Shutterstock Reports Third Quarter 2026 Financial Results

Shutterstock posted a $197.8 million net loss on sharply lower revenue and subscribers.

What the company is saying

Shutterstock frames its third quarter as a period of disciplined cost management amid ongoing revenue and customer headwinds. The company highlights a 30% year-over-year reduction in Product Development and SG&A expenses to $96 million, yielding $39 million in quarterly savings, and notes a 16% headcount reduction year-to-date. Management reiterates its target to achieve $60 million in annualized run-rate operating expense reductions, positioning these actions as necessary to strengthen financial flexibility. Jon Oringer, Chairman and CEO, emphasizes the transformative impact of AI on content production and the company's focus on operational execution, with Hichame Assi as President and COO. The announcement also details a leadership transition, with Rik Powell departing as CFO effective November 13, 2026, and Scott Grossman stepping in as Interim CFO. The company attributes revenue declines primarily to weakness in new customer acquisition and deal timing volatility in Data Licensing, and acknowledges a significant non-cash goodwill impairment triggered by the July 2026 dividend suspension.

What the data suggests

The numbers reveal a steep deterioration in Shutterstock's financial and operating performance. Revenue fell 33% year-over-year to $173.9 million, with Content revenue down 19% to $158.1 million and Data, Distribution, and Services revenue plunging 76% to $15.8 million. Net loss was $197.8 million, including a $195.6 million non-cash goodwill impairment, compared to net income of $13.4 million a year earlier. Net loss per diluted share was $5.35 versus prior net income per share of $0.37. Adjusted net income dropped to $16.7 million from $36.4 million, and adjusted EBITDA fell to $41.8 million from $79.4 million, with margins contracting to 24.0% from 30.5%. Cash and cash equivalents declined by $22.7 million during the quarter to $110.5 million, driven by $18.3 million in operating cash flow, $9.8 million in investing outflows, and $29.8 million in financing outflows, including $30.0 million in credit facility repayments. Adjusted free cash flow was $12.5 million, down $62.7 million year-over-year. Subscriber count dropped to 890,000 from 1,060,000, subscriber revenue fell to $95.1 million from $107.2 million, and paid downloads decreased to 90.9 million from 111.7 million. The company’s explanations for these declines center on new customer acquisition weakness and timing volatility in data licensing.

Analysis

The announcement is factual and direct, with the majority of claims supported by detailed numerical disclosures. The tone is negative, reflecting significant year-over-year declines in revenue, profitability, and key operating metrics, as well as a large non-cash goodwill impairment. The only forward-looking claim is the reiteration of a previously committed cost reduction target, which is modest and not presented in an exaggerated manner. There is no evidence of narrative inflation or overstatement; the language is proportionate to the challenging results. No large capital outlay is paired with long-dated, uncertain returns, and all major financial and operational figures are disclosed for the current period. The gap between narrative and evidence is minimal, with the company acknowledging its deteriorating performance and focusing on cost management.

Risk flags

• ●Revenue contraction is severe, with a 33% year-over-year decline and both major product segments shrinking, raising questions about the company's ability to stabilize or grow its top line in the near term.
• ●The $197.8 million net loss, driven by a $195.6 million non-cash goodwill impairment and ongoing operating losses, signals deteriorating profitability and may pressure future investment and strategic flexibility.
• ●Subscriber attrition is significant, with a 16% drop year-over-year, and paid downloads also fell sharply, indicating weakening customer engagement and demand for core offerings.
• ●Leadership transition risk is present, as the CFO role changes hands abruptly amid financial turbulence, potentially affecting continuity in financial strategy and execution.
• ●Cash outflows exceeded inflows for the quarter, with cash and cash equivalents declining by $22.7 million, and $30.0 million in credit facility repayments reducing liquidity, which could constrain future operations if trends persist.

Bottom line

Shutterstock’s third quarter results show a company under acute financial and operational pressure, with revenue, profitability, and subscriber metrics all declining sharply. The $197.8 million net loss, driven by a large goodwill impairment following a dividend suspension, underscores the severity of the downturn. Cost cuts have produced $39 million in quarterly savings and are on track to deliver $60 million in annualized reductions, but these have not offset the impact of falling sales and customer engagement. The abrupt CFO transition adds further uncertainty at a critical juncture. While management points to AI and operational focus as future growth levers, the evidence in this release is overwhelmingly negative, with no clear sign of stabilization. Investors should focus on whether revenue and subscriber declines can be arrested and whether cost management can restore profitability before liquidity becomes a constraint. The most important takeaway is that operational and financial turnaround is urgently needed to avoid further erosion of value.

Announcement summary

(NYSE:SSTK) Shutterstock, Inc. announced financial results for the third quarter ended September 30, 2026. Jon Oringer, Chairman and Chief Executive Officer, stated that the company maintained a strong focus on operational discipline and cost management, reducing third-quarter Product Development and SG&A expenses by 30% year-over-year to $96 million, representing $39 million in quarterly savings, and reducing total headcount by 16% year-to-date. The company is on target to deliver $60 million in annualized run-rate operating expense reductions as previously committed. Hichame Assi serves as President and COO, with Scott Grossman, Senior Vice President, Global Head of Finance, assuming the role of Interim Chief Financial Officer following the immediate departure of Rik Powell, who will leave the company effective November 13, 2026. Third quarter 2026 revenues were $173.9 million compared to $260.1 million in the third quarter of 2025. Net loss was $197.8 million compared to net income of $13.4 million in the prior year period, with the net loss including a $195.6 million non-cash, after-tax goodwill impairment charge. Net loss per diluted common share was $5.35 compared to net income per diluted common share of $0.37. Adjusted net income was $16.7 million compared to $36.4 million, and adjusted net income per diluted common share was $0.45 compared to $0.99. Adjusted EBITDA was $41.8 million compared to $79.4 million. Third quarter revenue decreased by $86.2 million or 33% year-over-year. Content product offering revenue decreased by $36.4 million, or 19%, to $158.1 million, representing 91% of total revenue, primarily due to weakness in new customer acquisition. Data, Distribution, and Services product offering revenue decreased by $49.8 million, or 76%, to $15.8 million, representing 9% of total revenue. The company recorded a $203.3 million non-cash goodwill impairment charge in the third quarter of 2026, following a triggering event related to the dividend suspension announced on July 22, 2026. Additional expenses included $0.4 million of unrealized losses related to the investment in Meitu, Inc., $0.5 million of costs related to the proposed merger, $2.6 million of strategic advisory and other fees, and $4.3 million of workforce optimization expenses. Net loss margin was 113.7% for the third quarter of 2026, compared to net income margin of 5.1% in the third quarter of 2025. Adjusted EBITDA margin was 24.0% compared to 30.5%. Cash and cash equivalents decreased by $22.7 million to $110.5 million at September 30, 2026, compared with $133.2 million at June 30, 2026. Net cash from operating activities was $18.3 million, offset by $29.8 million of net cash used in financing activities and $9.8 million of net cash used in investing activities. Net cash from operating activities included $5.0 million in contributor royalty payments, an $8.6 million reduction in deferred revenue, and $4.3 million of payments related to the proposed merger. Cash used in investing activities included $9.8 million in capital expenditures, $0.3 million of content acquisition, and was partially offset by $0.1 million received as Giphy Retention Compensation. Cash used in financing activities included $30.0 million of repayments on the revolving credit facility. Adjusted free cash flow was $12.5 million for the third quarter of 2026, a decrease of $62.7 million from the third quarter of 2025. At the end of the period, subscribers totaled 890,000 compared to 1,060,000 in the prior year. Subscriber revenue was $95.1 million compared to $107.2 million. Average revenue per customer for the last twelve months was $289 compared to $279. Paid downloads were 90.9 million compared to 111.7 million. The company’s non-GAAP financial measures include adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted net income per diluted share, revenue growth on a constant currency basis, and adjusted free cash flow, with definitions and reconciliation provided in the release.

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