Shutterstock revenue falls 33% as company reports $197.8 million loss
Shutterstock reported a 33% year-over-year revenue decline in the third quarter of 2026, alongside a $197.8 million net loss that included a $195.6 million non-cash, after-tax goodwill impairment charge. The company also announced a transition in its chief financial officer role.
- Third-quarter revenue fell 33% to $173.9 million.
- Shutterstock reported a $197.8 million net loss.
- Adjusted EBITDA declined 47% to $41.8 million.
- Product Development and SG&A expenses fell 30% year over year.
- Scott Grossman became Interim Chief Financial Officer.
Revenue and profit fell sharply
Shutterstock's revenue for the quarter ended September 30, 2026, was $173.9 million, down from $260.1 million in the third quarter of 2025. The company said Content revenue fell 19% to $158.1 million, primarily because of weakness in new customer acquisition. Content represented 91% of total revenue.
Revenue from the Data, Distribution, and Services offering dropped 76% to $15.8 million, representing 9% of quarterly revenue. Shutterstock said revenue recognition in its data offering can vary from quarter to quarter based on the delivery timing of metadata licensed assets.
The company posted a net loss of $197.8 million, compared with net income of $13.4 million a year earlier. Net loss per diluted common share was $5.35, compared with net income per diluted common share of $0.37. The loss included a $203.3 million non-cash goodwill impairment charge recorded after a triggering event resulting from the impact of the dividend suspension announced on July 22, 2026.
Cost reductions continue as performance weakens
Adjusted net income decreased to $16.7 million from $36.4 million, while adjusted net income per diluted common share fell to $0.45 from $0.99. Adjusted EBITDA was $41.8 million, down 47% from $79.4 million in the third quarter of 2025. Shutterstock reported an adjusted EBITDA margin of 24.0%, compared with 30.5% a year earlier.
Chairman and Chief Executive Officer Jon Oringer said Shutterstock was maintaining a focus on operational discipline and cost management while dealing with “continued headwinds in our core Content segment and deal timing volatility in Data Licensing,” according to the company announcement.
Product Development and SG&A expenses fell 30% year over year to $96 million, which Shutterstock said represented $39 million in quarterly savings. Total headcount was reduced by 16% year-to-date, and the company said it was on target to deliver $60 million in annualized run-rate operating expense reductions committed to in its second-quarter earnings announcement.
CFO transition and operating metrics
Rik Powell will depart his role effective immediately and leave Shutterstock effective November 13, 2026. Scott Grossman, Senior Vice President and Global Head of Finance, will become Interim Chief Financial Officer effective immediately.
Shutterstock ended the quarter with 890,000 subscribers, down from 1,060,000 in the third quarter of 2025. Subscriber revenue was $95.1 million, compared with $107.2 million, while average revenue per customer over the last twelve months increased to $289 from $279. Paid downloads declined to 90.9 million from 111.7 million.
Cash and cash equivalents stood at $110.5 million on September 30, 2026, down from $133.2 million at June 30. Adjusted free cash flow was $12.5 million, a decrease of $62.7 million from the third quarter of 2025. The results show the pressure on Shutterstock's core business, while its cost reductions and focus on content, data capabilities and GenAI opportunities are intended to strengthen its financial position, according to the company.
PR Newswire: Shutterstock Reports Third Quarter 2026 Financial Results
