Shutterstock, Inc. Q1 2026 Filing Summary
Business Context and Reporting Period
This Form 10-Q covers the quarterly period ended March 31, 2026. Shutterstock, Inc. operates a global creative platform licensing images, footage, music, 3D models, and generative AI content. The company is currently in the process of a proposed merger-of-equals with Getty Images Holdings, Inc., subject to regulatory approvals, including a pending Phase 2 review by the U.K. Competition and Markets Authority (CMA).
Key Financial Metrics
| Metric | Q1 2026 | Q1 2025 |
|---|---|---|
| Revenue | $199.2 million | $242.6 million |
| Net Income (Loss) | $(47.6) million | $18.7 million |
| Diluted EPS | $(1.34) | $0.53 |
| Operating Cash Flow | $17.4 million | $25.2 million |
| Cash and Equivalents | $162.5 million | $112.2 million |
| Total Debt | $274.0 million | $274.7 million |
| Adjusted EBITDA | $42.7 million | $63.4 million |
Material Changes vs. Prior Period
- Revenue Decline: Total revenue decreased 18% year-over-year. Content revenue fell 12% due to weakness in new customer acquisition. Data, Distribution, and Services revenue dropped 47%, primarily driven by a 63% decline in data offering revenue.
- Profitability Impact: The company reported a net loss of $47.6 million compared to net income of $18.7 million in the prior year. This was driven by a $28.0 million legal contingency charge and a $15.3 million unrealized loss on the Meitu investment.
- Expense Management: General and administrative expenses increased 16% to $67.6 million, largely due to the legal contingency. Sales and marketing expenses decreased 9% to $48.3 million.
- Operating Metrics: Subscribers decreased to 993,000 from 1,079,000. Paid downloads declined to 104.1 million from 120.9 million.
Outlook, Risks, and Unusual Items
- Merger Status: The DOJ review concluded without conditions. The U.K. CMA has provisionally found a "substantial lessening of competition" in the U.K. editorial market and is considering remedies, potentially requiring the sale of Rex Features, Backgrid, and Splash News. The final CMA report is due June 14, 2026.
- Legal Contingencies: A $28.0 million charge was recorded for an FTC investigation regarding subscription practices. Two stockholder lawsuits regarding the merger proxy statement are pending.
- Investment Volatility: Significant fluctuations in "Other (expense)/income" were caused by unrealized losses on the Meitu investment ($15.3 million loss in Q1 2026 vs. $13.3 million gain in Q1 2025).
- Dividends: The Board declared a quarterly dividend of $0.36 per share, payable June 18, 2026.
Investor Verification Checklist
- Verify the final outcome of the U.K. CMA Phase 2 review and potential divestiture requirements for the Getty Images merger.
- Monitor the resolution of the FTC investigation and potential penalties beyond the current $28.0 million accrual.
- Assess the sustainability of the 18% revenue decline and the specific drivers behind the 63% drop in data offering revenue.
- Review the valuation and liquidity of the Meitu investment, which significantly impacts non-GAAP earnings.
- Confirm the company's ability to maintain dividend payments and debt covenants given the shift to a net loss position.