NEW YORK – – November 05, 2026 -- Shutterstock (NYSE: SSTK) reported a third-quarter net loss of $197.8 million, against net income of $13.4 million a year earlier, as revenue fell 33% to $173.9 million and a non-cash goodwill impairment hit the bottom line.
The loss equals $5.35 per diluted share, versus earnings of $0.37 per share in the third quarter of 2025. The net loss includes a $195.6 million after-tax impairment charge. The company booked the pre-tax charge of $203.3 million after the July 22, 2026 dividend suspension triggered a review.
Content revenue drops 19% on weak new-customer acquisition
Content revenue fell $36.4 million to $158.1 million and made up 91% of total revenue. Shutterstock attributed the decline mainly to weakness in new customer acquisition.
Data, Distribution, and Services revenue fell 76%, or $49.8 million, to $15.8 million, or 9% of the total. The company said revenue recognition in data licensing varies by quarter with the delivery timing of licensed metadata assets.
Adjusted EBITDA halves as margin slips to 24.0%
Adjusted EBITDA fell 47% to $41.8 million from $79.4 million. Adjusted EBITDA margin dropped to 24.0% from 30.5%. Adjusted net income fell to $16.7 million, or $0.45 per diluted share, from $36.4 million, or $0.99 per share. Shutterstock blamed the declines primarily on lower revenue.
Operating costs did not fall as fast as revenue. The quarter also carried $4.3 million of workforce optimization expenses, $2.6 million of strategic advisory and other fees, $0.5 million of costs tied to the proposed merger and $0.4 million of unrealized losses on the Meitu investment.
Cost cuts trim Product Development and SG&A spending 30% to $96 million
Product Development and SG&A expenses fell $39 million year over year, and headcount is down 16% year to date. CEO Jon Oringer said the company is on track for the $60 million in annualized run-rate operating expense reductions it committed to in its second-quarter announcement. He cited continued headwinds in Content and deal-timing volatility in Data Licensing.
CFO Rik Powell exits; Scott Grossman steps in as interim
Rik Powell left the CFO role effective immediately and leaves the company on November 13, 2026. Scott Grossman, Senior Vice President and Global Head of Finance, is interim CFO. Powell had served as interim CEO earlier in the year. Oringer said Hichame Assi, as President and COO, is bringing greater focus to operational performance and execution.
Cash falls $22.7 million to $110.5 million after $30 million revolver repayment
Cash and equivalents were $110.5 million at September 30, down from $133.2 million at June 30. Operating activities generated $18.3 million, after $5.0 million of contributor royalty payments, an $8.6 million reduction in deferred revenue and $4.3 million of merger-related payments. Financing activities used $29.8 million, mainly $30.0 million of revolving credit facility repayments. Investing activities used $9.8 million, mostly capital expenditures.
Adjusted free cash flow was $12.5 million, down $62.7 million from the third quarter of 2025.