Sign in

You're signed outSign in or to get full access.

GI

Getty Images Holdings, Inc. (GETY)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 delivered modest top-line growth with subscriptions and editorial offsetting agency softness; revenue was $234.9M (+2.5% reported, +1.8% currency neutral) and adjusted EBITDA was $68.0M with a 28.9% margin .
  • EPS beat vs Street: Primary EPS came in at $0.05 vs consensus ~$0.014; revenue slightly beat and adjusted EBITDA missed consensus modestly; FY25 guidance was reaffirmed ($931–$968M revenue; $277–$297M adj. EBITDA) . Estimates: values from S&P Global*.
  • Management emphasized momentum in corporate and a return to growth in media; subscriptions rose to 53.5% of revenue and annual subscriber retention improved to 93.4% LTM .
  • Headwinds included agency weakness, FX-driven GAAP net loss (-$0.08 diluted EPS) and elevated legal/merger-related costs; “Other” revenue surged on multi-year content deals with AI rights, carrying heavier upfront recognition .

What Went Well and What Went Wrong

What Went Well

  • Subscription strength and mix: Annual subscription revenue grew 3.7% (3.0% CN) and reached 53.5% of total; retention improved to 93.4% LTM. “We delivered solid growth…momentum in our subscription business” (CEO) .
  • Editorial resilience: Editorial revenue rose to $88.3M (+5.6% YoY; +4.6% CN) on strong demand in news and sports coverage (FIFA Club World Cup, Formula One) .
  • AI product progress: Upgraded AI suite with better prompt adherence and bundled pre-shot modification capabilities into iStock subscriptions to offer “clean” AI services trained on licensed content .

What Went Wrong

  • Agency-driven Creative softness: Creative revenue fell to $130.8M (-5.1% YoY; -5.7% CN) due to ad industry challenges; CFO called out agency weakness within Creative .
  • GAAP loss and FX volatility: GAAP diluted EPS was -$0.08 with a $57.2M FX loss (Euro term loan revaluation) and lower operating income on ~$14.4M merger-related expenses .
  • Cash flow pressure: Free cash flow was -$9.6M (vs $31.1M prior year), largely from merger/legal costs and higher cash taxes; operating cash flow fell to $6.5M .

Financial Results

MetricQ4 2024Q1 2025Q2 2025
Revenue ($USD Millions)$247.3 $224.1 $234.9
GAAP Diluted EPS ($USD)$0.06 $(0.25) $(0.08)
Adjusted EBITDA ($USD Millions)$80.6 $70.1 $68.0
Adjusted EBITDA Margin (%)32.6% 31.3% 28.9%
Net Income Margin (%)10.0% (45.8)% (14.6)%
Adjusted Diluted EPS ($USD)—$(0.14) $0.05

Segment revenue by quarter:

Segment Revenue ($USD Millions)Q4 2024Q1 2025Q2 2025
Creative$142.4 $132.2 $130.8
Editorial$90.1 $82.6 $88.3
Other$14.8 $9.3 $15.7
Total Revenue$247.3 $224.1 $234.9

Key KPIs (LTM basis):

KPIQ1 2025 LTMQ2 2025 LTM
Annual subscriber revenue retention rate (%)92.7% 93.4%
Paid download volume (Millions)93 93
Video attachment rate (%)16.7% 16.7%

Q2 2025 vs Wall Street consensus (S&P Global):

MetricConsensusActualSurprise
Revenue ($USD Millions)234.77*234.88 +0.11*
Adjusted EBITDA ($USD Millions)71.29*68.05 -3.24*
Primary EPS ($USD)0.0136*0.05 +0.0364*

Values retrieved from S&P Global*.

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue ($USD Millions)FY 2025$918–$955 $931–$968 Raised (Q1 update), Reaffirmed in Q2
Adjusted EBITDA ($USD Millions)FY 2025$272–$290 $277–$297 Raised (Q1 update), Reaffirmed in Q2
FX assumptionsFY 2025EUR 1.05 / GBP 1.26 EUR 1.10 / GBP 1.30 Updated FX basis
One-off SG&A (SOX)FY 2025~$8M included ~$8M included, ~$5.5M in H2 Timing clarification

Earnings Call Themes & Trends

TopicQ4 2024 (Prev-2)Q1 2025 (Prev-1)Q2 2025 (Current)Trend
AI/technology initiativesContinued adoption of generative AI trained on permissioned content (About) Subscriptions up; partnerships expanded (WWE/MLS/NWSL) Upgraded AI suite; bundled pre-shot modification AI into iStock subscriptions Building capabilities; commercialization broadening
Subscription momentumAnnual subscription 54.9% in Q4 57.2% in Q1 53.5% in Q2 (mix shift; subscriptions grew +3.7%) Structural growth, quarterly mix moves with seasonality/events
Macro/agency pressuresCreative down; agency headwinds noted Creative down 4.8% YoY Creative down 5.1% YoY; agency continues soft Persistent pressure
Editorial events/calendarStrong event-driven Q4 (+19% YoY) Early-year events, but lighter YoY Growth continues (+5.6% YoY); tougher comps expected in H2 Normalizing after strong 2024
Regional trendsLiquidity improved; no specific regional callouts—Americas +7.2% CN; EMEA -6% (prior-year nonrecurring assignment); APAC -1.1% CN Mixed: Americas strength; Europe lag on tough comp
Regulatory/legalTerm loans refinanced; litigation expenses in FY numbers DOJ/CMA Second Request process initiated Continued DOJ/CMA review; Stability AI UK claim narrowed, US claim continues Ongoing overhang, costs elevated

Management Commentary

  • CEO: “We delivered solid growth…with acceleration across Corporate, and a return to growth in Media…We remain confident in our strategy and on track to achieve our 2025 outlook.”
  • CFO: “Q2 marked our fifth consecutive quarter of top line growth…we will continue to emphasize execution, fiscal discipline and building momentum into the back half of the year.”
  • CFO on mix and retention: “Premium Access…revenue retention…back up over 100%…hasn’t been over 100% since 2023…a very good sign for us.”
  • CEO on AI litigation: “We found clear indications that Stability [AI] did train on our material…we dropped [training claim] in the UK…[and] continue in the US.”

Q&A Highlights

  • Creative vs. Other and agency exposure: Management reiterated agency weakness within Creative and clarified “Other” revenue strength stems from multi-year content deals with AI rights that carry heavier upfront recognition; do not expect “Other” to be more than low single digits of total revenue in 2025 .
  • Subscription drivers and retention: Growth led by iStock, Unsplash Plus, and Premium Access; retention improved to 93.4% LTM, with Premium Access retention >100% signaling enterprise recovery post Hollywood strikes .
  • Legal/regulatory: UK case narrowed due to location-of-training facts; US case continues; merger comments limited due to ongoing DOJ/CMA processes .
  • FX and cadence: Management detailed FX headwinds in H1 and tailwinds expected in H2; tougher editorial comps in H2 on an odd-year calendar; SOX-related one-off SG&A concentrated in H2 .

Estimates Context

  • Q2 2025 performance vs consensus: Revenue slightly beat; adjusted EBITDA missed; Primary EPS significantly beat. Management’s reaffirmed FY25 guidance supports stability despite FX and event-calendar dynamics .
  • Forward look: Street models for Q3/Q4 may adjust for heavier H2 SG&A (SOX) and event comps, offset by FX tailwinds and ongoing subscription momentum; “Other” revenues should remain low single-digit % of total per management .
  • Note: All consensus values are from S&P Global and marked with an asterisk in the tables above. Values retrieved from S&P Global*.

Key Takeaways for Investors

  • Subscriptions are the structural growth engine; retention recovery and >50% mix underscore resilience even as agency remains weak .
  • Editorial continues to perform, but expect a tougher H2 on event comps; monitor regional divergences (Americas strength, EMEA tough comp) .
  • EPS beat driven by adjusted metrics and upfront recognition on AI-rights content deals; GAAP loss was FX-driven and masks underlying operating health .
  • EBITDA margin compressed (~200 bps YoY) on legal/merger and SOX compliance costs; cash flow was impacted by these one-offs and higher cash taxes .
  • Balance sheet/liquidity remain adequate ($110.3M cash; $150M undrawn revolver; total liquidity $260.3M); debt mix shifted via loan-to-bond exchange in May .
  • Regulatory overhang persists (DOJ/CMA) for the Shutterstock merger; Stability AI litigation continues in the US—headline risk remains .
  • Near-term trading: Expect focus on adjusted EPS beat, subscriptions momentum, and guidance reaffirmation vs caution on EBITDA miss, FX volatility, and legal/regulatory expenses .

Additional relevant Q2 press release:

  • Getty Images announced the Q2 2025 earnings release and call details on July 23, 2025 .