Getty Images (GETY) investor relations material

Executive summary

• Q1 2026 revenue was $226.6 million, up 1.1% year-over-year but down 2.5% currency neutral, with adjusted EBITDA at $61.6 million (27.2% margin), down from $70.1 million (31.3%) last year due to higher costs and event coverage.

• Net loss narrowed significantly to $4.4 million from $102.6 million in Q1 2025, driven by lower tax expense, FX gains, and reduced merger-related costs.

• Agency and microstock segments continue to face secular declines, while corporate and subscription revenues show growth and resilience, with corporate now over 60% of total revenue and up nearly 6% year-over-year.

• Editorial revenue benefited from major events like the Milan Cortina Winter Olympics, offsetting creative revenue declines.

• Strategic focus is shifting toward high-quality, exclusive content and optimizing customer value, especially in iStock.

Financial highlights

• Creative revenue was $126.2 million, down 4.5% year-over-year; editorial revenue was $91.7 million, up 11.0%; other revenue was $8.6 million, down 7%.

• Cost of revenue increased to $66.2 million (29.2% of revenue); SG&A expenses rose to $102.2 million (45.1% of revenue), mainly due to higher staff and computer costs.

• Adjusted EBITDA margin was 27.2% (down from 31.3% in Q1 2025); CapEx was $16.1 million (7.1% of revenue).

• Free cash flow improved to $24.0 million from negative $0.3 million in Q1 2025, driven by lower cash interest and merger costs.

• Ending cash balance was $96.6 million, up $6.5 million sequentially.

Outlook and guidance

• Full-year 2026 revenue guidance: $948 million to $988 million, representing -3.4% to 0.6% year-over-year growth.

• Adjusted EBITDA guidance: $279 million to $295 million, down 12.9% to 8.1% year-over-year, with margins expected near 30%.

• FX expected to provide $11 million revenue and $3.6 million EBITDA tailwind for the year.

• Excluding $40 million accelerated revenue in Q4 2025, underlying 2026 revenue would show 0.7%–4.9% growth.

• Guidance includes $6.9 million in one-off SG&A increases for SOX compliance; all other merger costs excluded from adjusted EBITDA.