Financial Data and Key Metrics Changes - Q3 2025 revenue was $240 million, a slight year-over-year decrease of 0.2% and 2% on a currency-neutral basis [4][9] - Adjusted EBITDA for the quarter was $78.7 million, down 2.4% reported and 4.4% on a currency-neutral basis, with a margin of 32.8% [4][16] - Free cash flow improved to $7.9 million compared to negative $1.8 million in Q3 2024 [17] - Total debt outstanding was $1.38 billion, with net leverage at 4.3 times, slightly up from 4.2 times in Q3 2024 [18] Business Line Data and Key Metrics Changes - Creative revenue was $144.9 million, up 8.4% year-on-year, driven by Premium Access revenue [11][12] - Editorial revenue was $89.3 million, down 3.7% year-on-year, primarily due to declines in news and sports [13] - Agency revenue declined 22% year-on-year, reflecting ongoing macro uncertainty [12][13] Market Data and Key Metrics Changes - Revenue growth in the Americas was 0.8% on a currency-neutral basis, while EMEA was down 4% and APAC down 10.8% [15] - Annual subscription revenue increased to 58.4% of total revenue, up from 52.4% in Q3 2024, with growth driven by Premium Access [10] Company Strategy and Development Direction - The company is focusing on AI initiatives, including partnerships for content licensing with technology platforms [5][25] - The merger with Shutterstock is a key strategic focus, with ongoing regulatory reviews impacting the timeline [6][19] - The company aims to enhance operational efficiency through AI deployment within its business functions [26] Management's Comments on Operating Environment and Future Outlook - Management noted headwinds from tough year-on-year comparisons due to a strong editorial calendar in Q3 2024 [9][21] - The company updated its full-year revenue guidance to $942 million-$951 million, reflecting a year-on-year growth of 0.3%-1.2% [21][22] - Management expressed optimism about the potential for AI-related revenue streams in the future [25] Other Important Information - The company is facing legal challenges, including a favorable ruling in a trademark infringement case against Stability AI [7][8] - SG&A expenses increased to $101 million, primarily due to SOX compliance efforts and ongoing litigation costs [15][16] Q&A Session Summary Question: Can you elaborate on Getty's key AI initiatives and their potential revenue impacts for 2026? - Management highlighted multiple licensing deals, including a confidential agreement with Perplexity, which could develop into a material revenue stream [24][25] Question: How are the corporate and media customer segments performing? - Media segment saw a 3% decline, particularly in broadcast and production, while corporate segment remains healthy with close to 100% retention [27][28] Question: What is the retention rate for Premium Access subscriptions? - Premium Access has the highest retention rates among subscriptions, remaining consistent over time [29][30] Question: What drove the sequential recovery in creative revenue? - The recovery was attributed to a normalization of revenue allocation between creative and editorial, along with a significant deal that provided upfront revenue recognition [32][34]