Executive Summary

Q1 was mixed: revenue grew 0.8% YoY to $224.1M, but the company posted a GAAP net loss of $102.6M (net loss margin -45.8%) on FX revaluation, tax, merger-related and refinancing charges; Adjusted EBITDA was resilient at $70.1M (31.3% margin) .
Results missed S&P Global consensus: revenue $224.1M vs $236.0M estimate and Primary EPS -$0.14 vs $0.08 estimate; both were significant misses as FX headwinds, agency softness, LA fires, and revenue recognition timing impacted the print . Estimates from S&P Global: revenue $236.0M*, EPS $0.081*; actuals $224.1M, -$0.14 (Primary EPS)*.
FY25 guidance was raised for reported revenue and Adjusted EBITDA due to updated FX assumptions, with currency-neutral outlook unchanged (Revenue: $931–$968M; Adj. EBITDA: $277–$297M), signaling confidence despite macro and event calendar headwinds; cadence implies Q1/Q2 momentum and tougher 2H compares .
Strategic positives: subscription mix (annual subscriptions 57.2% of revenue) and editorial partnerships (WWE, MLS, NWSL; UEFA renewal) strengthened; refinancing extended term loan maturities to 2030 and later exchanged $539.9M of USD term loans into notes .

What Went Well and What Went Wrong

What Went Well
- Subscription quality and mix: annual subscription revenue rose 5.4% YoY (7.2% CN) and reached 57.2% of total; retention 92.7% LTM; video attachment rate increased to 16.7% .
- Editorial momentum and partnerships: editorial revenue grew 4.0% YoY (5.6% CN); signed exclusives with WWE, MLS, NWSL and renewed UEFA, supporting sports growth .
- Profitability resilience: Adjusted EBITDA of $70.1M and 31.3% margin held steady despite headwinds; revenue less cost of revenue remained strong at 73.1% .
What Went Wrong
- Significant GAAP loss and estimate misses: GAAP net loss $(102.6)M; revenue and EPS missed S&P consensus materially (revenue -5% vs est.; EPS vs positive estimate) due to FX, tax, merger/legal and refinancing effects; Primary EPS actual -$0.14* .
- Creative and agency softness: Creative revenue declined 4.8% YoY; agency à la carte down high single digits amid macro caution; LA fires weighed on production/entertainment .
- Cash dynamics and leverage: Free cash flow was slightly negative ( $(0.3)M ) due to merger-related cash outflows; net leverage ticked to ~4.1x from 4.0x at year-end; 2025 cash interest outlook ~$133M .

Financial Results

Metric	Q3 2024	Q4 2024	Q1 2025
Revenue ($M)	$240.5	$247.3	$224.1
GAAP Diluted EPS	$(0.01)	$0.06	$(0.25)
Net Income Margin %	(1.1)%	10.0%	(45.8)%
Adjusted EBITDA ($M)	$80.6	$80.6	$70.1
Adjusted EBITDA Margin %	33.5%	32.6%	31.3%
Revenue less Cost of Revenue %	73.1% (Q1 QoQ ref) —	73.5%	73.1%

Estimates vs Actuals (S&P Global)

Metric	Period	Consensus*	# Estimates*	Actual
Revenue ($M)	Q1 2025	236.0*	4*	224.1
Primary EPS	Q1 2025	0.081*	2*	-0.14*

Note: Values with asterisks retrieved from S&P Global.

Segment/Product Revenue

Product ($M)	Q1 2024	% Rev	Q1 2025	% Rev	YoY %	CN %
Creative	138.8	62.5%	132.2	59.0%	(4.8)%	(3.0)%
Editorial	79.4	35.7%	82.6	36.9%	4.0%	5.6%
Other	4.0	1.8%	9.3	4.1%	131.7%	135.5%
Total	222.3	100.0%	224.1	100.0%	0.8%	2.6%

KPIs

KPI	Latest	Prior Year	Change
LTM Active Annual Subscribers	318,000	~262,000 (LTM Q1’24)	+21%
LTM Paid Downloads	93M	95M (LTM Q1’24)	(2.7%)
Annual Subscription Revenue Retention	92.7%	90.0%	+270 bps
LTM Video Attachment Rate	16.7%	14.0%	+270 bps

Balance Sheet and Cash Flow Highlights

Cash & equivalents: $114.6M; Revolver undrawn $150M; total liquidity $264.6M .
Total debt: $1.36B (USD term $580M; EUR term $476.1M eq.; $300M notes); USD term loans later exchanged $539.9M into notes at 11.25%, maturing 2030 .
Operating cash flow $15.4M; Free cash flow $(0.3)M (merger-related outflows) .
Estimated 2025 cash interest ~$133M; net leverage ~4.1x .

Guidance Changes

Metric	Period	Previous Guidance (Mar 17 ’25)	Current Guidance (May 12 ’25)	Change
Revenue	FY 2025	$918M–$955M	$931M–$968M	Raised
Revenue YoY	FY 2025	-2.3% to +1.6%	-0.9% to +3.1%	Raised
Revenue YoY, Currency Neutral	FY 2025	-1.0% to +3.0%	-1.0% to +3.0%	Maintained
Adjusted EBITDA	FY 2025	$272M–$290M	$277M–$297M	Raised
Adj. EBITDA YoY	FY 2025	-9.5% to -3.3%	-7.6% to -1.2%	Raised
Adj. EBITDA YoY, Currency Neutral	FY 2025	-8.0% to -1.7%	-7.9% to -1.4%	Slightly improved

Management noted the update reflects FX rate changes (EUR 1.10, GBP 1.30) vs prior (EUR 1.05, GBP 1.26), with CN guidance unchanged; expects similar growth trends in Q2, then tougher 2H compares and an estimated net ~$1M FY FX tailwind (Q1 headwind offset by 2H benefit) .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3’24 and Q4’24)	Current Period (Q1’25)	Trend
Subscriptions mix/quality	LTM subscribers up ~48% YoY; editorial event calendar shifted mix; corporate strong; agency stabilizing .	Annual subscriptions 57.2% of revenue; retention 92.7%; video attachment 16.7%; continued corporate-led growth .	Improving subscription depth, stabilizing mix.
AI/Technology	Launched commercially safe gen-AI; content deals with AI rights in revenue .	AI adoption low-single-digit % of customers/revenue; bundling AI into subscriptions; data licensing ~2–3% of revenue; no editorial licensed into AI .	Gradual adoption; cautious monetization.
Macro/tariffs/agency	Agency high single-digit declines in Q4; watching agency macro .	Agency down ~9% YoY; macro caution; tariff uncertainty cited as customer headwind .	Continued pressure.
Regional trends	Americas strong in Q4; EMEA slightly down .	Americas +6.4% CN; EMEA -3%; APAC ~flat (CN) .	Mixed by region; Americas leading.
Editorial/product momentum	Event year supported Q3/Q4 editorial; content deals with AI rights .	New exclusives: WWE, MLS, NWSL; UEFA renewal; entertainment down on LA fires .	Sports editorial strength; production headwind near-term.
Regulatory/legal	Stability AI litigation ongoing; merger agreement announced Jan’25; term loan refinancing .	DOJ/CMA “Second Request”; expect merger close 2H25; UK trial June on AI training; compliance/SOX cost +$8M one-off .	Regulatory progress, with added compliance costs.
Leverage/Refinancing	Net leverage <4x at YE; new USD/EUR term facilities .	Net leverage ~4.1x; cash interest 2025 est. $133M; USD term loan exchange into notes .	Slight leverage uptick; maturities extended.

Management Commentary

CEO Craig Peters: “First quarter revenue for 2025 was $224.1 million… Adjusted EBITDA was $70.1 million… Our annual subscription business… with strong demand for video, news and sport… revenue was impacted by early FX pressures, tariff-driven uncertainty… and continued softness in… entertainment… due to… LA fires.” .
CFO Jenn Leyden: “Included in [Q1] results are… timing of revenue recognition, which contributed approximately 320 bps to Q1 growth… subscription revenue grew 5.4%… editorial up 4%, creative down 4.8%… Other revenue… driven primarily by two new multiyear creative content deals that included some level of AI rights with heavier upfront revenue recognition.” .
On merger/regulatory: “We received a request for additional information from the DOJ… and the CMA… we continue to expect the transaction to close in the second half of 2025.” .
On AI policy: “In no case does Getty Images license its editorial content [for AI training]… we are pursuing litigation to clarify whether training on copyrighted material requires permission.” .

Q&A Highlights

Subscriptions and mix: Corporate segment drives subscription growth; iStock optimization aims for balanced subscription vs à la carte; subscription growth expected to slow but remain healthy with strong renewal/retention trends .
Headwinds and timing: Q1 had ASC 606 revenue timing (~320 bps benefit), LA fires impact on production/entertainment, early FX headwinds; macro/agency caution embedded in guidance .
AI adoption/monetization: Low-single-digit customer adoption and revenue contribution; bundling AI tools into subscriptions to support content modification use-cases; data licensing ~2–3% of revenue with no editorial content licensed .
Outlook cadence: Expect Q1/Q2 growth profile to continue into Q2; 2H faces tougher comps; net FX impact ~+$1M FY (Q1 headwind offset by 2H tailwind) .

Estimates Context

Q1 2025 vs S&P Global consensus: revenue $224.1M vs $236.0M estimate (miss), Primary EPS -$0.14 vs $0.081 estimate (miss). # of estimates: revenue 4, EPS 2. Values marked with asterisks retrieved from S&P Global. Actuals per company filings/press release .
Implications: Street models likely cut near-term revenue/EPS on agency/production headwinds and higher cash interest burden, though higher reported FY revenue and EBITDA guidance (FX-driven) may temper revisions for full-year CN growth and margins .

Key Takeaways for Investors

Subscription defensiveness is intact and improving (57% of revenue; 92.7% LTM retention), offsetting cyclicality in agency and production; this mix should dampen volatility through macro uncertainty .
The quarter’s large GAAP loss stemmed largely from non-operating items (FX revaluation, tax, M&A/refi) rather than core ops; Adj. EBITDA margin held above 31% .
Guidance uplift (reported) was FX-driven; currency-neutral growth/margin outlook is unchanged—focus on operational cadence: Q2 similar trend, 2H compares tougher .
Sports/editorial franchises strengthened (WWE/MLS/NWSL; UEFA renewal) supporting medium-term editorial monetization; near-term entertainment/production still impacted by LA fires .
Debt profile improved (maturities 2030; USD loan-to-notes exchange), but interest expense (~$133M in 2025) remains a headwind for FCF; watch path to deleveraging and any actions around 2027 notes .
AI narrative is disciplined: incremental revenue via data licensing and tool bundling, with strict IP stance (no editorial licensing); UK litigation in June may be a catalyst for the broader IP framework .
Potential stock catalysts: regulatory milestones on Shutterstock merger (DOJ/CMA), progress on agency/production recovery, subscription growth durability, and clarity on AI/IP litigation timeline .

Appendix: Additional Relevant Press Releases (Q1’25 timeframe)

Term loan refinancing completed (new $580M USD and €440M EUR term facilities) on Feb 21, 2025 .
Editorial partnerships: WWE exclusive licensing (Apr 7, 2025); Official photographer roles at Met Gala (May 5, 2025) and Tribeca Festival (May 29, 2025) .

Notes:

Revenue growth figures referenced on a currency-neutral basis where specified by management.
Where marked with asterisks, “Values retrieved from S&P Global.”

Getty Images Holdings, Inc. (GETY)·Q1 2025 Earnings Summary