Getty Images (GETY) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached $224.1 million, up 0.8% year-over-year or 2.6% on a currency-neutral basis, with adjusted EBITDA at $70.1 million and a margin of 31.3%.

• Net loss was $102.6 million, compared to net income of $13.6 million in Q1 2024, driven by higher operating expenses, tax, FX losses, and merger-related costs.

• Annual subscription revenue grew to 57.2% of total revenue, with 318,000 active annual subscribers, a 21% increase over the prior year.

• Growth was driven by corporate sector subscriptions, video, news, and sports, while creative and agency segments faced headwinds from macro uncertainty and the LA fires.

• Merger with Shutterstock is progressing, with $18 million in related expenses and regulatory reviews ongoing in the US and UK.

Financial highlights

• Creative revenue declined 4.8% year-over-year to $132.2 million; editorial revenue grew 4.0% to $82.6 million; other revenue rose 131.7% to $9.3 million.

• Adjusted EBITDA was $70.1 million, margin 31.3%, flat year-over-year.

• Free cash flow was negative $0.3 million, down from $7.1 million in Q1 2024, mainly due to merger-related expenses.

• Net cash from operating activities was $15.4 million, down from $21.5 million year-over-year.

• Cost of revenue stable at $60.2 million (26.9% of revenue).

Outlook and guidance

• 2025 revenue guidance is $931–$968 million, representing -0.9% to +3.1% year-over-year growth, updated for FX impacts.

• Adjusted EBITDA guidance is $277–$297 million, down 7.6% to 1.2% year-over-year, including $8 million in one-off SG&A for SOX compliance.

• FX is expected to have a $1 million net impact on revenue for the year.

• Management expects cost of revenue and SG&A to increase in absolute dollars but remain stable as a percentage of revenue.

• Guidance includes $8 million in one-off SG&A increases for SOX compliance, mainly in Q2–Q4.