Shutterstock, Inc.

What they do

Shutterstock licenses digital content to customers and pays contributors royalties based on download activity. Its Content offering covers images, footage, music, 3D models, and generative AI content under brands including Shutterstock, Pond5, TurboSquid, PicMonkey, PremiumBeat, Splash News, Bigstock, and Envato. Its Data, Distribution, and Services offering includes metadata licenses for AI training, the Giphy platform, and Shutterstock Studios.

Revenue drivers

• Content — Licenses for images, footage, music, 3D models and generative AI content; second quarter 2026 revenue was $165.7 million, or 75% of total revenue, down 17% year over year on weak new customer acquisition.
• Data, Distribution, and Services — Metadata licenses for machine learning and AI model training, Giphy distribution and advertising, Shutterstock Studios, and white-glove services; second quarter 2026 revenue was $56.1 million, or 25% of total revenue, down 16% year over year, with timing of metadata licenses varying quarter to quarter.
• Contributor royalty model — Contributors upload content to Shutterstock web properties and are paid royalties based on customer download activity, which links content costs to licensing volume.

Recent performance

Second quarter 2026 revenue was $221.8 million, down $45.2 million or 17% from $267.0 million a year earlier. The company reported a net loss of $155.9 million, or $4.25 per diluted share, versus net income of $29.4 million, or $0.82 per diluted share, in the prior-year quarter, including a $163.4 million after-tax non-cash goodwill impairment charge. Adjusted net income was $30.0 million, or $0.82 per diluted share, compared to $42.9 million, or $1.19 per diluted share. Adjusted EBITDA was $65.1 million, down 21% from $82.2 million. Full-year 2025 revenue was $989.9 million with net income of $45.5 million.

Strategy

Following Getty Images' June 30, 2026 termination of the merger agreement, Shutterstock says it moved quickly to strengthen its balance sheet, reduce its cost structure, and sharpen focus on areas with the greatest potential. The company has taken cost actions over the past 18 months equating to over $70 million of annualized run-rate operating expense reductions and is targeting an additional $60 million in annualized reductions by the end of the year. Management points to strategic assets including its brand, content library, Data and AI Services business, Giphy platform, and cash generation. The company has canceled its August 6, 2026 earnings call and will not issue guidance for the remainder of 2026, pending a strategic update. No new strategy details beyond these statements are provided in the excerpts.

Risks

• Revenue decline — Second quarter 2026 revenue fell 17% year over year, driven primarily by weakness in new customer acquisition.
• Goodwill impairment — The company recorded a $173.7 million non-cash goodwill impairment charge in the second quarter of 2026 after the terminated merger agreement reduced its fair value.
• Cost reduction execution — The company is targeting an additional $60 million in annualized run-rate operating expense reductions by the end of the year, on top of over $70 million already taken, which requires successful execution.
• Merger termination fallout — Getty Images' Board unanimously resolved to terminate the Merger Agreement on June 30, 2026, and the company incurred $3.7 million of merger-related costs in the second quarter of 2026.

Outlook

Management did not issue guidance for the remainder of 2026 and canceled its scheduled August 6, 2026 conference call in light of a pending strategic update. No specific revenue or earnings targets for the remainder of 2026 are provided in the excerpts. The company's stated focus is on cost reductions and refining its long-term strategy.