Shutterstock Announces Major Expansion of Licensed Training Datasets to Power the Next Generation of Generative AI Accessibility StatementSkip Navigation NEW YORK, March 19, 2026 /PRNewswire/ -- Shutterstock, Inc. (NYSE: SSTK), a family of brands delivering scalable creative and GenAI solutions to help customers fuel great work, today announced that it is accelerating the future of generative AI with a major expansion of its training datasets. This expansion provides developers, researchers, and enterprise ...

Financial Performance - Shutterstock reported full-year 2025 revenue of $989.9 million, a 6% increase from 2024, driven by a 16% growth in the Data, Distribution, and Services division, which now accounts for 21% of total revenue due to high demand for AI model training sets and metadata [1][2][7] - The company achieved an Adjusted EBITDA of $271.8 million with a record-tying margin of 27.5%, despite facing challenges in the core Content business [2] - Q4 2025 revenue declined by 12% to $220.2 million compared to Q4 2024, and the company reported a net loss of $16 million, primarily due to unrealized investment losses and professional fees related to the proposed merger with Getty Images [2][3] Strategic Focus - The CEO highlighted weak new customer acquisition in the Content segment during the quarter, but noted strong liquidity with $178.2 million in cash and cash equivalents at year-end [3] - For 2026, the company aims to secure regulatory approvals for its merger with Getty Images while evolving its product strategy [3] Business Overview - Shutterstock provides a platform connecting brands and businesses to high-quality content, including photographs, vectors, and illustrations, utilized in visual communications across North America, Europe, and internationally [4]

Core Viewpoint - Two ETF issuers, Bitwise and GraniteShares, are seeking regulatory approval to launch ETFs linked to the outcomes of upcoming U.S. elections, indicating a trend towards prediction market-style investing [1]. Group 1: ETF Issuers and Products - Bitwise has filed for six ETFs under its PredictionShares lineup, proposed for listing on NYSE Arca [2]. - GraniteShares has submitted filings for a similar six-fund structure targeting the same election cycles and party outcomes [3]. Group 2: Fund Structure and Investment Strategy - Each fund would invest at least 80% of its net assets in binary event contracts traded on Commodity Futures Trading Commission-regulated exchanges, which settle at $1 if the referenced outcome occurs and zero if it does not [4]. - The funds aim to provide capital appreciation based on specific political outcomes, with two funds tied to the 2028 U.S. presidential election (one for a Democratic victory and one for a Republican win) and four funds tracking party control of the Senate and House in the 2026 midterms [3]. Group 3: Investment Risks and Market Dynamics - Investors could lose substantially all of their investment if the targeted party fails to win, with share prices fluctuating between zero and $1 based on market-implied probabilities as polling data and sentiment evolve [5]. - The structure allows investors to select individual funds corresponding to specific political scenarios, effectively wrapping a regulated prediction market strategy inside an ETF vehicle [5]. Group 4: Market Context - If approved, these funds would represent a significant example of election forecasting markets being packaged into mainstream investment products, with risks that are more binary compared to traditional political-themed equity ETFs [6].

Core Viewpoint - The U.S. Department of Justice has cleared the proposed merger between Getty Images and Shutterstock, allowing the companies to move forward without conditions [1][2]. Group 1: Merger Approval - The DOJ's decision is seen as a significant step for both companies, enabling them to combine their strengths and enhance their financial foundation [2]. - The merger is expected to create substantial synergies in selling, general and administrative expenses (SG&A) and capital expenditures (CAPEX) post-closure [2]. Group 2: Ongoing Regulatory Review - Prior to the DOJ's decision, the UK's Competition and Markets Authority (CMA) issued an interim report as part of its Phase 2 review, with a final decision expected by April 19 [3]. - Both companies are actively engaging with the CMA to clarify how the merger will benefit the editorial market and improve service to customers and contributors [3]. Group 3: Company Profiles - Getty Images is a leading global visual content creator, serving customers worldwide through its brands, including Getty Images, iStock, and Unsplash, and works with nearly 600,000 content creators [4]. - Shutterstock provides a vast collection of high-quality licensable assets and AI solutions, aiming to enhance the effectiveness of businesses and creatives [7].

Group 1 - The UK competition regulator has identified concerns regarding competition in the supply of editorial content as part of its investigation into the proposed merger between Getty Images and Shutterstock [1] - The merger is being closely scrutinized due to potential implications for market competition in the UK [1]

Group 1 - Shutterstock expresses satisfaction with the UK Competition and Markets Authority's (CMA) provisional decision regarding the merger with Getty Images, indicating no expected competition issues in the global stock content market [1] - The company disagrees with the CMA's finding that the merger may lead to a 'substantial lessening of competition' in the UK Editorial market, arguing that the analysis does not accurately reflect the UK market dynamics and customer alternatives [1] - Shutterstock plans to engage constructively with the CMA and will respond to the interim report according to the CMA's timeline, while also cooperating with the U.S. Department of Justice in its review [1] Group 2 - Shutterstock is positioned as a provider of scalable creative and GenAI solutions, leveraging a global network of creators and advanced technology to enhance business effectiveness [1] - The company boasts one of the largest and most diverse collections of high-quality licensable assets, data, AI solutions, and full-service studio production capabilities [1]

Group 1: Market Developments - World Liberty Financial (WLFI) surged 17% following remarks from Goldman Sachs CEO David Solomon and NYSE President Lynn Martin at the inaugural World Liberty Forum, indicating Wall Street's growing acceptance of tokenization [1] - Solomon emphasized the importance of tokenization in shaping market evolution, stating that large-scale technology platforms will play a central role [3] - The NYSE is developing tokenization technology and feels a responsibility to engage in this area as blockchain-based finance gains traction [5] Group 2: Regulatory Environment - Solomon noted that Goldman's limited involvement in crypto is due to prohibitive regulations, which have recently begun to loosen, suggesting a potential reevaluation of their stance on digital assets [3] - He criticized overregulation, claiming it has extracted capital from the financial system and negatively impacted market efficiency over the past five years [4] - CFTC Chairman Michael Selig expressed a desire to collaborate with both incumbents and new entrants in developing new financial tools, indicating a shift in regulatory attitudes [7] Group 3: Technical Analysis of WLFI - WLFI's price broke through key moving averages, challenging the 200 EMA at $0.12743 after consolidating in the $0.095-$0.117 range [7] - The price action is characterized as bullish, with immediate resistance identified at $0.127-$0.130, and potential targets of $0.14 and $0.15-$0.17 if the resistance is breached [8] - Support levels have shifted to $0.113-$0.117, with the rally remaining intact as long as WLFI holds above $0.113 on pullbacks [8]

Core Viewpoint - Shutterstock reported quarterly earnings of $0.67 per share, missing the Zacks Consensus Estimate of $1.05 per share, and matching earnings from the previous year [1][2] Financial Performance - The earnings surprise was -36.19%, with the company previously expected to post earnings of $1.47 per share but only achieving $0.99, resulting in a surprise of -32.65% [2] - Revenues for the quarter were $220.22 million, missing the Zacks Consensus Estimate by 12.82%, and down from $250.31 million year-over-year [3] Stock Performance - Shutterstock shares have declined approximately 9.6% since the beginning of the year, while the S&P 500 has only decreased by 0.1% [4] - The stock currently holds a Zacks Rank 2 (Buy), indicating expectations of outperforming the market in the near future [7] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $1.12 on revenues of $251.77 million, and for the current fiscal year, it is $3.96 on revenues of $1.01 billion [8] - The Internet - Content industry is ranked in the top 20% of over 250 Zacks industries, suggesting a favorable outlook for stocks within this sector [9]

Revenue Projections - Total revenue for 2025 is projected to be $989.9 million, an increase of 5.8% from $935.3 million in 2024[17] - Content revenues are expected to reach $786.7 million in 2025, up from $760.0 million in 2024, representing a growth of 3.5%[17] - Data, Distribution, and Services revenues are anticipated to grow to $203.3 million in 2025, a significant increase of 16.0% from $175.3 million in 2024[17] Customer and Market Insights - Over 3.5 million customers in more than 150 countries licensed content, with 51% of revenue coming from North America, 27% from Europe, and 22% from the rest of the world in 2025[33] - The company has seen increased demand for access to its metadata for machine learning and generative AI model training, indicating a growing market for its Data, Distribution, and Services offerings[26] - The company has seen increased demand for monthly subscription products, which provide a fixed number of content licenses for a set period, enhancing creative freedom for users[36] Merger and Acquisition Activities - The merger agreement with Getty Images is set to provide cash consideration of $9.50 per share and 9.17 shares of Getty Images common stock for each share of Shutterstock common stock[20] - The merger is subject to customary closing conditions, including regulatory approvals, with the closing expected to result in Shutterstock's common stock being delisted from the NYSE[19] - The company is currently pursuing a merger with Getty Images, which presents risks such as potential delays in regulatory approvals and the possibility of incurring significant costs related to the merger[82] Competition and Market Risks - The company faces significant competition from various platforms, including Getty Images, AdobeStock, and AI tools like Midjourney and Dall-E, which may affect market share[72] - The company operates in a highly competitive industry with low barriers to entry, facing competition from both established companies and emerging technologies[98] - The company faces significant competition that may lead to variability in operating results and adversely affect financial condition due to competitors having greater resources[102] Financial and Operational Challenges - The company has incurred debt which may negatively impact its financing options and liquidity position[83] - The company’s operating results may fluctuate due to discretionary customer expenditures, which are influenced by economic conditions and industry-specific factors[74] - The company may need to raise additional funds for future acquisitions, which could lead to dilution of existing stockholders[130] Technology and Innovation - The company continues to invest in product development and cloud-based hosting infrastructure to improve customer experience and operational efficiency[32] - Investments in technology are critical for delivering user experiences and supporting scalable platforms, with ongoing improvements planned[51] - The company’s ability to innovate and develop new products is critical for maintaining competitive advantage in a rapidly evolving industry[82] Regulatory and Compliance Issues - The company is subject to evolving U.S. and foreign laws regarding privacy and data protection, including the GDPR, which imposes stringent operational requirements and significant penalties for non-compliance[63] - The California Consumer Privacy Act (CCPA) became effective in January 2020, with the California Privacy Rights Act (CPRA) extending its provisions in January 2023, impacting data collection practices[63] - The company is currently under investigation by the FTC regarding its disclosure and subscription enrollment practices, which could lead to significant monetary costs or penalties[189] Employee and Contributor Relations - The company has implemented a Total Rewards program to support employee growth and well-being, including competitive pay and benefits[71] - The company operates a contributor website in 23 languages, allowing contributors to create accounts, submit content, and receive feedback[38] - Contributors earn royalties based on a tiered earnings rate schedule tied to annual licensing volume, incentivizing high-quality submissions[42] Cybersecurity and Data Protection - The company faces risks related to cybersecurity incidents, which could expose it to liability and damage its reputation[83] - Cybersecurity incidents or failures to comply with data protection regulations could harm the company's reputation and lead to significant costs[164] - The evolving nature of cybersecurity threats necessitates ongoing investment in protective measures, with potential costs impacting financial performance[174] International Operations and Foreign Exchange - Approximately 59%, 55%, and 54% of the company's revenue for the years ended December 31, 2025, 2024, and 2023, respectively, was derived from customers located outside the United States[181] - The company faces significant foreign exchange risk, with operations in multiple currencies including the euro, British pound, Australian dollar, and Japanese yen, affecting reported financial results[184] - A decline in the value of foreign currencies against the U.S. dollar will reduce reported revenues, while an increase will have the opposite effect, impacting financial comparability across periods[185] Taxation and Financial Liabilities - The company is subject to risks related to payment processing, including potential increases in operating costs and compliance challenges[140] - The implementation of digital services taxes in various jurisdictions may lead to inconsistent tax regimes, impacting the company's financial condition[201] - The company has established reserves for additional income tax liabilities, but there is no assurance that these reserves will cover future liabilities[196]

Revenue Performance - Full year 2025 revenue reached $989.9 million, a 6% increase from $935.3 million in 2024[6] - Revenue from the Data, Distribution, and Services segment grew 16% to $203.3 million, representing 21% of total revenue in 2025[9] - Content revenue increased 4% to $786.7 million, accounting for 79% of total revenue, driven by the acquisition of Envato[8] - In Q4 2025, revenue was $220.2 million, a 12% decrease from Q4 2024, with Content revenue declining by 11% to $189.6 million[14] - Reported revenue for Q4 2025 was $220,221 thousand, representing a 12% decline year-over-year, while the year-end revenue for 2025 was $989,925 thousand, a 6% increase from 2024[57] - Total revenue for Q4 2025 was $220.2 million, a decrease of 12% from $250.3 million in Q4 2024[59] Profitability Metrics - Net income for 2025 was $45.5 million, up from $35.9 million in 2024, with net income per diluted share increasing to $1.25 from $1.01[10] - Adjusted EBITDA for 2025 was $271.8 million, a 10% increase from $247.1 million in 2024, with an adjusted EBITDA margin of 27.5%[13] - Adjusted net income for Q4 2025 was $24.9 million, slightly up from $23.4 million in Q4 2024, with adjusted net income per diluted share remaining at $0.67[17] - Adjusted EBITDA for Q4 2025 was $46,789 thousand, down from $59,069 thousand in Q4 2024, with an adjusted EBITDA margin of 21.2% compared to 23.6% in the prior year[56] Cash Flow and Liquidity - Cash and cash equivalents increased by $66.9 million to $178.2 million by the end of 2025, driven by $166.7 million in net cash from operating activities[19] - Adjusted free cash flow for 2025 was $149.5 million, an increase of $40.8 million from 2024, primarily due to changes in working capital[22] - Net cash provided by operating activities for Q4 2025 was $36,213 thousand, significantly higher than $7,966 thousand in Q4 2024, with total cash provided for the year at $166,686 thousand compared to $32,646 thousand in 2024[51] - Cash and cash equivalents rose to $178,244,000 in 2025, up from $111,251,000 in 2024[46] - The company reported a net cash used in investing activities of $10,359 thousand for Q4 2025, slightly higher than $10,048 thousand in Q4 2024, with total cash used for the year at $47,797 thousand[51] - The company reported a net cash used in financing activities of $59.1 million for the year ended December 31, 2025, compared to a net cash provided of $150.1 million in 2024[58] Subscriber Metrics - The number of subscribers at the end of Q4 2025 was 1,032,000, a decrease of 5.2% from 1,088,000 in Q4 2024[61] - Subscriber revenue for Q4 2025 was $104.7 million, a decrease of 7.5% from $113.1 million in Q4 2024[61] Mergers and Acquisitions - Shutterstock announced a merger agreement with Getty Images on January 7, 2025, to create a premier visual content company[37] - The merger is subject to customary closing conditions and regulatory approvals, with stockholder approval received on June 10, 2025[37] - The company will not provide financial guidance for the full year and Q4 2025 results due to the pending merger[38] Asset and Liability Management - Total current assets increased to $338,639,000 in 2025 from $255,958,000 in 2024[46] - Total liabilities decreased slightly to $774,898,000 in 2025 from $790,806,000 in 2024[46] Capital Expenditures - Capital expenditures for Q4 2025 were $10,314 thousand, compared to $8,918 thousand in Q4 2024, with total capital expenditures for the year at $42,856 thousand[51] - Capital expenditures for the year ended December 31, 2025, were $42.9 million, down from $47.2 million in 2024[58] Depreciation and Compensation - Total depreciation and amortization for Q4 2025 was $22.7 million, slightly lower than $23.3 million in Q4 2024[66] - Equity-based compensation for Q4 2025 totaled $14.6 million, an increase from $11.2 million in Q4 2024[65]