Shutterstock (SSTK) investor relations material

Executive summary

• Revenue declined 18% year-over-year to $199.2 million for Q1 2026, with net loss of $47.6 million compared to net income of $18.7 million in Q1 2025, driven by lower Content and Data revenues and significant one-time expenses.

• Content revenue fell 12% and Data, Distribution, and Services revenue dropped 47% year-over-year, impacted by timing of data licensing deals.

• The company is progressing toward a merger with Getty Images, pending regulatory approval, with the UK CMA requiring divestiture of certain editorial businesses due to competition concerns.

• A $28 million legal contingency expense was recorded related to an FTC investigation into subscription practices.

• The company remains focused on operational discipline, cost management, and investments in Data Licensing and AI Services.

Financial highlights

• Operating expenses were $230.1 million, nearly flat year-over-year, but general and administrative expenses rose by $9.3 million due to legal contingencies.

• Adjusted EBITDA was $42.7 million, down from $63.4 million in Q1 2025, with a margin of 21.4%.

• Adjusted net income was $20.7 million, down from $36.3 million year-over-year; adjusted net income per diluted share was $0.58, down from $1.03.

• Cash and cash equivalents stood at $162.5 million as of March 31, 2026, down from $178.2 million at year-end 2025.

• Dividend of $0.36 per share paid, totaling $12.8 million.

Outlook and guidance

• Management expects cost of revenue and sales and marketing expenses to fluctuate with revenue and ongoing optimization efforts.

• No financial guidance provided due to the pending Getty Images merger.

• The company remains committed to the Getty Images merger and is working to address regulatory concerns, expressing confidence in long-term growth, especially in Data Licensing and AI Services.