Technology
Ultra Clean Reports Second Quarter 2026 Financial Results
Published
1 day agoon
By
HAYWARD, Calif., Aug. 3, 2026 /PRNewswire/ — Ultra Clean Holdings, Inc. (Nasdaq: UCTT), today reported its financial results for the second quarter ended June 26, 2026.
“UCT delivered second quarter results above the top end of our guided range reflecting strong operational execution and increasing customer demand,” said James Xiao, CEO. “The long-term outlook for semiconductor manufacturing remains compelling as AI continues to drive investment across the industry. Our priority is executing UCT 3.0 by expanding our global manufacturing capacity, enhancing engineering and operational capabilities, and accelerating digital transformation. Together, these initiatives position us to support our customers with greater speed, agility, and scale while delivering sustainable, profitable growth and creating long-term value for our shareholders.”
Second Quarter 2026 GAAP Financial Results
Total revenue was $644.9 million. Products contributed $572.7 million and Services added $72.2 million. Total gross margin was 16.1%, operating margin was 4.6%, and net income was $8.7 million or $0.19 per diluted share. This compares to total revenue of $533.7 million, gross margin of 15.8%, operating margin of 2.1%, and net loss of $(17.9) million or $(0.40) per diluted share, in the prior quarter.
Second Quarter 2026 Non-GAAP Financial Results
On a non-GAAP basis, gross margin was 16.7%, operating margin was 7.0%, and net income was $32.3 million or $0.70 per diluted share. This compares to gross margin of 16.5%, operating margin of 5.1%, and net income of $14.5 million or $0.31 per diluted share in the prior quarter.
Third Quarter 2026 Outlook
The Company expects revenue in the range of $700 million to $750 million. The Company expects GAAP diluted net income per share to be between $0.67 and $0.87 and non-GAAP diluted net income per share to be between $0.83 and $1.03.
Conference Call
The call will take place at 1:45 p.m. PT and can be accessed by dialing 1-800-836-8184 or 1-646-357-8785. No passcode is required. A replay of the call will be available by dialing 1-888-660-6345 or 1-646-517-4150 and entering the confirmation code 68934#. The Webcast will be available on the Investor Relations section of the Company’s website at http://uct.com/investors/events/.
About Ultra Clean Holdings, Inc.
Ultra Clean Holdings, Inc. is a leading developer and supplier of critical subsystems, components, parts, and ultra-high purity cleaning and analytical services, primarily for the semiconductor industry. Under its Products division, UCT offers its customers an integrated outsourced solution for major subassemblies, improved design-to-delivery cycle times, design for manufacturability, prototyping, and high-precision manufacturing. Under its Services Division, UCT offers its customers tool chamber parts cleaning and coating, as well as micro-contamination analytical services. Ultra Clean is headquartered in Hayward, California. Additional information is available at www.uct.com.
Use of Non-GAAP Measures
In addition to providing results that are determined in accordance with Generally Accepted Accounting Principles in the United States of America (“GAAP”), management uses non-GAAP gross margin, non-GAAP operating margin and non-GAAP net income to evaluate the Company’s operating and financial results. We believe the presentation of non-GAAP results is useful to investors for analyzing our core business and business trends and comparing performance to prior periods, along with enhancing investors’ ability to view the Company’s results from management’s perspective. The presentation of this additional information should not be considered a substitute for results prepared in accordance with GAAP. Tables presenting reconciliations from GAAP results to non-GAAP results are included at the end of this press release.
The Company defines non-GAAP net income as net loss before amortization of intangible assets, stock-based compensation, restructuring charges, debt refinancing costs, legal-related costs, unrealized loss (gain) on foreign exchange, and the tax effects of the foregoing adjustments.
A reconciliation of our guidance for non-GAAP net income per diluted share for the subsequent quarter is not available due to fluctuations in the geographic mix of our earnings from quarter to quarter, which impacts our tax rate and cannot be reasonably predicted or determined. As a result, such reconciliation is not available without unreasonable efforts and we are unable to determine the probable significance of the unavailable information.
Safe Harbor Statement
The foregoing information contains, or may be deemed to contain, “forward-looking statements” (as defined in the US Private Securities Litigation Reform Act of 1995) which reflect our current views with respect to future events and financial performance. We use words such as “anticipates,” “projection,” “outlook,” “forecast,” “believes,” “plan,” “expect,” “future,” “intends,” “may,” “will,” “estimates,” “see,” “predicts,” “should” and similar expressions to identify these forward-looking statements. Forward looking statements included in this press release include our expectations about the semiconductor capital equipment market and outlook. All forward-looking statements address matters that involve risks and uncertainties. Accordingly, the Company’s actual results may differ materially from the results predicted or implied by these forward-looking statements. These risks, uncertainties and other factors also include, among others, those identified in “Risk Factors,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and elsewhere in our annual report on Form 10-K for the year ended December 26, 2025, as filed with the Securities and Exchange Commission. Ultra Clean Holdings, Inc. undertakes no obligation to publicly update or review any forward-looking statements, whether as a result of new information, future developments or otherwise unless required by law.
Contact:
Rhonda Bennetto
SVP Investor Relations
rbennetto@uct.com
ULTRA CLEAN HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited; in millions, except per share data)
Three Months Ended
Six Months Ended
June 26,
2026
June 27,
2025
June 26,
2026
June 27,
2025
Revenues:
Products
$ 572.7
$ 454.9
$ 1,038.4
$ 911.9
Services
72.2
63.9
140.2
125.5
Total revenues
644.9
518.8
1,178.6
1,037.4
Cost of revenues:
Products
488.8
393.3
889.5
783.5
Services
52.4
46.0
101.0
90.4
Total cost revenues
541.2
439.3
990.5
873.9
Gross margin
103.7
79.5
188.1
163.5
Operating expenses:
Research and development
8.8
7.8
17.4
15.4
Sales and marketing
16.4
15.5
31.9
30.5
General and administrative
49.0
46.9
98.0
95.4
Impairment of goodwill
—
151.1
—
151.1
Total operating expenses
74.2
221.3
147.3
292.4
Income (loss) from operations
29.5
(141.8)
40.8
(128.9)
Interest income
1.0
0.8
2.4
1.9
Interest expense
(1.1)
(10.1)
(8.3)
(20.0)
Other income (expense), net
0.6
(2.2)
(0.7)
(1.3)
Income (loss) before provision for income taxes
30.0
(153.3)
34.2
(148.3)
Provision for income taxes
18.1
7.2
37.2
14.6
Net income (loss)
11.9
(160.5)
(3.0)
(162.9)
Less: Net income attributable to noncontrolling
interests
3.2
1.5
6.2
4.1
Net income (loss) attributable to UCT
$ 8.7
$ (162.0)
$ (9.2)
$ (167.0)
Net income (loss) per share attributable to UCT common stockholders:
Basic
$ 0.19
$ (3.58)
$ (0.20)
$ (3.70)
Diluted
$ 0.19
$ (3.58)
$ (0.20)
$ (3.70)
Shares used in computing net income (loss) per share:
Basic
45.1
45.2
45.2
45.2
Diluted
46.1
45.2
45.2
45.2
ULTRA CLEAN HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited; in millions)
June 26,
2026
December 26,
2025
ASSETS
Current assets:
Cash and cash equivalents
$ 255.9
$ 311.8
Accounts receivable, net of allowance for credit losses
208.0
208.8
Inventories
629.9
390.9
Prepaid expenses and other current assets
66.7
48.2
Total current assets
1,160.5
959.7
Property, plant and equipment, net
323.7
324.6
Goodwill
114.2
114.2
Intangible assets, net
143.2
156.8
Deferred tax assets, net
4.4
3.5
Operating lease right-of-use assets
158.1
157.2
Other non-current assets
14.0
13.0
Total assets
$ 1,918.1
$ 1,729.0
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current portion of long-term debt
$ —
$ 9.9
Accounts payable
300.6
194.9
Accrued compensation and related benefits
62.4
51.1
Operating lease liabilities
21.5
20.2
Other current liabilities
40.2
24.6
Total current liabilities
424.7
300.7
Long-term debt
599.4
467.0
Deferred tax liabilities
14.1
13.8
Operating lease liabilities
155.0
156.6
Other liabilities
7.8
6.8
Total liabilities
1,201.0
944.9
Equity:
UCT stockholders’ equity:
Common stock
0.1
0.1
Additional paid-in capital
560.8
578.7
Common shares held in treasury
(88.7)
(48.4)
Retained earnings
180.0
189.2
Accumulated other comprehensive loss
(12.4)
(8.6)
Total UCT stockholders’ equity
639.8
711.0
Noncontrolling interests
77.3
73.1
Total equity
717.1
784.1
Total liabilities and equity
$ 1,918.1
$ 1,729.0
ULTRA CLEAN HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited; in millions)
Six Months Ended
June 26,
2026
June 27,
2025
(In millions)
Cash flows from operating activities:
Net loss
$ (3.0)
$ (162.9)
Adjustments to reconcile net loss to net cash provided by (used in) operating
activities:
Depreciation and amortization
24.8
23.4
Amortization of intangible assets
13.7
14.3
Stock-based compensation
9.6
10.0
Amortization of debt issuance costs
1.6
1.1
Impairment of goodwill
—
151.1
Loss on extinguishment of debt
3.4
—
Loss on disposal of property, plant and equipment
1.2
0.1
Change in the fair value of financial instruments
—
(0.1)
Deferred income taxes
(0.5)
0.6
Changes in assets and liabilities:
Accounts receivable
0.8
34.3
Inventories
(238.9)
5.4
Prepaid expenses and other current assets
(13.8)
(7.8)
Other non-current assets
0.9
(0.5)
Accounts payable
104.4
(11.9)
Accrued compensation and related benefits
11.3
(2.6)
Income taxes payable
(2.5)
(4.2)
Operating lease right-of-use assets and operating lease liabilities
(1.2)
11.1
Other liabilities
13.8
(4.0)
Net cash provided by (used in) operating activities
(74.4)
57.4
Cash flows from investing activities:
Purchases of property, plant and equipment
(25.8)
(29.2)
Proceeds from sale of equipment
0.1
0.1
Net cash used in investing activities
(25.7)
(29.1)
Cash flows from financing activities:
Proceeds from the issuance of convertible notes
600.0
—
Borrowings on revolving credit facility
15.0
—
Proceeds from issuance of common stock
1.1
1.1
Payment of debt issuance costs
(17.4)
(0.6)
Repurchase of common stock
(40.0)
(3.4)
Payment for capped call transactions
(25.1)
—
Principal payments on bank borrowings
(481.5)
(15.1)
Employees’ taxes paid upon vesting of restricted stock units
(3.5)
(0.7)
Payments of dividends to a joint venture shareholder
(0.1)
(0.1)
Net cash provided by (used in) financing activities
48.5
(18.8)
Effect of exchange rate changes on cash and cash equivalents
(4.3)
4.0
Net increase (decrease) in cash and cash equivalents
(55.9)
13.5
Cash and cash equivalents at beginning of period
311.8
313.9
Cash and cash equivalents at end of period
$ 255.9
$ 327.4
ULTRA CLEAN HOLDINGS, INC.
REPORTABLE SEGMENTS
GAAP TO NON-GAAP RECONCILIATION
(Unaudited; dollars in millions)
GAAP
Non-GAAP
Three Months Ended
Three Months Ended
June 26, 2026
June 26, 2026
Products
Services
Consolidated
Products
Services
Consolidated
Revenues
$ 572.7
$ 72.2
$ 644.9
$ 572.7
$ 72.2
$ 644.9
Gross profit
$ 83.9
$ 19.8
$ 103.7
$ 86.7
$ 20.9
$ 107.6
Gross margin
14.6 %
27.4 %
16.1 %
15.1 %
28.9 %
16.7 %
Income from operations
$ 24.8
$ 4.7
$ 29.5
$ 37.0
$ 8.1
$ 45.1
Operating margin
4.3 %
6.6 %
4.6 %
6.5 %
11.2 %
7.0 %
Three Months Ended
June 26, 2026
Products
Services
Consolidated
Reconciliation of GAAP Gross profit to Non-GAAP Gross profit (in millions)
Reported gross profit on a GAAP basis
$ 83.9
$ 19.8
$ 103.7
Amortization of intangible assets (1)
1.3
1.0
2.3
Stock-based compensation expense (2)
1.5
—
1.5
Restructuring charges (3)
—
0.1
0.1
Non-GAAP gross profit
$ 86.7
$ 20.9
$ 107.6
Reconciliation of GAAP Gross margin to Non-GAAP Gross margin
Reported gross margin on a GAAP basis
14.6 %
27.4 %
16.1 %
Amortization of intangible assets (1)
0.2 %
1.4 %
0.4 %
Stock-based compensation expense (2)
0.3 %
— %
0.2 %
Restructuring charges (3)
— %
0.1 %
— %
Non-GAAP gross margin
15.1 %
28.9 %
16.7 %
Reconciliation of GAAP Income from operations to Non-GAAP Income from operations (in millions)
Reported income from operations on a GAAP basis
$ 24.8
$ 4.7
$ 29.5
Amortization of intangible assets (1)
3.9
2.9
6.8
Stock-based compensation expense (2)
7.6
0.5
8.1
Restructuring charges (3)
0.7
—
0.7
Non-GAAP income from operations
$ 37.0
$ 8.1
$ 45.1
Reconciliation of GAAP Operating margin to Non-GAAP Operating margin
Reported operating margin on a GAAP basis
4.3 %
6.6 %
4.6 %
Amortization of intangible assets (1)
0.7 %
4.0 %
1.0 %
Stock-based compensation expense (2)
1.3 %
0.6 %
1.3 %
Restructuring charges (3)
0.1 %
— %
0.1 %
Non-GAAP operating margin
6.5 %
11.2 %
7.0 %
1 Amortization of intangible assets related to the Company’s business acquisitions
2 Represents compensation expense for stock granted to employees and directors
3 Represents costs associated with employee separation, severance, retention, and other expenses related to facility closures
ULTRA CLEAN HOLDINGS, INC.
UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP ADJUSTED RESULTS
Three Months Ended
June 26,
2026
June 27,
2025
March 27,
2026
Reconciliation of GAAP Net Income (Loss) to Non-GAAP Net Income (in millions)
Reported net income (loss) attributable to UCT on a GAAP basis
$ 8.7
$ (162.0)
$ (17.9)
Amortization of intangible assets (1)
6.8
7.0
6.9
Stock-based compensation expense (2)
8.1
7.1
4.0
Restructuring charges (3)
0.7
4.8
4.8
Debt refinancing costs expensed (4)
0.7
—
3.0
Legal-related costs (5)
—
0.3
—
Unrealized loss (gain) on foreign exchange (6)
(1.9)
3.7
(1.1)
Impairment of goodwill (7)
—
151.1
—
Income tax effect of non-GAAP adjustments (8)
(2.9)
(34.9)
(3.5)
Income tax effect of valuation allowance (9)
12.1
37.9
18.3
Non-GAAP net income attributable to UCT
$ 32.3
$ 15.0
$ 14.5
Reconciliation of GAAP Income (Loss) from operations to Non-GAAP Income from operations (in millions)
Reported income (loss) from operations on a GAAP basis
$ 29.5
$ (141.8)
$ 11.4
Amortization of intangible assets (1)
6.8
7.0
6.9
Stock-based compensation expense (2)
8.1
7.1
4.0
Restructuring charges (3)
0.7
4.8
4.8
Legal-related costs (5)
—
0.3
—
Impairment of goodwill (7)
—
151.1
—
Non-GAAP income from operations
$ 45.1
$ 28.5
$ 27.1
Reconciliation of GAAP Operating margin to Non-GAAP Operating margin
Reported operating margin on a GAAP basis
4.6 %
(27.3) %
2.1 %
Amortization of intangible assets (1)
1.0 %
1.3 %
1.3 %
Stock-based compensation expense (2)
1.3 %
1.4 %
0.8 %
Restructuring charges (3)
0.1 %
0.9 %
0.9 %
Legal-related costs (5)
— %
0.1 %
— %
Impairment of goodwill (7)
— %
29.1 %
— %
Non-GAAP operating margin
7.0 %
5.5 %
5.1 %
Reconciliation of GAAP Gross profit to Non-GAAP Gross profit (in millions)
Reported gross profit on a GAAP basis
$ 103.7
$ 79.5
$ 84.4
Amortization of intangible assets (1)
2.3
2.3
2.3
Stock-based compensation expense (2)
1.5
0.4
1.2
Restructuring charges (3)
0.1
2.4
0.3
Non-GAAP gross profit
$ 107.6
$ 84.6
$ 88.2
Reconciliation of GAAP Gross margin to Non-GAAP Gross margin
Reported gross margin on a GAAP basis
16.1 %
15.3 %
15.8 %
Amortization of intangible assets (1)
0.4 %
0.4 %
0.4 %
Stock-based compensation expense (2)
0.2 %
0.1 %
0.2 %
Restructuring charges (3)
— %
0.5 %
0.1 %
Non-GAAP gross margin
16.7 %
16.3 %
16.5 %
Reconciliation of GAAP Other income (expense), net to Non-GAAP Other income (expense), net (in millions)
Reported Other income (expense), net on a GAAP basis
$ 0.6
$ (2.2)
$ (1.3)
Debt refinancing costs expensed (4)
0.7
—
3.0
Unrealized loss (gain) on foreign exchange (6)
(1.9)
3.7
(1.1)
Non-GAAP Other income (expense), net
$ (0.6)
$ 1.5
$ 0.6
Reconciliation of GAAP Income (Loss) Per Diluted Share to Non-GAAP Earnings Per Diluted Share
Reported net income (loss) on a GAAP basis
$ 0.19
$ (3.58)
$ (0.40)
Amortization of intangible assets (1)
0.15
0.15
0.15
Stock-based compensation expense (2)
0.18
0.16
0.09
Restructuring charges (3)
0.01
0.10
0.10
Debt refinancing costs expensed (4)
0.01
—
0.06
Legal-related costs (5)
—
0.01
—
Unrealized loss (gain) on foreign exchange (6)
(0.04)
0.08
(0.02)
Impairment of goodwill (7)
—
3.34
—
Income tax effect of non-GAAP adjustments (8)
(0.06)
(0.77)
(0.08)
Income tax effect of valuation allowance (9)
0.26
0.84
0.40
Impact of dilutive shares
—
—
0.01
Non-GAAP net earnings
$ 0.70
$ 0.33
$ 0.31
Weighted average number of diluted shares (in millions) on a
non-GAAP basis (10)
46.0
45.3
46.3
ULTRA CLEAN HOLDINGS, INC.
UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP EFFECTIVE INCOME TAX RATE
Three Months Ended
June 26,
2026
June 27,
2025
March 27,
2026
Provision for income taxes on a GAAP basis
$ 18.1
$ 7.2
$ 19.2
Income tax effect of non-GAAP adjustments (8)
2.9
34.9
3.5
Income tax effect of valuation allowance (9)
(12.1)
(37.9)
(18.3)
Non-GAAP provision for income taxes
$ 8.9
$ 4.2
$ 4.4
Income before income taxes on a GAAP basis
$ 30.0
$ (153.3)
$ 4.2
Amortization of intangible assets (1)
6.8
7.0
6.9
Stock-based compensation expense (2)
8.1
7.1
4.0
Restructuring charges (3)
0.7
4.8
4.8
Debt refinancing costs expensed (4)
0.7
—
3.0
Legal-related costs (5)
—
0.3
—
Unrealized loss (gain) on foreign exchange (6)
(1.9)
3.7
(1.1)
Impairment of goodwill (7)
—
151.1
—
Non-GAAP income before income taxes
$ 44.4
$ 20.7
$ 21.8
Effective income tax rate on a GAAP basis
60.3 %
(4.7) %
457.1 %
Non-GAAP effective income tax rate
20.0 %
20.3 %
20.0 %
1
Amortization of intangible assets related to the Company’s business acquisitions
2
Represents compensation expense for stock granted to employees and directors
3
Represents costs associated with employee separation, severance, retention, and other expenses related to facility closures
4
Represents certain third party transaction costs related to the amended credit agreement and the previously capitalized costs of extinguished debt
5
Represents estimated costs related to certain legal proceedings
6
Represents unrealized foreign exchange gains and losses arising from the remeasurement of monetary assets and liabilities
7
Represents non-cash charges related to the impairment of goodwill
8
Tax effect of items (1) through (7) above based on the non-GAAP tax rate
9
The Company’s GAAP tax expense is generally higher than the Company’s non-GAAP tax expense, primarily due to losses in the U.S. with full federal and state valuation allowances. The Company’s non-GAAP tax rate and resulting non-GAAP tax expense considers the tax implications as if there was no federal or state valuation allowance position in effect
10
Non-GAAP diluted weighted-average common shares are adjusted to reflect the dilutive impact of our convertible note based on the higher note hedge strike price instead of the initial conversion price
View original content to download multimedia:https://www.prnewswire.com/news-releases/ultra-clean-reports-second-quarter-2026-financial-results-302841520.html
SOURCE Ultra Clean Holdings, Inc.
You may like
Technology
Conectiv Expands Packaged Media Platform Through Strategic Partnership with Universal and Warner Bros.
Published
30 minutes agoon
August 4, 2026By
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.
View original content to download multimedia:https://www.prnewswire.com/news-releases/conectiv-expands-packaged-media-platform-through-strategic-partnership-with-universal-and-warner-bros-302843045.html
SOURCE Conectiv Supply Chain Solutions
Technology
Shutterstock Reports Second Quarter 2026 Financial Results
Published
30 minutes agoon
August 4, 2026By
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)
(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)
59
249
38
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)
(782)
(1,563)
(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
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 22, 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.
(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
$ 183
$ 558
$ 528
$ 532
$ 396
$ 505
$ 443
Sales and marketing
2,652
2,112
2,287
2,098
2,559
2,255
2,627
3,226
Product development
3,242
3,078
3,218
3,370
3,529
2,912
2,722
2,745
General and administrative
6,398
7,999
8,542
6,966
9,005
12,321
9,256
8,680
Total non-cash equity-based compensation
$ 12,562
$ 13,372
$ 14,605
$ 12,962
$ 15,625
$ 17,884
$ 15,110
$ 15,094
Depreciation and Amortization by expense category
Three Months Ended
($ in thousands)
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
$ 20,732
$ 20,898
$ 21,010
$ 21,028
$ 20,804
$ 20,742
$ 21,191
$ 19,653
General and administrative
1,684
1,806
1,725
1,849
1,807
1,929
2,096
1,991
Total depreciation and amortization
$ 22,416
$ 22,704
$ 22,735
$ 22,877
$ 22,611
$ 22,671
$ 23,287
$ 21,644
View original content to download multimedia:https://www.prnewswire.com/news-releases/shutterstock-reports-second-quarter-2026-financial-results-302843046.html
SOURCE Shutterstock, Inc.
Technology
Visual Detection Systems, Rockline Industries and The University of Akron Recognized for First Defense™ Fentanyl Detection Wipe Innovation
Published
1 hour agoon
August 4, 2026By
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.
View original content to download multimedia:https://www.prnewswire.com/news-releases/visual-detection-systems-rockline-industries-and-the-university-of-akron-recognized-for-first-defense-fentanyl-detection-wipe-innovation-302843027.html
SOURCE Visual Detection Systems
Conectiv Expands Packaged Media Platform Through Strategic Partnership with Universal and Warner Bros.
Shutterstock Reports Second Quarter 2026 Financial Results
Visual Detection Systems, Rockline Industries and The University of Akron Recognized for First Defense™ Fentanyl Detection Wipe Innovation
Send Rakhi to UK swiftly with UK Gifts Portal
Whiteboard Series with NEAR | Ep: 45 Joel Thorstensson from ceramic.network
New Gooseneck Omni Antennas Offer Enhanced Signals in a Durable Package
Why You Should Build on #NEAR – Co-founder Illia Polosukhin at CV Labs
Whiteboard Series with NEAR | Ep: 45 Joel Thorstensson from ceramic.network
NEAR End of Year Town Hall 2021: The Open Web World, MetaBUILD 2 Hackathon and 2021 recap
Trending
-
Coin Market5 days agoBhutan’s Gelephu taps 3iQ to manage part of Bitcoin treasury
-
Technology5 days agoHanon Systems Releases of 2025/26 ESG Report
-
Coin Market5 days agoCrypto’s next altseason may have fewer winners: Wintermute
-
Coin Market5 days agoBIS Project Agorá settles $1 million in tokenized cross-border payment trials
-
Coin Market5 days agoAave weighs closing 6 V3 blockchain markets, offboarding 50 low-use reserves
-
Coin Market4 days agoEx-FTX users report funds being released in $900M distribution round
-
Technology5 days agoCsquare Sets Conference Call for Second-Quarter 2026 Results
-
Technology5 days agoFICG Strengthens ASEAN Presence Through Strategic Partnerships with AME and JTC