by other companies. 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Shutterstock (SSTK) came out with quarterly earnings of $0.58 per share, missing the Zacks Consensus Estimate of $1.12 per share. This compares to earnings of $1.03 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -48.21%. A quarter ago, it was expected that this online marketplace for royalty-free images and videos would post earnings of $1.05 per share when it actually produced earnings of $0.67, delivering a surprise of -36.19%. Over the last four quarters, the company has not been able to surpass consensus EPS estimates. Shutterstock, which belongs to the Zacks Internet - Content industry, posted revenues of $199.17 million for the quarter ended March 2026, missing the Zacks Consensus Estimate by 20.89%. This compares to year-ago revenues of $242.62 million. The company has not been able to beat consensus revenue estimates over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Shutterstock shares have lost about 7.8% since the beginning of the year versus the S&P 500's gain of 4.8%. While Shutterstock has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Shutterstock was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.07 on $252.56 million in revenues for the coming quarter and $4.02 on $1.01 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Content is currently in the bottom 33% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Angi (ANGI), has yet to report results for the quarter ended March 2026. The results are expected to be released on May 5. This provider of a digital marketplace for home services is expected to post quarterly loss of $0.41 per share in its upcoming report, which represents a year-over-year change of -236.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Angi's revenues are expected to be $241.35 million, down 1.9% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Shutterstock, Inc. (SSTK) : Free Stock Analysis Report Angi Inc. (ANGI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Stock photography and footage provider Shutterstock (NYSE:SSTK) fell short of the market’s revenue expectations in Q4 CY2025, with sales falling 12% year on year to $220.2 million. Its non-GAAP profit of $0.67 per share was 40.4% below analysts’ consensus estimates. Is now the time to buy Shutterstock? Find out in our full research report. Revenue: $220.2 million vs analyst estimates of $252.3 million (12% year-on-year decline, 12.7% miss) Adjusted EPS: $0.67 vs analyst expectations of $1.13 (40.4% miss) Adjusted EBITDA: $46.79 million vs analyst estimates of $65.57 million (21.2% margin, 28.6% miss) Operating Margin: -1.1%, down from 5.3% in the same quarter last year Free Cash Flow Margin: 11.8%, down from 26.1% in the previous quarter Market Capitalization: $613.4 million Commenting on the Company's performance, Paul Hennessy, the Company's Chief Executive Officer, said, "I'm thrilled to announce that Shutterstock achieved record setting Revenue and Adjusted EBITDA in 2025. Revenue grew 6% driven by double digit growth of our Data, Distribution, and Services business, while Adjusted EBITDA margins for the year matched a previous high of 27.5% and Adjusted Free Cash Flow significantly expanded year over year. These achievements were despite continued challenges in our Content business. I want to thank our employees and contributors for their focus and commitment during this past year." Originally featuring a library that included many of founder Jon Oringer’s photos, Shutterstock (NYSE:SSTK) is now a digital platform where customers can license and use hundreds of millions of pieces of content. Examining a company’s long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Unfortunately, Shutterstock’s 6.1% annualized revenue growth over the last three years was tepid. This was below our standard for the consumer internet sector and is a rough starting point for our analysis. This quarter, Shutterstock missed Wall Street’s estimates and reported a rather uninspiring 12% year-on-year revenue decline, generating $220.2 million of revenue. Looking ahead, sell-side analysts expect revenue to grow 2.3% over the next 12 months, a deceleration versus the last three years. This projection is underwhelming and suggests its products and services will face some demand challenges. While Wall Street chases Nvidia at all-time highs, an under-the-radar semiconductor supplier is dominating a critical AI component these giants can’t build without. Click here to access our free report one of our favorites growth stories. If you’ve followed StockStory for a while, you know we emphasize free cash flow. Why, you ask? We believe that in the end, cash is king, and you can’t use accounting profits to pay the bills. Shutterstock has shown decent cash profitability, giving it some flexibility to reinvest or return capital to investors. The company’s free cash flow margin averaged 5.7% over the last two years, slightly better than the broader consumer internet sector. Taking a step back, we can see that Shutterstock’s margin dropped by 1.4 percentage points over the last few years. It may have ticked higher more recently, but shareholders are likely hoping for its margin to at least revert to its historical level. If the longer-term trend returns, it could signal increasing investment needs and capital intensity. Shutterstock’s free cash flow clocked in at $25.9 million in Q4, equivalent to a 11.8% margin. This result was good as its margin was 12.1 percentage points higher than in the same quarter last year, but we wouldn’t put too much weight on the short term because investment needs can be seasonal, causing temporary swings. Long-term trends are more important. We struggled to find many positives in these results. Its revenue missed and its EBITDA fell short of Wall Street’s estimates. Overall, this quarter could have been better. The stock traded down 11.4% to $15.27 immediately after reporting. The latest quarter from Shutterstock’s wasn’t that good. One earnings report doesn’t define a company’s quality, though, so let’s explore whether the stock is a buy at the current price. What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it’s free.

Shutterstock (SSTK) came out with quarterly earnings of $0.67 per share, missing the Zacks Consensus Estimate of $1.05 per share. This compares to earnings of $0.67 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -36.19%. A quarter ago, it was expected that this online marketplace for royalty-free images and videos would post earnings of $1.47 per share when it actually produced earnings of $0.99, delivering a surprise of -32.65%. Over the last four quarters, the company has not been able to surpass consensus EPS estimates. Shutterstock, which belongs to the Zacks Internet - Content industry, posted revenues of $220.22 million for the quarter ended December 2025, missing the Zacks Consensus Estimate by 12.82%. This compares to year-ago revenues of $250.31 million. The company has not been able to beat consensus revenue estimates over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Shutterstock shares have lost about 9.6% since the beginning of the year versus the S&P 500's decline of 0.1%. While Shutterstock has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Shutterstock was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.12 on $251.77 million in revenues for the coming quarter and $3.96 on $1.01 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Content is currently in the top 20% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Genius Sports Limited (GENI), another stock in the same industry, has yet to report results for the quarter ended December 2025. This company is expected to post quarterly earnings of $0.02 per share in its upcoming report, which represents a year-over-year change of +166.7%. The consensus EPS estimate for the quarter has been revised 61.1% lower over the last 30 days to the current level. Genius Sports Limited's revenues are expected to be $233.17 million, up 32.8% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Shutterstock, Inc. (SSTK) : Free Stock Analysis Report Genius Sports Limited (GENI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research