Shutterstock Q1 Revenue Falls 18% as Net Loss Hits $47.6 Million
Shutterstock posted Q1 revenue of $199.2 million, down 18% year-over-year, driving a net loss of $47.6 million compared to a $18.7 million profit in Q1 2025. Adjusted EBITDA was $42.7 million and management is investing in Data Licensing and AI Services while appealing CMA’s provisional editorial divestiture requirement.
1. Q1 Financial Performance
Shutterstock reported first quarter revenue of $199.2 million, an 18% decrease from $242.6 million in Q1 2025, resulting in a net loss of $47.6 million or $1.34 per diluted share versus net income of $18.7 million or $0.53 per share. Adjusted net income was $20.7 million or $0.58 per share and adjusted EBITDA totaled $42.7 million.
2. Business Segment Trends
Content revenue declined 12% to $178.1 million due to weaker new customer acquisition, while Data, Distribution and Services revenue fell 47% to $21.0 million due to timing of data licensing recognition. Content represented 89% of total revenue, with Data Licensing and Services making up the remaining 11%.
3. Merger and Regulatory Update
Shutterstock and Getty Images continue to seek CMA approval for their merger, contesting the CMA’s provisional finding of substantial lessening of competition in the UK editorial market. The CMA has suggested that divesting Rex Features, Backgrid and Splash News could address concerns, with a final report due by June 14, 2026.
4. Investment Focus and Outlook
Management emphasized ongoing investments in Data Licensing and AI Services divisions, citing a robust pipeline of opportunities for AI model training data. The company maintained operational discipline and cost management efforts despite industry headwinds to support long-term growth.