Getty Images (GETY) - 2025 Q2 - Quarterly Results

Second Quarter 2025 Overview Executive Summary Getty Images achieved robust growth in Q2 2025, driven by sustained subscription business momentum, accelerated enterprise growth, and media business recovery, reaffirming full-year guidance with an emphasis on execution and fiscal discipline - The company achieved robust growth in the second quarter, with sustained momentum in its subscription business, accelerated enterprise growth, and a recovery in its media business[3] - The company is confident in its strategy and on track to achieve its full-year 2025 guidance[3] - The company has achieved five consecutive quarters of revenue growth, maintaining healthy operating metrics, and will continue to emphasize execution, fiscal discipline, and building momentum for the second half[3] Q2 2025 Financial Highlights In Q2 2025, total revenue grew 2.5% YoY to $234.9 million, but the company reported a net loss of $34.4 million, primarily due to foreign exchange losses and M&A-related expenses, with Adjusted EBITDA decreasing 1.2% to $68.0 million Q2 2025 Key Financial Data | Metric | Q2 2025 | Q2 2024 | Change (YoY) | Currency Neutral Change (YoY) | | :-------------------------------- | :--------------- | :--------------- | :---------- | :---------------------------- | | Revenue | $234.9 million | $229.1 million | +2.5% | +1.8% | | Creative Revenue | $130.8 million | $137.9 million | -5.1% | -5.7% | | Editorial Revenue | $88.3 million | $83.6 million | +5.6% | +4.6% | | Annual Subscription Revenue as % of Total Revenue | 53.5% | 52.9% | +0.6% | - | | Net (Loss) Income | $(34.4) million | $3.7 million | - | - | | Net Income Margin | -14.6% | 1.6% | - | - | | Adjusted Net Income | $22.2 million | $7.1 million | +212.7% | - | | Adjusted EBITDA | $68.0 million | $68.8 million | -1.2% | -2.2% | | Adjusted EBITDA Margin | 28.9% | 30.0% | -1.1% | - | | Net Cash from Operating Activities | $6.5 million | $46.4 million | -86.0% | - | | Free Cash Flow | $(9.6) million | $31.1 million | - | - | | Cash Balance at Period End | $110.3 million | $121.7 million | -9.3% | - | - The net loss was primarily due to $57.2 million in foreign exchange losses (mainly from the revaluation of Euro-denominated term loans) and a $10.9 million decrease in operating income (primarily due to approximately $14.4 million in M&A-related expenses)[7] - The company has $150 million in undrawn revolving credit facilities, with total available liquidity of $260.3 million[8] Key Performance Indicators (KPIs) For the twelve months ended June 30, 2025, annual active subscribers grew 13.8% to 321 thousand, and the annual subscription revenue retention rate increased by 400 basis points to 93.4%, despite slight decreases in total purchasing customers and paid downloads Key Performance Indicators for the Twelve Months Ended June 30, 2025 | Metric | June 30, 2025 (LTM) | June 30, 2024 (LTM) | Change | | :--------------------------------- | :------------------- | :------------------- | :------- | | Total Purchasing Customers (thousands) | 707 | 740 | (4.4)% | | Annual Active Subscribers (thousands) | 321 | 282 | 13.8% | | Paid Downloads (millions) | 93 | 95 | (1.7)% | | Annual Subscription Revenue Retention Rate | 93.4% | 89.4% | 400 bps | | Image Library (millions) | 591 | 553 | 7.0% | | Video Library (millions) | 34 | 30 | 14.7% | | Video Attach Rate | 16.7% | 15.6% | 110 bps | - The comparison of KPIs reflects the impact of the Hollywood strikes[9] Business Highlights This quarter, the company completed a $580 million loan-to-bond exchange for its fixed-rate USD term loan, bringing total debt to $1.39 billion, while solidifying its leadership in visual content through exclusive partnerships and upgraded AI services - The company completed a loan-to-bond exchange for $580 million of its fixed-rate USD term loan, with $539.9 million of the loan exchanged for new fixed-rate notes sharing the same maturity and an 11.25% interest rate as the original loan[13] Total Debt Composition as of June 30, 2025 | Debt Type | Amount (million USD) | | :----------------- | :------------------- | | Senior Secured Notes | 539.9 | | Term Loan Balance | 550.3 | | Senior Unsecured Notes | 300.0 | | Total Debt | 1,390.2 | - Getty Images became the exclusive photography partner for the Coachella Valley Music and Arts Festival, the Met Gala, the BAFTA Television Awards, and the Tribeca Film Festival, and was appointed the official photography partner of the British Academy of Film and Television Arts[14] - The company upgraded its AI service suite to generate higher quality outputs and better prompt adherence, with the model trained exclusively on licensed creative content, respecting intellectual property holders and artists' rights[14] - A bundle of pre-shot modification AI features with image subscriptions was launched on iStock, allowing customers to access iStock's pre-shot creative library and AI services through a single plan[15] Financial Outlook and Strategic Developments Full Year 2025 Guidance Getty Images reaffirmed its full-year 2025 guidance, projecting revenue between $931 million and $968 million and Adjusted EBITDA between $277 million and $297 million, including an approximate $8 million one-time increase in SG&A for SOX compliance related to the Shutterstock merger Full Year 2025 Guidance | Metric | 2025 Guidance | | :-------------------------------- | :------------------- | | Revenue | $931 million to $968 million | | Revenue YoY Change | -0.9% to 3.1% | | Revenue YoY Change (Currency Neutral) | -1.0% to 3.0% | | Adjusted EBITDA | $277 million to $297 million | | Adjusted EBITDA YoY Change | -7.6% to -1.2% | | Adjusted EBITDA YoY Change (Currency Neutral) | -7.9% to -1.4% | - The Adjusted EBITDA guidance includes an approximate $8 million one-time increase in selling, general and administrative expenses, with $5.5 million expected in the second half, to accelerate 2025 SOX compliance efforts in response to resource and focus shifts related to the Shutterstock merger[16] Shutterstock Merger Agreement Update The merger agreement between Getty Images and Shutterstock is progressing, with both parties committed to obtaining regulatory approvals as soon as possible, despite additional information requests from the U.S. Department of Justice and the UK Competition and Markets Authority, with the transaction expected to close by the end of 2025 - Getty Images announced a merger agreement with Shutterstock on January 7, 2025, aiming to create a premier visual content company through a merger of equals[17] - The company has received additional information requests from the U.S. Department of Justice and the UK Competition and Markets Authority, with the review process currently ongoing[18] - Shutterstock shareholders approved the proposed transaction on June 10, 2025, and both parties still expect the transaction to close by the end of 2025[19][20] About Getty Images Company Profile and Offerings Getty Images is a leading global visual content creator and marketplace, offering comprehensive content solutions through its Getty Images, iStock, and Unsplash brands, collaborating with nearly 600,000 content creators and 355 content partners, and leveraging generative AI technology for commercially safe visual content creation - Getty Images (NYSE: GETY) is a premier global visual content creator and marketplace, offering comprehensive content solutions through its Getty Images, iStock, and Unsplash brands[22] - The company partners with nearly 600,000 content creators and over 355 content partners, covering over 160,000 news, sports, and entertainment events annually, and possesses one of the world's largest private photographic archives[22] - By adopting and distributing generative AI technology and tools trained on licensed content, Getty Images and iStock clients can use text-to-image generation capabilities to conceptualize and create commercially safe, compelling visual content[23] Financial Statements Condensed Consolidated Statements of Operations In Q2 2025, the company's revenue was $234.9 million, a 2.5% YoY increase, but it recorded a net loss of $34.4 million, primarily due to increased interest expense, foreign exchange losses, and a significant rise in M&A-related "other operating expenses" Condensed Consolidated Statements of Operations (Summary) | Metric (thousands USD) | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :------------------------------------------ | :--------------- | :--------------- | :----------- | :----------- | | Revenue | 234,882 | 229,140 | 458,959 | 451,418 | | Total Operating Expenses | 199,322 | 182,682 | 396,057 | 363,926 | | Operating Income | 35,560 | 46,458 | 62,902 | 87,492 | | Interest Expense | (36,556) | (33,890) | (69,231) | (66,614) | | Foreign Exchange (Loss) Gain – Net | (54,771) | 2,439 | (79,849) | 18,861 | | Net (Loss) Income | (34,359) | 3,689 | (136,931) | 17,276 | | Net (Loss) Income Attributable to Getty Images Holdings, Inc. | (35,069) | 3,847 | (137,641) | 17,302 | | Basic Net (Loss) Income Per Share | (0.08) | 0.01 | (0.33) | 0.04 | | Diluted Net (Loss) Income Per Share | (0.08) | 0.01 | (0.33) | 0.04 | - In Q2 2025, other operating expenses, net, significantly increased from $2.8 million in the prior year to $10.512 million, primarily reflecting M&A-related expenses[31] Condensed Consolidated Balance Sheets As of June 30, 2025, total assets were $2.596 billion, a slight increase from December 31, 2024, with cash and cash equivalents decreasing while accounts receivable and deferred revenue rose, and total liabilities increased to $1.936 billion due to higher short-term and long-term debt Condensed Consolidated Balance Sheets (Summary) | Metric (thousands USD) | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :--------------- | :--------------- | | Assets | | | | Cash and Cash Equivalents | 110,275 | 121,173 | | Total Current Assets | 348,809 | 358,815 | | Goodwill | 1,516,960 | 1,510,477 | | Intangible Assets, Net | 416,030 | 389,906 | | Total Assets | 2,595,961 | 2,563,708 | | Liabilities and Stockholders' Equity | | | | Short-Term Debt, Net | 21,101 | — | | Deferred Revenue | 184,934 | 172,090 | | Total Current Liabilities | 499,682 | 453,255 | | Long-Term Debt, Net | 1,341,305 | 1,314,424 | | Total Liabilities | 1,935,949 | 1,845,368 | | Stockholders' Equity Attributable to Getty Images Holdings, Inc. | 611,158 | 670,196 | | Total Stockholders' Equity | 660,012 | 718,340 | - As of June 30, 2025, short-term debt, net, was $21.101 million, compared to zero as of December 31, 2024, reflecting changes in debt structure[33] - Long-term debt, net, increased from $1.314 billion as of December 31, 2024, to $1.341 billion as of June 30, 2025[35] Condensed Consolidated Statements of Cash Flows In the first half of 2025, net cash from operating activities significantly decreased to $21.9 million, primarily due to increased net loss and foreign exchange losses on foreign currency-denominated debt, while investing activities focused on property and equipment, and financing activities were impacted by debt issuance and refinancing costs Condensed Consolidated Statements of Cash Flows (Summary) | Metric (thousands USD) | H1 2025 | H1 2024 | | :--------------------------------- | :----------- | :----------- | | Net (Loss) Income | (136,931) | 17,276 | | Net Cash from Operating Activities | 21,930 | 67,971 | | Net Cash from Investing Activities | (31,817) | (44,739) | | Net Cash from Financing Activities | (21,299) | (34,774) | | Effect of Exchange Rate Changes | 20,262 | (3,076) | | Net Decrease in Cash, Cash Equivalents, and Restricted Cash | (10,924) | (14,618) | | Cash, Cash Equivalents, and Restricted Cash at End of Period | 114,380 | 126,232 | - The decrease in net cash from operating activities was primarily attributable to the increased net loss and foreign exchange losses on foreign currency-denominated debt[37] - In financing activities, proceeds from debt issuance were $1.04 billion, but debt refinancing costs and debt prepayments resulted in a net cash outflow of $21.3 million[37] Non-GAAP Financial Measures & Reconciliations Non-GAAP Measures Overview The company provides non-GAAP financial metrics such as Adjusted EBITDA, Adjusted Net Income, and Free Cash Flow to offer a clearer understanding of core operating results and liquidity, which are widely used by management, industry analysts, and investors for evaluation and planning - The company provides non-GAAP financial measures including Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EBITDA less Capital Expenditures, Adjusted EBITDA less Capital Expenditures Margin, Adjusted Net Income and Adjusted EPS, and Free Cash Flow[38] - These non-GAAP metrics are intended to provide a more direct understanding of core operating results and liquidity, and are widely used for evaluating and comparing operating performance[39] - The company does not provide a reconciliation of forward-looking non-GAAP financial measures to their corresponding GAAP measures due to the variability of forecasts and projections, and the difficulty in obtaining certain information[41] Adjusted EBITDA Reconciliation In Q2 2025, Adjusted EBITDA was $67.974 million, a slight decrease of 1.2% from the prior year, with an Adjusted EBITDA margin of 28.9% Adjusted EBITDA and Related Metrics Reconciliation (Summary) | Metric (thousands USD) | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :-------------------------------- | :--------------- | :--------------- | :----------- | :----------- | | Net (Loss) Income | (34,359) | 3,689 | (136,931) | 17,276 | | Adjusted EBITDA | 67,974 | 68,824 | 138,098 | 139,037 | | Capital Expenditures | 16,114 | 15,380 | 31,817 | 29,833 | | Adjusted EBITDA less Capital Expenditures | 51,860 | 53,444 | 106,281 | 109,204 | | Adjusted EBITDA Margin | 28.9% | 30.0% | 30.1% | 30.8% | | Adjusted EBITDA less Capital Expenditures Margin | 22.1% | 23.3% | 23.2% | 24.2% | Adjusted Net Income and EPS Reconciliation In Q2 2025, Adjusted Net Income significantly increased to $22.193 million, and Adjusted diluted EPS rose to $0.05, primarily due to non-GAAP adjustments for foreign exchange losses, M&A-related costs, and loss on extinguishment of debt Adjusted Net Income and EPS Reconciliation (Summary) | Metric (thousands USD) | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :-------------------------------- | :--------------- | :--------------- | :----------- | :----------- | | Net (Loss) Income | (34,359) | 3,689 | (136,931) | 17,276 | | Share-Based Compensation Expense | 3,787 | 4,013 | 8,311 | 13,148 | | Litigation Losses | 2,007 | 2,792 | 6,350 | 4,814 | | Foreign Exchange | 54,771 | (2,439) | 79,849 | (18,861) | | M&A-Related Costs | 14,376 | — | 32,419 | 1,100 | | Loss on Extinguishment of Debt and Expensed Financing Costs | 2,857 | — | 11,508 | — | | Adjusted Net (Loss) Income | 22,193 | 7,062 | (36,087) | 17,718 | | Diluted EPS | (0.08) | 0.01 | (0.33) | 0.04 | | Adjusted Diluted EPS | 0.05 | 0.02 | (0.09) | 0.04 | - Adjusted Net Income and EPS exclude the impact of non-core operating items such as foreign exchange gains/losses, M&A-related costs, and loss on extinguishment of debt, to provide a more comparable view of core operating performance[43][44] Free Cash Flow Reconciliation In Q2 2025, free cash flow was negative $9.565 million, a significant decrease from the prior year's positive $31.062 million, primarily due to a substantial reduction in net cash from operating activities Free Cash Flow Reconciliation (Summary) | Metric (thousands USD) | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :-------------------------------- | :--------------- | :--------------- | :----------- | :----------- | | Net Cash from Operating Activities | 6,546 | 46,443 | 21,930 | 67,971 | | Purchases of Property and Equipment | (16,111) | (15,381) | (31,817) | (29,833) | | Free Cash Flow | (9,565) | 31,062 | (9,887) | 38,138 | Other Financial Data Revenue by Product In Q2 2025, total revenue increased by 2.5% YoY, with editorial revenue growing 5.6% to $88.3 million and other revenue significantly increasing by 106.1% to $15.7 million, while creative revenue decreased by 5.1% to $130.8 million Revenue by Product (Summary) | Product Category (thousands USD) | Q2 2025 | Percentage of Revenue | Q2 2024 | Percentage of Revenue | USD Change | Percentage Change | Currency Neutral Percentage Change | | :------------------------------- | :--------------- | :-------------------- | :--------------- | :-------------------- | :--------- | :---------------- | :------------------------------- | | Creative | 130,824 | 55.7% | 137,897 | 60.2% | (7,073) | (5.1)% | (5.7)% | | Editorial | 88,342 | 37.6% | 83,619 | 36.5% | 4,723 | 5.6% | 4.6% | | Other | 15,716 | 6.7% | 7,624 | 3.3% | 8,092 | 106.1% | 105.5% | | Total Revenue | 234,882 | 100.0% | 229,140 | 100.0% | 5,742 | 2.5% | 1.8% | - In the first half of 2025, creative revenue decreased by 5.0%, editorial revenue increased by 4.9%, and other revenue significantly grew by 115.0%[46] Balance Sheet & Liquidity Details As of June 30, 2025, the company reported $110.3 million in cash and cash equivalents, with total liquidity of $260.3 million including a $150 million revolving credit facility, and a total term loan balance of $550.3 million reflecting changes in debt structure with the introduction of senior secured notes Balance Sheet & Liquidity Details (Summary) | Metric (million USD) | June 30, 2025 | December 31, 2024 | June 30, 2024 | | :-------------------------------- | :--------------- | :--------------- | :--------------- | | Cash and Cash Equivalents | 110.3 | 121.2 | 121.7 | | Revolving Credit Facility Availability | 150.0 | 150.0 | 150.0 | | Total Liquidity | 260.3 | 271.2 | 271.7 | | Old Term Loan Outstanding - USD Portion | — | 579.2 | 601.8 | | Old Term Loan Outstanding - EUR Portion | — | 435.2 | 448.5 | | New Term Loan Outstanding - USD Portion | 40.1 | — | — | | New Term Loan Outstanding - EUR Portion | 510.2 | — | — | | Total Term Loan Outstanding | 550.3 | 1,014.4 | 1,050.3 | | Short-Term Debt, Net | 21.1 | — | — | | Senior Unsecured Notes | 300.0 | 300.0 | 300.0 | | Senior Secured Notes | 539.9 | — | — | - As of June 30, 2025, the company completed a loan-to-bond exchange, resulting in zero old term loan balance and the addition of $40.1 million in new term loans (USD portion), $510.2 million in new term loans (EUR portion), and $539.9 million in senior secured notes[47] Additional Information Webcast & Conference Call Information The company held a conference call and webcast on August 11, 2025, to discuss its Q2 results, with access available via the investor relations section of its website or by phone, and a replay provided for fourteen days - The company held a conference call and webcast on August 11, 2025, to discuss its Q2 2025 results[21] - The webcast is accessible via the investor relations section of the company's website, with the conference call providing U.S. and international dial-in numbers and a conference ID[21] - A replay of the call will be available shortly after the conclusion of the conference and accessible for fourteen days via provided dial-in numbers and access codes[21] Forward-Looking Statements This press release contains forward-looking statements, which are predictions of future events or trends based on various assumptions and subject to numerous risks and uncertainties, including content licensing, customer acquisition, AI technology, international operations, technological disruptions, industry strikes, and the Shutterstock merger, where actual results may differ materially - Certain statements in this press release are forward-looking statements, intended to predict future events or trends rather than historical facts[25] - These statements are based on various assumptions and subject to numerous risks and uncertainties, including the inability to consistently license third-party content, attract and retain customers, risks of AI technology application, international market operations, technological disruptions or cybersecurity breaches, impacts of industry strikes, and risks related to the Shutterstock merger[26][27] - Should any of these risks materialize or assumptions prove incorrect, actual results could differ materially from those implied by forward-looking statements[27] Investor and Media Contacts This report provides Getty Images' investor relations and media contact information for further inquiries - Investor Contact: Steven Kanner, Email: Investorrelations@gettyimages.com[48] - Media Contact: Julia Holmes, Email: Julia.Holmes@gettyimages.com[48]