Technology

Armadin and TENEX.ai Run the Largest Controlled Live AI Cyberattack on Record

Published

1 day ago

August 3, 2026

A joint engagement at a globally critical institution demonstrates continuous, machine-speed attack and response, the standard most organizations have not built and the one Armadin and TENEX.ai already run every day.

PALO ALTO, Calif., Aug. 3, 2026 /PRNewswire/ — Armadin, an AI-native cybersecurity company, and TENEX.ai, a fully-agentic, human-led security operations provider, today described a joint engagement to test a safe real-world global attack for a leading global institution.

Armadin’s autonomous, agentic attacker executed a safe AI attack across the entire external perimeter, internal network, and web applications. TENEX.ai‘s agentic platform and SOC ingested, triaged, and responded to the resulting telemetry in real time.

Over the course of the three day attack, Armadin’s swarm generated 17 million offensive actions, discovering 38 validated attack paths and producing 238 security findings. TENEX.ai’s agentic Security Operations platform separately triaged 100% of 101,169 alerts and reconstructed the entire attack across 231 billion raw events – a forensic effort that would have taken a five-person team approximately 2,400 hours or four months of manual analyst work.

This engagement reflects standing operating practice for both Armadin and TENEX.ai, not an isolated proof of concept. Armadin runs Hyperattacks against live environments continuously to help customers close their security gap before adversaries discover it. TENEX.ai runs fully-agentic, human-led continuous detection and response for every customer on the same operating cadence. This engagement demonstrates, under live conditions, what happens when both operating models run against each other at AI scale and speed rather than in isolation.

Why This Matters

Defenders historically relied on incomplete point-in-time assessments and signature-based scanners to discover their security gap. As AI accelerates the pace of digital change and attackers leverage agentic AI to conduct sophisticated machine-speed attacks, security programs must move towards effective autonomous security: AI-powered offense training AI-driven defense.

Armadin’s platform safely delivers the most comprehensive and powerful AI attacks to identify new and novel attack paths before adversaries can exploit them and train an organization’s defenses at machine speed.

TENEX.ai’s platform is built on continuous detection, triage, and investigation – matching that tempo on the defensive side. This engagement shows what happens when both capabilities run concurrently against a live enterprise environment, rather than sequentially or in isolation and what it exposes about the gap between having detection tooling and having detection coverage.

How it Worked

Armadin’s agentic swarm operated against the institution’s external perimeter, internal network, and web applications under zero-knowledge conditions. No privileged credentials. No control-point whitelisting. No source code access.

The swarm discovered and analyzed petabytes of attack surface reconnaissance data, indexed it into a security knowledge graph, then launched 26,000 agents against the environment. Each attack leveraged models trained with the expertise, tradecraft, and judgment of elite human operators, chaining discovered exposures into validated attack paths with the sophistication of an advanced threat actor. Every action the swarm took ran through Armadin’s control layer with supervision from a safety model trained with expert human feedback.

TENEX.ai’s SOC ingested the resulting activity through its detection stack, correlated and triaged the alerts it generated, and escalated based on analyst judgment rather than a pre-agreed response plan.

Neither side treated the other as a test to pass. Armadin’s agents adapted their tradecraft based on the defensive controls they encountered. TENEX.ai’s analysts investigated and escalated based on what the telemetry showed – not a script agreed in advance.

What the Swarm Found

Armadin’s swarm launched 1,300 attacks, carried out by 26,000 agents executing millions of actions and consuming tens of billions of tokens, targeting more than 25,000 services.

The engagement began at the institution’s external perimeter. Armadin’s swarm targeted the perimeter and identified exploitable access to the institution’s systems behind a defensive security deployment that included WAFs, endpoint security, and a Security Operations Center. Over the course of the engagement, Armadin documented 238 findings and chained 38 validated attack paths. 98 of those findings were significant. Armadin’s swarm is built to enumerate this class of exposure because it maps the actual, deployed dependency graph rather than relying on a static software bill of materials. That is the pattern most vulnerability management programs are not yet built to catch, because it does not read like a vulnerability in the traditional sense. It reads like ordinary engineering practice, right up until someone exploits it.

What TENEX.AI saw

During the exercise, TENEX.ai triaged all 101,169 alerts generated across the institution’s security stack. Human analysts remained accountable for every investigative and escalation decision, while TENEX.ai agents traced the attacker’s activity across 231 billion events, reconstructed 38 attack paths, assembled supporting evidence, and delivered evidence-backed findings for action. The scale of the investigation highlights the challenge facing modern Security Operations Centers. Attacker activity represented just one event in every 13,338 recorded during the engagement. TENEX.ai processed the entire data set while analysts directed the investigation and AI agents generated and executed queries, identified pivot points, gathered evidence, and synthesized the results.

The outcome was not a high-level summary. TENEX.ai produced evidence-backed determinations for all 238 findings. For each finding, the platform documented the attacker’s actions, the affected endpoint, whether the activity could be proven from available telemetry, which existing detections identified it, and what additional detection logic would be required. Each finding was classified across 31 dimensions, including mappings to MITRE ATT&CK, OWASP Top 10, OWASP API Top 10, and CWE where applicable. The platform also performed 31 documented verification checks, recording both positive and negative results so that visibility gaps were documented rather than assumed away.

Under a traditional SOC model, each of the 38 attack paths would typically require a separate investigation. Instead, TENEX.ai established every finding from evidence, correlated 2,164 distinct source addresses across 89 alerting rules related to the attacker infrastructure, and completed the investigation as a single coordinated operation. Every conclusion was evidence-based. Based on the scope of the investigation, performing the same work manually would have required approximately 2,400 analyst-hours – more than a year of effort for a single analyst or roughly four months for a five-person team.

What This Means

The institution in this engagement proactively engaged in the critical work of testing their environment against an AI Hyperattack. They maintain a WAF, endpoint security, and SOC coverage consistent with a well-resourced, expert, enterprise security program. Armadin’s swarm found and validated a real path to exploitation and proof that the exposure was genuine and not theoretical. TENEX.ai’s SecOps platform, SOC, and team triaged and worked that activity in real time, exactly as its detection and response model is built to do under live adversarial pressure.

That combination, autonomous offense and human-augmented defense operating against each other at machine speed, is converging on the default operating condition for enterprise security. Continuous adversarial validation is becoming the baseline, not the exception. Organizations that build it in now will be ready for what’s already here. Those still testing once a year will find their gap in production, and it will already be too late.

Executive Quotes

AI is a step-change in adversary capability that every defender must prepare for. Every organization needs to build a security program focused on effective autonomous security: red AI training blue AI. The scale, speed, and sophistication of Armadin’s Ultimate Attacker creates an adversarial loop that compounds faster than human defense, helping organizations close their security gap before attackers exploit it. The organizations that mobilize first will build the institutional muscle memory that compounds over time. The ones that wait will find out what unmanaged exposure costs.
Kevin Mandia, Chief Executive Officer, Armadin

Every organization needs to prepare for the AI threat. The security gap is widening as AI accelerates digital change and democratizes advanced offensive cyber capability. The industry just watched what happens when a capable, autonomous system has nothing enforcing what it is allowed to do. We built Armadin to provide effective autonomous security with the world’s most sophisticated offensive AI capability governed by a control system to ensure alignment to train machine-speed defense. Every organization needs safe Hyperattacks to discover their gap before attackers do.
Travis Lanham, Chief Technology Officer, Armadin

Watching an agentic adversary operate against a live enterprise is very different from reading a red team report after. During this engagement, our AI agents and analysts investigated activity at a scale most SOC teams were never built to respond to or even detect. This isn’t a preview of where cybersecurity is headed – it’s the environment organizations are operating in today.”
Eric Foster, Chief Executive Officer, Tenex

“Machine-speed attacks cannot be answered with human-speed workflows. In this exercise, TENEX’s AI agents traced attacker activity across billions of events, connected the pivots, and assembled the evidence. Human analysts directed the investigation and governed every escalation. That is the operating model we built: AI working at machine speed, with humans accountable for outcomes.”
Venkata Koppaka, Co-Founder and Chief Technology Officer, TENEX.ai

For more information, visit hyperattack.ai.

About Armadin

Armadin is an AI-native cybersecurity company delivering the definitive effective autonomous security platform to identify and eliminate your organization’s exploitable risk. As the threat of AI-driven attacks escalates, Armadin Hyperattacks empower enterprises to proactively secure their environments.

Led by CEO Kevin Mandia, Armadin is a group of engineers, researchers, and hackers on a mission to redefine what proactive security can do in the AI era.

About TENEX.ai

TENEX.ai is an AI-native, human-led security operations platform and MDR built by operators who have previously scaled MDR and founding engineers from Google Chronicle and leading AI labs. TENEX serves enterprise customers across the Google and Microsoft security ecosystems. Its fully agentic Security Operations platform autonomously triages, investigates, hunts, and responds to threats, with elite human analysts always in the loop to provide oversight, judgment, and accountability. Backed by Crosspoint Capital Partners, Shield Capital, DTCP, Deepwork Capital, and the Florida Opportunity Fund, with its seed round led in 2025 by Andreessen Horowitz (a16z), TENEX is headquartered in Sarasota, FL, with offices in Overland Park, San Jose, and Phoenix. Learn more at TENEX.ai.

Media Contacts

Armadin: Kristy Campbell, media@armadin.com
TENEX.ai: press@TENEX.ai

This press release constitutes marketing materials and promotional content prepared by Armadin. The information contained herein is intended for marketing and informational purposes only and should not be construed as investment advice, a guarantee of future performance, or an offer to sell or a solicitation to buy any product or service. Armadin makes no warranty, representation, or guarantee regarding the accuracy, completeness, or reliability of any information presented in these materials.

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SOURCE Armadin

Technology

INTURAI VENTURES ANNOUNCES PRIVATE PLACEMENT

Published

24 minutes ago

August 5, 2026

(CSE: URAI / OTC: URAIF / FSE: 3QG0)
investor@inturai.com

Highlights

Inturai launches a financing of up to $1,275,000 through a non-brokered private placement of up to 8,500,000 units at $0.15 per unit.

Each unit includes one common share and one full warrant, providing investors with additional participation in the Company’s future growth.

Proceeds are expected to be used for research and development, business development and general working capital purposes.

VANCOUVER, BC, Aug. 4, 2026 /PRNewswire/ — Inturai Ventures Corp. (the”Company”) (CSE: URAI) (OTC: URAIF) (FSE: 3QG0)is pleased to announce a non-brokered private placement of up to 8,500,000 units (each, a “Unit”) at a price of $0.15 per Unit for gross proceeds of up to $1,275,000 (the “Offering”). Each Unit will consist of one common share of the Company (each, a “Share”) and one share purchase warrant (each, a “Warrant”). Each Warrant will entitle the holder to acquire an additional common share of the Company at a price of $0.25 for a period of twenty-four months following closing of the Offering. The Warrants are subject to an accelerated expiry if, any time following the closing date of the Offering, the closing price of the Shares on the Canadian Securities Exchange, or such other market as the Shares may trade from time to time, is or exceeds $0.35 for five (5) consecutive trading days, in which event the holders of the Warrants may, at the Company’s election, be given notice and the Company will issue a press release announcing that the Warrants will expire thirty (30) days following the date of such press release. The Warrants may be exercised by the holder of the Warrants during the 30-day period between the date of the press release announcing the accelerated expiry date and the expiration of the Warrants.

The Company expects to utilize the proceeds of the Offering for research and development, business development and general working capital purposes.

The Units to be issued under the Offering will be offered for sale pursuant to the listed issuer financing exemption under Part 5A of National Instrument 45-106 – Prospectus Exemptions (the “Listed Issuer Financing Exemption”), in each of the provinces of Canada, except Quebec, and other qualifying jurisdictions, including the United States. The Units offered under the Listed Issuer Financing Exemption will be immediately “free-trading” under applicable Canadian securities laws.

There is an offering document (the “Offering Document”) related to this Offering that can be accessed under the Company’s profile at www.sedarplus.ca and at the Company’s website at www.inturai.com. Prospective investors should read this Offering Document before making an investment decision.

In connection with completion of the Offering, the Company may pay finders’ fees to eligible third-parties who have introduced subscribers to the Offering. Completion of the Offering remains subject to receipt of regulatory approvals. Such finder’s fees may consist of: (i) a cash fee equal to up to 6.0% of the gross proceeds of the Offering from investors introduced to the Company by a finder; and (ii) non-transferable finder’s warrants (“Finder’s Warrants”) equal to up to 6.0% of the aggregate number of Units issued to those investors which shall have the same terms as the Warrants. The Finder’s Warrants will have a four-month-and-one-day hold period after the closing date.

This press release is not an offer to sell or the solicitation of an offer to buy the securities in the United States or in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to qualification or registration under the securities laws of such jurisdiction. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and such securities may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from U.S. registration requirements and applicable U.S. state securities laws.

About Inturai Ventures

Inturai Ventures is advancing intelligent environments with cutting- edge AI technologies, transforming industries such as healthcare, military, smart homes, and industrial applications. For more information, visit www.inturai.com.

On behalf of the Board of Directors

Ed Clarke, CEO
Inturai Ventures Corp.
Email: investor@inturai.com
Phone: (+1) 604 339-0339

Forward-Looking Statements

This news release includes certain “forward-looking statements” under applicable Canadian securities legislation. Forward-looking statements are frequently characterized by words such as “anticipates”, “plan”, “continue”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “may”, “will”, “potential”, “proposed”, “positioned” and other similar words, or statements that certain events or conditions “may” or “will” occur and include, but are not limited to, statements with respect to the intended use of proceeds from the Offering; closing of the Offering; and filing of the Offering Document. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to general business, economic, competitive, political and social uncertainties, uncertain capital markets; and delay or failure to receive board or regulatory approvals. The reader is cautioned that the assumptions used in the preparation of the forward-looking statements may prove to be incorrect and the actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements. Accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do, what benefits, including the amount of proceeds, the Company will derive therefrom. Readers are cautioned that the foregoing list of factors is not exhaustive. The Company is under no obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.

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SOURCE INTURAI VENTURES CORP.

Technology

Conectiv Expands Packaged Media Platform Through Strategic Partnership with Universal and Warner Bros.

Published

1 hour ago

August 4, 2026

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

Technology

Shutterstock Reports Second Quarter 2026 Financial Results

Published

1 hour ago

August 4, 2026

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

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.

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.

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

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)

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

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)

249

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)

(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

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.

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 %

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

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

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

(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