| Metric | Value ($ M) | Q1 FY25 |
|---|---|---|
| Revenue | 199.17 | 17.9% |
| Total Income | 199.17 | 17.9% |
| Expenditure | 230.12 | 1.0% |
| PBT | -49.38 | 341.8% |
| Net Profit | -47.57 | 354.5% |
| OPM | -15.54% | 19.75pp |
| NPM | -23.88% | 31.59pp |
| EPS | -1.34 | 348.1% |
Shutterstock Reports Q1 2026 Net Loss of $47.6 Million Amidst Revenue Decline
28 Apr 2026 · 28 Apr, 4:38 pm
Summary
Shutterstock, Inc. announced challenging first quarter 2026 financial results, with revenues decreasing by 18% year-over-year to $199.2 million. The company reported a net loss of $47.6 million, a significant reversal from a net income of $18.7 million in Q1 2025, driven by revenue decline, unrealized investment losses, and legal contingency expenses. Adjusted EBITDA also saw a substantial 33% drop to $42.7 million, with the adjusted EBITDA margin contracting to 21.4%. Despite these headwinds, management expressed confidence in the long-term trajectory of its Data Licensing and AI Services division, highlighting ongoing investments and a robust pipeline of opportunities.
Key Highlights
- 1
Shutterstock reported first quarter 2026 revenues of $199.2 million, marking an 18% decrease compared to $242.6 million in the first quarter of 2025.
- 2
The company recorded a net loss of $47.6 million for Q1 2026, a significant decline from a net income of $18.7 million in the prior year's first quarter.
- 3
Net loss per diluted common share was $1.34, contrasting with a net income per diluted common share of $0.53 in the first quarter of 2025.
- 4
Adjusted EBITDA for the quarter decreased by 33% to $42.7 million, down from $63.4 million in Q1 2025, primarily due to the decline in revenue.
- 5
Adjusted EBITDA margin stood at 21.4% for Q1 2026, a decrease from 26.1% in the same period last year.
- 6
Adjusted free cash flow for the first quarter of 2026 was $13.1 million, representing a $10.3 million decrease from $23.4 million in Q1 2025.
- 7
The company continues to engage with the U.K. Competition and Markets Authority (CMA) regarding its proposed merger with Getty Images, following a provisional finding of a 'substantial lessening of competition' in the U.K. editorial market.
Management Comments
Paul Hennessy
During the first quarter, we maintained a strong focus on operational discipline and cost management, delivering $43 million in Adjusted EBITDA in the face of ongoing industry headwinds. While first quarter revenue was impacted by a slower start in our Content business than expected and the timing of revenue recognition associated with data licensing deals, we continue to invest in areas that will drive long-term growth and remain committed to simplifying our product offerings to better meet our customers' needs.
Paul Hennessy
We remain highly confident in the long-term trajectory of our Data Licensing and AI Services division. With a robust pipeline of major opportunities currently in progress, we are making the necessary investments today to expand our commercial execution and position Shutterstock as the premier, go-to provider for end-to-end AI model training data and adjacent services.
Paul Hennessy
Like Getty Images, we disagree with the CMA’s most recent assessment and do not believe the merger would substantially lessen competition in Editorial content in the UK. We remain confident in the merits of the merger and will continue working closely with Getty Images and the CMA toward closing.
Informational and educational content only. Not investment advice.