Shutterstock(US:SSTK) Prnewswire·2025-11-05 12:30Core 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]