SHUTTERSTOCK (SSTK) Earnings Date & Reports

Key Takeaways

• Shutterstock's third-quarter 2026 revenue fell 33% year over year to $173.9 million, coming in below consensus estimates near $195 million.
• Content revenue declined 19% to $158.1 million, while Data, Distribution and Services revenue dropped 76% to $15.8 million.
• The company posted a GAAP (Generally Accepted Accounting Principles) net loss of $197.8 million, driven by a $195.6 million non-cash goodwill impairment charge.
• Adjusted EPS (earnings per share) of $0.45 exceeded analyst expectations, while adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) fell to $41.8 million.
• Subscribers declined to 890,000 from 1,060,000 a year earlier, and adjusted free cash flow dropped to $12.5 million.
• Management cut Product Development and SG&A (selling, general and administrative) expenses 30% year over year and reduced headcount 16% year to date.
• For deeper context, explore Shutterstock's Major News, Today's Price Move, Price Targets, and Forecast on additional pages.
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Earnings Context and Why It Matters

Shutterstock's third-quarter 2026 results arrive at a pivotal moment for the creative-content platform. The company has been navigating soft demand in its core Content segment, a sharp slowdown in its Data, Distribution and Services business, and the fallout from the terminated Getty Images merger, which triggered an earlier goodwill impairment. Investors are closely watching whether aggressive cost-cutting can offset a contracting revenue base while the business repositiones itself around AI (artificial intelligence) and data-licensing opportunities. With subscribers, paid downloads, and cash flow all under pressure, this report offers a critical read on the durability of Shutterstock's turnaround and its ability to stabilize profitability in a fast-changing creative marketplace.

Reported Results

Shutterstock reported third-quarter 2026 revenue of $173.9 million, down 33% from $260.1 million in the prior-year quarter and below consensus estimates of roughly $195 million. Content revenue fell 19% to $158.1 million on weakness in new customer acquisition, while Data, Distribution and Services revenue declined 76% to $15.8 million amid deal-timing volatility in data licensing.

On a GAAP basis, the company posted a net loss of $197.8 million, or $5.35 per diluted share, compared with net income of $13.4 million, or $0.37 per share, a year earlier. The loss reflected a $195.6 million non-cash, after-tax goodwill impairment charge. On an adjusted basis, net income was $16.7 million, or $0.45 per diluted share, exceeding analyst expectations but down from $0.99 a year ago. Adjusted EBITDA declined 47% to $41.8 million, and adjusted EBITDA margin narrowed to 24.0% from 30.5%.

Operating metrics also weakened: subscribers fell to 890,000 from 1,060,000, and paid downloads dropped to 90.9 million from 111.7 million. Cash and cash equivalents stood at $110.5 million, while adjusted free cash flow fell to $12.5 million.

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Market Reaction and Investor Sentiment

Shutterstock's shares have been under significant pressure over the past year, reflecting persistent revenue declines, merger-related disruptions, and a suspended dividend. Heading into the report, sentiment was cautious, with analysts modeling a steep revenue contraction and modest adjusted earnings. The headline result was mixed: a stronger-than-expected adjusted EPS figure was offset by a substantial revenue miss and a large non-cash impairment charge. While the beat on adjusted profitability and progress on cost reductions were viewed as modest positives, the scale of the top-line decline and the goodwill write-down underscore the structural challenges facing the core business. The recent CFO (chief financial officer) transition, with Scott Grossman named interim CFO, adds another layer of uncertainty that investors are monitoring closely.

Forward Outlook and Key Factors to Monitor

Looking ahead, investors should focus on whether Shutterstock can stabilize its revenue base. The 19% decline in Content revenue, tied largely to weaker new customer acquisition, remains the central concern. Sustained subscriber losses suggest demand may remain soft, and any recovery in customer sign-ups will be an important early signal.

Cost discipline is a key positive to watch. Management reiterated its target of $60 million in annualized run-rate operating-expense reductions and reported meaningful savings across product development and SG&A. The challenge will be maintaining those savings without further weakening growth or product investment.

Data licensing will also remain in focus. The 76% drop in Data, Distribution and Services revenue was attributed in part to timing volatility, and investors will look for evidence that this segment can deliver more predictable contributions in future quarters. The company's emphasis on AI, training datasets, and its content library suggests data could become a more durable growth engine over time, though near-term visibility remains limited.

Finally, leadership transitions and balance-sheet positioning warrant attention. With a new CFO in place and the appointment of Hichame Assi as President and COO (chief operating officer), execution stability will be closely watched alongside cash generation and adjusted free cash flow, which has narrowed sharply from the prior year.

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