0001549346-26-000023
SEC filingRevenue was $199.2M (-17.9%) Gross Profit was $104.4M (-26.4%) Operating Income was -$31.0M (-403.4%) Net Income was -$47.6M (-354.5%)
Gross profit was $104.4M, down 26.4% year-over-year, while gross margin remained stable at 52.4%. The stability in margin despite lower revenue reflects two offsetting factors: lower royalty expenses — which declined in proportion to revenue — and relatively fixed cost-of-revenue components such as AI token fees and hosting costs, which increased as a percentage of revenue.
Operating income was -$31.0M, a significant shift from $10.2M in Q1 FY2025. This change reflects both lower contribution from reduced top-line revenue and higher non-operating costs. Other (expense)/income, net includes foreign currency transaction gains and losses, unrealized gains and losses on investments, and interest income and expense — all of which contributed to the volatility in operating results.
The Company maintained its quarterly dividend and currently expects to continue paying comparable cash dividends in the future. Product development expenses — including capitalized internal-use software — are expected to continue as Shutterstock invests in new products, internal tools, and enhancements to existing technologies. These investments align with the Company’s focus on platform functionality and long-term growth potential.