Technology

Jose Foundation : From Outrage to Infrastructure, What Africa’s Child-Protection Movement Needs Next

Published

3 hours ago

August 4, 2026

LAGOS, Nigeria, Aug. 4, 2026 /PRNewswire/ — By Dr Martins Abhulimhen, Founder and President, Jose Foundation.

Whenever a disturbing case of violence against a child becomes public, outrage spreads quickly. Citizens demand arrests, governments promise action, campaigners mobilise and the media amplifies the call for justice.

Then attention moves elsewhere.

The child and family, however, remain. They must navigate police procedures, medical examinations, social services, schools, courts, community pressures and the long psychological journey towards recovery.

This gap between public outrage and sustained institutional response is one of the defining child-protection challenges confronting Africa.

Across the continent, advocates, survivors, journalists, governments and development organisations have made significant progress in breaking the culture of silence surrounding child sexual exploitation, trafficking, forced marriage, online abuse and other forms of violence.

But awareness is only the beginning of protection.

Africa’s next challenge is to turn moral urgency into dependable infrastructure—to build systems that can prevent abuse, receive reports safely, coordinate investigations, support survivors, pursue justice and learn from institutional failures.

Vulnerability rarely arrives alone

For more than two decades, my work through Jose Foundation has focused on vulnerable children, women and communities.

Our public record includes advocacy against child sexual exploitation, engagement with displaced communities, stakeholder training, the establishment of an office to receive reports and facilitate access to justice, international collaboration, gender-based violence initiatives, women’s economic-inclusion programmes and a maternal-health partnership that distributed approximately 1,600 delivery kits in Kwara State, Nigeria.

These interventions took different forms, but they repeatedly revealed the same reality: vulnerability rarely arrives as a single problem.

A child living in a displaced community may face poverty, insecure shelter, interrupted education, inadequate healthcare and sexual exploitation simultaneously.

A survivor of gender-based violence may require immediate physical safety, medical care, legal representation, counselling, secure accommodation and a means of earning an income.

A child who reports abuse may also face rejection by family members, disruption of education, public exposure or pressure to withdraw the allegation.

Yet our institutions frequently divide these realities into separate administrative compartments.

The survivor is expected to move from one institution to another, explaining the same trauma repeatedly while each organisation addresses only the portion that falls within its mandate.

A child should not need to understand the boundaries between ministries, agencies and organisations to obtain help. Wherever that child speaks, the protection system should know how to listen and what to do next.

Africa needs a protection continuum

The continent needs to develop a complete protection continuum: prevent, recognise, report, respond, recover, pursue justice and reform.

Prevention must begin long before a criminal case emerges. It should be embedded in schools, homes, places of worship, sports organisations, healthcare facilities, humanitarian operations and digital platforms.

Every organisation working with children should have a safeguarding policy that defines prohibited conduct, reporting channels, escalation procedures and institutional responsibilities.

Teachers, healthcare workers, police officers, religious leaders, social workers, community leaders and sports administrators are often the first people positioned to notice warning signs. They need practical training to recognise grooming, coercion, exploitation and behavioural changes that may indicate harm.

But recognition is not enough. A credible system must provide accessible and trusted reporting channels.

Children rarely disclose abuse through a complete and perfectly structured account. Fear, threats, shame, dependency and confusion may affect how they communicate. A protection system must never punish a child for hesitating or finding it difficult to describe what happened.

Reporting channels should therefore be designed around the reality of childhood—not around the administrative convenience of institutions.

Technology must lead to a human response

Technology can expand access to protection services, particularly where specialist support is distant or unavailable.

Mobile reporting platforms, confidential helplines, secure case-management systems and multilingual information can help children, caregivers and witnesses communicate concerns.

But a digital interface is only as effective as the human and institutional response behind it.

The first question should not be, “How many people downloaded the application?” It should be, “What happened after a frightened child asked for help?”

Every report must connect to a trained person with a clear responsibility to assess risk, protect the child, preserve evidence and initiate an appropriate referral.

Child-protection technology must also be governed by exceptionally high privacy standards. These systems may contain identities, locations, medical information, family relationships, allegations and sensitive evidence.

Information should be collected only where necessary. Access must be restricted. Retention periods must be justified. Notifications should not expose a report to an alleged abuser who may control the child’s device.

Artificial intelligence may eventually help with translation, triage, case prioritisation or identifying patterns across anonymised data. But it must never make unsupervised decisions about a child’s credibility or safety.

In child protection, technology should expand human capability—not remove human accountability.

Survivors need coordinated care

A child who reports abuse should not be required to travel repeatedly between police stations, hospitals, social-service offices and courts while retelling the same traumatic experience.

Africa needs multidisciplinary response models that bring investigative, medical, psychosocial and legal services into a coordinated pathway.

This does not necessarily mean that every professional must work in the same building. It means that agencies must share clear protocols, understand their responsibilities and coordinate around the safety and dignity of the survivor.

Justice must also be understood more broadly than securing a conviction.

For a child, justice can include immediate safety, appropriate healthcare, psychological support, educational continuity, protection from retaliation and the confidence that the system believed the disclosure enough to act responsibly.

Recovery is not secondary to justice. It is part of justice.

Children need an independent institutional voice

Many African countries have ministries, commissions and agencies whose mandates touch children. Yet responsibility is often distributed so widely that no single institution is sufficiently empowered to examine how the entire system treats the child.

Countries should consider establishing or strengthening independent institutions authorised to speak exclusively for children.

In Nigeria, I have advocated consideration of a Children’s Commissioner model.

Such an office would not replace the police, courts, ministries, healthcare providers or social services. It would strengthen accountability across them.

A Children’s Commissioner should be able to listen directly to children, request information from public institutions, investigate systemic failures, commission research and advise policymakers on decisions affecting children.

The office should be independent enough to ask questions that vulnerable children and families may lack the power to ask:

Why was a warning ignored?Why was a report not escalated?Why did agencies fail to coordinate?Why was a child repeatedly exposed to danger?What must change to prevent another child from suffering the same failure?

The precise institutional structure will differ across jurisdictions, but the underlying principle is transferable: children need an authoritative and independent voice within the machinery of the state.

Funding must move beyond events

Too much humanitarian and child-protection work is organised around conferences, commemorative days and short project cycles.

These activities can create awareness, but protection systems require less visible and more durable investments: trained personnel, survivor-support services, referral networks, data governance, secure reporting channels, case management, monitoring and independent oversight.

Governments, donors and development partners must be willing to fund this infrastructure.

Civil society organisations must also improve transparency. We should distinguish clearly between a programme that has been proposed, one that is being implemented and one whose impact has been independently verified.

Credibility grows when organisations disclose not only what they intended to achieve, but what was delivered, what remains incomplete and what they learned.

Measure safety, not activity

The child-protection movement must move beyond counting activities.

The number of workshops conducted, participants trained, applications downloaded or materials distributed can indicate reach. But these figures do not necessarily tell us whether children became safer.

We must also ask:

How quickly were reports assessed?How many survivors received coordinated care?Were emergency referrals completed?Was evidence properly preserved?Did children remain safely in education?Did institutions change unsafe procedures?Were repeat failures reduced?Did survivors and families trust the response?

Measurement should help institutions learn, not simply decorate reports.

Every serious case should trigger a review of the system. Where were the warning signs? Which institution delayed? What information was missing? What policy failed in practice? What must be changed?

Without this learning loop, societies simply wait for the next tragedy.

From temporary attention to permanent capability

Africa does not lack compassion. It does not lack courageous survivors, committed advocates or professionals trying to protect children under difficult conditions.

What it needs is the architecture that allows courage to produce consistent outcomes.

The next stage of Africa’s child-protection movement must therefore be defined by a transition:

From awareness to prevention.From reporting to reliable response.From isolated services to coordinated care.From institutional promises to measurable accountability.From short-lived outrage to permanent capability.

A child’s safety must not depend on whether a case becomes popular, whether a camera is present or whether an influential person intervenes.

The true test of a protection system is what happens when no one is watching.

Wherever an African child finds the courage to speak, the system should be prepared to listen, protect and act.

That is how we move from outrage to infrastructure.

That is how we build institutions worthy of a child’s trust.

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Technology

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

Published

42 minutes 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

42 minutes 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

$ 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

2 hours ago

August 4, 2026

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