Financial Data and Key Metrics Changes - For the full year 2025, the company reported record revenue of $981.3 million, representing a year-over-year growth of 4.5% and 3.8% on a currency neutral basis [4][5] - Adjusted EBITDA for the full year was $320.9 million, with a margin of 32.7%, both metrics exceeding the high end of guidance [5][25] - In Q4 2025, revenue reached $282.3 million, a year-over-year increase of 14.1% and 12.7% on a currency neutral basis [5][13] - Q4 adjusted EBITDA was $104.1 million, up 29.1% reported and 27.2% on a currency neutral basis, with a margin of 36.9% [5][25] Business Line Data and Key Metrics Changes - Creative revenue in Q4 was $149 million, up 4.6% year-on-year, driven by accelerated revenue from two large licensing deals, despite a 16% decline in agency revenue [20] - Editorial revenue for Q4 was $109.4 million, up 21.4% year-on-year, with growth across all four verticals: news, sport, entertainment, and archive [21][22] - Annual subscription revenue grew 1% year-over-year, with Premium Access, the largest subscription, up 4.1% in Q4 [18] Market Data and Key Metrics Changes - The Americas region saw a revenue increase of 20.8% in Q4 on a currency neutral basis, while EMEA was up 6.1% and APAC down 13% due to challenges in the agency business [17] - Active annual subscribers totaled 278,000 in Q4, down from 314,000 in the previous year, primarily due to the discontinuation of the free trial program [19] Company Strategy and Development Direction - The company aims to strengthen its recurring revenue base and expand long-term partnerships, as evidenced by securing significant multi-year licensing agreements [6][7] - Continued investment in machine learning capabilities to enhance content discovery and customer experience is a strategic focus [10] - The company is optimistic about future growth opportunities in video and custom AI training sets, indicating a proactive approach to evolving market demands [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's durable business model, highlighting strong customer relationships and a diversified revenue mix as key strengths [4][11] - The company anticipates a revenue range of $948 million to $988 million for 2026, reflecting a decline due to the timing of revenue recognition from large licensing agreements [32][34] - Management noted that the core business is expected to grow, excluding the impact of challenging year-on-year comparisons from the previous year [35] Other Important Information - The company reported a decrease in free cash flow to $7.7 million in Q4, attributed to higher cash interest expenses [27][28] - Total debt outstanding was $2.01 billion as of December 31, 2025, with a net leverage of 4.0x [29][30] Q&A Session Summary Question: Insights on licensing deals and their long-term applicability - Management highlighted the relevance of content in social media and large language models as key drivers for the licensing deals, indicating potential for more such agreements in the future [38][39] Question: Reasons for decline in active annual subscribers and retention rates - The decline in active annual subscribers was primarily due to the end of the free trial program, with expectations for retention rates to improve as the impact cycles through [40][42] Question: Clarification on 2026 revenue guidance and data licensing - Management clarified that the large deals recognized in Q4 are not purely data licensing deals, and while there is a pipeline for future deals, specifics are not included in the 2026 guidance [47][49]

Financial Data and Key Metrics Changes - For the full year 2025, the company reported record revenue of $981.3 million, representing a year-over-year growth of 4.5% and 3.8% on a currency neutral basis [4][5] - Adjusted EBITDA for the full year was $320.9 million, with a margin of 32.7%, both metrics exceeding the high end of guidance [5][25] - In Q4, revenue reached $282.3 million, a year-over-year increase of 14.1% and 12.7% on a currency neutral basis, with adjusted EBITDA rising to $104.1 million, up 29.1% reported and 27.2% on a currency neutral basis [5][13] Business Line Data and Key Metrics Changes - Creative revenue in Q4 was $149 million, up 4.6% year-on-year, while editorial revenue was $109.4 million, up 21.4% year-on-year [20][21] - Annual subscription revenue grew 1% year-over-year, with Premium Access, the largest subscription, up 4.1% in Q4 [18] - Custom content grew by more than 20%, and Unsplash+ subscribers increased by over 30% to more than 50,000 [8] Market Data and Key Metrics Changes - The Americas region saw a revenue increase of 20.8% in Q4 on a currency neutral basis, while EMEA was up 6.1% and APAC was down 13% [17] - The agency business faced challenges, while corporate and media segments returned to growth in Q4, with corporate growth exceeding 25% [16][17] Company Strategy and Development Direction - The company aims to strengthen its recurring revenue base and expand long-term partnerships, focusing on high-quality content and customer relationships [4][7] - New multi-year licensing agreements were secured, including partnerships with a major social platform and a large AI company, which are expected to enhance revenue streams [6][15] - The company is investing in machine learning capabilities to improve content discovery, reinforcing its competitive advantage [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to perform consistently despite broader market variability, citing a strong pipeline of long-term deals and customer demand for high-quality content [11][12] - The company anticipates revenue for 2026 to be between $948 million and $988 million, reflecting a decline due to the timing of revenue recognition from large licensing agreements [32][34] Other Important Information - The company ended 2025 with $90.2 million in cash, down from the previous year, primarily due to merger-related expenses [28] - Total debt outstanding was $2.01 billion, with a net leverage of 4.0x at the end of Q4 [29][30] Q&A Session Summary Question: Insights on licensing deals and their long-term applicability - Management highlighted the relevance of content in social media and large language models as key drivers for the licensing deals, indicating potential for more such agreements in the future [38][39] Question: Reasons for decline in active annual subscribers and retention rates - The decline in active annual subscribers was attributed to the cessation of the free trial program, with expectations for retention rates to improve as the impact of this change cycles through [40][42] Question: Mix of data licensing for training purposes relative to display licensing - Management clarified that the large deals discussed do not pertain to pure data licensing and that specific revenue projections for 2026 have not been quantified [45][47]