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Shutterstock Reports Second Quarter 2026 Financial Results

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2 months ago

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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

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SOURCE Shutterstock, Inc.

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Sagility India Enters Asia’s Top 60 Best Workplaces, Ranked 57 in 2026

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18 minutes ago

on

September 21, 2026

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With over 22,000 employees in India and over 49,000 globally, Sagility continues to expand its workforce Employee initiatives span learning, leadership development, wellbeing and engagement, including STRIDE, PACE, STEP, S.H.E. Leads Program. S.H.E. Circle & Abilities Circle ERG, Wonder of Wellness and Healthcare Academy.  

MUMBAI, India, Sept. 21, 2026 /PRNewswire/ — Sagility India has been ranked 57 among Asia’s Best Workplaces 2026 in the Large Companies category by Great Place to Work. The company was ranked 11 among India’s Best Companies to Work For 2026, following previous Great Place to Work recognitions. 

The Asia ranking is based on confidential employee feedback, with more than 3.8 million individual responses representing nearly 8.9 million employees across the region. Employees evaluated their workplace experiences across areas including trust, innovation, company values, and leadership. Of the 100 organizations recognized in the Large Companies category, 34 operate in India. 

The findings also point to the importance of everyday employee experience. Overall sentiment among employees at the Best Workplaces in Asia remained high at 93%, while the Trust Index Grand Mean stood at 91%. More than 95% of employees reported positive sentiment on areas such as feeling safe, being welcomed, being treated fairly, and feeling proud to belong. 

Against this backdrop, Sagility’s workforce has grown to over 22,000 employees in India and more than 49,000 globally. Its people initiatives span career development, continuous learning, wellbeing, and employee engagement. Key programmes include the STRIDE, PACE, and STEP leadership development programmes, the S.H.E. Leads Program for women in junior and mid-level roles, S.H.E. Circle and Abilities Circle Employee Resource Groups, Wonder of Wellness initiatives, employee surveys, hobby clubs, and Healthcare Academy. Sagility also operates a hybrid work model.

Speaking about the recognition, Tina Vas, Chief Human Resources Officer, Sagility, said, “At our scale, culture is about what employees experience every day. Can they learn, speak up, get support, and see an opportunity to grow? Those are the things we pay attention to. We are thrilled to be recognised as the 57th Best Workplace in Asia, building on our earlier recognition as the 11th Best Workplace in India. These recognitions reinforce our commitment to our employees and their well-being, particularly because they are grounded in what employees themselves say about their experience.”

The latest recognition reinforces Sagility’s focus on building a workplace where employees have opportunities to learn, develop and contribute, while fostering an environment that supports wellbeing, inclusion and engagement. As the organization continues to evolve, these priorities remain an important part of its people strategy. 

About Sagility Limited

Sagility is a tech-led, U.S. healthcare-focused business operations solutions and services company that supports payers, providers, and their partners in delivering best-in-class operations, enhancing member and provider experiences, and improving the quality of care, all while ensuring cost-effective financial and clinical outcomes. With over two decades of experience, Sagility’s dedicated experts address complex healthcare challenges through deep domain expertise and technology innovations. The company serves six of the top ten payers in the U.S., utilizing its advanced technology, processes, and solutions to ensure efficient operations and minimize additional administrative costs. The company delivers these services through its skilled talent pool of nearly 50,000 professionals across five global service delivery centers located in the US, India, the Philippines, Jamaica, and Colombia.

To learn more, visit: https://sagility.com/ 

Media contact details:

Srushti Rao | press@sagility.com

View original content:https://www.prnewswire.com/in/news-releases/sagility-india-enters-asias-top-60-best-workplaces-ranked-57-in-2026-302884023.html

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New Research from Kai: UK CISOs Face a Widening AI Security Gap as Attackers Gain the Advantage

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19 minutes ago

on

September 21, 2026

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59% of UK CISOs say attackers already hold the advantage, while 67% take more than a week to remediate critical vulnerabilities

SAN JOSE, Calif., Sept. 21, 2026 /PRNewswire/ — Kai, the company behind the first agentic AI cybersecurity platform designed to execute security work end-to-end at machine speed with human expert accuracy, today announced UK findings from its inaugural 2026 State of Autonomous Defense Report.

According to the survey of 100 UK CISOs, a growing gap is emerging between the speed of AI-powered attacks and the ability of security teams to respond. As AI makes it faster and easier for attackers to find and exploit vulnerabilities, many UK organisations are still relying on manual processes that can take days or weeks. The findings point to a looming challenge for defenders: security operations built around human speed may not be able to keep pace as attackers become faster and more automated. If organisations fail to close vulnerabilities quickly, attackers could strike before defenders have a chance to act, increasing the risk of a major security incident.

While UK CISOs recognise the need to move toward machine-led security, many organisations aren’t there yet. Barriers including trust, governance and operational readiness could slow that transition as attackers continue to accelerate their use of AI.

“AI is changing the speed of cyberattacks, and security teams can’t afford to fall further behind,” said Nick Degnan, Chief Revenue Officer at Kai. “The concern is that attackers are getting faster while many defenders are still operating with processes built for a different era. UK organisations know they need to change, but moving from human-led to machine-led security takes trust, governance and a willingness to let machines take on more of the work. The longer that transition takes, the more room attackers have to pull ahead.”

UK CISOs understand the AI threat, but many security processes remain human-led

UK security leaders overwhelmingly acknowledge that AI has changed the threat landscape. Nearly all UK CISOs (94%) say their organisation is prepared to defend against AI-accelerated vulnerability exploitation, yet only one-third (33%) describe themselves as very prepared.

That confidence comes as UK CISOs see attackers gaining the upper hand. Fifty-nine percent believe attackers currently have the advantage given current levels of AI adoption and advancement, compared with just 13% who believe defenders have the advantage. As attackers increasingly leverage AI to accelerate exploitation, many UK organisations continue to rely on human-led security workflows that struggle to keep pace.

Slow remediation leaves a growing window for attackers

The research found that vulnerability management remains heavily dependent on manual effort, leaving UK organisations exposed and security teams under pressure. More than half (54%) of UK organisations report their vulnerability and exposure management processes are at least half manual, while 67% require more than one week to remediate critical vulnerabilities. More than half (54%) say at least one-quarter of known vulnerabilities go unremediated for more than 30 days.

These operational challenges are taking a measurable toll on UK security teams. Eighty-four percent of UK CISOs say vulnerability and exposure management contributes at least moderately to security team burnout, including 19% who describe it as a major contributor.

The findings suggest it’s not just the threat landscape creating risk, but the operating model itself.

UK organisations want more automation, but barriers remain

While UK organisations increasingly see automation as essential to keeping pace with AI-powered threats, confidence in autonomous decision-making has yet to catch up. More than half (51%) of UK CISOs identify lack of trust in automated decisions as one of the biggest barriers to broader automation adoption in vulnerability and exposure management, followed by governance or compliance concerns (45%) and skills or talent gaps (45%).

UK organisations are already embracing automation for lower-risk activities such as vulnerability prioritisation (57%) and asset discovery and inventory (55%). However, only 32% currently permit automated remediation actions without human approval, underscoring that most organisations remain cautious about letting machines change the environment.

UK CISOs are also clear about what would give them greater confidence in machine-led security. More than half point to vendor accountability and liability protections (54%), auditability and explainability (53%), and regulatory clarity (52%) as factors that would increase their confidence in allowing machine-led systems to execute remediation actions without human approval.

UK organisations are moving toward machine-led security, but attackers are moving faster

Despite today’s challenges, the research shows UK organisations are further ahead in adopting machine-led approaches. Today, 46% of UK organisations describe their vulnerability and exposure management approach as mostly or primarily machine-led, compared with 35% of organisations globally.

The foundations for further adoption are also being put in place. Ninety-four percent of UK CISOs say their organisation’s governance approach is either already designed to support machine-led security actions or is being adapted for greater machine-led operation.

Looking ahead 12 to 18 months, 40% expect humans to supervise machine-led systems that lead prioritisation and execution, while 25% expect most vulnerability and exposure management workflows to be machine-led and 14% expect autonomous security operations to become the primary operating model.

The findings suggest UK organisations are not waiting for machine-led security to become a future reality. Many are already putting it into practice, while adapting governance and operating models for a more autonomous approach to cyber defence. But as attackers gain speed through AI, the pressure to make that transition is only growing.

Read the full 2026 UK State of Autonomous Defense Report here.

Methodology

The Kai Survey was conducted by Wakefield Research among 500 CISOs at private sector companies with a minimum annual revenue of $500 million, including 100 CISOs in the United Kingdom. The research was conducted in four markets between June 15 and June 29, 2026, using an email invitation and an online survey. All UK findings cited in this release are based on the 100 UK respondents.

About Kai

Kai is the AI company rebuilding cybersecurity for the machine-speed era. Trusted by Fortune 500 and Global 2000 enterprises, the Kai Autonomous Defense Platform replaces fragmented tools and human-limited workflows with agentic AI that works continuously across cyber asset management, application security, infrastructure vulnerability management, and detection engineering. It contextualises, reasons, and acts at machine speed and enterprise scale. What takes human-led teams weeks, Kai executes in hours, driving risk toward zero through Auto Remediation. Human defenders don’t just keep up. They become superhuman.

Media contact: kai@inkhouse.com 

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Bloomsbury Money Group appoints ex-SAP engineer as CTO to head global banking platform

Published

19 minutes ago

on

September 21, 2026

By

LONDON and ST HELIER, Jersey, Sept. 21, 2026 /PRNewswire/ — Bloomsbury Money Group today announced the appointment of Thomas Holst as Chief Technology Officer. Holst joins from SAP’s health technology ecosystem, and brings more than a decade of experience building data-intensive, privacy-critical technology platforms. As CTO, he will lead Bloomsbury Money’s technology strategy, engineering and platform architecture as the Group builds out its banking platform across its existing markets and the new jurisdictions it plans to enter.

The appointment comes as Bloomsbury Money moves from a regulated money services and virtual asset business run from Jersey and London to a multi-jurisdiction financial network. The group’s current services span multi-currency accounts, foreign exchange, cross-border payments and regulated virtual asset custody and transfers. Under Holst, these are being brought together on a single platform designed from the outset to run in several regulatory environments with one standard of control.

A single network for cross-border value

Bloomsbury Money’s ambition is a global cross-border payment network in which fiat currencies, regulated digital assets and local payment rails sit side by side. In practice that means a customer can hold, convert and send value in the form that suits the transaction, whether a wire, a card payment, a domestic instant payment or a digital asset transfer, and the network selects the fastest compliant route. The group intends to extend its regulatory footprint and rail connectivity market by market to deliver this, starting in Jersey and the Channel Islands.

Manu Choudhary, co-founder, Bloomsbury Money Group, said:

“Thomas is joining at the right moment. We have a regulated business, live customers and a clear view of where cross-border money movement is heading. What we need now is someone who can turn that view into infrastructure that behaves the same way in every market we enter. Thomas has spent thirteen years building software where getting the data wrong is not an option, and that is the mindset we want at the centre of this platform. Our ambition is a network where a business in one country pays a supplier in another in whatever form of money and over whatever rail makes sense, without ever thinking about the plumbing.”

Chris Park, CEO, Bloomsbury Money Group, said:

“I have spent over decades in banking and the pattern never changes: the firms that last are the ones whose technology is boring in the right ways. Resilient, auditable, fast, and built by people who assume a regulator will one day ask to see how every decision was made. Thomas comes from SAP and from healthcare technology, one of the few sectors where the bar on data protection and control is as high as it is in finance. He has shipped enterprise software to hospitals and research institutions and built and run the cloud infrastructure underneath it. Bringing that discipline to a platform spanning fiat, digital assets and local rails across several jurisdictions is exactly the point. This is an infrastructure hire, and infrastructure is what we are building.”

Thomas Holst, Chief Technology Officer, Bloomsbury Money Group, said:

“Most fintechs bolt new products onto an old core. Bloomsbury Money is building the core with the network in mind from day one: multiple currencies, multiple asset types, multiple rails and multiple regulators, all held to the same standard of control. That is a rare engineering brief and it is why I said yes. I spent more than a decade in SAP’s health technology ecosystem in Germany, building products for hospitals and researchers and health data applications and the cloud infrastructure they run on. Both taught me that trust is a technical property. It comes from architecture, testing and auditability, not from a marketing deck. I will bring the same standard here.”

About Bloomsbury Money Group

Bloomsbury Money Group provides multi-currency accounts, spot foreign exchange, cross-border payments, Visa debit cards and regulated virtual asset services to businesses and individuals, with offices in St Helier, Jersey and London. Its regulated business, Bloomsbury Money Jersey Limited, is a money service business and virtual asset service provider regulated by the Jersey Financial Services Commission (JFSC registry reference 210054). Bloomsbury Money Group Limited is a Jersey private company (registered number 165853). The group is building a global cross-border network for fiat, digital assets and local payment rails, and trades under the strapline Better Global Banking.

www.bloomsburymoney.com

Forward-looking statements

This announcement contains some forward-looking statements about Bloomsbury Money Group’s strategy, plans and intended products, including the development of its platform, the extension of its services into additional jurisdictions. These statements reflect current intentions and expectations and are subject to regulatory approvals, technical development, market conditions and other factors outside the group’s control. They are not a guarantee of future performance or of the availability of any product or service in any jurisdiction, and the group undertakes no obligation to update them.

Media contacts: Bloomsbury Money Press Office
Email: press@bloomsburymoney.com
Website: www.bloomsburymoney.com

View original content:https://www.prnewswire.com/news-releases/bloomsbury-money-group-appoints-ex-sap-engineer-as-cto-to-head-global-banking-platform-302882570.html

SOURCE Bloomsbury Money

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