Shutterstock, Inc. (SSTK): Results of Operations and Financial Condition
Shutterstock, Inc. (SSTK) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Shutterstock Reports Second Quarter 2026 Financial Results New York, NY - August 4, 2026 - Shutterstock, Inc. (NYSE: SSTK) (the “Company”), a family of brands delivering scalable creative and GenAI solutions to help customers fuel great work, today announced financia
How this was made
The 30-second read
Why it matters
Key new items are the Q2 revenue decline, the large non-cash goodwill impairment explicitly linked to the terminated merger, liquidity/cash movements including an FTC civil investigative demand settlement payment, and the decision to stop hosting the scheduled call and to not issue further 2026 guidance.
Market read
Traders can update models for SSTK using the disclosed Q2 financials, impairment linkage to the terminated merger, cash/liquidity changes, and the absence of remaining 2026 guidance.
What to watch
The company stopped issuing 2026 guidance and canceled the Aug 6 call, which can increase uncertainty premium; traders should separate non-cash impairment effects from underlying cash flow trends.
Shutterstock Reports Second Quarter 2026 Financial Results
Revenue declined 17%, both product offerings contracted, and the Company reported a $155.9 million net loss that included a $163.4 million non-cash, after-tax goodwill impairment charge. Adjusted profitability also declined, while the Company withdrew guidance for the remainder of 2026 pending a strategic update.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenueGAAP | $221.8 million | – | decreased by $45.2 million or 17% |
| Net lossGAAP | $155.9 million | – | decreased by $185.4 million |
| Net loss per diluted common shareGAAP | $4.25 | – | – |
| Adjusted net incomenon-GAAP | $30.0 million | – | decreased by $12.9 million |
| Adjusted net income per diluted common sharenon-GAAP | $0.82 | – | – |
| Adjusted EBITDAnon-GAAP | $65.1 million | – | decreased by $17.1 million, or 21% |
| Net loss marginGAAP | 70.3% | – | decreased by 81.3% |
| Adjusted EBITDA marginnon-GAAP | 29.3% | – | decreased by 1.5% |
| Non-cash, after-tax goodwill impairment chargeGAAP | $163.4 million | – | – |
| Non-cash goodwill impairment chargeGAAP | $173.7 million | – | – |
| Unrealized losses related to investment in Meitu, IncGAAP | $3.0 million | – | – |
| Merger related costsGAAP | $3.7 million | – | – |
| Legal contingency expensesGAAP | $5.0 million | – | – |
| Workforce optimizations expensesGAAP | $3.0 million | – | – |
| Adjusted free cash flownon-GAAP | $28.5 million | – | an increase of $11.0 million |
| Subscribers (end of period)other | 951,000 | – | – |
| Subscriber revenueother | $99.8 million | – | – |
| Average revenue per customer (last twelve months)other | $292 | – | – |
| Paid downloadsother | 98.7 million | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Content product offeringThe reduction in Content revenue was driven primarily by weakness in new customer acquisition. Content revenue represented 75% of total revenue in the second quarter of 2026. | $165.7 million | – | decreased by $34.1 million, or 17% |
| Data, Distribution, and Services product offeringRevenue recognition in the data offering may vary from quarter-to-quarter based on the delivery timing of metadata licenses. This offering represented 25% of second quarter revenue in 2026. | $56.1 million | – | decreased by $11.1 million, or 16% |
Capital returns
- $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.
- $0.8 million used for the repayment of our credit facility.
What drove it
- Content revenue declined primarily because of weakness in new customer acquisition.
- Data offering revenue recognition may vary quarter-to-quarter based on metadata-license delivery timing.
- The Company recorded a non-cash goodwill impairment charge following the decline in its fair value after the announcement of the terminated merger agreement.
- The Company stated it has taken cost actions over the past 18 months equating to over $70 million of annualized run-rate operating expense reductions and is targeting an additional $60 million in annualized run-rate operating expense reductions by the end of the year.
Concerns
- Total revenue declined 17%, with both Content and Data, Distribution, and Services revenue down year over year.
- Subscribers declined to 951,000 from 1,073,000 and paid downloads declined to 98.7 million from 112.6 million.
- Net loss included a $163.4 million non-cash, after-tax goodwill impairment charge.
- Operating costs did not decline at a similar rate as revenue, according to the Company.
- The Company will not issue guidance for the remainder of 2026 and cancelled its scheduled earnings conference call in light of a pending strategic update.
What to watch
- The Company’s pending strategic update and any subsequent reinstatement of guidance for the remainder of 2026.
- Execution of the targeted additional $60 million in annualized run-rate operating expense reductions by the end of the year.
- New customer acquisition trends in the Content product offering.
- The timing of metadata-license deliveries and resulting revenue recognition in the Data offering.
- Cash generation following the $35.0 million FTC settlement payment and the terminated Getty Images proposed merger.
Balance sheet and cash flow
- Cash and cash equivalents were $133.2 million at June 30, 2026, compared with $162.5 million as of March 31, 2026.
- Cash and cash equivalents decreased by $29.3 million.
- $0.6 million of net cash used in operating activities, including a $35.0 million payment for the settlement of the FTC’s civil investigative demand.
- $18.5 million of net cash used in financing activities.
- $10.1 million of net cash used in investing activities.
- Cash used in investing activities 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.
- Cash flows were unfavorably impacted by $3.0 million of expenses related to the Getty Images proposed merger.
Analysis
Shutterstock reported a weaker second quarter, with revenue of $221.8 million compared to $267.0 million in the second quarter of 2025. The decline was broad based: Content revenue fell 17% to $165.7 million, while Data, Distribution, and Services revenue fell 16% to $56.1 million. Management attributed the Content decline primarily to weakness in new customer acquisition. Operating metrics were also lower year over year, with subscribers at 951,000, subscriber revenue at $99.8 million, and paid downloads at 98.7 million.
GAAP results were dominated by impairment and other charges. The Company reported a net loss of $155.9 million, compared with net income of $29.4 million, and net loss per diluted common share of $4.25, compared with net income per diluted common share of $0.82. Net loss included a $163.4 million non-cash, after-tax goodwill impairment charge. The Company also cited $3.0 million of unrealized losses related to its 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 results also declined with revenue. Adjusted net income was $30.0 million versus $42.9 million, adjusted net income per diluted common share was $0.82 versus $1.19, and adjusted EBITDA was $65.1 million versus $82.2 million. Adjusted EBITDA margin declined to 29.3% from 30.8%, while the Company said operating costs did not decline at a similar rate as revenue. Management is responding with cost actions that equate to over $70 million of annualized run-rate operating expense reductions over the past 18 months and an additional targeted $60 million by the end of the year.
Liquidity declined during the quarter, with cash and cash equivalents falling by $29.3 million to $133.2 million at June 30, 2026. Net cash used in operating activities was $0.6 million, including a $35.0 million FTC settlement payment, while investing and financing activities used $10.1 million and $18.5 million, respectively. Adjusted free cash flow was $28.5 million, an increase of $11.0 million from the second quarter of 2025. Financing cash use included a $13.2 million quarterly dividend payment and $0.8 million of credit-facility repayment.
The Company will no longer host the conference call originally scheduled for August 6, 2026 and will not issue guidance for the remainder of 2026 because of a pending strategic update. The central issues for the next update are whether cost reductions can offset the revenue contraction, whether Content customer acquisition stabilizes, and how the Company deploys cash and strategic assets following termination of the proposed merger.
Management, verbatim
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.
Rik Powell, Interim Chief Executive Officer and Chief Financial Officer
Not in the filing
stated, not guessed- GAAP gross profit and gross margin
- GAAP operating income or loss
- GAAP operating expenses
- GAAP income tax expense or benefit and tax rate
- Weighted-average diluted shares
- Debt balance and credit-facility balance at June 30, 2026
- Share repurchases
- Dividend per share
- Total revenue for the six months ended June 30, 2026
- GAAP and non-GAAP quarter-over-quarter comparisons for revenue, earnings, EPS, and adjusted EBITDA
- Prior-year adjusted free cash flow value
- Forward revenue, gross margin, operating expenses, tax rate, EPS, adjusted EBITDA, or free-cash-flow guidance for the remainder of 2026
- Previous-release outlook for comparison
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
This is an SEC Form 8-K (Item 2.02) with Q2 2026 financial results and commentary following termination of a proposed merger.
Ticker impact
Shutterstock reported Q2 2026 results with revenue down to $221.8M and a $163.4M non-cash goodwill impairment tied to the terminated merger.
Likely downside bias and elevated volatility until investors digest impairment drivers, cost actions, and any updated strategic path.
The 8-K includes concrete financial datapoints (revenue, net loss, adjusted EBITDA) plus explicit linkage of the impairment to the terminated merger and a stated shift in capital allocation and guidance posture.
Market effects
Creative content licensing and digital media peers may see read-across on demand softness and impairment risk tied to deal outcomes.
Primarily US-listed media and content-services sentiment; limited direct regional spillover beyond equities.
Global content licensing and GenAI-adjacent services sentiment could be affected, but the disclosure is company-specific.
Counterpoint
Adjusted EBITDA and adjusted net income remain positive, and management emphasizes cash generation plus $70M+ annualized cost reductions, which could offset revenue weakness.
Key entities
- public_companyShutterstock, Inc.
Subject of the 8-K, reporting Q2 2026 results and merger-termination-related balance sheet actions.
- regulatorFederal Trade Commission (FTC)
Settlement of a civil investigative demand related to subscription disclosure and enrollment/cancellation practices, with a $35.0M payment disclosed.
- public_companyMeitu, Inc.
Investment with $3.0M of unrealized losses referenced in the quarter.
- platformGIPHY
Mentioned as a unique platform asset within the company’s strategic assets.
