XRP (CRYPTO: XRP) is tightening into its biggest technical squeeze in months, just as Grayscale's new ETF makes its debut on Monday.Institutional Demand Builds As XRP ETF Wave AcceleratesGrayscale has introduced its Grayscale XRP Trust ETF on NYSE Arca under the ticker GXRP, converting the vehicle from a private placement first introduced in September 2024. The company said the ETF is intended to provide "straightforward exposure" to XRP, the fourth-largest cryptocurrency by market capitalization.Krista Lyn ...

Billionaire investor Bill Ackman, founder and CEO of Pershing Square Capital Management, is advising the Donald Trump administration against rushing initial public offerings (IPOs) for mortgage giants Fannie Mae (OTCQB:FNMA) and Freddie Mac (OTCQB:FMCC) .Ackman’s A Warning Against Rushing IPOsInstead, Ackman unveiled a three-step reform plan on Fox Business‘ “Mornings with Maria” that he claims would secure “hundreds of billions of dollars in value” for taxpayers.“Rushing to IPO is a mistake,” Ackman stated ...

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 - Shutterstock Inc. reported third-quarter earnings that exceeded expectations, driven by strong growth in its Data, Distribution, and Services division [1] - Adjusted earnings per share were $0.99, surpassing analyst estimates of $0.63, while revenue increased 4% year over year to $260.1 million, exceeding forecasts of $255.6 million [1] Financial Performance - The Content segment experienced a decline of 5% year over year to $194.4 million, whereas the Data, Distribution, and Services business surged 40% to $65.7 million, accounting for 25% of total revenue [2] - Adjusted EBITDA rose 13% to $79.4 million, with the margin expanding to 30.5% from 27.9% a year ago [2] - Free cash flow increased significantly to $75.2 million from $45.7 million in the same period last year, and the company maintained adjusted EBITDA margins above 30% for a second consecutive quarter [2] Subscriber Metrics - The subscriber base stood at 1.06 million at quarter-end, a slight decrease from 1.105 million a year earlier [3] - The company is integrating AI image, video, and audio generation tools into its unlimited content offerings to enhance its creative ecosystem [3]

Financial Performance - Total revenue for Q3 2025 was $260.1 million, a 3.0% increase from $250.6 million in Q3 2024[17] - Net income for Q3 2025 decreased to $13.4 million, down 24.8% from $17.6 million in Q3 2024[17] - Earnings per share (EPS) for Q3 2025 was $0.38, compared to $0.50 in Q3 2024, reflecting a 24.0% decline[17] - The company reported a comprehensive income of $11.0 million for Q3 2025, down from $21.9 million in Q3 2024[20] - Net income for the nine months ended September 30, 2025, was $61,515,000, compared to $37,361,000 for the same period in 2024, representing a 64.5% increase[24] - Pro forma revenue for the three months ended September 30, 2025, was reported at $260.1 million, compared to $261.6 million for the same period in 2024[74] - The Company reported a net income before income taxes of $31.4 million for the three months ended September 30, 2025, compared to $21.2 million for the same period in 2024[74] - For the three months ended September 30, 2025, total revenue was $260.1 million, a 3.0% increase from $250.6 million in the same period of 2024[109] - Revenue for the three months ended September 30, 2025, was $260.1 million, up from $250.6 million in 2024, reflecting a growth of 3.0%[123] - Total revenue for the nine months ended September 30, 2025, was $769.704 million, compared to $684.956 million for the same period in 2024, indicating a year-over-year increase of approximately 12.4%[256] Assets and Liabilities - Total current assets increased to $336.8 million as of September 30, 2025, up from $256.0 million at the end of 2024, representing a 31.2% growth[15] - Total liabilities decreased slightly to $781.2 million as of September 30, 2025, compared to $790.8 million at the end of 2024[15] - Cash and cash equivalents increased to $165.5 million as of September 30, 2025, compared to $111.3 million at the end of 2024, a growth of 48.8%[15] - Total cash and cash equivalents at the end of the period increased to $165,536,000 from $131,393,000 year-over-year, marking a 26% growth[24] - As of September 30, 2025, the Company reported $76.3 million in unbilled receivables, with $53.7 million recorded in Accounts Receivable and $22.6 million in Other Assets[44] - The Company’s long-lived tangible assets totaled $62.7 million as of September 30, 2025, down from $66.4 million as of December 31, 2024[125] Operating Expenses - Operating expenses for Q3 2025 totaled $227.6 million, a decrease of 2.0% from $232.4 million in Q3 2024[17] - Total operating expenses for the nine months ended September 30, 2025, were $692.3 million, compared to $629.4 million in 2024, indicating an increase of 10.0%[123] Cash Flow and Investments - Cash provided by operating activities for the nine months ended September 30, 2025, was $130,473,000, significantly higher than $24,680,000 in 2024[24] - The Company reported a net cash used in investing activities of $37,438,000 for the nine months ended September 30, 2025, compared to $156,120,000 in 2024[24] - The Company completed the acquisition of Envato Pty Ltd. on July 22, 2024, for an aggregate amount of $250.2 million, incurring approximately $7.0 million in transaction costs[64] - The Company completed the acquisition of Envato for approximately $63.4 million, which includes $90.6 million in cash and cash equivalents, and $106.2 million in identifiable intangible assets[72] - The acquisition of Backgrid was finalized for about $20 million, with transaction costs of approximately $1.5 million included in general and administrative expenses[67] - The total assets acquired from Envato and Backgrid amounted to $439.9 million, with total liabilities assumed of $168.5 million, resulting in net assets acquired of $271.4 million[72] Shareholder Returns - Cash dividends paid in the nine months ended September 30, 2025, totaled $34,823,000, compared to $31,938,000 in 2024[24] - The Company declared cash dividends of $0.33 per share, totaling $11.7 million for the three months ended September 30, 2025, compared to $0.30 per share and $10.6 million in 2024[99] - The company repurchased treasury shares amounting to $41,591,000 in 2024, with no repurchases reported in 2025[24] - The Company has repurchased approximately 5.5 million shares of common stock since 2015 at an average cost of $48.86, with $30.2 million remaining authorization under the 2023 Share Repurchase Program[98] Mergers and Acquisitions - The proposed merger with Getty Images Holdings, Inc. is expected to enhance market position and expand product offerings[11] - The merger agreement with Getty Images was approved by a majority of Shutterstock stockholders on June 10, 2025, with the transaction expected to close subject to regulatory approvals[32][33] - The Company is in the process of a merger with Getty Images, with cash consideration of $9.50 per share and 9.17 shares of Getty Images common stock for each share of Shutterstock common stock outstanding prior to the transaction close[34] Tax and Regulatory - The effective tax rate for the three months ended September 30, 2025, was a net expense of 57.4%[111] - The effective tax rate for the nine months ended September 30, 2024, was 23.2%, while it would have been 32.4% excluding discrete items[115] - The Company recorded additions to unrecognized tax benefits of $4.4 million and $5.0 million for the three and nine months ended September 30, 2024, respectively[117] Other Financial Metrics - The Company recognized interest expense of $4.2 million for the three months ended September 30, 2025[94] - The interest rates on amounts borrowed under the A&R Credit Agreement range from 0.375% to 0.750% based on the company's consolidated net leverage ratio[258] - A hypothetical 10% change in interest rates would not have a material impact on the company's interest expense as of September 30, 2025[258] - The company does not currently use derivatives or other financial instruments to hedge foreign currency exchange risk but may consider doing so in the future[255] - The company does not believe inflation has had a material effect on its business or financial condition[259]

Revenue Performance - Third quarter revenue was $260.1 million, an increase of $9.5 million or 4% compared to the third quarter of 2024[4] - Revenue from the Content product offering decreased by $9.3 million, or 5%, to $194.4 million, representing 75% of total revenue[5] - Revenue from Data, Distribution, and Services increased by $18.8 million, or 40%, to $65.7 million, accounting for 25% of total revenue[6] - Revenue for Q3 2025 was $260,094,000, a 3.0% increase from $250,588,000 in Q3 2024[36] - Total revenue for Q3 2025 was $260,094 million, representing a growth of 4% from $250,588 million in Q3 2024[47] Net Income and Earnings - Net income for the third quarter was $13.4 million, down from $17.6 million, with net income per diluted share at $0.37 compared to $0.50[7][8] - Net income for Q3 2025 was $13,387,000, down 24.8% from $17,615,000 in Q3 2024[36] - Basic earnings per share for Q3 2025 was $0.38, compared to $0.50 in Q3 2024, reflecting a decline of 24.0%[36] - Adjusted net income for Q3 2025 was $36,429 million, compared to $46,351 million in Q3 2024, reflecting a decline of 21.4%[43] Cash Flow and Liquidity - Cash and cash equivalents increased by $49.1 million to $165.5 million, driven by $78.4 million of net cash from operating activities[12] - Cash and cash equivalents increased to $165,536,000 as of September 30, 2025, up from $111,251,000 at the end of 2024[38] - Net cash provided by operating activities for the nine months ended September 30, 2025, was $130,473,000, compared to $24,680,000 for the same period in 2024[40] - Net cash provided by operating activities for Q3 2025 was $78,390 million, a significant increase from a cash outflow of $11,585 million in Q3 2024[48] - Adjusted free cash flow was $75.2 million, an increase of $29.6 million from the third quarter of 2024[15] - Adjusted free cash flow for Q3 2025 was $75,224 million, compared to $45,672 million in Q3 2024, marking a growth of 64.7%[48] Subscriber Metrics - The company reported 1,060,000 subscribers at the end of the period, with average revenue per customer increasing to $279[16] - The number of subscribers at the end of Q3 2025 was 1,060,000, a decrease from 1,105,000 in Q3 2024[51] - Average revenue per customer for the last twelve months was $279 in Q3 2025, up from $254 in Q3 2024[51] Operating Expenses and Profitability - Operating expenses decreased to $227,603,000 in Q3 2025 from $232,439,000 in Q3 2024, a reduction of 2.5%[36] - Adjusted EBITDA was $79.4 million, an increase of $9.4 million or 13%, with an adjusted EBITDA margin of 30.5%[11] - Adjusted EBITDA for Q3 2025 was $79,429 million, up from $69,997 million in Q3 2024, indicating a growth of 13.0%[47] - The adjusted EBITDA margin improved to 30.5% in Q3 2025 from 27.9% in Q3 2024[47] Assets and Liabilities - Total assets rose to $1,375,599,000 as of September 30, 2025, compared to $1,309,156,000 at the end of 2024, an increase of 5.1%[38] - Total liabilities decreased slightly to $781,238,000 as of September 30, 2025, from $790,806,000 at the end of 2024[38] - The company reported a decrease in deferred revenue to $211,565,000 as of September 30, 2025, from $225,489,000 at the end of 2024[38] Strategic Developments - The pending merger with Getty Images is ongoing, with the company committed to securing necessary clearances[3][29] - The company will not provide financial guidance due to the pending merger transaction[30] - The company plans to continue focusing on new product development and market expansion strategies[33] Compensation and Depreciation - Total non-cash equity-based compensation for Q3 2025 was $12,962,000, a decrease of 17% from $15,625,000 in Q2 2025[55] - Cost of revenue depreciation for Q3 2025 was $21,028,000, an increase of 1% from $20,804,000 in Q2 2025[56] - General and administrative expenses for equity-based compensation in Q3 2025 were $6,966,000, down 23% from $9,005,000 in Q2 2025[55] - Total depreciation and amortization for Q3 2025 was $22,877,000, an increase of 1% from $22,611,000 in Q2 2025[56] - Product development equity-based compensation for Q3 2025 was $3,370,000, a decrease of 5% from $3,529,000 in Q2 2025[55] - Sales and marketing equity-based compensation for Q3 2025 was $2,098,000, a decrease of 18% from $2,559,000 in Q2 2025[55] - Cost of revenue for equity-based compensation in Q3 2025 was $528,000, a slight decrease from $532,000 in Q2 2025[55] - General and administrative depreciation for Q3 2025 was $1,849,000, an increase of 2% from $1,807,000 in Q2 2025[56] - Total equity-based compensation in Q2 2025 was $15,625,000, compared to $17,884,000 in Q1 2025, indicating a downward trend[55] - Total depreciation and amortization in Q4 2024 was $23,287,000, which is higher than the $22,877,000 reported in Q3 2025[56]

Core Insights - Shutterstock reported a 4% increase in revenue for Q3 2025, reaching $260.1 million, driven by growth in the Data, Distribution, and Services segment [3][15] - The company continues to enhance its value proposition by integrating AI generative models into its content offerings, despite facing a competitive landscape [2] - The pending merger with Getty Images remains a priority, with ongoing engagement with regulatory authorities to secure necessary approvals [2][27] Financial Highlights - Total revenue for Q3 2025 was $260.1 million, an increase of $9.5 million compared to Q3 2024 [3][15] - Content revenue decreased by 5% to $194.4 million, accounting for 75% of total revenue, primarily due to challenges in new customer acquisition [4] - Revenue from Data, Distribution, and Services increased by 40% to $65.7 million, representing 25% of total revenue [5] Profitability Metrics - Net income for Q3 2025 was $13.4 million, down from $17.6 million in Q3 2024, with diluted earnings per share at $0.37 compared to $0.50 [6][15] - Adjusted net income decreased to $36.4 million from $46.4 million year-over-year, with adjusted net income per diluted share at $0.99, down from $1.31 [7][8] - Adjusted EBITDA rose by 13% to $79.4 million, with an adjusted EBITDA margin of 30.5%, up from 27.9% in the previous year [9] Cash Flow and Liquidity - Cash and cash equivalents increased by $49.1 million to $165.5 million as of September 30, 2025, driven by $78.4 million in net cash from operating activities [10][11] - Adjusted free cash flow for Q3 2025 was $75.2 million, an increase of $29.6 million from the same quarter in 2024 [13] Subscriber Metrics - The number of subscribers at the end of Q3 2025 was 1,060,000, unchanged from the previous year [14]

Core Viewpoint - The UK's competition watchdog is set to conduct a detailed investigation into the merger between Getty Images and Shutterstock due to concerns over competition and the remedies proposed by the companies [1] Group 1: Investigation Details - The investigation will focus on the potential impact of the merger on competition within the market for stock images [1] - The competition authority has expressed concerns that the merger could reduce competition and lead to higher prices for consumers [1] Group 2: Company Background - Getty Images is a U.S.-based company that provides stock images, while Shutterstock is a rival in the same industry [1] - Both companies have offered remedies to address competition concerns, but these have not satisfied the competition watchdog [1]

Core Viewpoint - The UK's Competition and Markets Authority (CMA) has referred the proposed merger between Shutterstock and Getty Images to a Phase 2 review process, despite Getty Images offering remedies to avoid this outcome. Shutterstock expresses disappointment but remains committed to the merger and plans to work with the CMA and Getty Images to secure necessary clearances [1]. Company Overview - Shutterstock operates as a platform that transforms ideas into impactful outcomes, leveraging a global network of creators and advanced technology to provide essential resources for businesses and creatives. The company boasts the world's largest and most diverse collection of high-quality licensable assets, data, AI solutions, and full-service studio production [2]. Merger Details - The proposed merger involves significant regulatory scrutiny, as indicated by the CMA's decision to escalate the review process. This development highlights the complexities and challenges associated with large-scale mergers in the creative and media sectors [1][9].

Core Viewpoint - Getty Images is committed to its proposed merger with Shutterstock despite the UK's Competition and Markets Authority referring the merger to a Phase 2 review process, which the company finds disappointing [1] Company Overview - Getty Images is a leading global visual content creator and marketplace, offering a wide range of content solutions to customers worldwide, regardless of their size [2] - The company collaborates with nearly 600,000 content creators and over 355 content partners, covering more than 160,000 news, sports, and entertainment events annually, showcasing its extensive coverage capabilities [2] Technological Advancements - Getty Images enhances customer creativity through its creative library and Custom Content solutions, utilizing generative AI technologies that allow for text-to-image generation, ensuring commercially safe visuals [3]