Shutterstock reported third‑quarter 2025 results that included a 4% year‑over‑year revenue increase to $260.1 million, a GAAP net income of $13.4 million ($0.37 per diluted share) and an adjusted net income of $36.4 million ($0.99 per diluted share). The company’s adjusted EBITDA rose to $79.4 million, giving an adjusted EBITDA margin of 30.5%, up 2.6 percentage points from the 27.9% margin recorded in Q3 2024.
The growth in total revenue was driven almost entirely by a 40% jump in the Data, Distribution and Services (DDS) segment, which reached $65.7 million. The core Content business declined 5% to $194.4 million, a shift that reflects the company’s ongoing mix transition toward higher‑margin services. The acquisition of Envato in July 2024 contributed to the revenue lift, while subscriber numbers at quarter‑end stood at 1.06 million, down from 1.105 million a year earlier.
Merger‑related professional fees of $7.1 million and a higher tax provision reduced GAAP net income, explaining why the company missed the consensus EPS estimate of $0.56–$0.86. The adjusted EPS beat expectations by $0.36, a 57% lift over the $0.63 consensus, thanks to disciplined cost management and the higher‑margin mix. The expansion of the adjusted EBITDA margin to 30.5% reflects both the stronger DDS mix and improved operational leverage as the business scales.
Management did not provide new guidance for the next quarter, citing uncertainty surrounding the pending Getty Images merger and the UK Competition and Markets Authority’s Phase 2 review. The company reiterated its long‑term targets of $1.2 billion in revenue and $350 million in EBITDA by 2027, and CEO Paul Hennessy emphasized that the merger will create a larger, more competitive entity better positioned to compete in an AI‑driven market.
Investors responded positively to the results, with the primary drivers being the revenue beat, the adjusted EPS beat, and the sustained expansion of the adjusted EBITDA margin. Analysts highlighted the 40% growth in DDS as evidence of the company’s successful shift toward higher‑margin services, while the continued decline in Content revenue was seen as a manageable trade‑off in the context of the broader strategic pivot.
The earnings release underscores Shutterstock’s strategic transformation from a traditional licensing model to a diversified creative platform. The pending Getty merger, the ongoing CMA review, and the company’s investment in AI‑generated content all signal a focus on long‑term competitiveness. The company’s ability to maintain a strong adjusted EBITDA margin amid merger‑related expenses demonstrates operational resilience and supports confidence in its trajectory toward the 2027 targets.
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