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    GETY
    Earnings call· Jun 2026(Q2 FY26)

    Getty Images Holdings Q2 FY26 earnings call GETY

    Aug 10, 2026 Source

    Executive summary

    Getty Images Q2 FY26 — Strategic Reorientation Amidst Balance Sheet Focus

    Getty Images reported a challenging Q2 FY26 with revenue and adjusted EBITDA declines, primarily impacted by the terminated Shutterstock merger costs and ongoing headwinds in its Agency and iStock businesses. The company is now focused on optimizing its capital structure and liquidity, having engaged Guggenheim Securities, while strategically reorienting iStock towards premium offerings and leveraging its unique content assets and AI partnerships for future growth.

    Highlights

    5

    • Annual subscription revenue grew 7.1% (5.6% currency-neutral), driven by Premium Access.

    • Americas region saw growth of 1.4% on a currency-neutral basis.

    • Editorial revenue increased 9.2% year-on-year (7.6% currency-neutral), boosted by strong demand for event-driven content.

    • Custom Content solutions grew over 350%, and Unsplash+ subscriptions grew over 15% year-on-year.

    • Improvements in average order value and organic sessions were observed during the quarter.

    Concerns

    5

    • Q2 revenue was $229.1 million, down 2.5% reported and 4.1% currency-neutral.

    • Free cash flow was negative $122.6 million, primarily due to a $110.9 million payment for warrant litigation judgment.

    • Adjusted EBITDA declined 8.4% (10.3% currency-neutral) to $62.3 million, with margin decreasing to 27.2% from 28.9%.

    • Active annual subscribers declined to 240,000 from 321,000 in the prior year period.

    • Over $100 million in professional fees and financing costs were incurred pursuing the terminated Shutterstock merger.

    Guidance & targets

    1
    CategoryTargetConfidence
    Financial Outlook
    No guidance provided
    high materiality
    Low

    Segment performance

    6
    SegmentRevenueYoYQoQMargin
    Americas
    Largest region, growth on a currency-neutral basis.
    		—1.4%——
    EMEA
    Decline on a currency-neutral basis, reflecting higher concentration in agency and challenges in e-commerce.
    		—-7.6%——
    APAC
    Decline on a currency-neutral basis, due primarily to certain non-recurring one-time project spend in the prior year and declines in agency.
    		—-22.1%——
    Creative
    Revenue decline driven by allocation shift to editorial, agency business headwinds, and iStock drag, partially offset by strong growth in Custom Content and Unsplash+.
    Currency-neutral growth: -4.3%Impact from shift to editorial downloads: -380 bpsAgency business growth: -13%Custom Content solutions growth: >350%Unsplash+ subscription growth: >15%
    		$127.4M-2.6%——
    Editorial
    Revenue growth driven by strong demand for world-class coverage, including FIFA World Cup, news events, and archive content.
    Currency-neutral growth: 7.6%Impact from allocation shift from creative: 550 bps
    		$96.5M9.2%——
    Other Revenue
    Compared to $15.7 million in Q2 2025, which benefited from three new deals with significant upfront revenue recognition.
    		$5.2M———

    Operational metrics

    24
    Total Revenue Growth
    -2.5%YoY
    Q2 FY26

    Reported revenue growth for the quarter.

    Annual Subscription Revenue Growth
    7.1%YoY
    Q2 FY26

    Growth in revenue from annual subscriptions.

    Annual Subscription Revenue as % of Total Revenue
    58.8%up from 53.5% in Q2 FY25
    Q2 FY26

    Indicates increasing proportion of revenue from subscriptions.

    Premium Access Revenue Growth
    5.5%YoY
    Q2 FY26

    Growth in revenue from Premium Access subscriptions.

    Premium Access Revenue as % of Total Revenue
    >40%
    Q2 FY26

    Premium Access constitutes a significant portion of total revenue.

    Annual Subscription Revenue Retention Rate
    88.4%vs 93.4% in Q2 2025 LTM
    Q2 LTM

    Decline reflects planned exit from iStock free trial acquisition program and timing-related shifts in deal renewals.

    Active Annual Subscribers
    240,000vs 321,000 in Q2 2025 LTM
    Q2 LTM

    Decline was expected due to de-emphasis of lower-value acquisition channels and search-related traffic headwinds.

    Premium Access Subscribers Revenue Retention Rate
    nearly 100%
    Q2 FY26

    Indicates strong retention for high-value subscribers.

    Getty Images and Unsplash+ Revenue Retention Rate
    mid-90s
    Q2 FY26

    Reflects strong underlying customer quality.

    Adjusted EBITDA
    $62.3Mdown 8.4% YoY
    Q2 FY26

    Adjusted EBITDA for the quarter.

    Adjusted EBITDA Margin
    27.2%vs 28.9% in Q2 FY25
    Q2 FY26

    Margin decrease primarily reflects lower revenue and higher cost of revenue.

    Adjusted EBITDA less CapEx
    $48.4Mdown 6.6% YoY
    Q2 FY26

    Adjusted EBITDA less capital expenditures.

    Adjusted EBITDA less CapEx Margin
    21.1%vs 22.1% in Q2 FY25
    Q2 FY26

    Margin for Adjusted EBITDA less CapEx.

    Revenue less Cost of Revenue Margin
    70.2%vs 72.1% in Q2 FY25
    Q2 FY26

    Decrease mainly due to product mix and timing of costs tied to content licensing deals.

    SG&A Expense
    $101.5Mdown $3.6M YoY
    Q2 FY26

    Selling, General, and Administrative expenses.

    SG&A Expense Rate
    44.3%vs 44.7% in Q2 FY25
    Q2 FY26

    SG&A as a percentage of revenue.

    SG&A Expense (excl. stock-based comp)
    $98.5Mdown $2.7M YoY
    Q2 FY26

    Excluding stock-based compensation.

    SG&A Expense Rate (excl. stock-based comp)
    43%vs 43.1% in Q2 FY25
    Q2 FY26

    SG&A as a percentage of revenue, excluding stock-based compensation.

    Cash Interest Payments
    $80.4M
    Q2 FY26

    Total cash interest payments, including those tied to the proposed Shutterstock merger.

    Cash Taxes Paid
    $9.4M
    Q2 FY26

    Cash taxes paid during the quarter.

    Balance Sheet Cash
    $51.6Mdown $45M from Q1 FY26
    Q2 FY26

    Cash balance at the end of the quarter.

    Total Debt Outstanding
    $2.1B
    as of June 30, 2026

    Total debt outstanding at quarter-end, prior to July redemptions and draws.

    Revolving Credit Facility Outstanding
    $150Mup from $120M at Q2 end
    July 2026

    Total borrowings under the revolving credit facility after an additional $30 million draw in July to enhance liquidity.

    Paid Downloads
    90.4Mdown slightly YoY
    Q2 FY26

    Total number of paid content downloads.

    Industry KPIs

    3
    MetricValueDetails
    CAPEX compute commitments$13.8MUSD
    Share buyback capital returned—
    Ai feature adoption monetization—

    Product announcements

    7
    ProductTypeDetails
    C2PA source verification protocolslaunch
    Model Context Protocol (MCP) serverlaunch
    Natural language searchexpansion
    New editorial and creative single-seat subscriptionslaunch
    Prompt-based editing AI modification toollaunch
    Coding assistancemilestone
    AI customer service chatbotslaunch

    Deals & partnerships

    5
    ShutterstockProposed strategic merger agreement, subsequently terminated.18 months (pursuit phase)

    The merger agreement was terminated due to regulatory requirements, uncertainty, and cost of execution, which were deemed not in the best interest of the company.

    Guggenheim SecuritiesEngagement for strategic financing alternatives and balance sheet management initiatives.

    Hired in July to explore options for optimizing the capital structure and improving liquidity. Process expected to run through Q3 and into Q4.

    GoalhangerPartnership to incorporate Getty Images visuals into their top-ranked podcasts, including The Rest Is Football and The Rest Is History.

    Aims to expand Getty Images' reach to new audiences and tell new stories.

    Land O'LakesCollaboration to authentically depict and engage rural audiences using Getty Images content.

    An example of serving corporate customers with tailored content solutions.

    Google, OpenAI, PerplexityIntegration of Getty Images content and coverage into their products and services, particularly for AI applications.

    Leveraging Getty Images' content for AI-driven products and services. The multi-year OpenAI deal was signed in Q3 2025, with a large portion of revenue recognized in 2025.

    Risks & headwinds

    6
    Costs and uncertainty from terminated Shutterstock mergerPast 18 months

    Over $100 million in professional fees and financing costs incurred.

    Mitigation: Decision to terminate the merger agreement and focus on standalone path.

    Warrant litigation judgment paymentQ2 FY26 (paid April 22)

    $110.9 million payment, including associated interest.

    Mitigation: Received $31.5 million of insurance proceeds, partially offsetting the impact. Company disagrees with regulatory outcome.

    Challenged balance sheet and liquidityImmediate priority, process through Q3 and into Q4

    Total debt outstanding of $2.1 billion as of June 30, 2026. Balance sheet cash down $45 million QoQ to $51.6 million.

    Mitigation: Hired Guggenheim Securities to explore strategic financing alternatives and balance sheet management initiatives.

    Declining revenue in Agency businessOngoing

    Agency business down 13% (contributing to Creative revenue decline).

    Mitigation: Continue to rationalize resources; encouraged by AI transparency laws and slowing AI use in ad creative.

    Challenges in iStock business from search engine changes and generative AIOngoing, expected to affect subscriber additions through Q3

    Softer traffic trends, search engine referral traffic declines, impact on new customer acquisition.

    Mitigation: Reorienting site to premium offerings, rationalizing marketing spend, leveraging exclusive high-quality content.

    Adverse impact on KPIs from iStock reorientationOver 2026 and into 2027

    Adversely impact some business KPIs.

    Mitigation: Strategic decision to build support for improved liquidity and focus on long-term customer value.

    What to watch in Q3 FY26

    4

    Balance Sheet Optimization Progress

    Q3 and Q4 FY26
    CurrentGuggenheim Securities engaged, process underway.
    TargetUpdates on strategic financing alternatives and balance sheet management initiatives.

    Why it matters

    Addressing the challenged balance sheet and improving liquidity is the immediate priority and critical for the company's standalone path.

    We have not yet established a timeline, but I expect this process to run through Q3 and into Q4.

    2 min read7 chapters

    Detailed Narrative

    01

    Shutterstock Merger Termination & Costs

    Getty Images terminated its proposed merger with Shutterstock after 18 months, incurring over $100 million in professional fees and financing costs. The decision was driven by regulatory requirements and the uncertainty and cost of execution, which were deemed no longer in the company's best interest. This termination has led to a renewed focus on a standalone path and addressing the company's balance sheet.

    02

    Balance Sheet Optimization & Liquidity Focus

    The immediate priority for Getty Images is to address its challenged balance sheet and improve liquidity. Guggenheim Securities has been hired to explore strategic financing alternatives and balance sheet management initiatives, a process expected to run through Q3 and into Q4. This initiative aims to optimize the capital structure to align with the company's standalone operating plan.

    03

    Challenges in Agency and iStock Businesses

    The company continues to face declining revenue in its Agency business due to secular headwinds, industry consolidation, and internal production trends, including AI. iStock is impacted by search engine referral traffic declines and AI-generated answers, affecting new customer acquisition. The microstock category generally faces pressure from generative AI, though iStock's premium content offers some insulation.

    04

    Strategic Reorientation of iStock

    To counter iStock's challenges, Getty Images will reorient the site towards its premium offerings, which demonstrate improved customer lifetime value, and rationalize marketing spend where returns do not meet required payback periods. This strategic shift is expected to adversely impact some business KPIs over 2026 and into 2027 but is intended to support improved liquidity and long-term customer quality.

    05

    Growth in Corporate and Media Services

    Despite headwinds, the largest parts of the business, corporate and media services through the Getty Images brand, representing three-quarters of revenue, delivered continued growth. These segments show strength in customer adoption, consumption, and retention, highlighting the importance of Getty Images' offerings to quality-conscious customers. Unsplash also showed growth, reflecting strong engagement with long-tail creative customers.

    06

    AI Strategy and Content Integration

    Getty Images is embracing AI as an enabler and partner, integrating its content into services from Google, OpenAI, and Perplexity. The company launched a Model Context Protocol (MCP) server and expanded natural language search to facilitate AI experiences. New initiatives include a prompt-based editing AI modification tool for customers and internal AI applications like coding assistance and AI customer service chatbots on iStock.

    07

    Expanding Offerings and Partnerships

    The company is expanding beyond traditional customer bases by launching new editorial and creative single-seat subscriptions, bringing Premium Access power to individuals. Partnerships, such as with Goalhanger for podcast visuals, aim to tell new stories for new audiences. The focus remains on providing trustworthy, rights-cleared visuals with C2PA source verification protocols to amplify trust and transparency.

    AI-generated summary of the company’s earnings call. Not investment advice.