MEMPHIS, Tenn., Aug. 4, 2026 /PRNewswire/ — Conectiv Supply Chain Solutions and its affiliates (Conectiv) today announced the acquisition of Studio Distribution Services (SDS) from Universal Pictures Home Entertainment (Universal) and Warner Bros. Home Entertainment (Warner Bros.), the next step in a long-standing partnership focused on strengthening the packaged media format.

As part of the transaction, Conectiv has entered into exclusive, long-term licensing agreements with Universal and Warner Bros. to provide end-to-end supply chain services for the studios’ packaged media businesses. The agreements make Conectiv the exclusive operating platform supporting the physical home entertainment businesses of two of the world’s leading studios.

The transaction reflects a shared commitment by Conectiv, Universal and Warner Bros. to a resilient, customer-focused packaged media supply chain. By combining SDS’s sales and distribution capabilities with Conectiv’s manufacturing, fulfillment, and supply chain expertise, the companies are building a stronger platform to serve studios, retailers, and consumers.

Leaders from Universal and Warner Bros. said the transaction builds on years of collaboration with Conectiv and marks the next step in their shared vision for the packaged media business.

“The physical media business continues to be a vital part of the home entertainment ecosystem, and our commitment to the category remains strong as we thoughtfully evolve alongside changing market conditions and consumer behaviors,” said Justin Che, President, Universal Pictures Home Entertainment. “Drawing upon the success of our longstanding partnership with Conectiv, this transaction marks the next step in the evolution of Universal’s physical media operations, creating a stronger domestic distribution and supply chain model that is more agile, integrated and competitive in an increasingly dynamic marketplace.”

Mike Takac, Head of Transactional Sales at Warner Bros. said: “We are pleased to support Conectiv as it builds on the strong foundation and partnership established through Studio Distribution Services. Warner Bros. is committed to making our famed content available wherever our fans choose to engage with it, and physical media continues to be an important part of this strategy. This transition will ensure consumers and retailers continue to receive the outstanding support and availability they’ve come to trust.”

“We are honored by the confidence Universal and Warner Bros. have placed in Conectiv,” said Rob Wipper, Chief Executive Officer of Conectiv. “This is more than the coming together of two businesses. It reflects a shared commitment to the future of packaged media and to the customers and consumers who continue to value physical entertainment. Through the acquisition of SDS and our exclusive licensing agreements with Universal and Warner Bros., Conectiv is now the industry’s most comprehensive packaged media platform. We remain committed to investing in the capabilities, innovation, and customer service that will strengthen this category for years to come.”

Building the Industry’s Leading Packaged Media Platform

The transaction expands Conectiv’s capabilities by:

Establishing Conectiv as the exclusive licensed operating partner for the packaged media businesses of Universal and Warner Bros.Broadening relationships with leading studio and retail partnersCreating a stronger platform for continued innovation, customer service, and long-term growth

SDS will initially operate as a standalone operation to ensure a seamless transition for customers, employees, and partners, followed by a phased integration plan focused on maintaining service levels for all stakeholders.

The combined platform brings together:

Licensed content managementSupply chain management expertiseScaled manufacturing, fulfillment and logisticsIntegrated service offeringsOmnichannel distribution

Together, these capabilities simplify supply chains, improve responsiveness, and help customers navigate an evolving marketplace with confidence.

“This is an important milestone in Conectiv’s strategy to build the industry’s leading packaged media platform,” added Wipper. “We are excited to begin this next chapter alongside our studio partners and remain committed to the stability, flexibility, and trusted execution our customers expect.”

Terms of the transaction were not disclosed.

About Conectiv Conectiv is a portfolio company of Variant Equity, a private equity firm based in Los Angeles, California. Conectiv delivers integrated supply chain solutions that help customers reduce complexity, improve agility, and scale with confidence. Through flexible service models, operational expertise, and a customer-first approach, Conectiv partners with leading companies to build efficient, resilient solutions that support growth in dynamic markets.

About SDS SDS provides sales, distribution, and supply chain solutions for leading studio and retail customers. Its experienced team, established customer relationships, and operational expertise strengthen Conectiv’s ability to deliver flexible, reliable, and value-driven solutions.

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SOURCE Conectiv Supply Chain Solutions

NEW YORK, Aug. 4, 2026 /PRNewswire/ — 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.

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.

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.

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 from 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 from 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.

KEY OPERATING METRICS

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.

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.

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.

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.

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SOURCE Shutterstock, Inc.

First-of-its-kind presumptive fentanyl detection wipe honored with the 2026 World of Wipes Innovation Award® for scientific innovation, field usability and professional safety applications

MINERVA, Ohio, Aug. 4, 2026 /PRNewswire/ — Visual Detection Systems (VDS), The University of Akron and Rockline Industries are proud to announce that the First Defense™ Fentanyl Detection Wipe has received the 2026 World of Wipes Innovation Award®. The award was presented at the World of Wipes® International Conference, held June 29–July 2, 2026, at the Grand Hyatt Nashville in Tennessee.

The foundational chemistry behind First Defense™ originated at The University of Akron’s School of Polymer Science and Polymer Engineering, a nationally recognized leader in advanced materials and polymer research. Scientists at the university developed the first-generation formulation, using their expertise in polymer behavior and surface-interaction chemistry to establish the detection mechanism that became the foundation of the wipe’s plant-based technology.

The award was presented to Rockline Industries for the First Defense™ Fentanyl Detection Wipe, developed in collaboration with Visual Detection Systems and The University of Akron’s School of Polymer Science and Polymer Engineering. The recognition highlights the product’s innovative approach to presumptive fentanyl surface detection and its potential to support professionals working in high-risk environments where unknown substances may be present.

First Defense™ is a single-use presumptive test designed to rapidly detect trace fentanyl through a clear, visible color change. Its technology has been independently validated by a third party to detect both laboratory-grade and street-level fentanyl at very low concentrations. The wipe utilizes plant-based technology and was created to provide a simple, practical and field-focused detection method for professional-use environments.

The University of Akron’s early research helped enable First Defense™ to rapidly identify trace fentanyl through a visible color change, providing the scientific groundwork for a practical detection tool designed for real-world professional environments.

Designed for law enforcement, fire and EMS, military personnel, airports, schools, correctional facilities and other safety-sensitive settings, First Defense™ gives professionals a convenient tool to help improve situational awareness during unknown substance encounters.

“This recognition represents an important milestone for First Defense™ and for every organization involved in bringing this product from an innovative idea to a practical, professional-use solution,” said Ann Hull of Visual Detection Systems. “The University of Akron provided the foundational scientific research, and our partnership with Rockline Industries helped transform that work into a first-of-its-kind detection wipe that can be used in real-world environments. We are incredibly proud to see that collaboration and innovation recognized by the wipes and nonwovens industry.”

In the INDA announcement, Doug Cole, Vice President of Global Product Development at Rockline Industries, stated: “Rockline is honored to receive the 2026 World of Wipes Innovation Award for the First Defense Fentanyl Detection Wipe. This recognition reflects the innovation, passion, and dedication of our team to develop a first-of-its-kind solution that helps protect first responders, EMS, law enforcement, and others with a convenient, single-use product that performs effectively in real-world environments.”

The World of Wipes Innovation Award® recognizes products that demonstrate creativity, technical achievement and market potential within the wipes industry. Fellow 2026 finalists included The Clorox Company with Clorox™ Refreshables™ and Lenzing Fibers, Inc. with Lenzing™ DualWipe.

For Visual Detection Systems, the award underscores the importance of collaboration between scientific research, product development and advanced manufacturing. It also highlights the need for practical, professional-use detection tools that can support greater awareness and more informed decision-making in the field.

As fentanyl-related risks continue to challenge first responders and public safety professionals, First Defense™ provides a convenient presumptive detection option developed specifically for real-world use.

About The University of Akron School of Polymer Science and Polymer Engineering

The University of Akron’s School of Polymer Science and Polymer Engineering is nationally recognized for education and research in polymer science, polymer engineering and advanced materials. Its researchers pursue innovations in polymer behavior, surface interactions, material performance and other disciplines with applications across industry and society.

About First Defense™ Fentanyl Detection Wipe

First Defense™ Fentanyl Detection Wipe is a first-of-its-kind, single-use presumptive detection wipe designed to rapidly detect trace fentanyl through a clear, visible color change.

The initial formulation was developed in partnership with The University of Akron’s School of Polymer Science and Polymer Engineering. Its pioneering work in polymer-based detection chemistry laid the foundation for the plant-based technology that powers the wipe.

First Defense™ is intended for professional-use environments where unknown substance encounters may occur, including law enforcement, fire and EMS, military, airports, schools, correctional facilities and other safety-sensitive settings.

About Visual Detection Systems

Visual Detection Systems develops advanced detection solutions designed to support enhanced safety, awareness and response in professional-use environments. Through practical, field-focused products, VDS helps provide professionals with tools that support more informed decision-making when unknown substances may be present.

About Rockline Industries

About Rockline Industries Rockline Industries is a leading manufacturer of wet wipes and coffee filters for retail, commercial and professional markets. With decades of world-class product development and manufacturing experience globally. Rockline is committed to advancing cutting-edge innovations across a broad range of wipes and nonwoven product applications.

To learn more about First Defense™ Fentanyl Detection Wipes, visit firstdefensewipe.com.

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SOURCE Visual Detection Systems