Core Insights - BLACK PEARL launched a new campaign as part of its Culture@ storytelling series in collaboration with Getty Images and Canon U.S.A. [1][3] - The campaign focuses on the intersection of fashion, sustainability, and cultural identity, featuring prominent cultural figures and award-winning actors [2][4] - The campaign aims to make sustainable impact more accessible and relatable through photography that highlights cultural expressions [2][5] Campaign Details - The campaign is displayed on The Midtown Financial (MiFi) building in Times Square, New York City, and will run until December 9th [3] - Getty Images captured high-end portraits of the campaign's talent using Canon's advanced imaging technology, with the images distributed exclusively through Getty Images [3][7] - The campaign was designed and produced by BLACK PEARL, with Canon U.S.A. serving as the sponsor [3] Cultural Significance - The initiative celebrates and preserves cultural diversity through sustainable fashion, documenting the stories behind cultural garments [5] - Each portrait in the campaign reflects the heritage and creative identity of the featured individuals, showcasing diverse backgrounds and narratives [6] - The campaign emphasizes that sustainability encompasses not just materials but also people, identity, and belonging [4][5] Partnerships and Support - Getty Images' involvement brings 30 years of photographic expertise to the campaign, enhancing its storytelling on a global scale [7] - Canon U.S.A. supports the initiative by providing cutting-edge imaging technology, reinforcing the importance of cultural identity and creative expression [7]

Group 1 - The article discusses the recent challenges faced by Getty Images, particularly after missing Q1 EPS and in the context of the merger approval between Shutterstock and Getty Images [1] - The author has a long history of investment analysis, focusing on identifying underappreciated companies that can return value to investors [1] Group 2 - The article does not provide any specific financial data or performance metrics related to Getty Images or Shutterstock [2][3]

Core Insights - Getty Images has been appointed as the Official Photographic Agency for the Milano Cortina 2026 Olympic Winter Games, showcasing its expertise in visual storytelling and creative content [1][3]. Company Operations - A team of 84 photographers and editors will be deployed to capture over 6 million images from the Opening Ceremony on February 6th to the Closing Ceremony on February 22nd [2]. - Getty Images will provide live coverage of all 16 Winter Olympic competition venues, utilizing 39 editorial photographers and more than 20 editors for real-time editing [3][5]. Technology and Innovation - The company will leverage innovative technology to enable the transmission of photographs to its platform in as little as 30 seconds, enhancing the immediacy and authenticity of visual storytelling [5]. - Getty Images is integrating generative AI technologies to expand its capabilities in delivering commercially safe visuals, allowing customers to create compelling content through text-to-image generation [7]. Historical Context - Getty Images has a long history of covering Olympic events, having documented 15 editions of the Olympic Games and 15 editions of the Olympic Winter Games since 1968 [5]. Market Position - As a leading global visual content creator, Getty Images serves a diverse customer base and maintains one of the largest privately-owned photographic archives, covering over 160,000 events annually [6].

Group 1 - Proactive provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2] - The news team covers medium and small-cap markets, as well as blue-chip companies, commodities, and broader investment stories [3] - Proactive's content includes insights across various sectors such as biotech, pharma, mining, natural resources, battery metals, oil and gas, crypto, and emerging technologies [3] Group 2 - Proactive is committed to adopting technology to enhance workflows and content production [4] - The company utilizes automation and software tools, including generative AI, while ensuring all content is edited and authored by humans [5]

Financial Data and Key Metrics Changes - Q3 2025 revenue was $240 million, a slight year-over-year decrease of 0.2% and 2% on a currency-neutral basis [4][9] - Adjusted EBITDA for the quarter was $78.7 million, down 2.4% reported and 4.4% on a currency-neutral basis, with a margin of 32.8% [4][16] - Free cash flow improved to $7.9 million compared to negative $1.8 million in Q3 2024 [17] - Total debt outstanding was $1.38 billion, with net leverage at 4.3 times, slightly up from 4.2 times in Q3 2024 [18] Business Line Data and Key Metrics Changes - Creative revenue was $144.9 million, up 8.4% year-on-year, driven by Premium Access revenue [11][12] - Editorial revenue was $89.3 million, down 3.7% year-on-year, primarily due to declines in news and sports [13] - Agency revenue declined 22% year-on-year, reflecting ongoing macro uncertainty [12][13] Market Data and Key Metrics Changes - Revenue growth in the Americas was 0.8% on a currency-neutral basis, while EMEA was down 4% and APAC down 10.8% [15] - Annual subscription revenue increased to 58.4% of total revenue, up from 52.4% in Q3 2024, with growth driven by Premium Access [10] Company Strategy and Development Direction - The company is focusing on AI initiatives, including partnerships for content licensing with technology platforms [5][25] - The merger with Shutterstock is a key strategic focus, with ongoing regulatory reviews impacting the timeline [6][19] - The company aims to enhance operational efficiency through AI deployment within its business functions [26] Management's Comments on Operating Environment and Future Outlook - Management noted headwinds from tough year-on-year comparisons due to a strong editorial calendar in Q3 2024 [9][21] - The company updated its full-year revenue guidance to $942 million-$951 million, reflecting a year-on-year growth of 0.3%-1.2% [21][22] - Management expressed optimism about the potential for AI-related revenue streams in the future [25] Other Important Information - The company is facing legal challenges, including a favorable ruling in a trademark infringement case against Stability AI [7][8] - SG&A expenses increased to $101 million, primarily due to SOX compliance efforts and ongoing litigation costs [15][16] Q&A Session Summary Question: Can you elaborate on Getty's key AI initiatives and their potential revenue impacts for 2026? - Management highlighted multiple licensing deals, including a confidential agreement with Perplexity, which could develop into a material revenue stream [24][25] Question: How are the corporate and media customer segments performing? - Media segment saw a 3% decline, particularly in broadcast and production, while corporate segment remains healthy with close to 100% retention [27][28] Question: What is the retention rate for Premium Access subscriptions? - Premium Access has the highest retention rates among subscriptions, remaining consistent over time [29][30] Question: What drove the sequential recovery in creative revenue? - The recovery was attributed to a normalization of revenue allocation between creative and editorial, along with a significant deal that provided upfront revenue recognition [32][34]

Revenue Performance - Q3 2025 revenue was $240.0 million, a decrease of 0.2% year over year and 2.0% on a currency neutral basis[7]. - Annual subscription revenue increased by 11.2% (currency neutral 9.3%), representing 58.4% of total revenue, up from 52.4% in Q3 2024[6]. - Total revenue for the three months ended September 30, 2025, was $240,044,000, a slight decrease of 0.2% compared to $240,545,000 in 2024[44]. - Total revenue for the nine months ended September 30, 2025, was $699,003,000, representing a 1.0% increase compared to $691,963,000 in 2024[45]. - Creative revenue increased by 8.4% to $144,892,000, while Editorial revenue decreased by 3.7% to $89,315,000[44]. - Creative segment revenue decreased by $2,561,000, or 0.6%, from $410,451,000 in 2024 to $407,891,000 in 2025[45]. - Editorial segment revenue increased by $4,444,000, or 1.7%, from $255,830,000 in 2024 to $260,274,000 in 2025[45]. - Other segment revenue saw a significant increase of $5,156,000, or 20.1%, from $25,682,000 in 2024 to $30,838,000 in 2025[45]. Profitability - Net income for Q3 2025 was $21.6 million, compared to a net loss of $2.5 million in Q3 2024, resulting in a net income margin of 9.0%[7]. - Adjusted EBITDA for Q3 2025 was $78.7 million, down 2.4% year over year, with an adjusted EBITDA margin of 32.8%[7]. - The company reported a basic net income per share of $0.05 for Q3 2025, compared to a loss of $0.01 per share in Q3 2024[31]. - For the nine months ended September 30, 2025, the company reported a net loss of $115,313,000 compared to a net income of $14,749,000 for the same period in 2024[35]. - The company reported a diluted earnings per share of $(0.28) for the nine months ended September 30, 2025, compared to $0.04 in 2024[42]. Cash Flow and Liquidity - Free cash flow for Q3 2025 was $7.9 million, compared to negative $1.8 million in the prior year period[11]. - Free cash flow for the nine months ended September 30, 2025, was $(2,002,000), a significant decline from $36,301,000 in 2024[43]. - Net cash provided by operating activities decreased to $44,550,000 from $78,624,000 year-over-year[35]. - Total liquidity as of September 30, 2025, was $259.5 million, a decrease from $271.2 million as of December 31, 2024[46]. - The ending cash balance as of September 30, 2025, was $113,639,000, down from $140,850,000 at the beginning of the period[35]. - Cash and cash equivalents decreased to $109.5 million as of September 30, 2025, from $121.2 million as of December 31, 2024[46]. Debt and Liabilities - Total debt as of September 30, 2025, was $1.38 billion, including $539.9 million in senior secured notes and $543.6 million in term loan balance[11]. - Long-term debt stood at $1.336 billion as of September 30, 2025, compared to $1.314 billion at the end of 2024[33]. - Total current liabilities increased to $502.711 million as of September 30, 2025, from $453.255 million at the end of 2024[33]. - The accumulated deficit grew to $1.339 billion as of September 30, 2025, compared to $1.223 billion at the end of 2024[33]. - The company issued $1,040,872,000 in debt during the financing activities, while repaying $1,030,683,000[35]. - New term loans outstanding in USD amounted to $40.1 million as of September 30, 2025, while EUR tranche loans were $503.5 million[46]. - Total balance of term loans outstanding decreased from $1,014.4 million in December 2024 to $543.6 million in September 2025[46]. - Senior secured notes were recorded at $539.9 million as of September 30, 2025[46]. Strategic Initiatives - The company finalized strategic partnerships to integrate Getty Images content into emerging AI platforms, aiming to unlock new revenue streams[6]. - The company expects to close the merger with Shutterstock in 2026, pending regulatory approvals[16]. - The company highlighted risks related to competition, technology adaptation, and potential impacts from international market expansions[26]. Operational Metrics - Total active annual subscribers increased to 304,000, up 1.7% from the previous year[9]. - Operating expenses totaled $194.930 million in Q3 2025, up from $183.109 million in Q3 2024, reflecting an increase of 6.5%[31]. - Adjusted EBITDA for the nine months ended September 30, 2025, was $216,808,000, with an adjusted EBITDA margin of 31.0%[40]. - The company incurred $46,552,000 in capital expenditures for the nine months ended September 30, 2025, compared to $42,323,000 in 2024[43].

Merger and Acquisition - Getty Images entered into a merger agreement with Shutterstock on January 6, 2025, with Getty stockholders expected to own approximately 53.5% of the combined company[137][138]. - The total cash consideration for the merger is set at $9.50 per share of Shutterstock common stock, with additional stock options based on a fixed ratio[144]. - Getty Images incurred $9.9 million and $38.3 million in legal and other costs related to the merger during the three and nine months ended September 30, 2025, respectively[139]. - The company closed an offering of $628.4 million in 10.500% Senior Secured Notes due 2030, intended to fund the cash portion of the merger consideration[150]. - Other operating expenses increased significantly to $39.3 million, driven by costs related to the proposed merger with Shutterstock[220]. Financial Performance - Total revenue for the three months ended September 30, 2025, was $240.0 million, a decrease of 0.2% compared to $240.5 million in the same period of 2024[187]. - Total revenue for the nine months ended September 30, 2025, was $699.0 million, a 1.0% increase from $692.0 million in the same period of 2024[208]. - Creative revenue increased by 8.4% to $144.9 million, driven by a $10.4 million increase in Premium Access subscriptions[188]. - Editorial revenue decreased by 3.7% to $89.3 million, primarily due to declines in Sport and News segments[189][190]. - Other revenue decreased significantly by 58.5% to $5.8 million, attributed to a prior year expanded content deal recognized upfront[191]. - Creative revenue decreased by 0.6% to $407.9 million, primarily due to declines in ALC credit sales and subscriptions, offset by a $14.8 million increase in Creative subscriptions[211]. - Editorial revenue increased by $4.4 million, or 1.7%, to $260.3 million, driven by growth in Editorial subscriptions and assignments[212]. - Other revenue rose by $5.2 million, or 20.1%, to $30.8 million, primarily due to new data access and licensing agreements[213]. Expenses and Costs - Cost of revenue for the three months ended September 30, 2025, was $64.3 million, representing 26.8% of total revenue[193]. - Cost of revenue for the nine months ended September 30, 2025, was $190.1 million, representing 27.2% of total revenue, slightly up from 27.1% in the prior year[215]. - Selling, general, and administrative expenses increased by 0.9% to $101.0 million, driven by higher professional fees[194]. - Selling, general, and administrative (SG&A) expenses increased by $2.1 million, or 0.7%, to $308.0 million, with depreciation expense rising by 5.7% to $46.5 million[216]. - The company expects cost of revenue to trend higher in absolute dollars as revenue grows, with variations based on product mix[174]. - The company recognized a loss on litigation of $9.0 million for the nine months ended September 30, 2025, compared to $8.0 million in the prior year[219]. - The company incurred $10,420,000 in other operating expenses for Q3 2025, a significant increase from $219,000 in Q3 2024[270]. Cash Flow and Financing - The company had cash and cash equivalents of $109.5 million as of September 30, 2025, down from $121.2 million at the end of 2024[234]. - Cash provided by operating activities decreased by 43.3% to $44.6 million for the nine months ended September 30, 2025, compared to $78.6 million for the same period in 2024, primarily due to merger-related costs of $33.2 million[247]. - Cash used in investing activities decreased to $46.6 million for the nine months ended September 30, 2025, from $57.4 million for the same period in 2024[249]. - Cash used in financing activities decreased to $28.1 million for the nine months ended September 30, 2025, compared to $53.9 million for the same period in 2024[250]. - Interest expense rose to $105.0 million for the nine months ended September 30, 2025, compared to $100.6 million in the same period of 2024[221]. Customer Metrics - Total purchasing customers decreased by 2.3% to 703,000 for the last twelve months ended September 30, 2025, compared to 719,000 for the same period in 2024[257]. - Total active annual subscribers increased by 1.7% to 304,000 for the last twelve months ended September 30, 2025, driven by Unsplash+ subscriptions[261]. - Paid download volume was down 1.3% to 93 million downloads for the last twelve months ended September 30, 2025, compared to 94 million for the same period in 2024[263]. - Annual subscriber revenue retention rate decreased to 90.3% for the last twelve months ended September 30, 2025, from 92.2% for the same period in 2024[264]. Content and Innovation - The company has a diverse collection of high-quality visual content, including photos, videos, and music licensing, serving businesses and media organizations globally[151]. - Getty Images has embraced innovation over 30 years, transitioning from analog to digital and expanding into AI-generated content[152]. - The company offers comprehensive content solutions, including subscription access, generative AI services, and digital asset management tools[153]. - The company offers nearly 635 million visual assets, adding over 11 million new assets each quarter and conducting over 2.7 billion searches annually[156]. - Creative content represents 58.4% of revenue for the nine months ended September 30, 2025, with 59.5% of that generated through annual subscription products[158]. - Editorial content accounts for 37.2% of revenue for the nine months ended September 30, 2025, with 55.4% generated through annual subscription products[159]. - Other revenue, including data access and licensing, represents 4.4% of total revenue for the nine months ended September 30, 2025[160]. - Approximately 56% of total revenue now comes from annual subscriptions, which have strong revenue retention characteristics[171]. Tax and Legal Matters - The company recognized a foreign exchange gain of $1.5 million, a significant improvement from a loss of $28.7 million in the prior year[201]. - The company recorded an income tax benefit of $10.1 million for the three months ended September 30, 2025, compared to $1.2 million in the same period of 2024[205]. - The One Big Beautiful Bill Act is expected to reduce the company's annual U.S. tax liability by approximately $4.0 million to $7.0 million in 2025[206]. - The company estimates a potential tax assessment payment of up to $19.0 million in 2025 related to ongoing tax audits in Canada[244]. Earnings and Margins - For the three months ended September 30, 2025, the net income was $21,618,000 compared to a net loss of $2,527,000 for the same period in 2024[270]. - Adjusted EBITDA for the three months ended September 30, 2025, was $78,710,000, slightly down from $80,629,000 in 2024, resulting in an adjusted EBITDA margin of 32.8%[270]. - The company reported a net loss income margin of 9.0% for Q3 2025, compared to a negative margin of 1.1% in Q3 2024[270]. - Adjusted net income for Q3 2025 was $33,475,000, compared to $24,022,000 in Q3 2024, indicating a significant improvement[273]. - The diluted earnings per share for Q3 2025 was $0.05, compared to a loss of $0.01 per share in Q3 2024[273]. - The total interest expense for the nine months ended September 30, 2025, was $104,977,000, up from $100,618,000 in the same period of 2024[270]. - The company reported a loss on litigation of $2,614,000 for Q3 2025, compared to $3,199,000 in Q3 2024[270]. Market Risk - There were no material changes in market risk exposures for the quarters ended September 30, 2025, and September 30, 2024[275].

Core Insights - Getty Images reported third quarter results that met expectations, with top-line growth flattening due to challenging year-over-year comparisons against a strong event calendar from the previous year [2] - The company finalized strategic partnerships to integrate its content into emerging AI platforms, which are expected to create new revenue streams aligned with its traditional business [2] - The company remains confident in its value proposition and is focused on disciplined execution against its 2025 outlook [2] Financial Performance - Revenue for Q3 2025 was $240.0 million, a slight decrease of 0.2% year-over-year and 2.0% on a currency-neutral basis [6] - Creative revenue increased by 8.4% year-over-year to $144.9 million, while editorial revenue decreased by 3.7% to $89.3 million [6] - Annual subscription revenue grew to 58.4% of total revenue, up from 52.4% in Q3 2024 [6] - Net income for Q3 2025 was $21.6 million, compared to a net loss of $2.5 million in Q3 2024, resulting in a net income margin of 9.0% [6][15] - Adjusted EBITDA was $78.7 million, down 2.4% year-over-year, with an adjusted EBITDA margin of 32.8% [6][15] Liquidity and Balance Sheet - The company had an ending cash balance of $109.5 million as of September 30, 2025, down from $121.2 million at the end of 2024 [6][35] - Total debt was $1.38 billion, which included $539.9 million in senior secured notes and $543.6 million in term loans [15] - The company has $150.0 million available through its revolver, resulting in total available liquidity of $259.5 million [7] Key Performance Indicators - Total purchasing customers decreased by 2.3% year-over-year to 703,000, while active annual subscribers increased by 1.7% to 304,000 [10] - Paid download volume decreased by 1.3% to 93 million, and the annual subscriber revenue retention rate fell to 90.3% [10] Financial Outlook - The updated revenue guidance for 2025 is between $942 million and $951 million, reflecting a year-over-year growth of 0.3% to 1.2% [14] - Adjusted EBITDA guidance for 2025 is set between $291 million and $293 million, indicating a year-over-year decline of 3.0% to 2.3% [16] Merger and Legal Developments - Getty Images is in the process of merging with Shutterstock, with the transaction expected to close in 2026, pending regulatory approvals [19] - The company recently won a trademark infringement case against Stability AI, establishing a precedent for copyright claims related to AI-generated outputs [21][22]

Group 1: Earnings Expectations - Getty Images is set to report earnings with analysts expecting revenue to be flat year on year at $240 million, a slowdown from the 4.9% increase recorded in the same quarter last year [2] - Adjusted earnings per share (EPS) are anticipated to be $0.04 [2] - Last quarter, Getty Images reported revenues of $234.9 million, up 2.5% year on year, and beat analysts' EPS estimates [1] Group 2: Analyst Sentiment - Analysts have generally reconfirmed their revenue estimates for Getty Images over the last 30 days, indicating expectations for stability heading into earnings [3] - The company has missed Wall Street's revenue estimates four times in the past two years [3] Group 3: Market Context - In the digital media & content platforms segment, Ziff Davis reported year-on-year revenue growth of 2.9%, while Stride reported a 12.7% increase, indicating mixed performance among peers [4] - Getty Images' stock has decreased by 16.7% over the past month, contrasting with steady share prices in the broader digital media sector [5] - The average analyst price target for Getty Images is $4.43, significantly higher than its current share price of $1.74 [5]

Core Insights - Getty Images Holdings, Inc. is a significant player in the global visual content industry, providing a wide range of images and videos to businesses and consumers [1][5] - The company is set to release its quarterly earnings on November 10, 2025, with analysts predicting an earnings per share (EPS) of $0.04 and revenue of approximately $240 million [1][5] Financial Metrics - The price-to-sales ratio of Getty Images is 0.79, indicating that the stock is valued at less than one times its sales, which may raise concerns for investors [2] - The debt-to-equity ratio stands at 2.29, showing that the company has more than twice as much debt as equity, which could pose risks if cash flow generation is insufficient [2] - The current ratio is 0.70, suggesting that the company may struggle to meet its short-term obligations due to insufficient current assets to cover current liabilities [3] Legal Challenges - Getty Images is currently involved in a legal battle against Stability AI, with a recent setback in a lawsuit concerning copyright infringement related to Stability AI's image generator [4][5] - This legal issue underscores ongoing discussions about copyright and the use of AI in the media industry [4]