Second Quarter 2026
Filed Aug 10, 2026Getty Images Reports Second Quarter 2026 Results
Revenue declined, Creative revenue declined, adjusted EBITDA and margin contracted, and operating and free cash flow were negative amid litigation payments and higher cash interest. The Company also withdrew financial guidance while evaluating strategic financing alternatives and balance sheet management initiatives.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenueGAAP | $229.1 million | – | decrease of 2.5% year over year |
| Revenue decrease on a currency neutral basisother | 4.1% | – | – |
| Creative revenueGAAP | $127.4 million | – | down 2.6% year over year |
| Creative revenue decrease on a currency neutral basisother | 4.3% | – | – |
| Editorial revenueGAAP | $96.5 million | – | up 9.2% year over year |
| Editorial revenue growth on a currency neutral basisother | 7.6% | – | – |
| Other revenueGAAP | $5.2 million | – | down $10.5 million |
| Annual Subscription Revenue as a percentage of total revenueother | 58.8% | – | – |
| Net lossGAAP | $85.8 million | – | – |
| Net loss marginGAAP | 37.4% | – | – |
| Adjusted net lossnon-GAAP | $20.9 million | – | – |
| Adjusted EBITDAnon-GAAP | $62.3 million | – | down 8.4% year over year |
| Adjusted EBITDA decrease on a currency neutral basisnon-GAAP | 10.3% | – | – |
| Adjusted EBITDA marginnon-GAAP | 27.2% | – | – |
| Adjusted EBITDA less capexnon-GAAP | $48.4 million | – | down 6.6% year over year |
| Adjusted EBITDA less capex decrease on a currency neutral basisnon-GAAP | 9.5% | – | – |
| Net cash used in operating activitiesGAAP | $108.7 million | – | – |
| Free cash flownon-GAAP | $(122.6) million | – | – |
| Ending cash balanceGAAP | $51.6 million | – | – |
| Total debtGAAP | $2.1 billion | – | – |
| LTM total purchasing customers (thousands)other | 636 | – | (10.0) % |
| LTM total active annual subscribers (thousands)other | 240 | – | (25.2) % |
| LTM paid download volume (millions)other | 90 | – | (2.8) % |
| LTM annual subscriber revenue retention rateother | 88.4 % | – | -500 bps |
| Image collection (millions)other | 625 | – | 5.7 % |
| Video collection (millions)other | 39 | – | 11.7 % |
| LTM video attachment rateother | 15.2 % | – | -150 bps |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| CreativeCreative revenue was down 4.3% on a currency neutral basis. | $127.4 million | – | down 2.6% year over year |
| EditorialEditorial revenue was up 7.6% on a currency neutral basis. | $96.5 million | – | up 9.2% year over year |
| OtherNo further segment driver was reported. | $5.2 million | – | down $10.5 million from $15.7 million in Q2’25 |
What drove it
- Management cited continued pressure in Agency and iStock e-commerce, while the larger parts of the business serving enterprise customers demonstrated resilience and growth.
- Annual Subscription Revenue grew to 58.8% of Q2 total revenue from 53.5% in Q2’25.
- Adjusted EBITDA declined primarily because lower revenue and higher cost of revenue more than offset lower SGA expense.
- The year-over-year change in net loss reflected a $96.7 million increase in tax expense, a $61.0 million improvement in foreign exchange gain, a $20.8 million increase in interest expense, an $8.3 million increase in Other non-operating income, and a $3.2 million decrease in income from operations.
- Free cash flow declined primarily because of payments totaling $110.9 million related to the Alta and CRCM warrant litigation judgment and associated interest and a $62.9 million increase in cash interest paid, partially offset by $31.5 million of insurance proceeds related to the warrant litigation.
Concerns
- Revenue declined 2.5% year over year, with Creative revenue down 2.6% year over year.
- LTM total purchasing customers, active annual subscribers, paid download volume, annual subscriber revenue retention rate, and video attachment rate all declined versus the prior LTM period.
- Net loss was $85.8 million and net loss margin was 37.4%.
- Operating cash flow and free cash flow were negative, while the Company drew the remaining $30.0 million available under its revolving credit facility in July 2026.
- The Company is evaluating strategic financing alternatives and balance sheet management initiatives and withdrew financial guidance.
What to watch
- Whether Agency and iStock e-commerce pressure persists relative to enterprise customer strength.
- The trajectory of Annual Subscription Revenue, which represented 58.8% of Q2 total revenue.
- LTM annual subscriber revenue retention rate of 88.4 % and LTM total active annual subscribers of 240.
- Liquidity and financing actions following the July 2026 draw of the remaining $30.0 million under the revolving credit facility.
- The outcome of the evaluation of strategic financing alternatives and balance sheet management initiatives.
- The effect of the termination of the Merger Agreement with Shutterstock and the redemption of the $628.4 million of 10.5% Senior Secured Notes.
Balance sheet and cash flow
- Net cash used in operating activities was $108.7 million in Q2’26, compared to net cash provided by operating activities of $6.5 million in the prior year period.
- Free cash flow was $(122.6) million in Q2’26, compared to $(9.6) million in the prior year period.
- Ending cash balance was $51.6 million as of June 30, 2026, down $38.6 million from December 31, 2025 and down $58.7 million from June 30, 2025.
- The Company had $30.0 million at quarter end available through its revolving credit facility, for total available liquidity of $81.6 million.
- In July 2026, the Company drew the remaining $30.0 million available under the facility.
- Total debt was $2.1 billion as of June 30, 2026, which included $1.2 billion in Senior Secured Notes; Term Loan balance of $510.6 million, consisting of $40.1 million in USD and $470.5 million in USD equivalent of Euros, converted using exchange rates as of June 30, 2026; $270.0 million of Senior Unsecured Notes; and $120.0 million borrowed on April 23, 2026 under the revolving credit facility.
- Following termination of the Merger Agreement in July 2026, the $628.4 million of 10.5% Senior Secured Notes were redeemed at par in accordance with a special mandatory redemption pursuant to the indenture, with the redemption funded by amounts released from escrow.
- As of June 30, 2026 the Company had $2.2 million of insurance recovery receivable related to the warrant litigation.
Analysis
Getty Images reported a weaker second quarter marked by a 2.5% year-over-year decline in revenue to $229.1 million. Creative revenue declined 2.6% to $127.4 million, while Editorial revenue increased 9.2% to $96.5 million. Management characterized the quarter as continued pressure in Agency and iStock e-commerce, offset in part by resilience and growth in the larger enterprise-serving businesses. Annual Subscription Revenue increased to 58.8% of total revenue from 53.5% in Q2’25.
Profitability deteriorated. Net loss was $85.8 million compared with a net loss of $34.4 million in Q2’25, and net loss margin was 37.4% compared with 14.6%. On a non-GAAP basis, adjusted net loss was $20.9 million compared with adjusted net income of $19.1 million in the prior-year period. Adjusted EBITDA fell 8.4% year over year to $62.3 million, while adjusted EBITDA margin declined to 27.2% from 28.9%, as lower revenue and higher cost of revenue more than offset lower SGA expense.
Customer and usage KPIs weakened on an LTM basis. Total purchasing customers were 636, active annual subscribers were 240, paid download volume was 90, annual subscriber revenue retention was 88.4 %, and video attachment rate was 15.2 %. In contrast, the content inventory expanded, with the image collection at 625 and the video collection at 39. The KPI profile shows a larger annual-subscription revenue contribution alongside lower customer, subscriber, retention, download, and video-attachment measures.
Cash flow and liquidity are central issues. Net cash used in operating activities was $108.7 million and free cash flow was $(122.6) million. The Company cited $110.9 million of warrant-litigation judgment and associated-interest payments and a $62.9 million increase in cash interest paid, partially offset by $31.5 million of insurance proceeds. Ending cash was $51.6 million, total debt was $2.1 billion, and the Company drew the remaining $30.0 million under its revolving credit facility in July 2026.
The Company withdrew financial guidance because of its evaluation of strategic financing alternatives and balance sheet management initiatives related to its capital structure, liquidity position, and financial outlook. Management stated that the withdrawal was attributable solely to this evaluation and should not be interpreted as a change in its commitment to executing its business plan. The termination of the Shutterstock merger agreement was followed by redemption at par of the $628.4 million of 10.5% Senior Secured Notes using amounts released from escrow.
Management, verbatim
Our second quarter results reflected continued pressure in Agency and iStock e-commerce, while the larger parts of our business serving enterprise customers continued to demonstrate resilience and growth.
Craig Peters, Chief Executive Officer of Getty Images
Not in the filing
stated, not guessed- GAAP gross profit and gross margin
- GAAP operating income
- GAAP operating expenses
- GAAP earnings or loss per share
- non-GAAP earnings or loss per share
- Adjusted EBITDA prior-year-period dollar amount
- Adjusted EBITDA less capex prior-year-period dollar amount
- Capital expenditures
- Share repurchases
- Dividends
- Debt maturities and interest rates other than the 10.5% Senior Secured Notes
- Quarter-over-quarter comparisons for revenue, segments, profitability, cash flow, and KPIs
- Forward financial guidance figures
- Prior-quarter outlook for comparison
- CFO commentary
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.