Shutterstock Swings to Loss, Withdraws 2026 Outlook
The company targeted another $60 million in annualized cost savings after its Getty Images deal ended.
Shutterstock (SSTK), the digital-content provider, swung to a second-quarter net loss of $155.9 million, or $4.25 a diluted share, after earning $29.4 million, or $0.82 a share, a year earlier.
The loss included a $173.7 million noncash goodwill impairment tied to a decline in Shutterstock's fair value following the termination of its proposed merger with Getty Images. The company responded with a new cost-reduction program after achieving more than $70 million in savings over the previous 18 months.
Revenue fell 17% to $221.8 million from $267.0 million a year earlier, while rising 11% from the first quarter. Adjusted earnings declined to $0.82 a share from $1.19 a year earlier, then improved from $0.58 in the first quarter.
Content revenue fell 17% to $165.7 million, a steeper decline than the first quarter's 12% drop, and decreased 7% sequentially. Data, Distribution and Services revenue declined 16% to $56.1 million from a year earlier, though it more than doubled from about $21.0 million in the first quarter.
The customer base continued to contract. Subscribers fell to 951,000 from 993,000 in the first quarter and 1.073 million a year earlier, while paid downloads dropped to 98.7 million. Average revenue per customer rose to $292 from $284 sequentially and $266 a year earlier, partly offsetting the decline in subscriber revenue to $99.8 million.
Adjusted earnings before interest, taxes, depreciation and amortization fell 21% to $65.1 million, with the margin narrowing to 29.3% from 30.8%. Profitability recovered sharply from the first quarter, when adjusted EBITDA was $42.7 million and the margin was about 21.4%.
Adjusted free cash flow increased to $28.5 million from $17.5 million a year earlier. Reported operating cash flow dropped to $0.6 million after a $35.0 million Federal Trade Commission settlement payment, and cash and equivalents ended the quarter at $133.2 million.
Shutterstock withdrew its remaining 2026 guidance and canceled the earnings call scheduled for Aug. 6, pending a strategic update.