SSTK · Shutterstock, Inc.

Shutterstock's first quarter 2026 results reflect significant headwinds across its business. Revenue declined 18% year-over-year to $199.2 million, driven by a 12% drop in Content revenue to $178.1 million due to weak new customer acquisition, and a 47% plunge in Data, Distribution, and Services revenue to $21.0 million, impacted by timing of metadata license revenue recognition. The company swung to a GAAP net loss of $47.6 million from net income of $18.7 million a year ago, hurt by $15.3 million in unrealized losses on its Meitu investment, $28.0 million in legal contingency expenses, and $6.1 million in workforce optimization costs. Adjusted EBITDA fell 33% to $42.7 million, with margin contracting to 21.4% from 26.1%. Management emphasized operational discipline and cost management, with CEO Paul Hennessy noting a focus on long-term growth investments in Data Licensing and AI Services. The pending merger with Getty Images remains a key overhang; the UK CMA provisionally found a substantial lessening of competition in the UK editorial market and indicated that a sale of Rex Features, Backgrid, and Splash News could be acceptable. The statutory deadline for the CMA's final report is June 14, 2026. The company also declared a quarterly dividend of $0.36 per share. Key operating metrics weakened: subscribers fell to 993,000 from 1,079,000, and paid downloads declined to 104.1 million from 120.9 million. The results underscore near-term revenue pressure and elevated costs, while the merger outcome and strategic pivot to AI services represent critical catalysts for investors.