Core Viewpoint - Enhanced trade-in deals and extended financing plans from U.S. carriers are positively impacting Apple's iPhone upgrade cycle for the iPhone 17, with analysts predicting a strong performance due to increased subsidies [1][3]. Carrier Promotions - Carriers are offering approximately $100 more in subsidies for new iPhones this year, making the devices more affordable through bundled financing with wireless service [2][3]. - Buyers can spread payments over 24 to 36 months, with some plans allowing the phone to be effectively free with eligible trade-ins [2]. Pricing and Subsidies - The entry price for the iPhone 17 Pro has increased to $1,099 for 256GB, compared to the iPhone 16 Pro's $999 for 128GB, necessitating higher subsidies [3]. - Current lead times for iPhone 17 shipping estimates are longer than last year, indicating strong demand [4]. Upgrade Cycle and Trade-in Offers - Carriers are encouraging upgrades on a two-to-four-year cycle, with trade-in credits reaching up to $1,100 for newer models [5]. - All three major carriers are accepting devices in any condition, including those that are cracked or non-working [5]. Upfront Costs - Despite trade-in offers, customers still incur upfront costs, including activation fees of $35–$40 and taxes based on the full retail price [6]. - Initial outlays for an iPhone 17 are estimated at approximately $229–$234, while the iPhone 17 Pro Max is around $380–$385 when utilizing the highest trade-in credits [6]. Carrier Conditions - Buyers must switch to specific unlimited plans, which may be more expensive than basic options, and promotional credits are applied monthly over the installment term [7]. - The typical installment terms are 24 months at T-Mobile and 36 months at Verizon and AT&T [7].

Core Points - The Department of Health and Human Services (HHS) and the White House have shared a 2017 tweet from Tylenol, reigniting discussions about a potential link between the drug and autism in children [2][4] - Kenvue, the parent company of Tylenol, stated that the tweet was taken out of context and emphasized that acetaminophen is considered the safest pain reliever during pregnancy [3][4] - A recent study from the Icahn School of Medicine at Mount Sinai supports evidence of a link between prenatal acetaminophen use and increased risks of autism and ADHD, analyzing data from over 100,000 participants [5] Company Impact - Following the renewed controversy, Kenvue's stock experienced a significant decline, dropping over 11% in the past five days due to fears of potential litigation stemming from the discussions [6] - HHS Secretary Robert F. Kennedy Jr. announced plans for a nationwide campaign advising clinicians to prescribe the lowest effective dose of acetaminophen during pregnancy [7] - Kenvue's stock is currently showing a weak price trend across short, medium, and long-term periods, with a poor momentum ranking of 9.67% [7]

Core Viewpoint - General Dynamics Information Technology (GDIT) has been awarded a $1.5 billion contract to modernize the IT infrastructure of the U.S. Strategic Command (STRATCOM), enhancing its operational readiness and national security capabilities [1][5]. Group 1: Contract Details - The contract includes a one-year base period and six option years, focusing on strategic deterrence, global strike, nuclear command and control, and electromagnetic spectrum operations [1]. - The command requires a resilient and secure network environment to connect systems and data for decision-makers and deployed forces globally [2]. Group 2: Technological Enhancements - GDIT plans to implement digital engineering to streamline operations, reduce costs, and improve collaboration with mission partners [3]. - The program aims to refresh enterprise infrastructure and standardize tools to support faster and better-informed decisions [3]. - The company will integrate artificial intelligence and machine learning into STRATCOM's enterprise data to enhance insights and automate workflows [4]. Group 3: Infrastructure and Security - GDIT will transition STRATCOM to a hybrid-cloud architecture for increased flexibility and scalability, while also deploying advanced cyber defenses and zero-trust approaches to address evolving threats [5]. - The modernization of STRATCOM's IT capabilities is deemed critical for maintaining the strategic deterrence edge and protecting national security [5]. Group 4: Market Performance - General Dynamics' stock has increased over 7% in the past year, with shares trading at $323.70 [4][6].

Group 1 - Trump Media & Technology Group Corp. announced the launch of five new exchange-traded funds (ETFs) focused on "America First" themes, expanding its fintech and streaming divisions beyond social media and digital assets [1][3] - The new ETFs will be branded as the Truth Social Funds and are part of a broader strategy to enhance the company's investment offerings [1][3] - The ETFs include: Truth Social American Icons ETF, Truth Social American Security & Defense ETF, Truth Social American Next Frontiers ETF, Truth Social American Energy Security ETF, and Truth Social American Red State REITs ETF, each aligned with the Truth Social brand [3] Group 2 - Yorkville America Equities will sponsor the ETFs and act as the registered investment advisor, with a screening framework developed in partnership with the 1792 Exchange to support the group's political and cultural positioning [3][4] - The ETFs are expected to debut later this year on NYSE Arca, pending regulatory approval, and will be available through mainstream brokerages and investing platforms [4] - As of the latest trading session, DJT shares were down 0.3% to $16.85 [4]

Group 1 - The impact of artificial intelligence (AI) on the U.S. financial market is significant, with companies like Nvidia (NVDA.US) reaching a market capitalization of nearly $4.5 trillion, while startups like OpenAI and Anthropic have raised billions [1] - Investors are increasingly concerned about the potential disruption caused by AI, leading to sell-offs in stocks of companies expected to see declining demand due to AI advancements, including Wix.com (WIX.US), Shutterstock (SSTK.US), and Adobe (ADBE.US) [1][5] - Since mid-May, the performance of the group of companies identified as most at risk from AI has lagged the S&P 500 index by approximately 22 percentage points [1] Group 2 - Daniel Newman, CEO of Futurum Group, indicated that the anticipated impact of AI on service-oriented industries may occur sooner than expected, potentially within two years instead of five [2] - Major tech companies like Microsoft (MSFT.US) and Meta (META.US) are investing hundreds of billions into AI research, causing investors to adopt a more cautious stance [5] - By 2025, Wix.com and Shutterstock's stock prices are projected to drop by at least 33%, while Adobe's stock is expected to decline by 23% due to fears of clients shifting to AI-generated content [5] Group 3 - Investor sentiment is turning negative as AI changes how information is accessed and how businesses operate, with even leading tech firms like Microsoft reducing jobs to allocate more resources for AI investments [6] - Gartner Inc. recently lowered its revenue forecasts, resulting in a 30% drop in its stock price, highlighting the market's concerns about AI's disruptive potential [6][9] - Historical precedents exist where new technologies have replaced old industries, raising fears that many companies may become obsolete due to AI [9] Group 4 - The current market dynamics show that AI is a dominant factor in determining stock winners and losers, contrasting with earlier concerns about competition from low-cost AI models in China [10] - Major companies like Microsoft, Meta, Alphabet, and Amazon are expected to invest approximately $350 billion in capital expenditures this fiscal year, a nearly 50% increase from the previous year, primarily for AI infrastructure [10] - Google is seen as well-positioned in the AI landscape, yet it is also included in the basket of companies assessed for AI risk, indicating ongoing concerns about its stock performance [10] Group 5 - Companies in the advertising sector, such as Omnicom Group, are facing significant challenges, with Omnicom's stock down 15% due to competition from AI-driven advertising solutions [11] - WPP, a competitor, has seen its stock price drop over 50%, reflecting the pressure on traditional advertising models from AI advancements [11][12] - Analysts predict that the investment theme surrounding AI risks will continue to gain traction as many companies face potential threats from AI technologies [12]

Core Insights - NEXGEL, Inc. has appointed Steve Ciardiello, CPA, to its Board of Directors, bringing over 25 years of experience in financial leadership and corporate governance [1][2] - The CEO of NEXGEL, Adam Levy, expressed confidence that Ciardiello's financial acumen will be valuable as the company enters a new growth phase [2] - Ciardiello, currently the Chief Accounting Officer at Shutterstock, has a strong background in financial transformation and operational efficiency [2] Company Overview - NEXGEL is a provider of healthcare, beauty, and over-the-counter products, specializing in ultra-gentle, high-water-content hydrogels [3] - The company has been developing and manufacturing electron-beam, cross-linked hydrogels for over two decades [3] - NEXGEL's product brands include Silverseal®, Hexagels®, Turfguard®, Kenkoderm®, and Silly George®, and it has strategic manufacturing relationships with leading consumer healthcare companies [3]

Core Insights - The performance of Shutterstock's international operations is critical for understanding its financial strength and growth potential [1][2] - Analyzing international revenues provides insights into the company's earnings stability and ability to navigate diverse economic cycles [2][3] Financial Performance - Shutterstock's total revenue for the quarter reached $266.99 million, reflecting a 21.3% increase year-over-year [4] - Europe contributed 24.1% of total revenue, amounting to $64.39 million, which was a -5.16% surprise compared to expectations [5] - The Rest of the World generated $54.72 million, accounting for 20.5% of total revenue, also falling short of projections by -7.9% [6] Revenue Projections - Analysts forecast total revenue of $268.97 million for the current fiscal quarter, a 7.3% increase from the previous year, with Europe and Rest of the World expected to contribute 28.2% and 24.6% respectively [7] - For the full year, total revenue is projected at $1.07 billion, a 14.3% increase, with Europe and Rest of the World expected to contribute 26.6% and 23.4% respectively [8] Market Trends and Challenges - The reliance on global markets presents both opportunities and challenges for Shutterstock, making the analysis of international revenue trends essential for future forecasts [9] - Global interconnections and geopolitical issues are increasingly influencing earnings predictions for companies with overseas operations [10] Stock Performance - Over the past month, Shutterstock's stock has declined by 6.6%, contrasting with a 0.6% increase in the S&P 500 [13] - In the last three months, the stock price has seen a slight increase of 0.2%, while the S&P 500 rose by 11.7% [13]

Core Insights - Shutterstock reported quarterly earnings of $1.19 per share, missing the Zacks Consensus Estimate of $1.65 per share, and showing an increase from $1 per share a year ago [1] - The company posted revenues of $266.99 million for the quarter, missing the Zacks Consensus Estimate by 2.83%, and up from $220.05 million year-over-year [3] Earnings Performance - The earnings surprise for the quarter was -27.88%, with the company having surpassed consensus EPS estimates only once in the last four quarters [2] - The previous quarter also saw a negative surprise, with actual earnings of $1.03 per share against an expectation of $1.26, resulting in a surprise of -18.25% [2] Stock Performance - Shutterstock shares have declined approximately 34.7% since the beginning of the year, contrasting with the S&P 500's gain of 8.6% [4] - The current Zacks Rank for Shutterstock is 3 (Hold), indicating expected performance in line with the market in the near future [7] Future Outlook - The consensus EPS estimate for the upcoming quarter is $1.47 on revenues of $268.97 million, and for the current fiscal year, it is $5.39 on revenues of $1.07 billion [8] - The outlook for the industry, particularly the Internet - Content sector, is currently in the bottom 30% of Zacks industries, which may impact stock performance [9]

[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%2E%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20%28Unaudited%29) The company's financial statements for the period ended June 30, 2025, show significant year-over-year growth in revenue and net income, largely driven by the Envato acquisition and expansion in data offerings [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets were $1.376 billion, an increase from $1.309 billion at December 31, 2024, primarily driven by increases in accounts receivable and other assets Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$1,376,451** | **$1,309,156** | | Cash and cash equivalents | $116,410 | $111,251 | | Goodwill | $575,249 | $569,668 | | **Total Liabilities** | **$790,288** | **$790,806** | | Deferred revenue | $226,719 | $225,489 | | Debt (Current & Long-term) | $276,227 | $277,704 | | **Total Stockholders' Equity** | **$586,163** | **$518,350** | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) For Q2 2025, revenue grew 21.3% year-over-year to $267.0 million, and net income surged to $29.4 million, driven by higher revenue and a substantial gain from other income Statement of Operations Summary (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | 6 Months 2025 | 6 Months 2024 | | :--- | :--- | :--- | :--- | :--- | | **Revenue** | **$266,990** | **$220,053** | **$509,610** | **$434,368** | | Income from operations | $34,731 | $20,666 | $44,932 | $37,412 | | **Net income** | **$29,440** | **$3,625** | **$48,128** | **$19,746** | | Diluted EPS | $0.82 | $0.10 | $1.35 | $0.55 | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash provided by operating activities significantly increased to $52.1 million, while cash used in financing activities decreased due to lower share repurchases Cash Flow Summary for Six Months Ended June 30 (in thousands) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $52,083 | $36,265 | | Net cash used in investing activities | ($26,199) | ($8,227) | | Net cash used in financing activities | ($29,699) | ($50,778) | | **Net increase / (decrease) in cash** | **$5,159** | **($25,619)** | [Notes to Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail significant events and accounting policies, including the pending merger with Getty Images, a $5.0 million investment impairment, and revenue breakdown by offering - On January 6, 2025, the Company entered into a merger agreement with Getty Images, which received stockholder approval on June 10, 2025, and is subject to customary closing conditions, including regulatory approvals[32](index=32&type=chunk)[33](index=33&type=chunk) - In Q2 2025, the company recorded a **$5.0 million impairment charge** on a long-term equity security, offset by a significant unrealized gain on its investment in Meitu, Inc., which had a fair value of **$51.9 million** at June 30, 2025[60](index=60&type=chunk)[63](index=63&type=chunk) - The company is involved in stockholder litigation related to the proxy statement for the Getty Images merger, believing the claims are without merit but making supplemental disclosures to avoid delays[132](index=132&type=chunk)[268](index=268&type=chunk) Revenue by Offering (in thousands) | Offering | Q2 2025 | Q2 2024 | 6 Months 2025 | 6 Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Content | $199,796 | $169,951 | $402,684 | $343,781 | | Data, Distribution, and Services | $67,194 | $50,102 | $106,926 | $90,587 | | **Total Revenue** | **$266,990** | **$220,053** | **$509,610** | **$434,368** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the 21% year-over-year revenue growth in Q2 2025 primarily to the Envato acquisition and strong performance in the Data, Distribution, and Services offering, with operating income rising 68% to $34.7 million - The number of subscribers more than doubled to **1,073,000** at the end of Q2 2025 from **490,000** a year prior, primarily due to the inclusion of Envato, which was acquired in July 2024[156](index=156&type=chunk)[161](index=161&type=chunk) - General and Administrative expenses in Q2 2025 increased by **$12.0 million**, or **33%**, driven by **$8.7 million** of expenses associated with the Getty merger and costs from the Envato acquisition[189](index=189&type=chunk) - Other income in Q2 2025 was **$12.6 million**, primarily driven by an **$18.0 million unrealized gain** on the company's investment in Meitu, Inc., partially offset by a **$5.0 million investment impairment**[191](index=191&type=chunk) Key Operating Metrics | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Subscribers (end of period) | 1,073,000 | 490,000 | | Subscriber revenue (in millions) | $108.0 | $80.3 | | Average revenue per customer (LTM) | $266 | $434 | | Paid downloads (in millions) | 112.6 | 33.4 | [Results of Operations](index=32&type=section&id=Results%20of%20Operations) Comparing Q2 2025 to Q2 2024, revenue increased 21% to $267.0 million, driven by the Envato acquisition and a 34% increase in Data, Distribution, and Services revenue, leading to a 68% growth in income from operations Comparison of Three Months Ended June 30 (in thousands) | Item | 2025 | 2024 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | **Revenue** | **$266,990** | **$220,053** | **$46,937** | **21%** | | Cost of revenue | $105,994 | $91,254 | $14,740 | 16% | | Sales and marketing | $57,077 | $51,881 | $5,196 | 10% | | General and administrative | $48,434 | $36,393 | $12,041 | 33% | | **Income from operations** | **$34,731** | **$20,666** | **$14,065** | **68%** | | **Net income** | **$29,440** | **$3,625** | **$25,815** | **712%** | Comparison of Six Months Ended June 30 (in thousands) | Item | 2025 | 2024 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | **Revenue** | **$509,610** | **$434,368** | **$75,242** | **17%** | | General and administrative | $106,741 | $68,471 | $38,270 | 56% | | **Income from operations** | **$44,932** | **$37,412** | **$7,520** | **20%** | | **Net income** | **$48,128** | **$19,746** | **$28,382** | **144%** | [Liquidity and Capital Resources](index=37&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2025, the company had $116.4 million in cash and cash equivalents, financing operations primarily through cash flow and a credit facility with approximately $276 million in outstanding debt - The company had cash and cash equivalents of **$116.4 million** as of June 30, 2025[214](index=214&type=chunk) - In the first six months of 2025, the company paid cash dividends of **$23.1 million** (**$0.66 per share**) and did not repurchase any common stock, with **$30.2 million** remaining authorized under the share repurchase program[216](index=216&type=chunk)[220](index=220&type=chunk) - The company has a senior unsecured term loan and revolving credit facility under its A&R Credit Agreement, with total outstanding debt of approximately **$276.2 million** as of June 30, 2025[222](index=222&type=chunk)[226](index=226&type=chunk) [Non-GAAP Financial Measures](index=39&type=section&id=Non-GAAP%20Financial%20Measures) Management uses non-GAAP measures like Adjusted EBITDA, which was $82.2 million for Q2 2025 (30.8% margin), and Adjusted Net Income of $42.9 million, to evaluate business performance Reconciliation of Net Income to Adjusted EBITDA (in thousands) | Line Item | Q2 2025 | Q2 2024 | 6 Months 2025 | 6 Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Net income | $29,440 | $3,625 | $48,128 | $19,746 | | Adjustments (Depreciation, Amortization, Interest, Taxes, etc.) | $39,449 | $33,571 | $67,213 | $61,023 | | Non-cash equity-based compensation | $15,625 | $14,976 | $33,509 | $26,126 | | Merger related costs | $8,710 | $0 | $20,571 | $0 | | Unrealized (gain) / loss on investment | ($18,029) | $3,625 | ($31,289) | ($130) | | **Adjusted EBITDA** | **$82,236** | **$62,072** | **$145,600** | **$118,049** | Reconciliation of Net Income to Adjusted Net Income (in thousands) | Line Item | Q2 2025 | Q2 2024 | 6 Months 2025 | 6 Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Net income | $29,440 | $3,625 | $48,128 | $19,746 | | Non-GAAP adjustments (net of tax) | $13,432 | $32,272 | $31,036 | $49,272 | | **Adjusted net income** | **$42,872** | **$35,897** | **$79,164** | **$69,018** | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=43&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to market risks from foreign currency exchange rates and interest rates, with approximately 26% of revenue denominated in foreign currencies - Revenue denominated in foreign currencies was **26%** of total revenue for the six months ended June 30, 2025, with a hypothetical **10% change** in the U.S. dollar exchange rate impacting revenue by approximately **3%**[258](index=258&type=chunk) - The company's debt under the A&R Credit Agreement accrues interest at variable rates tied to the base rate or SOFR, exposing it to interest rate fluctuation risk[262](index=262&type=chunk) [Item 4. Controls and Procedures](index=44&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of June 30, 2025, with no material changes in internal control over financial reporting during the quarter - Based on an evaluation as of June 30, 2025, the Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective[265](index=265&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that materially affected, or are reasonably likely to materially affect, internal controls[266](index=266&type=chunk) [PART II. OTHER INFORMATION](index=45&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=45&type=section&id=Item%201.%20Legal%20Proceedings) The company is facing two stockholder complaints alleging the proxy statement for the Getty Images merger contained false or misleading information, which Shutterstock denies but has supplemented to avoid delays - Two complaints have been filed against Shutterstock and its board of directors alleging the proxy statement for the Getty Images merger was false and misleading[268](index=268&type=chunk)[132](index=132&type=chunk) - The company denies all allegations but has voluntarily supplemented the proxy statement to mitigate litigation risk and avoid delays to the merger[270](index=270&type=chunk)[134](index=134&type=chunk) [Item 1A. Risk Factors](index=45&type=section&id=Item%201A.%20Risk%20Factors) There were no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2024 - During the three months ended June 30, 2025, there were no material changes to the risk factors as described in the company's 2024 Form 10-K[271](index=271&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=45&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities during the period - None[272](index=272&type=chunk)

[Financial Highlights](index=1&type=section&id=Financial%20Highlights) Shutterstock reported record financial performance in Q2 2025, driven by strong revenue and Adjusted EBITDA growth, significantly boosted by the Envato acquisition [Second Quarter 2025 Results](index=1&type=section&id=Second%20Quarter%202025%20Results) Shutterstock reported record Q2 2025 financial performance, with revenue reaching **$267.0 million** and Adjusted EBITDA growing **32%**, primarily driven by the Envato acquisition and data services Q2 2025 vs. Q2 2024 Financial Summary | Financial Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | **Revenue** | $267.0M | $220.1M | +21% | | **Net Income** | $29.4M | $3.6M | +717% | | **Net Income per Diluted Share** | $0.82 | $0.10 | +720% | | **Adjusted Net Income** | $42.9M | $35.9M | +19% | | **Adjusted Net Income per Diluted Share** | $1.19 | $1.00 | +19% | | **Adjusted EBITDA** | $82.2M | $62.1M | +32% | - Revenue growth was broad-based, with content revenue increasing by **18% to $199.8 million** due to the Envato acquisition, and Data, Distribution, and Services revenue growing by **34% to $67.2 million** from data deal recognition[4](index=4&type=chunk)[5](index=5&type=chunk) - The significant increase in net income was attributed to profitability from the Envato acquisition and unrealized gains from the company's investment in Meitu, Inc, partially offset by a **$3.7 million** increase in interest expense and **$8.7 million** in professional fees for the proposed merger with Getty Images[6](index=6&type=chunk) - Adjusted EBITDA margin improved to **30.8%** in Q2 2025, up from **28.2%** in Q2 2024, primarily due to contributions from Envato and data deal revenue[10](index=10&type=chunk) [Liquidity and Capital Resources](index=2&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity saw a modest increase in Q2 2025, driven by operating cash flow despite significant investing and financing activities [Second Quarter Liquidity](index=2&type=section&id=Second%20Quarter%20Liquidity) Cash and cash equivalents increased by **$4.2 million** to **$116.4 million** in Q2 2025, primarily from operations, partially offset by investing and financing outflows - Cash and cash equivalents rose to **$116.4 million** as of June 30, 2025, an increase of **$4.2 million** during the quarter[11](index=11&type=chunk) - Cash from operations was unfavorably impacted by **$5.7 million** in expenses related to the proposed merger with Getty Images[12](index=12&type=chunk) - Financing activities included an **$11.6 million** dividend payment and a **$0.8 million** repayment of the credit facility[14](index=14&type=chunk) - Adjusted free cash flow decreased by **$18.7 million** year-over-year to **$17.5 million** for Q2 2025[14](index=14&type=chunk) [Quarterly Cash Dividend](index=2&type=section&id=Quarterly%20Cash%20Dividend) The company maintained its commitment to shareholder returns by paying a **$0.33 per common share** dividend in Q2 2025 and declaring an identical dividend for September 2025 - In Q2 2025, the company paid a cash dividend of **$0.33 per share**, amounting to a total of **$11.6 million**[15](index=15&type=chunk) - The Board of Directors declared a further dividend of **$0.33 per share**, payable on September 18, 2025[15](index=15&type=chunk) [Key Operating Metrics](index=3&type=section&id=Key%20Operating%20Metrics) Envato's integration significantly impacted Q2 2025 operating metrics, doubling subscribers and surging paid downloads, though average revenue per customer decreased Key Operating Metrics (Q2 2025 vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | **Subscribers (end of period)** | 1,073,000 | 490,000 | +119% | | **Subscriber revenue** | $108.0M | $80.3M | +34.5% | | **Average revenue per customer (LTM)** | $266 | $434 | -38.7% | | **Paid downloads** | 112.6M | 33.4M | +237% | - The metrics for 2025 include counts and revenues from Envato, acquired in July 2024, leading to significant year-over-year changes in subscriber and download figures[16](index=16&type=chunk) [Merger with Getty Images](index=5&type=section&id=Merger%20with%20Getty%20Images) Shutterstock is proceeding with its merger of equals with Getty Images, approved by stockholders, with completion contingent on regulatory approvals - On January 7, 2025, Shutterstock entered into a merger agreement with Getty Images for a merger of equals[29](index=29&type=chunk) - A majority of Shutterstock stockholders approved the merger agreement at a special meeting on June 10, 2025[29](index=29&type=chunk) - Due to the pending transaction, Shutterstock will not host a conference call or provide financial guidance for Q2 2025[30](index=30&type=chunk) [Non-GAAP Financial Measures](index=4&type=section&id=Non-GAAP%20Financial%20Measures) The company utilizes non-GAAP financial measures to provide a clearer understanding of core operational performance by excluding certain non-cash and one-time items - The company uses non-GAAP financial measures such as adjusted EBITDA, adjusted net income, adjusted free cash flow, and constant currency revenue growth[21](index=21&type=chunk) - Management believes these measures help investors analyze operating results on the same basis as management by eliminating the effects of unusual or infrequent charges not attributable to underlying performance[25](index=25&type=chunk) - Key adjustments to derive non-GAAP figures include depreciation and amortization, non-cash equity-based compensation, merger-related costs, and unrealized gains/losses on investments[22](index=22&type=chunk) [Consolidated Financial Statements](index=7&type=section&id=Consolidated%20Financial%20Statements) This section presents Shutterstock's consolidated financial statements, including detailed statements of operations, balance sheets, and cash flows [Consolidated Statements of Operations](index=7&type=section&id=Consolidated%20Statements%20of%20Operations) For Q2 2025, Shutterstock's revenue increased to **$267.0 million**, with net income surging to **$29.4 million** ($0.82 per diluted share), driven by higher revenue and other income Consolidated Statements of Operations (Three Months Ended June 30) | (In thousands) | 2025 | 2024 | | :--- | :--- | :--- | | **Revenue** | $266,990 | $220,053 | | **Income from operations** | $34,731 | $20,666 | | **Net income** | $29,440 | $3,625 | | **Diluted EPS** | $0.82 | $0.10 | [Consolidated Balance Sheets](index=8&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, Shutterstock's total assets increased to **$1.376 billion**, primarily in current assets, leading to higher stockholders' equity while total liabilities remained stable Consolidated Balance Sheet Summary | (In thousands) | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | **Total current assets** | $308,706 | $255,958 | | **Total assets** | $1,376,451 | $1,309,156 | | **Total current liabilities** | $634,303 | $625,286 | | **Total liabilities** | $790,288 | $790,806 | | **Total stockholders' equity** | $586,163 | $518,350 | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) In Q2 2025, the company generated **$26.8 million** in cash from operating activities, with overall cash and cash equivalents increasing by **$4.2 million** despite investing and financing outflows Consolidated Cash Flow Summary (Three Months Ended June 30) | (In thousands) | 2025 | 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $26,836 | $27,965 | | **Net cash (used in) / provided by investing activities** | $(14,965) | $8,301 | | **Net cash used in financing activities** | $(13,878) | $(32,149) | | **Net increase in cash and cash equivalents** | $4,179 | $3,060 | [Reconciliation of Non-GAAP Financial Information to GAAP](index=10&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Information%20to%20GAAP) This section provides detailed reconciliations from GAAP to non-GAAP metrics, including Adjusted Net Income, Adjusted EBITDA, and Adjusted Free Cash Flow, for Q2 2025 Q2 2025 Reconciliation of Net Income to Adjusted Net Income | (In thousands) | Amount | | :--- | :--- | | **Net income (GAAP)** | **$29,440** | | Non-cash equity-based compensation | $15,625 | | Acquisition-related amortization expense | $9,581 | | Merger related costs | $8,710 | | Other (incl. unrealized gains) | $(17,908) | | Tax effects of adjustments | $(7,514) | | **Adjusted net income (Non-GAAP)** | **$42,872** | Q2 2025 Reconciliation of Net Income to Adjusted EBITDA | (In thousands) | Amount | | :--- | :--- | | **Net income (GAAP)** | **$29,440** | | Interest, Taxes, Depreciation & Amortization | $40,526 | | **EBITDA** | **$68,889** | | Non-cash equity-based compensation | $15,625 | | Merger related costs | $8,710 | | Unrealized gain on investment | $(18,029) | | Other adjustments | $7,041 | | **Adjusted EBITDA (Non-GAAP)** | **$82,236** | Q2 2025 Adjusted Free Cash Flow Calculation | (In thousands) | Amount | | :--- | :--- | | **Net cash provided by operating activities** | **$26,836** | | Capital expenditures | $(11,312) | | Content acquisitions | $(4,081) | | Merger related costs (cash paid) | $5,686 | | Other adjustments | $369 | | **Adjusted Free Cash Flow** | **$17,498** | [Supplemental Financial Data](index=13&type=section&id=Supplemental%20Financial%20Data) This section provides historical quarterly data, highlighting operational trends and expense allocations, with Envato's inclusion significantly increasing subscribers and paid downloads from Q1 2025 - Historical operating metrics show a significant increase in subscribers (from **459k** in Q4'24 to **1,079k** in Q1'25) and paid downloads (from **33.0 million** in Q4'24 to **120.9 million** in Q1'25), coinciding with the inclusion of Envato's results[51](index=51&type=chunk) Total Non-Cash Equity-Based Compensation (Quarterly) | ($ in thousands) | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | **Total** | $15,625 | $17,884 | $15,110 | $15,094 | $14,976 | Total Depreciation and Amortization (Quarterly) | ($ in thousands) | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | **Total** | $22,611 | $22,671 | $23,287 | $21,644 | $21,433 |