Shutterstock Revenue Decline Widens After Data Collapse

The Tip Desk · November 5, 2026 · 3 min read

Third-quarter revenue fell 33% to $173.9 million as Data, Distribution, and Services collapsed 76% to $15.8 million.

Shutterstock, Inc. (SSTK) reported third-quarter revenue of $173.9 million, a 33% year-over-year decline that widened from the 17% drop to $221.8 million in the second quarter.

The creative-content company said the year-ago comparison of $260.1 million was no longer a close match: the top line fell $86.2 million. Content remained the bulk of the business, but Data, Distribution, and Services collapsed.

Content revenue was $158.1 million, down 19% from a year earlier after a 17% year-over-year decline to $165.7 million in the second quarter. The company said the reduction was driven primarily by weakness in new customer acquisition. Content accounted for 91% of third-quarter revenue, versus 75% in the second quarter.

Data, Distribution, and Services revenue fell 76% year over year to $15.8 million, after a 16% year-over-year decline to $56.1 million in the prior quarter. That mix shifted to 9% of total revenue from 25%. Shutterstock said revenue recognition in the data offering may vary quarter to quarter based on delivery timing of metadata licensed assets.

Adjusted EBITDA was $41.8 million, down 47% from $79.4 million a year earlier, after a year-over-year decline to $65.1 million in the second quarter. Adjusted EBITDA margin compressed to 24.0% from 30.5% a year earlier. Adjusted net income was $16.7 million, or $0.45 a share, compared with $36.4 million, or $0.99 a share, a year earlier.

The company recorded a $203.3 million non-cash goodwill impairment after identifying a triggering event from the July 22, 2026 dividend suspension. After-tax, the charge was $195.6 million. Net loss was $197.8 million, or $5.35 a share, versus net income of $13.4 million, or $0.37 a share, a year earlier. Shutterstock also cited further revenue declines with operating costs not falling at a similar rate, $0.4 million of unrealized losses on its Meitu investment, $0.5 million of proposed-merger costs, $2.6 million of strategic advisory and other fees, and $4.3 million of workforce-optimization expenses.

Chairman and Chief Executive Officer Jon Oringer said the company reduced third-quarter product development and SG&A expenses by 30% year over year to $96 million, a $39 million quarterly saving, and cut total headcount 16% year to date. He said Shutterstock is on target for the $60 million in annualized run-rate operating-expense reductions it committed to in its second-quarter announcement. Hichame Assi was named President and COO.

Subscribers ended September 30 at 890,000, down from 1,060,000 a year earlier. Subscriber revenue was $95.1 million, versus $107.2 million. Average revenue per customer on a last-twelve-months basis was $289, up from $279. Paid downloads were 90.9 million, down from 111.7 million.

Cash and cash equivalents fell $22.7 million to $110.5 million from $133.2 million at June 30, 2026. Operating cash flow was $18.3 million, offset by $29.8 million of financing outflows including $30.0 million of revolving-credit repayments and $9.8 million of investing outflows. Adjusted free cash flow was $12.5 million, down $62.7 million from the year-ago quarter.

Chief Financial Officer Rik Powell departed effective immediately and from the company on November 13, 2026. Scott Grossman, Senior Vice President and Global Head of Finance, became interim CFO. In the second-quarter announcement, Shutterstock said it would not host the August 6, 2026 earnings call and is not issuing guidance for the remainder of 2026.