Executive Summary

Q3 2025 revenue was $240.0M, essentially flat year over year (-0.2%) and -2.0% currency-neutral; adjusted EBITDA margin rebounded to 32.8% from 28.9% in Q2, with adjusted diluted EPS of $0.08 versus GAAP diluted EPS of $0.05 .
Against S&P Global consensus, revenue was in line, while adjusted EPS and EBITDA were above: revenue $240.044M vs $239.975M*, adjusted EPS $0.08 vs $0.043*, EBITDA $78.7M (adj.) vs $72.4M*; beats driven by Premium Access normalization and a multi‑year creative deal with upfront recognition .
FY2025 guidance tightened: revenue range narrowed to $942–$951M (from $931–$968M), and adjusted EBITDA raised/tightened to $291–$293M (from $277–$297M), reflecting FX tailwinds and cost discipline; guidance still embeds ~$8M SOX acceleration costs .
Strategic catalysts: multi‑year licensing with Perplexity to embed Getty content in AI search experiences, and a UK court ruling affirming trademark infringement responsibility on Stability AI; merger with Shutterstock referred to CMA Phase 2, pushing expected close into 2026 .

Values retrieved from S&P Global.*

What Went Well and What Went Wrong

What Went Well

Subscription mix strengthened: annual subscription revenue rose 11.2% YoY (9.3% CN) to 58.4% of total; Premium Access (≈ one‑third of revenue) grew 17% (15% CN) with a large renewal upsized in scope/term .
Margin recovery: adjusted EBITDA margin returned “north of 32%” at 32.8%, with free cash flow improving to $7.9M vs -$1.8M last year; management emphasized “disciplined execution” on the 2025 outlook .
Strategic AI partnerships: “multiple deals” signed to integrate Getty content into LLM/search experiences, including Perplexity; CEO: “These initiatives unlock incremental revenue streams that are closely aligned with our traditional content business” .

What Went Wrong

Editorial and agency softness: editorial down 3.7% YoY (5.6% CN) on tough comps (Olympics/elections); agency declined 22% YoY within creative, reflecting ad/macro pressures .
Other revenue fell 58.5% YoY due to prior‑year upfront recognition tied to creative/data licensing; management expects full‑year AI/data licensing to be ~2–3% of revenue (variable quarterly cadence) .
Merger timing and costs: CMA referral to Phase 2 pushes close into 2026; new 10.5% notes held in escrow carry ~$3.5M/month net interest until close, adding near‑term expense drag .

Financial Results

Consolidated P&L and Margins (Quarterly)

Metric	Q1 2025	Q2 2025	Q3 2025
Revenue ($USD Millions)	$224.077	$234.882	$240.044
GAAP Diluted EPS ($)	$(0.25)	$(0.08)	$0.05
Adjusted Diluted EPS ($)	$(0.14)	$0.05	$0.08
Adjusted EBITDA ($USD Millions)	$70.125	$67.974	$78.710
Adjusted EBITDA Margin (%)	31.3%	28.9%	32.8%
Net Income Margin (%)	(45.8)%	(14.6)%	9.0%

YoY in Q3 2025: Revenue -0.2% reported (-2.0% CN) .

Segment Revenue Breakdown

Segment	Q3 2024 ($M)	Q2 2025 ($M)	Q3 2025 ($M)
Creative	$133.713	$130.824	$144.892
Editorial	$92.781	$88.342	$89.315
Other	$14.051	$15.716	$5.837
Total	$240.545	$234.882	$240.044

Key drivers: Creative growth benefited from Premium Access allocation normalization and a multi‑year deal with upfront recognition; editorial declined on event comp; other declined on prior‑year timing .

KPIs and Operating Metrics

KPI	Prior Period	Current
Annual Subscription Revenue Mix (%)	53.5% in Q2’25	58.4% in Q3’25
Annual Subscription Revenue Retention (%) (LTM)	93.4% in Q2 LTM	90.3% in Q3 LTM
Active Annual Subscribers (LTM, thousands)	321 in Q2 LTM	304 in Q3 LTM; +6k added QoQ
Paid Downloads (LTM, millions)	93 in Q2 LTM	93 in Q3 LTM (slightly down YoY)
Video Attachment Rate (LTM, %)	16.7% in Q2 LTM	16.4% in Q3 LTM

Liquidity and leverage: Cash $109.5M; total liquidity $259.5M; total debt $1.38B; net leverage 4.3x at Q3 end .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue ($USD Millions)	FY 2025	$931–$968	$942–$951	Narrowed; midpoint ↓ (~$949.5 → ~$946.5)
Revenue YoY (%)	FY 2025	-0.9% to 3.1%	0.3% to 1.2%	Narrowed; range shifted upward
Revenue YoY, Currency Neutral (%)	FY 2025	-1.0% to 3.0%	-0.5% to 0.5%	Narrowed; centered around flat
Adjusted EBITDA ($USD Millions)	FY 2025	$277–$297	$291–$293	Raised and tightened; midpoint ↑ (from $287 → $292)
Adj. EBITDA YoY (%)	FY 2025	-7.6% to -1.2%	-3.0% to -2.3%	Improved (less negative)
FX Assumptions	FY 2025	EUR 1.10, GBP 1.30	EUR 1.12, GBP 1.32	Updated FX tailwind

Guidance includes ~$8M one‑off SG&A related to SOX acceleration (≈$2.5M expected in Q4) .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 & Q2 2025)	Current Period (Q3 2025)	Trend
AI/Technology Initiatives	Q1: Generative AI trained on licensed content; iStock bundles planned . Q2: Upgraded AI suite; bundled pre‑shot modification tools into iStock subscriptions .	Signed “multiple” LLM/search content integration deals; Perplexity multi‑year licensing; AI training data licensing continues .	Expanding partnerships; monetization broadening
Subscription Momentum	Q1: Subscription mix 57.2% . Q2: Subscription mix 53.5%; retention 93.4% LTM; PA strongest .	Subscription mix 58.4%; PA renewal upsized; retention 90.3% LTM (mix effect, tough comps) .	Strong mix; retention normalizing post‑events
Product Performance	Q1/Q2: Creative softness on agency; editorial growth on events .	Creative +8.4% YoY (PA normalization, upfront deal); editorial -3.7% (events comp); agency -22% .	Mixed; creative aided by one‑offs; agency weak
Regional Trends	Q2: Americas +7.2% CN; EMEA -6%; APAC -1.1% CN .	Q3: Americas +0.8% CN; EMEA -4% CN; APAC -10.8% CN (agency declines) .	Americas resilient; APAC softer
Regulatory/Legal	Q1/Q2: DOJ/CMA merger reviews ongoing; Shutterstock shareholder approval .	CMA referred merger to Phase 2; close expected 2026; UK ruling vs Stability AI (trademark affirmed; training facts supportive) .	Longer regulatory path; IP enforcement win
Macro/Tariffs	Q2: Agency headwinds; production not back to 2023 levels .	CFO reiterates unknown broader impacts from tariffs/macro; production/broadcast still lagging .	Persistent macro headwinds

Management Commentary

CEO: “Third quarter results were in line with our expectations… We were pleased to finalize new strategic partnerships that integrate our high-quality, authentic content into emerging AI large language models and search platform experiences… We remain confident in our value proposition and are focused on disciplined execution against our 2025 outlook” .
CFO: “We navigated the challenging year-on-year compares with strong subscription revenue growth and a return to an adjusted EBITDA margin north of 32%” .
CEO on AI strategy: “It is a licensing deal… We think it could develop into a material revenue stream… bundling generative AI modifications into subscriptions focuses on value to existing customers” .
CFO on creative growth drivers: “About half [of creative growth] came from normalization in PA allocation; a little less than half from a deal with healthy upfront revenue recognition” .
CFO on financing/merger prep: Escrowed 10.5% senior notes carry ~$3.5M per month net interest until close; 2025 cash interest estimated ~$127M; integration planning prioritized .

Q&A Highlights

AI monetization path: Multiple LLM/search integration deals (Perplexity) are licensing‑based and could become material; customer‑facing AI tools bundled to drive retention/renewals; data licensing remains a third AI revenue leg .
Segment health: Media declined ~3% due to broadcast/production lag; corporate slightly down in Q3 but remains growth and near ~60% of revenue with ~100% retention for enterprise customers .
Subscription retention: Premium Access retention “highest” among subscriptions and historically stable; overall annual subscription retention normalized post‑strikes .
Creative outlook: Q3 creative growth skewed by PA mix normalization and upfront deal; expect very low single‑digit growth in Q4 with agency drags .

Estimates Context

Metric	Q3 2025 Consensus	Q3 2025 Actual
Revenue ($USD)	$239,975,410*	$240,044,000
Primary/Normalized EPS ($)	$0.04337*	$0.08 (Adjusted) / $0.05 (GAAP Diluted)
EBITDA ($USD)	$72,370,670*	$78,710,000 (Adjusted EBITDA)

Observation: Revenue in line; adjusted EPS and adjusted EBITDA exceeded consensus. Note: S&P Global EPS appears normalized and EBITDA definition may differ from company’s Adjusted EBITDA. Values retrieved from S&P Global.*

Key Takeaways for Investors

The quarter was operationally solid with margin recovery and subscription momentum; headline revenue flat reflects tough event comps rather than underlying demand deterioration .
Creative strength in Q3 was partly one‑off (upfront recognition) and mix normalization; expect more modest creative growth in Q4 as agency weakness persists .
AI partnerships (Perplexity and others) broaden monetization beyond training deals toward embedded content in consumer experiences—a potentially more durable revenue stream .
FY2025 guidance tightening (adj. EBITDA raised/tightened) signals confidence despite macro and production/broadcast lag; FX is a tailwind in H2 .
Regulatory path extends merger close to 2026; escrow financing adds ~$3.5M/month interest, pressuring near‑term cash, but positions the company to close rapidly once approved .
Legal/IP developments in the UK strengthen positioning against unlicensed AI usage; findings may aid the US case and support the “licensed‑content” strategy .
Near‑term trading: watch for Q4 subscription retention/renewals, agency trends, and incremental AI licensing announcements; merger/regulatory updates are major catalysts for rerating .

Getty Images Holdings, Inc. (GETY)·Q3 2025 Earnings Summary