Getty Images (US:GETY)2025-11-10 21:25Revenue Performance - Q3 2025 revenue was $240.0 million, a decrease of 0.2% year over year and 2.0% on a currency neutral basis[7]. - Annual subscription revenue increased by 11.2% (currency neutral 9.3%), representing 58.4% of total revenue, up from 52.4% in Q3 2024[6]. - Total revenue for the three months ended September 30, 2025, was $240,044,000, a slight decrease of 0.2% compared to $240,545,000 in 2024[44]. - Total revenue for the nine months ended September 30, 2025, was $699,003,000, representing a 1.0% increase compared to $691,963,000 in 2024[45]. - Creative revenue increased by 8.4% to $144,892,000, while Editorial revenue decreased by 3.7% to $89,315,000[44]. - Creative segment revenue decreased by $2,561,000, or 0.6%, from $410,451,000 in 2024 to $407,891,000 in 2025[45]. - Editorial segment revenue increased by $4,444,000, or 1.7%, from $255,830,000 in 2024 to $260,274,000 in 2025[45]. - Other segment revenue saw a significant increase of $5,156,000, or 20.1%, from $25,682,000 in 2024 to $30,838,000 in 2025[45]. Profitability - Net income for Q3 2025 was $21.6 million, compared to a net loss of $2.5 million in Q3 2024, resulting in a net income margin of 9.0%[7]. - Adjusted EBITDA for Q3 2025 was $78.7 million, down 2.4% year over year, with an adjusted EBITDA margin of 32.8%[7]. - The company reported a basic net income per share of $0.05 for Q3 2025, compared to a loss of $0.01 per share in Q3 2024[31]. - For the nine months ended September 30, 2025, the company reported a net loss of $115,313,000 compared to a net income of $14,749,000 for the same period in 2024[35]. - The company reported a diluted earnings per share of $(0.28) for the nine months ended September 30, 2025, compared to $0.04 in 2024[42]. Cash Flow and Liquidity - Free cash flow for Q3 2025 was $7.9 million, compared to negative $1.8 million in the prior year period[11]. - Free cash flow for the nine months ended September 30, 2025, was $(2,002,000), a significant decline from $36,301,000 in 2024[43]. - Net cash provided by operating activities decreased to $44,550,000 from $78,624,000 year-over-year[35]. - Total liquidity as of September 30, 2025, was $259.5 million, a decrease from $271.2 million as of December 31, 2024[46]. - The ending cash balance as of September 30, 2025, was $113,639,000, down from $140,850,000 at the beginning of the period[35]. - Cash and cash equivalents decreased to $109.5 million as of September 30, 2025, from $121.2 million as of December 31, 2024[46]. Debt and Liabilities - Total debt as of September 30, 2025, was $1.38 billion, including $539.9 million in senior secured notes and $543.6 million in term loan balance[11]. - Long-term debt stood at $1.336 billion as of September 30, 2025, compared to $1.314 billion at the end of 2024[33]. - Total current liabilities increased to $502.711 million as of September 30, 2025, from $453.255 million at the end of 2024[33]. - The accumulated deficit grew to $1.339 billion as of September 30, 2025, compared to $1.223 billion at the end of 2024[33]. - The company issued $1,040,872,000 in debt during the financing activities, while repaying $1,030,683,000[35]. - New term loans outstanding in USD amounted to $40.1 million as of September 30, 2025, while EUR tranche loans were $503.5 million[46]. - Total balance of term loans outstanding decreased from $1,014.4 million in December 2024 to $543.6 million in September 2025[46]. - Senior secured notes were recorded at $539.9 million as of September 30, 2025[46]. Strategic Initiatives - The company finalized strategic partnerships to integrate Getty Images content into emerging AI platforms, aiming to unlock new revenue streams[6]. - The company expects to close the merger with Shutterstock in 2026, pending regulatory approvals[16]. - The company highlighted risks related to competition, technology adaptation, and potential impacts from international market expansions[26]. Operational Metrics - Total active annual subscribers increased to 304,000, up 1.7% from the previous year[9]. - Operating expenses totaled $194.930 million in Q3 2025, up from $183.109 million in Q3 2024, reflecting an increase of 6.5%[31]. - Adjusted EBITDA for the nine months ended September 30, 2025, was $216,808,000, with an adjusted EBITDA margin of 31.0%[40]. - The company incurred $46,552,000 in capital expenditures for the nine months ended September 30, 2025, compared to $42,323,000 in 2024[43].