Shutterstock第二季由盈轉虧 商譽減值1.7億美元拖累業績

EX-99.1
2
ef20079466_ex99-1.htm
EXHIBIT 99.1

 
 
 
 

 
 
 
 Exhibit 99.1
 

 
 

 
  

 
 

 Shutterstock Reports Second Quarter 2026 Financial Results

 
 

 New York, NY - August 4, 2026 - Shutterstock, Inc. (NYSE: SSTK) (the “Company”), a family of brands delivering scalable creative
 and GenAI solutions to help customers fuel great work, today announced financial results for the second quarter ended June 30, 2026.

  

 Commenting on the Company’s performance, Rik Powell, the Company’s Interim Chief Executive
 Officer and Chief Financial Officer, said, “Following the termination of our proposed merger, we have moved quickly to strengthen our balance sheet, reduce our cost structure, and sharpen our focus on the areas with the greatest potential and are approaching every aspect of the business with discipline and urgency. We have taken significant cost actions
 over the past 18 months that equate to over $70 million of annualized run-rate operating expense reductions and are targeting an additional $60 million in annualized run-rate operating expense reductions by the end of the year. These actions will give us greater optionality in
 our capital allocation strategy.”

  

 He continued, “While we recognize the challenges in front of us, Shutterstock remains a
 company with meaningful strategic assets, including a globally recognized brand, one of the world’s largest and most diverse commercially licensed content libraries, a differentiated Data and AI Services business, our unique GIPHY platform, and strong cash generation. Together, these strengths provide a solid foundation as we refine our long-term strategy and position the business for its next phase of growth which we look forward to discussing in
 the coming weeks.”

  

 EARNINGS TELECONFERENCE INFORMATION

 
 

 In light of the pending strategic update, the Company will no longer be hosting the conference call originally scheduled for August 6, 2026 or issuing guidance for the
 remainder of 2026.

 
 

 
 

 Second Quarter 2026 highlights as compared to Second Quarter 2025:

 
 

 Financial Highlights

 
 

 

 
 
 
 •
 
 Revenues were $221.8 million compared to $267.0 million.

 
 

 
 

 
 
 
 •
 
 Net loss was $155.9 million compared to net income of $29.4 million.

 
 

 
 

 
 
 
 ◦
 
 Net loss includes a $163.4 million non-cash, after-tax goodwill impairment charge.

 
 

 
 

 
 
 
 •
 
 Net loss per diluted common share was $4.25 compared to net income per diluted common share of $0.82.

 
 

 
 

 
 
 
 •
 
 Adjusted net income was $30.0 million compared to $42.9 million.

 
 

 
 

 
 
 
 •
 
 Adjusted net income per diluted common share was $0.82 compared to $1.19.

 
 

 
 

 
 
 
 •
 
 Adjusted EBITDA was $65.1 million compared to $82.2 million.

 
 

 
 
 

 
 1

 
 

 

 SECOND QUARTER RESULTS

 
 

 Revenue

 
 

 Second quarter revenue of $221.8 million decreased by $45.2 million
 or 17% as compared to the second quarter of 2025.

 
 

 Revenue from our Content product offering decreased by $34.1 million, or 17%, as compared to the second quarter of 2025, to $165.7 million. The reduction in our Content revenue was driven primarily by weakness in new
 customer acquisition. Content revenue represented 75% of our total revenue in the second
 quarter of 2026.

 
 

 Revenue generated from our Data, Distribution, and Services product offering decreased
 by $11.1 million, or 16%, as compared to the second quarter of 2025, to $56.1 million, and represented 25% of second quarter revenue in 2026. Revenue recognition in our data offering may vary from quarter-to-quarter based on the delivery timing of metadata licenses.

 
 

 
 2

 
 

 

 Net income and net income per diluted common share

 
 

 Net income decreased by $185.4 million to a net loss of $155.9 million in the second quarter of 2026, compared to net income of $29.4 million for the second quarter of 2025. Net loss per diluted common share was $4.25,
 as compared to net income per diluted common share of $0.82 for the same
 period in 2025. In the second quarter of 2026, the Company recorded a non-cash goodwill impairment charge of $173.7 million resulting from the decline in the Company’s fair value after the announcement of the terminated merger agreement. Additionally, the Company had further declines in revenue, with operating costs not
 declining at a similar rate, as well as $3.0 million of unrealized losses related to our investment in Meitu, Inc, $3.7 million of Merger related costs, $5.0 million of
 legal contingency expenses and $3.0 million of workforce optimizations expenses.

 
 

 Adjusted net income and adjusted net income per diluted common share

 
 

 Adjusted net income of $30.0 million in the second quarter of 2026 decreased
 by $12.9 million, compared to adjusted net income of $42.9 million for
 the second quarter of 2025, primarily due to the decline in revenue.

 
 

 Adjusted net income per diluted common share was $0.82, compared to $1.19 for the second quarter of 2025.

 
 

 Adjusted EBITDA

 
 

 Adjusted EBITDA of $65.1 million for the second quarter of 2026 decreased
 by $17.1 million, or 21%, as compared to the second quarter of 2025, primarily due to the decline in revenue.

 
 

 Net loss margin of 70.3% for the second quarter of 2026 decreased
 by 81.3%, as compared to net income margin of 11.0% in the second quarter of 2025. The adjusted EBITDA margin of 29.3% for the second quarter of 2026 decreased by 1.5%, as compared to 30.8% in the second quarter of 2025.

 
 

 
 3

 
 

 

 SECOND QUARTER LIQUIDITY

 
 

 Our cash and cash equivalents decreased by $29.3 million to $133.2 million at June 30, 2026, as compared with $162.5 million as of March 31, 2026. This was driven by $0.6 million of net cash used in operating activities, including a $35.0 million payment for the settlement of the FTC’s civil investigative demand on the Company’s subscription disclosure and enrollment and cancellation practices. In addition, the Company had $18.5 million of net cash used in financing activities and $10.1 million of net
 cash used in investing activities.

 
 

 Net cash for operating activities was driven by the $35.0 million payment to the
 FTC. This was offset by cash generation from our business operations and changes in the timing of cash collections from our customers and payments pertaining to operating expenses. In addition, cash flows for the three months ended June 30, 2026 were unfavorably impacted by $3.0 million of expenses related to
 the Getty Images proposed merger.

 
 

 Cash used in investing activities for the three months ended June 30, 2026
 consisted of $10.1 million related to capital expenditures, $0.1 million
 of content acquisition, partially offset by $0.1 million related to the receipt of the Giphy Retention Compensation, as reimbursed by the Giphy seller.

 
 

 Cash used in financing activities for the three months ended June 30, 2026
 consisted of $13.2 million related to the payment of the quarterly cash dividend, $4.5

 million paid in settlement of tax withholding obligations related to employee stock-based compensation awards, and $0.8 million used for the repayment
 of our credit facility.

 
 

 Adjusted free cash flow was $28.5 million for the second quarter of 2026, an increase of $11.0 million from the second quarter of 2025.

 
 

 
 4

 
 

 

 KEY OPERATING METRICS

 
 

 

 
  
  
 
 Three Months Ended June 30,

 
  
  
 
 Six Months Ended June 30,

 
  
 

 
  
  
 
 2026

 
  
  
 
 2025

 
  
  
 
 2026

 
  
  
 
 20255

 
  
 

 
  
  
  
  
  
  
  
  
  
  
 

 
 
 Subscribers (end of period)(1)

 
  
  
 
 951,000

 
  
  
  
 
 1,073,000

 
  
  
  
 
 951,000

 
  
  
  
 
 1,073,000

 
  
 

 
 
 Subscriber revenue (in millions)(2)

 
  
 
 $

 
 
 99.8

 
  
  
 
 $

 
 
 108.0

 
  
  
 
 $

 
 
 203.6

 
  
  
 
 $

 
 
 217.9

 
  
 

 
 
 Average revenue per customer (last twelve months)(3)

 
  
 
 $

 
 
 292

 
  
  
 
 $

 
 
 266

 
  
  
 
 $

 
 
 292

 
  
  
 
 $

 
 
 266

 
  
 

 
 
 Paid downloads (in millions)(4)

 
  
  
 
 98.7

 
  
  
  
 
 112.6

 
  
  
  
 
 202.8

 
  
  
  
 
 233.5

 
  
 

 
 _____________________________________________________

 
 

 Subscribers, Subscriber Revenue and Average Revenue Per Customer from acquisitions are included in these metrics beginning twelve months after the closing
 of the respective business combination. Accordingly, the metrics include Subscribers, Subscriber revenue, and Average revenue per customer from Backgrid beginning February 2025. 2025 metrics include the counts and revenues from Envato, which was
 acquired in July 2024.

 
 

 (1) Subscribers is defined as those customers who purchase one or more of our monthly recurring products for a continuous period of at least three months,
 measured as of the end of the reporting period.

 
 

 (2) Subscriber revenue is defined as the revenue generated from subscribers during the period.

 
 

 (3) Average revenue per customer is calculated by dividing total revenue for the last twelve-month period by customers. Customers is defined as total
 active, paying customers that contributed to total revenue over the last twelve-month period.

 
 

 (4) Paid downloads is the number of downloads that our customers make in a given period of our content. Paid downloads exclude content related to our
 Studios business, downloads of content that are offered to customers for no charge, including our free trials and metadata delivered through our data deal offering.

 
 

 
 5

 
 

 

 NON-GAAP FINANCIAL MEASURES

 
 

 To supplement Shutterstock’s consolidated financial statements presented in accordance with the accounting principles generally accepted in the United States, or GAAP,
 Shutterstock’s management considers certain financial measures that are not prepared in accordance with GAAP, collectively referred to as non-GAAP financial measures, including adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted
 net income per diluted share, revenue growth (including by distribution channel) on a constant currency basis (expressed as a percentage), and adjusted free cash flow.

 
 

 Shutterstock defines adjusted EBITDA as net income adjusted for depreciation and amortization, non-cash equity-based compensation, Giphy Retention Compensation Expense
 - non-recurring, foreign currency transaction gains and losses, severance costs associated with strategic workforce optimizations, goodwill impairment, impairment loss on long-term investment, impairment of lease assets, unrealized losses / gains
 on investments, legal contingencies, interest income and expense, income taxes and Merger related costs; adjusted EBITDA margin as the ratio of adjusted EBITDA to revenue; adjusted net income as net income adjusted for the impact of non-cash
 equity-based compensation, amortization of acquisition-related intangible assets, Giphy Retention Compensation Expense - non-recurring, severance costs associated with strategic workforce optimizations (reported in Other), unrealized losses / gains
 on investments (reported in Other), goodwill impairment, impairment loss on long-term investment, legal contingencies, Merger related costs and the estimated tax impact of such adjustments; adjusted net income per diluted common share as adjusted
 net income divided by weighted average diluted shares; revenue growth (including by product offering) on a constant currency basis (expressed as a percentage) as the increase in current period revenues over prior period revenues, utilizing fixed
 exchange rates for translating foreign currency revenues for all periods presented in the comparison; and adjusted free cash flow as net cash provided by operating activities, adjusted for capital expenditures, content acquisition, cash received
 related to Giphy Retention Compensation in connection with the acquisition of Giphy, cash paid for the settlement of the FTC investigation, and cash paid for costs related to the Getty Images merger.

 
 

 The expense associated with the Giphy Retention Compensation related to (i) the one-time employment inducement bonuses and (ii) the vesting of the cash value of
 unvested Meta equity awards held by the employees prior to closing, which are reflected in operating expenses (together, the “Giphy Retention Compensation Expense - non-recurring”), are required payments in accordance with the terms of the
 acquisition. Meta’s sale of Giphy was directed by the United Kingdom Competition and Markets Authority (the “CMA”) and accordingly, the terms of the acquisition were subject to CMA preapproval. Management considers the operating expense associated
 with these required payments to be unusual and non-recurring in nature. The Giphy Retention Compensation Expense - non-recurring is not considered an ongoing expense necessary to operate the Company’s business. Therefore, such expenses have been
 included in the below adjustments for calculating adjusted EBITDA, adjusted EBITDA margin, adjusted net income and adjusted net income per diluted common share.

 
 

 These figures have not been calculated in accordance with GAAP and should be considered only in addition to results prepared in accordance with GAAP and should not be
 considered as a substitute for, or superior to, GAAP results. Shutterstock cautions investors that non-GAAP financial measures are not based on any standardized methodology prescribed by GAAP and are not necessarily comparable to similarly-titled
 measures presented by other companies.

 
 

 Shutterstock’s management believes that adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted net income per diluted common share, revenue growth
 (including by product offering) on a constant currency basis (expressed as a percentage) and adjusted free cash flow are useful to investors because these measures enable investors to analyze Shutterstock’s operating results on the same basis as
 that used by management. Additionally, management believes that adjusted EBITDA, adjusted EBITDA margin, adjusted net income and adjusted net income per diluted common share provide useful information to investors about the performance of the
 Company’s overall business because such measures eliminate the effects of unusual or other infrequent charges that are not directly attributable to Shutterstock’s underlying operating performance; and revenue growth (including by product offering)
 on a constant currency basis (expressed as a percentage) provides useful information to investors by eliminating the effect of foreign currency fluctuations that are not directly attributable to Shutterstock’s operating performance. Management also
 believes that providing these non-GAAP financial measures enhances the comparability for investors in assessing Shutterstock’s financial reporting. Shutterstock’s management believes that adjusted free cash flow is useful for investors because it
 provides them with an important perspective on the cash available for strategic measures, after making necessary capital investments in internal-use software and website development costs to support the Company’s ongoing business operations, and
 provides them with the same measures that management uses as the basis for making resource allocation decisions.

 
 

 
 6

 
 

 

 Shutterstock’s management also uses the non-GAAP financial measures adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted net income per diluted
 common share, revenue growth (including by product offering) on a constant currency basis (expressed as a percentage), and adjusted free cash flow, in conjunction with GAAP financial measures, as an integral part of managing the business and to,
 among other things: (i) monitor and evaluate the performance of Shutterstock’s business operations, financial performance and overall liquidity; (ii) facilitate management’s internal comparisons of the historical operating performance of its
 business operations; (iii) facilitate management’s external comparisons of the results of its overall business to the historical operating performance of other companies that may have different capital structures and debt levels; (iv) review and
 assess the operating performance of Shutterstock’s management team and, together with other operational objectives, as a measure in evaluating employee compensation; (v) analyze and evaluate financial and strategic planning decisions regarding
 future operating investments; and (vi) plan for and prepare future annual operating budgets and determine appropriate levels of operating investments.

 
 

 Reconciliations of the differences between each of our non-GAAP financial measures (adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted net income
 per diluted common share, revenue growth (including by product offering) on a constant currency basis (expressed as a percentage), adjusted free cash flow), and each measure’s most directly comparable financial measure calculated and presented in
 accordance with GAAP, are presented under the headings “Reconciliation of Non-GAAP Financial Information to GAAP” and “Supplemental Financial Data” immediately following the Consolidated Balance Sheets.

 
 

 ABOUT SHUTTERSTOCK

 
 

 Shutterstock is in the business of turning ideas into impact. Powered by a global network of millions of
 creators and our cutting-edge technology, we provide businesses, creatives, and brand leaders with the essential, universal ingredients to make their work more effective. Shutterstock offers access to one of the world’s largest and most diverse
 collections of high-quality licensable assets, specialized training datasets, evaluation tools, and end-to-end strategic partnerships for the full model training lifecycle, as well as advertising and distribution solutions, exclusive editorial
 content, and full-service studio production—delivering unparalleled resources to fuel great work.
 
 Discover our impact at www.shutterstock.com and connect with us on LinkedIn, Instagram, X, Facebook and YouTube.

 
 

 
 7

 
 

 

 FORWARD-LOOKING STATEMENTS

 
 

 The statements in this press release, and any related oral statements, include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933,
 as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than historical facts, are forward-looking statements. Forward-looking statements may discuss goals, intentions and expectations as to future
 plans, trends, events, results of operations or financial condition, financings or otherwise, based on current beliefs and involve numerous risks and uncertainties that could cause actual results to differ materially from expectations.
 Forward-looking statements speak only as of the date they are made or as of the dates indicated in the statements and should not be relied upon as predictions of future events, as there can be no assurance that the events or circumstances reflected
 in these statements will be achieved or will occur or the timing thereof. Forward-looking statements can often, but not always, be identified by the use of forward-looking terminology including “believes,” “expects,” “may,” “will,” “should,”
 “could,” “might,” “seeks,” “intends,” “plans,” “pro forma,” “estimates,” “anticipates,” “designed,” or the negative of these words and phrases, other variations of these words and phrases or comparable terminology, but not all forward-looking
 statements include such identifying words. Forward-looking statements are based upon current plans, estimates and expectations that are subject to risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize,
 or should underlying assumptions prove incorrect, actual results may vary. The forward-looking statements in this press release relate to, among other things, statements regarding industry prospects, future business, future results of operations or
 financial condition, future dividends, future stock performance, our ability to consummate acquisitions and integrate the businesses we have acquired or may acquire into our existing operations, new or planned features, products or services,
 management strategies, our ability to offer premier Data Licensing and AI Services, and our competitive position. Important factors that could cause actual results to differ materially from those expressed or implied by the forward-looking
 statements include, among others, the risks discussed under the caption “Risk Factors” in Shutterstock’s Annual Report on Form 10-K for the fiscal year ended December
 31, 2025, subsequent Quarterly Reports on Form 10-Q and other filings with the SEC. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from
 those indicated or anticipated by such forward looking statements. While the list of factors presented here is considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties.
 Unlisted factors may present significant additional obstacles to the realization of forward looking statements. Shutterstock does not assume, and hereby disclaims, any obligation to update forward-looking statements, except as may be required by
 law.

 
 

 

 
 
 Investor Relations Contact

 
 
 Press Contact

 
 

 
 
 Scott Grossman

 
 
 Lori Rodney

 
 

 
 
 [email protected]

 
 
 [email protected]

 
 

 
  
 
 917-563-4991

 
 

 
 
 

 
 8

 
 

 

 Shutterstock, Inc.

 Consolidated Statements of Operations

 (In thousands, except for per share data)

 (unaudited)

 
 

 

 
  
  
 
 Three Months Ended June 30,

 
  
  
 
 Six Months Ended June 30,

 
  
 

 
  
  
 
 2026

 
  
  
 
 2025

 
  
  
 
 2026

 
  
  
 
 2025

 
  
 

 
 
 Revenue

 
  
 
 $

 
 
 221,801

 
  
  
 
 $

 
 
 266,990

 
  
  
 
 $

 
 
 420,971

 
  
  
 
 $

 
 
 509,610

 
  
 

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Operating expenses:

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Cost of revenue

 
  
  
 
 93,787

 
  
  
  
 
 105,994

 
  
  
  
 
 188,575

 
  
  
  
 
 206,882

 
  
 

 
 
 Sales and marketing

 
  
  
 
 48,008

 
  
  
  
 
 57,077

 
  
  
  
 
 96,354

 
  
  
  
 
 110,436

 
  
 

 
 
 Product development

 
  
  
 
 17,574

 
  
  
  
 
 20,754

 
  
  
  
 
 36,979

 
  
  
  
 
 40,619

 
  
 

 
 
 General and administrative

 
  
  
 
 43,930

 
  
  
  
 
 48,434

 
  
  
  
 
 111,515

 
  
  
  
 
 106,741

 
  
 

 
 
 Goodwill impairment

 
  
  
 
 173,738

 
  
  
  
 
 —

 
  
  
  
 
 173,738

 
  
  
  
 
 —

 
  
 

 
 
 Total operating expenses

 
  
  
 
 377,037

 
  
  
  
 
 232,259

 
  
  
  
 
 607,161

 
  
  
  
 
 464,678

 
  
 

 
 
 (Loss) / income from operations

 
  
  
 
 (155,236

 
 
 )

 
  
  
 
 34,731

 
  
  
  
 
 (186,190

 
 
 )

 
  
  
 
 44,932

 
  
 

 
 
 Interest expense

 
  
  
 
 (3,833

 
 
 )

 
  
  
 
 (4,224

 
 
 )

 
  
  
 
 (7,593

 
 
 )

 
  
  
 
 (8,522

 
 
 )

 
 

 
 
 Other (expense) / income, net

 
  
  
 
 (1,862

 
 
 )

 
  
  
 
 12,624

 
  
  
  
 
 (16,523

 
 
 )

 
  
  
 
 27,139

 
  
 

 
 
 (Loss) / income before income taxes

 
  
  
 
 (160,931

 
 
 )

 
  
  
 
 43,131

 
  
  
  
 
 (210,306

 
 
 )

 
  
  
 
 63,549

 
  
 

 
 
 (Benefit) / provision for income taxes

 
  
  
 
 (4,992

 
 
 )

 
  
  
 
 13,691

 
  
  
  
 
 (6,798

 
 
 )

 
  
  
 
 15,421

 
  
 

 
 
 Net (loss) / income

 
  
 
 $

 
 
 (155,939

 
 
 )

 
  
 
 $

 
 
 29,440

 
  
  
 
 $

 
 
 (203,508

 
 
 )

 
  
 
 $

 
 
 48,128

 
  
 

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 (Losses) / earnings per share:

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Basic

 
  
 
 $

 
 
 (4.25

 
 
 )

 
  
 
 $

 
 
 0.84

 
  
  
 
 $

 
 
 (5.63

 
 
 )

 
  
 
 $

 
 
 1.37

 
  
 

 
 
 Diluted

 
  
 
 $

 
 
 (4.25

 
 
 )

 
  
 
 $

 
 
 0.82

 
  
  
 
 $

 
 
 (5.63

 
 
 )

 
  
 
 $

 
 
 1.35

 
  
 

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Weighted average common shares outstanding:

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Basic

 
  
  
 
 36,703

 
  
  
  
 
 35,257

 
  
  
  
 
 36,126

 
  
  
  
 
 35,075

 
  
 

 
 
 Diluted

 
  
  
 
 36,703

 
  
  
  
 
 35,958

 
  
  
  
 
 36,126

 
  
  
  
 
 35,642

 
  
 

 
 
 

 
 9

 
 

 

 Shutterstock, Inc.

 Consolidated Balance Sheets

 (In thousands, except par value amount)

 (unaudited)

 
 

 

 
  
  
 
 June 30, 2026

 
  
  
 
 December 31, 2025

 
  
 

 
 
 ASSETS

 
  
  
  
  
  
  
 

 
 
 Current assets:

 
  
  
  
  
  
  
 

 
 
 Cash and cash equivalents

 
  
 
 $

 
 
 133,208

 
  
  
 
 $

 
 
 178,244

 
  
 

 
 
 Accounts receivable, net of allowance of $3,750 and $3,431

 
  
  
 
 102,264

 
  
  
  
 
 112,626

 
  
 

 
 
 Prepaid expenses and other current assets

 
  
  
 
 44,025

 
  
  
  
 
 47,769

 
  
 

 
 
 Total current assets

 
  
  
 
 279,497

 
  
  
  
 
 338,639

 
  
 

 
 
 Property and equipment, net

 
  
  
 
 61,237

 
  
  
  
 
 62,553

 
  
 

 
 
 Right-of-use assets

 
  
  
 
 8,238

 
  
  
  
 
 9,770

 
  
 

 
 
 Intangible assets, net

 
  
  
 
 192,073

 
  
  
  
 
 215,673

 
  
 

 
 
 Goodwill

 
  
  
 
 400,025

 
  
  
  
 
 574,614

 
  
 

 
 
 Deferred tax assets, net

 
  
  
 
 77,221

 
  
  
  
 
 61,289

 
  
 

 
 
 Other assets

 
  
  
 
 73,986

 
  
  
  
 
 93,398

 
  
 

 
 
 Total assets

 
  
 
 $

 
 
 1,092,277

 
  
  
 
 $

 
 
 1,355,936

 
  
 

 
  
  
  
  
  
  
  
  
  
 

 
 
 LIABILITIES AND STOCKHOLDERS’ EQUITY

 
  
  
  
  
  
  
  
  
 

 
 
 Current liabilities:

 
  
  
  
  
  
  
  
  
 

 
 
 Accounts payable

 
  
 
 $

 
 
 12,982

 
  
  
 
 $

 
 
 13,898

 
  
 

 
 
 Accrued expenses

 
  
  
 
 104,227

 
  
  
  
 
 129,952

 
  
 

 
 
 Contributor royalties payable

 
  
  
 
 98,292

 
  
  
  
 
 94,163

 
  
 

 
 
 Deferred revenue

 
  
  
 
 198,444

 
  
  
  
 
 212,984

 
  
 

 
 
 Debt

 
  
  
 
 158,112

 
  
  
  
 
 158,110

 
  
 

 
 
 Other current liabilities

 
  
  
 
 14,719

 
  
  
  
 
 19,295

 
  
 

 
 
 Total current liabilities

 
  
  
 
 586,776

 
  
  
  
 
 628,402

 
  
 

 
 
 Deferred tax liability, net

 
  
  
 
 1,323

 
  
  
  
 
 1,134

 
  
 

 
 
 Long-term debt

 
  
  
 
 115,157

 
  
  
  
 
 116,639

 
  
 

 
 
 Lease liabilities

 
  
  
 
 13,518

 
  
  
  
 
 17,247

 
  
 

 
 
 Other non-current liabilities

 
  
  
 
 11,843

 
  
  
  
 
 11,476

 
  
 

 
 
 Total liabilities

 
  
  
 
 728,617

 
  
  
  
 
 774,898

 
  
 

 
 
 Commitments and contingencies

 
  
  
  
  
  
  
  
  
 

 
 
 Stockholders’ equity:

 
  
  
  
  
  
  
  
  
 

 
 
 Common stock, $0.01 par value; 200,000 shares authorized; 42,328 and 41,049 shares issued and 36,807 and 35,528 shares outstanding as of June
 30, 2026 and December 31, 2025, respectively

 
  
  
 
 422

 
  
  
  
 
 410

 
  
 

 
 
 Treasury stock, at cost; 5,521 shares as of June 30, 2026 and December 31, 2025

 
  
  
 
 (269,804

 
 
 )

 
  
  
 
 (269,804

 
 
 )

 
 

 
 
 Additional paid-in capital

 
  
  
 
 536,627

 
  
  
  
 
 520,018

 
  
 

 
 
 Accumulated other comprehensive loss

 
  
  
 
 (9,249

 
 
 )

 
  
  
 
 (4,754

 
 
 )

 
 

 
 
 Retained earnings

 
  
  
 
 105,664

 
  
  
  
 
 335,168

 
  
 

 
 
 Total stockholders’ equity

 
  
  
 
 363,660

 
  
  
  
 
 581,038

 
  
 

 
 
 Total liabilities and stockholders’ equity

 
  
 
 $

 
 
 1,092,277

 
  
  
 
 $

 
 
 1,355,936

 
  
 

 
 
 

 
 10

 
 

 

 Shutterstock, Inc.

 Consolidated Statements of Cash Flows

 (In thousands, except par value amount)

 (unaudited)

 
 

 

 
  
  
 
 Three Months Ended

 June 30,

 
  
  
 
 Six Months Ended

 June 30,

 
  
 

 
  
  
 
 2026

 
  
  
 
 2025

 
  
  
 
 2026

 
  
  
 
 2025

 
  
 

 
 
 CASH FLOWS FROM OPERATING ACTIVITIES

 
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Net (loss) / income

 
  
 
 $

 
 
 (155,939

 
 
 )

 
  
 
 $

 
 
 29,440

 
  
  
 
 $

 
 
 (203,508

 
 
 )

 
  
 
 $

 
 
 48,128

 
  
 

 
 
 Adjustments to reconcile net (loss) / income to net cash (used in) / provided by operating activities:

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Depreciation and amortization

 
  
  
 
 22,416

 
  
  
  
 
 22,611

 
  
  
  
 
 45,120

 
  
  
  
 
 45,282

 
  
 

 
 
 Deferred taxes

 
  
  
 
 (8,399

 
 
 )

 
  
  
 
 974

 
  
  
  
 
 (15,741

 
 
 )

 
  
  
 
 (6,798

 
 
 )

 
 

 
 
 Goodwill impairment

 
  
  
 
 173,738

 
  
  
  
 
 —

 
  
  
  
 
 173,738

 
  
  
  
 
 —

 
  
 

 
 
 Non-cash equity-based compensation

 
  
  
 
 12,536

 
  
  
  
 
 15,625

 
  
  
  
 
 25,908

 
  
  
  
 
 33,509

 
  
 

 
 
 Loss on impairment of long-term investment

 
  
  
 
 —

 
  
  
  
 
 5,000

 
  
  
  
 
 —

 
  
  
  
 
 5,000

 
  
 

 
 
 Bad debt expense

 
  
  
 
 214

 
  
  
  
 
 367

 
  
  
  
 
 319

 
  
  
  
 
 960

 
  
 

 
 
 Unrealized loss / (gain) on investments, net

 
  
  
 
 2,963

 
  
  
  
 
 (18,028

 
 
 )

 
  
  
 
 18,268

 
  
  
  
 
 (31,288

 
 
 )

 
 

 
 
 Changes in operating assets and liabilities:

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Accounts receivable

 
  
  
 
 735

 
  
  
  
 
 (39,056

 
 
 )

 
  
  
 
 9,701

 
  
  
  
 
 (55,674

 
 
 )

 
 

 
 
 Prepaid expenses and other current and non-current assets

 
  
  
 
 (3,759

 
 
 )

 
  
  
 
 4,775

 
  
  
  
 
 1,592

 
  
  
  
 
 22,757

 
  
 

 
 
 Accounts payable and other current and non-current liabilities

 
  
  
 
 (37,972

 
 
 )

 
  
  
 
 2,677

 
  
  
  
 
 (29,386

 
 
 )

 
  
  
 
 (14,587

 
 
 )

 
 

 
 
 Contributor royalties payable

 
  
  
 
 3,459

 
  
  
  
 
 6,401

 
  
  
  
 
 5,084

 
  
  
  
 
 9,780

 
  
 

 
 
 Deferred revenue

 
  
  
 
 (9,371

 
 
 )

 
  
  
 
 (3,950

 
 
 )

 
  
  
 
 (13,104

 
 
 )

 
  
  
 
 (4,986

 
 
 )

 
 

 
 
 Net cash provided by operating activities

 
  
 
 $

 
 
 621

 
 
 
  
 
 $

 
 
 26,836

 
  
  
 
 $

 
 
 17,991

 
  
  
 
 $

 
 
 52,083

 
  
 

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 CASH FLOWS FROM INVESTING ACTIVITIES

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Capital expenditures

 
  
  
 
 (10,115

 
 
 )

 
  
  
 
 (11,312

 
 
 )

 
  
  
 
 (21,710

 
 
 )

 
  
  
 
 (22,120

 
 
 )

 
 

 
 
 Cash received related to Giphy Retention Compensation

 
  
  
 
 109

 
  
  
  
 
 369

 
  
  
  
 
 477

 
  
  
  
 
 861

 
  
 

 
 
 Acquisition of content

 
  
  
 
 (110

 
 
 )

 
  
  
 
 (4,081

 
 
 )

 
  
  
 
 (301

 
 
 )

 
  
  
 
 (4,978

 
 
 )

 
 

 
 
 Security deposit (payment) / release

 
  
  
 
 (23

 
 
 )

 
  
  
 
 59

 
  
  
  
 
 249

 
  
  
  
 
 38

 
  
 

 
 
 Net cash used in investing activities

 
  
 
 $

 
 
 (10,139

 
 
 )

 
  
 
 $

 
 
 (14,965

 
 
 )

 
  
 
 $

 
 
 (21,285

 
 
 )

 
  
 
 $

 
 
 (26,199

 
 
 )

 
 

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 CASH FLOWS FROM FINANCING ACTIVITIES

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Cash paid to settle employee taxes related to RSU vesting

 
  
  
 
 (4,461

 
 
 )

 
  
  
 
 (1,473

 
 
 )

 
  
  
 
 (10,848

 
 
 )

 
  
  
 
 (5,012

 
 
 )

 
 

 
 
 Payment of cash dividends

 
  
  
 
 (13,214

 
 
 )

 
  
  
 
 (11,623

 
 
 )

 
  
  
 
 (25,996

 
 
 )

 
  
  
 
 (23,124

 
 
 )

 
 

 
 
 Repayment of credit facility

 
  
  
 
 (782

 
 
 )

 
  
  
 
 (782

 
 
 )

 
  
  
 
 (1,563

 
 
 )

 
  
  
 
 (1,563

 
 
 )

 
 

 
 
 Net cash used in financing activities

 
  
 
 $

 
 
 (18,457

 
 
 )

 
  
 
 $

 
 
 (13,878

 
 
 )

 
  
 
 $

 
 
 (38,407

 
 
 )

 
  
 
 $

 
 
 (29,699

 
 
 )

 
 

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Effect of foreign exchange rate changes on cash

 
  
  
 
 (1,333

 
 
 )

 
  
  
 
 6,186

 
  
  
  
 
 (3,335

 
 
 )

 
  
  
 
 8,974

 
  
 

 
 
 Net (decrease) / increase in cash and cash equivalents

 
  
  
 
 (29,308

 
 
 )

 
  
  
 
 4,179

 
  
  
  
 
 (45,036

 
 
 )

 
  
  
 
 5,159

 
  
 

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Cash and cash equivalents, beginning of period

 
  
  
 
 162,518

 
  
  
  
 
 112,231

 
  
  
  
 
 178,244

 
  
  
  
 
 111,251

 
  
 

 
 
 Cash and cash equivalents, end of period

 
  
 
 $

 
 
 133,208

 
  
  
 
 $

 
 
 116,410

 
  
  
 
 $

 
 
 133,208

 
  
  
 
 $

 
 
 116,410

 
  
 

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Supplemental Disclosure of Cash Information:

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Cash paid for income taxes

 
  
 
 $

 
 
 6,934

 
  
  
 
 $

 
 
 15,293

 
  
  
 
 $

 
 
 7,678

 
  
  
 
 $

 
 
 14,689

 
  
 

 
 
 Cash paid for interest

 
  
  
 
 3,518

 
  
  
  
 
 4,106

 
  
  
  
 
 7,288

 
  
  
  
 
 8,465

 
  
 

 
 
 

 
 11

 
 

 

 Shutterstock, Inc.

 Reconciliation of Non-GAAP Financial Information to GAAP

 (In thousands, except per share information)

 (unaudited)

 
 

 Adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted net income per diluted share, revenue growth (including by distribution channel) on a constant
 currency basis (expressed as a percentage), and adjusted free cash flow are not financial measures prepared in accordance with United States generally accepted accounting principles (GAAP). Such non-GAAP financial measures should not be construed
 as alternatives to any other measures of performance determined in accordance with GAAP. Investors are cautioned that non-GAAP financial measures are not based on any standardized methodology prescribed by GAAP and are not necessarily comparable to
 similarly-titled measures presented by other companies.

 
 

 

 
  
  
 
 Three Months Ended June 30,

 
  
  
 
 Six Months Ended June 30,

 
  
 

 
  
  
 
 2026

 
  
  
 
 2025

 
  
  
 
 2026

 
  
  
 
 2025

 
  
 

 
 
 Net (loss) / income

 
  
 
 $

 
 
 (155,939

 
 
 )

 
  
 
 $

 
 
 29,440

 
  
  
 
 $

 
 
 (203,508

 
 
 )

 
  
 
 $

 
 
 48,128

 
  
 

 
 
 Add / (less) Non-GAAP adjustments:

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Non-cash equity-based compensation

 
  
  
 
 12,536

 
  
  
  
 
 15,625

 
  
  
  
 
 25,908

 
  
  
  
 
 33,509

 
  
 

 
 
 Tax effect of non-cash equity-based compensation (1)

 
  
  
 
 (2,946

 
 
 )

 
  
  
 
 (3,672

 
 
 )

 
  
  
 
 (6,088

 
 
 )

 
  
  
 
 (7,875

 
 
 )

 
 

 
 
 Acquisition-related amortization expense (2)

 
  
  
 
 9,564

 
  
  
  
 
 9,581

 
  
  
  
 
 19,163

 
  
  
  
 
 19,278

 
  
 

 
 
 Tax effect of acquisition-related amortization expense (1)

 
  
  
 
 (2,248

 
 
 )

 
  
  
 
 (2,252

 
 
 )

 
  
  
 
 (4,504

 
 
 )

 
  
  
 
 (4,531

 
 
 )

 
 

 
 
 Unrealized loss / (gain) on investment

 
  
  
 
 2,963

 
  
  
  
 
 (13,029

 
 
 )

 
  
  
 
 18,268

 
  
  
  
 
 (26,289

 
 
 )

 
 

 
 
 Goodwill impairment

 
  
  
 
 173,738

 
  
  
  
 
 —

 
  
  
  
 
 173,738

 
  
  
  
 
 —

 
  
 

 
 
 Tax effect of goodwill impairment(1)

 
  
  
 
 (10,371

 
 
 )

 
  
  
 
 —

 
  
  
  
 
 (10,371

 
 
 )

 
  
  
 
 —

 
  
 

 
 
 Workforce optimization - severance

 
  
  
 
 2,963

 
  
  
  
 
 121

 
  
  
  
 
 9,043

 
  
  
  
 
 301

 
  
 

 
 
 Tax effect of workforce optimization - severance(1)

 
  
  
 
 (667

 
 
 )

 
  
  
 
 (27

 
 
 )

 
  
  
 
 (2,035

 
 
 )

 
  
  
 
 (68

 
 
 )

 
 

 
 
 Giphy retention compensation expense - non-recurring

 
  
  
 
 —

 
  
  
  
 
 438

 
  
  
  
 
 649

 
  
  
  
 
 1,005

 
  
 

 
 
 Tax effect of Giphy retention compensation expense - non-recurring(1)

 
  
  
 
 —

 
  
  
  
 
 (103

 
 
 )

 
  
  
 
 (153

 
 
 )

 
  
  
 
 (236

 
 
 )

 
 

 
 
 Merger related costs

 
  
  
 
 3,680

 
  
  
  
 
 8,710

 
  
  
  
 
 6,535

 
  
  
  
 
 20,571

 
  
 

 
 
 Tax effect of merger related costs(1)

 
  
  
 
 (828

 
 
 )

 
  
  
 
 (1,960

 
 
 )

 
  
  
 
 (1,470

 
 
 )

 
  
  
 
 (4,629

 
 
 )

 
 

 
 
 Legal contingency

 
  
  
 
 5,000

 
  
  
  
 
 —

 
  
  
  
 
 33,000

 
  
  
  
 
 —

 
  
 

 
 
 Tax effect of legal contingency(1)

 
  
  
 
 (7,425

 
 
 )

 
  
  
 
 —

 
  
  
  
 
 (7,425

 
 
 )

 
  
  
 
 —

 
  
 

 
 
 Adjusted net income

 
  
 
 $

 
 
 30,020

 
  
  
 
 $

 
 
 42,872

 
  
  
 
 $

 
 
 50,750

 
  
  
 
 $

 
 
 79,164

 
  
 

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Net (loss) / income per diluted common share

 
  
 
 $

 
 
 (4.25

 
 
 )

 
  
 
 $

 
 
 0.82

 
  
  
 
 $

 
 
 (5.63

 
 
 )

 
  
 
 $

 
 
 1.35

 
  
 

 
 
 Adjusted net income per diluted common share

 
  
 
 $

 
 
 0.82

 
  
  
 
 $

 
 
 1.19

 
  
  
 
 $

 
 
 1.40

 
  
  
 
 $

 
 
 2.22

 
  
 

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Weighted average diluted shares

 
  
  
 
 36,703

 
  
  
  
 
 35,958

 
  
  
  
 
 36,126

 
  
  
  
 
 35,642

 
  
 

 
 _____________________________________________________

 
 

 

 
 
 
 (1)
 
 Statutory tax rates are used to calculate the tax effect of the adjustments.

 
 

 
 

 
 
 
 (2)
 
 Of these amounts, $8.9 million and $8.9 million are included in cost of revenue for the three months ended June 30, 2026 and 2025, respectively. The remainder of acquisition-related amortization expense is included in general and administrative expense in the Statement of Operations.

 
 

 
 
 

 
 12

 
 

 

 

 
  
  
 
 Three Months Ended June 30,

 
  
  
 
 Six Months Ended June 30,

 
  
 

 
  
  
 
 2026

 
  
  
 
 2025

 
  
  
 
 2026

 
  
  
 
 2025

 
  
 

 
 
 Net (loss) / income

 
  
 
 $

 
 
 (155,939

 
 
 )

 
  
 
 $

 
 
 29,440

 
  
  
 
 $

 
 
 (203,508

 
 
 )

 
  
 
 $

 
 
 48,128

 
  
 

 
 
 Add / (less) Non-GAAP adjustments:

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Interest expense

 
  
  
 
 3,833

 
  
  
  
 
 4,224

 
  
  
  
 
 7,593

 
  
  
  
 
 8,522

 
  
 

 
 
 Interest income

 
  
  
 
 (479

 
 
 )

 
  
  
 
 (1,077

 
 
 )

 
  
  
 
 (1,280

 
 
 )

 
  
  
 
 (2,012

 
 
 )

 
 

 
 
 Provision for income taxes

 
  
  
 
 (4,992

 
 
 )

 
  
  
 
 13,691

 
  
  
  
 
 (6,798

 
 
 )

 
  
  
 
 15,421

 
  
 

 
 
 Depreciation and amortization

 
  
  
 
 22,416

 
  
  
  
 
 22,611

 
  
  
  
 
 45,120

 
  
  
  
 
 45,282

 
  
 

 
 
 EBITDA

 
  
 
 $

 
 
 (135,161

 
 
 )

 
  
 
 $

 
 
 68,889

 
  
  
 
 $

 
 
 (158,873

 
 
 )

 
  
 
 $

 
 
 115,341

 
  
 

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Non-cash equity-based compensation

 
  
  
 
 12,536

 
  
  
  
 
 15,625

 
  
  
  
 
 25,908

 
  
  
  
 
 33,509

 
  
 

 
 
 Giphy retention compensation expense - non-recurring

 
  
  
 
 —

 
  
  
  
 
 438

 
  
  
  
 
 649

 
  
  
  
 
 1,005

 
  
 

 
 
 Merger related costs

 
  
  
 
 3,680

 
  
  
  
 
 8,710

 
  
  
  
 
 6,535

 
  
  
  
 
 20,571

 
  
 

 
 
 Foreign currency loss / (gain)

 
  
  
 
 (622

 
 
 )

 
  
  
 
 1,482

 
  
  
  
 
 (465

 
 
 )

 
  
  
 
 1,162

 
  
 

 
 
 Unrealized loss / (gain) on investment

 
  
  
 
 2,963

 
  
  
  
 
 (13,029

 
 
 )

 
  
  
 
 18,268

 
  
  
  
 
 (26,289

 
 
 )

 
 

 
 
 Legal contingencies

 
  
  
 
 5,000

 
  
  
  
 
 —

 
  
  
  
 
 33,000

 
  
  
  
 
 —

 
  
 

 
 
 Workforce optimization - severance

 
  
  
 
 2,963

 
  
  
  
 
 121

 
  
  
  
 
 9,043

 
  
  
  
 
 301

 
  
 

 
 
 Goodwill impairment

 
  
  
 
 173,738

 
  
  
  
 
 —

 
  
  
  
 
 173,738

 
  
  
  
 
 —

 
  
 

 
 
 Adjusted EBITDA

 
  
 
 $

 
 
 65,097

 
  
  
 
 $

 
 
 82,236

 
  
  
 
 $

 
 
 107,803

 
  
  
 
 $

 
 
 145,600

 
  
 

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Revenue

 
  
 
 $

 
 
 221,801

 
  
  
 
 $

 
 
 266,990

 
  
  
 
 $

 
 
 420,971

 
  
  
 
 $

 
 
 509,610

 
  
 

 
 
 Net (loss) / income margin

 
  
  
 
 (70.3

 
 
 )%

 
  
  
 
 11.0

 
 
 %

 
  
  
 
 (48.3

 
 
 )%

 
  
  
 
 9.4

 
 
 %

 
 

 
 
 Adjusted EBITDA margin

 
  
  
 
 29.3

 
 
 %

 
  
  
 
 30.8

 
 
 %

 
  
  
 
 25.6

 
 
 %

 
  
  
 
 28.6

 
 
 %

 
 

 
 
 

 
 

 

 
  
  
 
 Three Months Ended June 30,

 
  
  
 
 Six Months Ended June 30,

 
  
 

 
  
  
 
 2026

 
  
  
 
 2025

 
  
  
 
 2026

 
  
  
 
 2025

 
  
 

 
 
 Reported revenue (in thousands)

 
  
 
 $

 
 
 221,801

 
  
  
 
 $

 
 
 266,990

 
  
  
 
 $

 
 
 420,971

 
  
  
 
 $

 
 
 509,610

 
  
 

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Revenue (decline) /growth

 
  
  
 
 (17

 
 
 )%

 
  
  
 
 21

 
 
 %

 
  
  
 
 (17

 
 
 )%

 
  
  
 
 17

 
 
 %

 
 

 
 
 Revenue (decline) / growth on a constant currency basis

 
  
  
 
 (17

 
 
 )%

 
  
  
 
 20

 
 
 %

 
  
  
 
 (18

 
 
 )%

 
  
  
 
 17

 
 
 %

 
 

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Content reported revenue (in thousands)

 
  
 
 $

 
 
 165,664

 
  
  
 
 $

 
 
 199,796

 
  
  
 
 $

 
 
 343,790

 
  
  
 
 $

 
 
 402,684

 
  
 

 
 
 Content revenue (decline) / growth

 
  
  
 
 (17

 
 
 )%

 
  
  
 
 18

 
 
 %

 
  
  
 
 (15

 
 
 )%

 
  
  
 
 17

 
 
 %

 
 

 
 
 Content revenue (decline) / growth on a constant currency basis

 
  
  
 
 (16

 
 
 )%

 
  
  
 
 16

 
 
 %

 
  
  
 
 (15

 
 
 )%

 
  
  
 
 17

 
 
 %

 
 

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Data, Distribution, and Services reported revenue (in thousands)

 
  
 
 $

 
 
 56,137

 
  
  
 
 $

 
 
 67,194

 
  
  
 
 $

 
 
 77,181

 
  
  
 
 $

 
 
 106,926

 
  
 

 
 
 Data, Distribution, and Services revenue (decline) / growth

 
  
  
 
 (16

 
 
 )%

 
  
  
 
 34

 
 
 %

 
  
  
 
 (28

 
 
 )%

 
  
  
 
 18

 
 
 %

 
 

 
 
 Data, Distribution, and Services revenue (decline) / growth on a constant currency basis

 
  
  
 
 (19

 
 
 )%

 
  
  
 
 35

 
 
 %

 
  
  
 
 (30

 
 
 )%

 
  
  
 
 18

 
 
 %

 
 

 
 
 

 
 13

 
 

 

 

 
  
  
 
 Three Months Ended June 30,

 
  
  
 
 Six Months Ended June 30,

 
  
 

 
  
  
 
 2026

 
  
  
 
 2025

 
  
  
 
 2026

 
  
  
 
 2025

 
  
 

 
 
 Cash flow information:

 
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Net cash provided by operating activities

 
  
 
 $

 
 
 621

 
 
 
  
 
 $

 
 
 26,836

 
  
  
 
 $

 
 
 17,991

 
  
  
 
 $

 
 
 52,083

 
  
 

 
 
 Net cash used in investing activities

 
  
 
 $

 
 
 (10,139

 
 
 )

 
  
 
 $

 
 
 (14,965

 
 
 )

 
  
 
 $

 
 
 (21,285

 
 
 )

 
  
 
 $

 
 
 (26,199

 
 
 )

 
 

 
 
 Net cash used in financing activities

 
  
 
 $

 
 
 (18,457

 
 
 )

 
  
 
 $

 
 
 (13,878

 
 
 )

 
  
 
 $

 
 
 (38,407

 
 
 )

 
  
 
 $

 
 
 (29,699

 
 
 )

 
 

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Adjusted free cash flow:

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Net cash provided by operating activities

 
  
 
 $

 
 
 621

 
 
 
  
 
 $

 
 
 26,836

 
  
  
 
 $

 
 
 17,991

 
  
  
 
 $

 
 
 52,083

 
  
 

 
 
 Capital expenditures

 
  
  
 
 (10,115

 
 
 )

 
  
  
 
 (11,312

 
 
 )

 
  
  
 
 (21,710

 
 
 )

 
  
  
 
 (22,120

 
 
 )

 
 

 
 
 Content acquisitions

 
  
  
 
 (110

 
 
 )

 
  
  
 
 (4,081

 
 
 )

 
  
  
 
 (301

 
 
 )

 
  
  
 
 (4,978

 
 
 )

 
 

 
 
 Cash received related to Giphy Retention Compensation

 
  
  
 
 109

 
  
  
  
 
 369

 
  
  
  
 
 477

 
  
  
  
 
 861

 
  
 

 
 
 Legal contingency settlement

 
  
  
 
 35,000

 
  
  
  
 
 —

 
  
  
  
 
 35,000

 
  
  
  
 
 —

 
  
 

 
 
 Merger related costs

 
  
  
 
 2,970

 
  
  
  
 
 5,686

 
  
  
  
 
 10,150

 
  
  
  
 
 15,036

 
  
 

 
 
 Adjusted Free Cash Flow

 
  
 
 $

 
 
 28,475

 
  
  
 
 $

 
 
 17,498

 
  
  
 
 $

 
 
 41,607

 
  
  
 
 $

 
 
 40,882

 
  
 

 
 
 

 
 

 

 
  
  
 
 Three Months Ended June 30,

 
  
  
 
 Six Months Ended June 30,

 
  
 

 
  
  
 
 2026

 
  
  
 
 2025

 
  
  
 
 2026

 
  
  
 
 2025

 
  
 

 
 
 Content

 
  
 
 $

 
 
 165,664

 
  
  
 
 $

 
 
 199,796

 
  
  
 
 $

 
 
 343,790

 
  
  
 
 $

 
 
 402,684

 
  
 

 
 
 Data, Distribution, and Services

 
  
 
 $

 
 
 56,137

 
  
  
 
 $

 
 
 67,194

 
  
  
 
 $

 
 
 77,181

 
  
  
 
 $

 
 
 106,926

 
  
 

 
 
 Total revenue

 
  
 
 $

 
 
 221,801

 
  
  
 
 $

 
 
 266,990

 
  
  
 
 $

 
 
 420,971

 
  
  
 
 $

 
 
 509,610

 
  
 

 
 
 

 
 14

 
 

 

 Shutterstock, Inc.

 Supplemental Financial Data

 (unaudited)

 
 

  Historical Operating Metrics

 
 

 

 
  
  
 
 Three Months Ended

 
  
 

 
  
  
 
 6/30/26

 
  
  
 
 3/31/26

 
  
  
 
 12/31/25

 
  
  
 
 9/30/25

 
  
  
 
 6/30/25

 
  
  
 
 3/31/25

 
  
  
 
 12/31/24

 
  
  
 
 9/30/245

 
  
 

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Subscribers (end of period, in thousands) (1)

 
  
  
 
 951

 
  
  
  
 
 993

 
  
  
  
 
 1,032

 
  
  
  
 
 1,060

 
  
  
  
 
 1,073

 
  
  
  
 
 1,079

 
  
  
  
 
 459

 
  
  
  
 
 470

 
  
 

 
 
 Subscriber revenue (in millions) (2)

 
  
 
 $

 
 
 99.8

 
  
  
 
 $

 
 
 103.8

 
  
  
 
 $

 
 
 104.7

 
  
  
 
 $

 
 
 107.2

 
  
  
 
 $

 
 
 108.0

 
  
  
 
 $

 
 
 109.9

 
  
  
 
 $

 
 
 75.7

 
  
  
 
 $

 
 
 78.7

 
  
 

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Average revenue per customer (last twelve months) (3)  
 

 
  
 
 $

 
 
 292

 
  
  
 
 $

 
 
 284

 
  
  
 
 $

 
 
 281

 
  
  
 
 $

 
 
 279

 
  
  
 
 $

 
 
 266

 
  
  
 
 $

 
 
 244

 
  
  
 
 $

 
 
 450

 
  
  
 
 $

 
 
 446

 
  
 

 
 
 Paid downloads (in millions) (4)

 
  
  
 
 98.7

 
  
  
  
 
 104.1

 
  
  
  
 
 107.9

 
  
  
  
 
 111.7

 
  
  
  
 
 112.6

 
  
  
  
 
 120.9

 
  
  
  
 
 33.0

 
  
  
  
 
 32.9

 
  
 

 
 
 

 Subscribers, Subscriber Revenue and Average Revenue Per Customer from acquisitions are included in these metrics beginning twelve months after the closing of the
 respective business combination. Accordingly, the metrics include Subscribers, Subscriber revenue, and Average revenue per customer from Backgrid beginning February 2025. 2025 metrics include the counts and revenues from Envato, which was acquired
 in July 22, 2024.

 
 

 (1) Subscribers is defined as those customers who purchase one or more of our monthly recurring products for a continuous period of at least three months, measured as of
 the end of the reporting period.

 
 

 (2) Subscriber revenue is defined as the revenue generated from subscribers during the period.

 
 

 (3) Average revenue per customer is calculated by dividing total revenue for the last twelve-month period by customers. Customers is defined as total active, paying
 customers that contributed to total revenue over the last twelve-month period.

 
 

 (4) Paid downloads is the number of downloads that our customers make in a given period of our content. Paid downloads exclude content related to our Studios business,
 downloads of content that are offered to customers for no charge, including our free trials and metadata delivered through our data deal offering.

 
 

 (5) Subscribers and Subscriber Revenue are presented as if Envato was acquired as of the beginning of the period presented. Average revenue per customer includes Envato
 historical results over the last twelve month period.

 
 

 Equity-Based Compensation by expense category

 
 

 

 
  
  
 
 Three Months Ended

 
  
 

 
  
  
 
 6/30/26

 
  
  
 
 3/31/26

 
  
  
 
 12/31/25

 
  
  
 
 9/30/25

 
  
  
 
 6/30/25

 
  
  
 
 3/31/25

 
  
  
 
 12/31/24

 
  
  
 
 9/30/24

 
  
 

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Cost of revenue

 
  
 
 $

 
 
 270

 
  
  
 
 $

 
 
 183

 
  
  
 
 $

 
 
 558

 
  
  
 
 $

 
 
 528

 
  
  
 
 $

 
 
 532

 
  
  
 
 $

 
 
 396

 
  
  
 
 $

 
 
 505

 
  
  
 
 $

 
 
 443

 
  
 

 
 
 Sales and marketing

 
  
  
 
 2,652

 
  
  
  
 
 2,112

 
  
  
  
 
 2,287

 
  
  
  
 
 2,098

 
  
  
  
 
 2,559

 
  
  
  
 
 2,255

 
  
  
  
 
 2,627

 
  
  
  
 
 3,226

 
  
 

 
 
 Product development

 
  
  
 
 3,242

 
  
  
  
 
 3,078

 
  
  
  
 
 3,218

 
  
  
  
 
 3,370

 
  
  
  
 
 3,529

 
  
  
  
 
 2,912

 
  
  
  
 
 2,722

 
  
  
  
 
 2,745

 
  
 

 
 
 General and administrative

 
  
  
 
 6,398

 
  
  
  
 
 7,999

 
  
  
  
 
 8,542

 
  
  
  
 
 6,966

 
  
  
  
 
 9,005

 
  
  
  
 
 12,321

 
  
  
  
 
 9,256

 
  
  
  
 
 8,680

 
  
 

 
 
 Total non-cash equity-based compensation  
 

 
  
 
 $

 
 
 12,562

 
  
  
 
 $

 
 
 13,372

 
  
  
 
 $

 
 
 14,605

 
  
  
 
 $

 
 
 12,962

 
  
  
 
 $

 
 
 15,625

 
  
  
 
 $

 
 
 17,884

 
  
  
 
 $

 
 
 15,110

 
  
  
 
 $

 
 
 15,094

 
  
 

 
 
 

 Depreciation and Amortization by expense category

 
 

 

 
  
  
 
 Three Months Ended

 
  
 

 
 
 ($ in thousands)

 
  
 
 6/30/26

 
  
  
 
 3/31/26

 
  
  
 
 12/31/25

 
  
  
 
 9/30/25

 
  
  
 
 6/30/25

 
  
  
 
 3/31/25

 
  
  
 
 12/31/24

 
  
  
 
 9/30/24

 
  
 

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Cost of revenue

 
  
 
 $

 
 
 20,732

 
  
  
 
 $

 
 
 20,898

 
  
  
 
 $

 
 
 21,010

 
  
  
 
 $

 
 
 21,028

 
  
  
 
 $

 
 
 20,