Q3 2025 Getty Images Holdings Inc Earnings Call

Good afternoon and welcome to Getty Images, third quarter 2025 earnings conference call.

Today's call is being recorded.

We have allocated 1 hour for prepared remarks and Q&A.

At this time, I'd like to turn the conference over to, Stephen caner, VP of investor relations and treasury at Getty Images. Thank you. You may begin.

Steven Kanner: Good afternoon. Welcome to the Getty Images Q3 2025 Earnings Call. Joining me on today's call are Craig Peters, Chief Executive Officer, and Jennifer Leyden, Chief Financial Officer. Before we begin, we would like to note that due to the ongoing regulatory review process, we will not be able to comment on the Q3 2025 Shutterstock operating results. We appreciate your understanding. This call will include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to various risks, uncertainties, and assumptions, which could cause our actual results to differ materially from these statements. These risks, uncertainties, and assumptions are highlighted in the forward-looking statements section of today's press release and in our filings with the SEC. Links to these filings and today's press release can be found on our investor relations website at investors.gettyimages.com.

Good afternoon.

And welcome to the Getty Images. Third quarter 2025 earnings call.

Joining me on today's call are Craig Peters, Chief Executive Officer, and Jen Layden, Chief Financial Officer.

Before we begin, we would like to note that due to the ongoing regulatory review process, we will not be able to comment on the Q3 2025 Shutterstock operating results.

We appreciate your understanding.

This call will include forward-looking statements within the meaning of the private Securities. Litigation Reform, Act of 1995.

These statements are subject to various risks, uncertainties, and assumptions, which could cause our actual results to differ materially from these statements.

These risks, uncertainties, and assumptions are highlighted in the forward-looking statements section of today's press release and in our filings with the SEC.

Links to these filings and today's press release can be found on our investor relations website at investors GettyImages.com.

Steven Kanner: During our call today, we will also reference certain non-GAAP financial information, including adjusted EBITDA, adjusted EBITDA margin, adjusted EBITDA less CapEx, and free cash flow. We use non-GAAP measures in some of our financial discussions as we believe they represent our operational performance and underlying results of our business. Reconciliations of GAAP to non-GAAP measures, as well as the description, limitations, and rationale for using each measure can be found in our filings with the SEC. After our prepared remarks, we'll open the call for your questions. With that, I will hand the call over to our Chief Executive Officer, Craig Peters.

During our call today.

We will also reference certain non-GAAP financial information, including Adjusted EBITDA and Adjusted EBITDA margin.

Adjusted ibid Alas, capex and free cash flow.

We use non-GAAP measures in some of our financial discussions, as we believe they represent our operational performance and underlying results of our business.

And rationale, for using each measure can be found in our filings with the SEC.

After our prepared remarks, we'll open the call for your questions. With that, I will hand the call over to our Chief Executive Officer, Craig Peters.

Craig Peters: Thanks, Steven, thanks to everyone for taking the time to join us today. I'll begin with a high-level view of the quarter, after which Jen will dive into the details of our financial performance. Q3 revenue for 2025 was $240 million, representing a slight year-over-year decrease of 0.2% and 2% on a currency neutral basis. Adjusted EBITDA came in at $78.7 million for the quarter, down 2.4% reported and 4.4% on a currency neutral basis, at a margin of 32.8% of revenue. Within the quarter, we posted growth in Creative and declines in Editorial. Creative was aided by normalization of Premium Access revenue allocations following the shift in 2024 consumption away from Creative and to Editorial driven by the Paris Olympics.

Thanks Stephen and thanks to everyone for taking the time to join us today.

I'll begin with a high-level view of the quarter after which Jen will dive into the details of our financial performance.

Third quarter revenue for 2025 was $240 million.

Representing a slight year-over-year decrease of 0.2% and 2% on a currency-neutral basis.

Adjusted ebit da came in at 78.74% reported and 4.4% on a currency neutral basis at a margin of 32.8% of Revenue.

Craig Peters: While creative is in growth, we continue to see declines across agency customers consistent with prior Qs and commentary. Editorial declines are the result of a difficult compare given the same Olympics and the 2024 election cycle. These declines are partially offset by growth in entertainment and archive. We continue to see some revenues from AI data licensing in the Q, but these were down from 2024 given the accelerated nature of revenue recognition for these deals. With that said, within the Q, I was excited to realize some new opportunities within the AI landscape that more closely align with our traditional content licensing business. Within the Q, we inked multiple deals to allow AI large language models and search experiences to utilize our content within their experiences to provide authentic, high quality content in context.

Creative was aided by normalization of Premium access Revenue. Allocations following, the shift in 2024 consumption away from creative and 2 editorial driven by the Paris Olympics.

While creative is in growth, we continue to see declines across agency customers, consistent with prior quarters and commentary.

Editorial, declines are the result of a difficult compared given the same Olympics and the 2024 election cycle.

These declines are partially offset by growth in entertainment and archive.

We continue to see some revenues from AI data licensing in the quarter, but these were down from Q2 2024 given the accelerated nature of revenue recognition for these deals.

Craig Peters: One of these agreements was a multi-year agreement with Perplexity. It includes commitments for both image credits and link backs. Another opportunity was within our custom content business, where we create content specific to customer needs. In this case, a business leveraged our expertise and our network of global contributors to create training content specific to their needs. In each instance, Getty Images is doing what it has always done so well, providing high-quality content to customers to enhance their offerings at scale and on an economic basis. We see more opportunity here. On the merger front, the UK's Competition and Markets Authority, the CMA, has referred the proposed merger of Getty Images and Shutterstock to a phase II review process.

within the quarter, we Inked multiple deals to allow AI large language models and search experiences to utilize our content within their experiences to provide authentic high-quality content in context.

1 of these agreements was a multi-year agreement with perplexity, and it includes commitments for both image credits and Link bags.

Another opportunity was within our custom content business, where we create content specific to customer needs.

In this case a business leveraged our expertise and our network of global contributors to create training content, specific to their needs.

In each instance, Getty Images is doing what it has always done so well.

Providing high-quality content to customers to enhance their offerings at scale and on an economic basis.

We see more opportunity here.

Craig Peters: We were disappointed to receive this notice, as we do not believe the transaction in any way reduces competition or harms customers or suppliers, and we offered comprehensive remedies to avoid a phase two review. This transaction is about the delivery of cost synergies and the resulting benefits they provide. The parties remain 100% committed to the transaction and to working with regulators in the UK and US to secure the necessary approvals. However, the realities of this process push any close into 2026. Elsewhere on the legal front, we received a judgment for our UK litigation against Stability AI, which ruled in favor of Getty Images on our trademark infringement claim, confirming that inclusion of our trademarks in AI-generated outputs infringe those trademarks, and that the responsibility for infringing outputs rests with Stability versus the end user. This is a win for rights holders everywhere.

On the merger front, the UK's Competition and Markets Authority (CMA) has referred the proposed merger of Getty Images and Shuttersto a phase 2 review process.

We were disappointed to receive this notice, as we do not believe the transaction in any way. Reduces competition or harms customers or suppliers.

And we offered comprehensive remedies to avoid a phase 2 review.

This transaction is about the delivery of cost synergies and the resulting benefits. They provide.

The parties remain 100% committed to the transaction and to working with regulators in the UK and us to secure the necessary approvals. However, the realities of this process push any close into 2026.

Elsewhere on the legal front, we received the judgment for our UK litigation against Stability AI, which ruled in favor of Getty Images on our trademark infringement claim.

confirming that inclusion of our trademarks and AI generated outputs, infringe, those trademarks

And that the responsibility for infringing outputs, rest was stability versus the end user.

This is a win for rights holders everywhere.

Craig Peters: While we were unsuccessful on the secondary infringement claim and dropped the training claim ahead of trial due to lack of clarity on the location of such training, the ruling affirmed Getty Images' copyright-protected works were used to train Stable Diffusion. We will be taking forward these findings of fact into our US case, where we refiled our case to California due to delays in Delaware, and the court is now reviewing motions. We are also evaluating an appeal in the UK. With that, I will turn it over to Jen to take you through the more detailed financials.

While we are unsuccessful on the secondary infringement claim and drop the training claim ahead of trial due to a lack of clarity on the location of such training.

The ruling affirmed Getty Images. Copyright-protected works were used to train Stable Diffusion.

We will be taking forward. These findings of fact into our us case where we refiled our case to California, due to delays in Delaware and the court is now reviewing motions.

We are also evaluating an appeal in the UK.

And with that, I will turn it over to Jen to take you through the more details financials.

Jennifer Leyden: Our Q3 results broadly reflect the quarterly cadence we anticipated, with headwinds from our comparers against a very strong editorial calendar in Q3 2024, yielding an expected flattening of growth in the back half of 2025, beginning with Q3. While those year-on-year comparisons impacted our reported results, we continued to see strong growth in our subscription business and a return to an adjusted EBITDA margin north of 32%, even as we continue to navigate declines in our agency business and a broadcast and production business that has yet to return to its pre-Hollywood strike performance level. Q3 revenue was $240 million, essentially flat on a reported basis and down 2% on a currency neutral basis. Included in these results are certain impacts of the timing of revenue recognition, which contributed approximately 410 basis points to Q3 growth.

In the back, half of 2025, beginning with Q3.

while those year-on-year comparisons impacted our reported results, we continued to see strong growth in our subscription business and a return to an adjusted ibaad margin, north of 32%,

Even as we continue to navigate declines, in our agency business, and a broad and production business that has yet to return to its pre Hollywood, stripe performance level.

Q3 Revenue was 240 million essentially flat on a reported basis and down, 2% on a currency neutral basis.

Jennifer Leyden: As expected, we saw the comparison to a very strong editorial event calendar in Q3 2024 impact some of our reported year-on-year results and metrics this quarter, and I'll highlight a few of those items here. Annual subscription revenue was 58.4% of total revenue, up from 52.4% in Q3 last year, representing year-on-year growth of 11.2% or 9.3% on a currency neutral basis. This growth was driven primarily by Premium Access or PA, which makes up just over 1/3 of our total revenue and grew 17% or 15% currency neutral. Our PA performance benefited from a large renewal in the quarter, which represented a meaningful upsize in scope and term for this customer, a testament to the continued demand for our content.

Included in these results. Are certain impacts of the timing of Revenue recognition, which contributed approximately 410 basis points to Q3 growth.

Also as expected, we saw the comparison to a very strong editorial event, calendar in Q3 of 2024 impact, some of our reported year-on-year results and metrics this quarter and I'll highlight a few of those items here.

Annual subscription Revenue was 58.4% of total revenue up from 52.4%. In Q3 of last year, representing year-on-year growth of 11.2% or 9.3% on a current senior Trail basis.

This growth was driven primarily by Premium Access (PA), which makes up just over one-third of our total revenue and grew 17%, or 15% currency neutral.

Our PA performance benefited from a large renewal in the quarter which represented a meaningful upsize in scope and term for this. Customer a testament to the continued demand for our content.

Jennifer Leyden: We added 6,000 active annual subscribers to reach 304,000 in the Q3 LTM period, representing growth of approximately 1.7% over the comparable 2024 LTM period. Annual subscriber growth was driven by Unsplash+ with gains partially offset by iStock, where we continue to see some impact from the discontinuation of our free trial customer acquisition program in June 2025. The annual subscription revenue retention rate was 90.3% in the Q3 LTM period, compared to 92.2% in the corresponding 2024 period and 93.4% in the Q2 LTM period this year. The year-on-year decline primarily reflects the absence of major political, sporting, and certain one-time events that boosted à la carte subscriber spend in 2024.

We added 6,000 active annual subscribers to reach 304,000 in the Q3 LTM period. Representing growth of approximately 1.7% over the comparable 2024 LTM period.

Annual subscriber growth was driven by unsplash, plus with gains partially offset by istock. Where we continue to see some impact from the discontinuation of our free trial. Customer acquisition program in June, 2025,

the annual subscription Revenue retention rate was 90.3% in the Q3 LTM period compared to 92.2% in the corresponding 2024 period And 93.4% in the Q2 LTM period this year

The year on year decline, primarily reflects the absence of major political sporting and certain 1-time events that boosted all a cart subscriber. Send in 2024

Jennifer Leyden: Paid downloads were down slightly at 93 million in the Q3 LTM period, while our video attachment rate was flat at 16.4%. Creative revenue was $144.9 million for the quarter, up 8.4% year-on-year and 6.4% on a currency neutral basis. The $11.2 million increase was primarily driven by Premium Access revenue, which included a multi-year agreement signed in the third quarter with significant upfront revenue recognition. In addition, subscriber download patterns in the prior year period, which benefited from a robust event calendar, skewed allocation of revenue more toward editorial than creative. With no comparable events of similar magnitude in Q3 2025, download trends returned to historical allocation levels.

Hey, downloads were down slightly at 93 million in the Q3 LTM period. While our video attachment rate was flat at 16.4%

Create a revenue was 144.9 Million for the quarter up 8.4% year-on-year and 6.4% on a currency neutral basis.

The $11.2 million increase was primarily driven by premium access revenue, which included a multi-year agreement signed in the third quarter with significant upfront revenue recognition.

Jennifer Leyden: Combined, the impact from the upfront revenue recognition and the shift in download patterns were the primary contributors to the year-over-year growth in Creative this quarter. We also had gains across video, Unsplash+, and custom content while Agency headwinds persisted. Agency, which sits entirely within Creative, declined 22% year-on-year, reflecting ongoing macro uncertainty, but also reflects the headwind from the year-on-year compare to our stronger Q3 in 2024 for Agency, driven again by the 2024 Editorial event calendar. Editorial revenue was $89.3 million, down 3.7% year-on-year and 5.6% on a currency neutral basis. The performance was driven by double-digit decreases in news and sports, which faced tough comparisons due to a strong event calendar in 2024. This was partially offset by growth in entertainment and in archive.

In addition, subscriber download patterns in the prior year period benefited from a robust event calendar, which skewed the allocation of revenue more toward editorial than creative, with no comparable events of similar magnitude in Q3 2025. Download trends returned to historical allocation levels.

Combined, the impact from The Upfront Revenue recognition, and the shift in, download patterns where the primary contributors to the year-over-year growth in Creative this quarter.

We also had gains across video on Splash plus and custom content while agency headwinds persisted.

3.7% year-on-year and 5.6% on a currency neutral basis.

The performance was driven by double digits decreases in news and sports, which faced tough comparisons due to a strong event calendar in 2024

This was partially offset by growth in entertainment and in archive.

Jennifer Leyden: Other revenue was USD 5.8 million, down from USD 14.1 million in Q3 2024 due to the timing of prior year revenue recognition for creative content deals, which included some level of AI rights. As Craig noted, our pipeline for these types of deals remains healthy in 2025, and despite some quarterly top line variability that comes with these types of deals, we expect full year revenue from these deals to be approximately 2% to 3% of total revenue, as we previously shared. From a geographic perspective on a currency neutral basis, we saw growth of 0.8% in the Americas, our largest region, while EMEA was down 4% and APAC was down 10.8% due primarily to declines in agency.

Other revenue was $5.8 million, down from $14.1 million in Q3 2024. This decrease was due to the timing of prior year revenue recognition for creative content deals, which included some level of AI writing.

As Craig noted, our pipeline for these types of deals remains healthy in 2025, and despite some quarterly topline variability that comes with these types of deals, we expect full-year revenue from these deals to be approximately 2% to 3% of total revenue. As we've previously shared.

From a geographic perspective, on a currency neutral basis, we saw growth of 0.8% in the Americas, our largest region.

while I Mia was down 4% in APAC was down 10.8% due primarily to decline in agency,

Jennifer Leyden: Revenue less our cost of revenue as a percentage of revenue remains strong at 73.2% compared with 73.4% in Q3 of 2024, with that year-on-year slight variability due largely to product mix. SG&A expense was $101 million, up $0.9 million year-on-year, with our expense rate increasing to 42.1% of revenue from 41.6% last year. Excluding stock-based compensation, SG&A increased to $97 million in the quarter, or 40.4% of revenue, up from $95.8 million or 39.8% of revenue in Q3 of 2024. This increase in SG&A relates primarily to $3 million of professional fees tied to the acceleration of our SOX compliance efforts and $1 million for the ongoing litigation with Stability AI.

Revenue less our cost of revenue as a percentage of revenue remains strong at 73.2%. This is compared with 73.4% in Q3 of 2024, showing slight year-on-year variability, due largely to product mix.

Sgna expense was 101 million up, 0.9 million euron year with our expense rate, increasing to 42.1% of revenue, from 41.6% last year.

Excluding stock-based compensation, SG&A increased to $97 million in the quarter or 40.4% of revenue, up from $95.8 million, or 39.8% of revenue in Q3 of 2024.

This increase in sgna relates primarily to 3 million of professional fees, tied to the acceleration of our socks. Compliance efforts, and 1 million for the ongoing litigation with stability, AI

Jennifer Leyden: We have previously shared that we expect approximately $8 million of SOX acceleration costs in 2025, with approximately $5.4 million of that incurred year-to-date through Q3. Adjusted EBITDA was $78.7 million for the quarter, down 2.4% or 4.4% on a currency neutral basis. Adjusted EBITDA margin was 32.8% compared to 33.5% in Q3 2024. Excluding the impact of accelerated SOX compliance and litigation costs, our adjusted EBITDA margin would have been 34.5%. CapEx was $14.7 million in Q3, up $2.2 million year-over-year. CapEx as a percentage of revenue was 6.1% compared to 5.2% in the prior year period, but still well within our expected range of 5% to 7% of revenue.

We have previously shared that we expect approximately $8 million of socks acceleration costs in 2025, with approximately $5.4 million of that incurred year to date through Q3.

Adjusted EBITDA was $78.7 million for the quarter, down 2.4% or 4.4% on a currency-neutral basis.

Adjusted ibida margin was 32.8% compared to 33.5% in Q3 2024.

Excluding the impact of accelerated. Socks compliance and litigation costs are adjusted ibida. Margins would have been 34.5%

Capex was 14.7 million in Q3 of 2.2 million year-over-year.

Jennifer Leyden: The year-on-year increase reflects the timing of payments for routine CapEx spends. Adjusted EBITDA less CapEx was $64 million, down 6.1% or 8.1% on a currency neutral basis. Adjusted EBITDA less CapEx margin was 26.7% compared to 28.3% in Q3 2024. Free cash flow was $7.9 million compared to -$1.8 million in Q3 2024. The increase in free cash flow reflects changes in working capital, primarily due to the timing of receivables and payables. Free cash flow is stated net of cash interest paid of $26.2 million, a decrease of $14.6 million over the prior year.

As a percentage of revenue, it was 6.1% compared to 5.2% in the prior year period. But still, it is well within our expected range of 5% to 7% of revenue.

So here on your increased, reflects the timing of payments for routine tap expense.

Adjusted yvanna, less capex, was 64 million down 6.1% or 8.1% on a currency neutral basis.

Adjusted AA, left capex, margin was 26.7%, compared to 28.3% in Q3 2024.

Free cash flow was 7.9 million compared to negative 1.8 million in Q3 2024.

The increase in free cash flow reflects changes in working capital, primarily due to the timing of receivables and payables.

Free. Cash flow is stated net of cash interest paid of 26.2 million, but decrease of 14.6 million over the prior year.

Jennifer Leyden: Cash taxes paid in the quarter were $9 million, a decrease of $1.3 million over Q3 of 2024. We finished the quarter with $109.5 million of balance sheet cash, down $0.3 million from the Q3 2024 ending balance and down $0.7 million from Q2 of 2025. We also have a $150 million revolver that remains undrawn.

Cash taxes, paid in the quarter were 9 million, a decrease of 1.3 million over Q3 of 2024.

Cash on the balance sheet is down $3 million from the Q3 2024 end balance and down $7 million from Q2 2025.

We also have a $150 million revolver that remains undrawn.

Jennifer Leyden: As of 30 September, we had total debt outstanding of $1.38 billion, which included $540 million of 11.25% senior secured notes, EUR 503 million of euro term loans converted using exchange rates as of 30 September 2025, with an applicable rate of 7.94%, $40 million of USD term loan at 11.25% fixed rate, and $300 million of 9.75% senior unsecured notes. Our net leverage was 4.3x at the end of Q3, compared to 4.2x in Q3 2024. The slight uptick in net leverage primarily reflects the impact of the weaker dollar on the value of our euro term loan debt, partially offset by an improvement in the trailing twelve-month adjusted EBITDA.

As of September 30th, we had total debt outstanding of $1.38 billion.

Which included?

540 million of 11.25%, senior secured notes.

503 million of Euro Term, Loan converted using exchange rates as of September 30th 2025 with an applicable rate of 7.94%.

40 million of USD Term Loan and 11.25% fixed rate.

And 300 million of 9.75% senior unsecured notes.

Our net leverage was 4.3 times at the end of Q3.

Compared to 4.2 times in Q3 2024.

Jennifer Leyden: We had a busy Q3 with respect to financing transactions, all executed with an eye to our pending merger with Shutterstock. In October, we completed an exchange offer to extend the maturities on our senior unsecured notes, replacing $294.7 million of 9.75% notes due March 2027 with new 14% senior unsecured notes now due in March 2028. The new notes are prepayable at par until the original maturity date or for 6 months following the close of the merger. In addition, we issued $628.4 million of new 10.5% senior notes due 2030 to fund the estimated merger cash consideration, refinance existing Shutterstock debt, and to cover anticipated merger-related fees and expenses.

We had a busy third quarter with respect to financing transactions, all executed with an eye to our pending merger with Shutterstock.

In October, we completed an exchange offer to extend the maturities on our senior unsecured notes.

Replacing 294.7 million of 9.75% notes, due. March of 2027 was new 14%, senior unsecured notes. Now, do in March of 2028,

The new notes are pre-payable at Park Until the original maturity date or for 6 months following the close of the merger.

In addition, we issued 628.4 million of new 10.5%, senior notes due to 2030.

To find the estimated merger, cash consideration, refinance existing shutter, stock debt and to cover, anticipated merger related fees and expenses.

Jennifer Leyden: The proceeds from this financing will remain in escrow, subject to the closing of the merger. While in escrow, the financing carries an approximate net interest cost of $3.5 million per month. We opted to execute this financing sooner rather than later so we could be poised for transaction close once we clear regulatory approval, and also to allow for management focus to pivot to integration planning and to operating our standalone business in the interim. Considering the foreign exchange rates and applicable interest rates on our debt balance as of 30 September, factoring in the quarterly amortization payment on the EUR term loan and the impact of the exchange offer, our estimated cash interest expense for 2025 is $127 million. The first cash interest payment related to the merger financing currently held in escrow will be in May of 2026.

The proceeds from this financing will remain in escrow, subject to the closing of the merger.

While in Espero, the financing carries an approximate net, interest cost of 3.5 million per month.

We opted to execute this financing sooner rather than later. So we could be poised for transaction closed. Once we clear regulatory approval and also to allow for management, Focus to Pivot to integration planning and to operating our Standalone business, in the interim,

Considering the foreign exchange rates and applicable interest rates on our debt balance as of September 30th.

Factoring in the quarterly amortization payment on the Euro Term Loan and the impact of the exchange offer.

Our estimated cash interest expense for 2025 is 127 million.

The first cash interest payment related to the merger financing currently held in escrow will be in May of 2026.

Jennifer Leyden: Now turning to our outlook for the full year of 2025. Taking into consideration our financial performance year to date and assuming full-year FX rates with the EUR at 1.12 and the GBP at 1.32, compared to the EUR at 1.10 and the GBP at 1.30 previously, we are updating our reported revenue guidance range to $942 million to 951 million, representing year-on-year growth of 0.3% to 1.2%, or a decrease of 0.5% to growth of 0.5% on a currency neutral basis. Our guidance reflects approximately $6.5 million positive impact from FX for the full year, which includes an estimated $4.3 million benefit in the Q4.

Taking into consideration our financial performance year-to-date, and assuming full year, FX rates with the Euro at 1.12 and the GBP at 1.32.

Compared to the euro at 1.1 and the GBP at 1.300 previously we are updating our reported Revenue. Guidance range to 942 million to 951 million.

Representing year-on-year growth of 0.3% to 1.2%.

Or a decrease of 0.5% to growth of 0.5% on a currency neutral basis.

Million benefit in the fourth quarter.

Jennifer Leyden: We are also updating guidance on our adjusted EBITDA range to $291 million to $293 million, which translates to a year-on-year decrease of 3% to 2.3%, or 4.1% to 3.3% currency neutral. Included in the adjusted EBITDA expectation is an approximate $3.5 million tailwind from FX in 2025, including an estimated $1.7 million benefit in the Q4. Please note, this guidance reflects the anticipated impacts of the odd year versus even year editorial event calendar comparisons, largely impacting the H2 of 2025, as well as some continued lag in a return to pre-Hollywood strike production levels.

We are also updating guidance on our adjusted ebit arranged to 291 million to 293 million.

Which translates to a year-on-year decrease of 3% to 2.3% or 4.1% to 3.3% currency neutral.

Included in the adjusted EVA expectation is an approximate $3.5 million tailwind from FX in 2025.

Including an estimated 1.7 million benefit in the fourth quarter.

Please note that this guidance reflects the anticipated impacts of the odd year versus even year. Editorial event calendar comparisons largely impacting the second half of 2025, as well as some continued lag in a return to pre-Hollywood strike production levels.

Jennifer Leyden: On the cost side, our guidance continues to include approximately 8 million in one-off increases in SG&A for SOX acceleration efforts, including 2.5 million expected in Q4 2025. The updated adjusted EBITDA guidance also reflects the benefits from our disciplined approach to managing our costs in the current environment. Please note all other merger-related costs are excluded from this guidance as they are considered one time in nature and therefore excluded from adjusted EBITDA. Finally, any potential broader impacts which may result from tariffs and other global macroeconomic conditions remain unknown and may not be fully reflected in this guidance. With that, operator, please open the call for questions.

On the call side, our guidance continues to include approximately 8 million in 1. Off increases in sgna for socks acceleration efforts, including 2.5 million expected in the fourth quarter of 2025.

The updated adjusted IBA guidance. Also reflects the benefits from our disciplined approach to managing our costs in the current environment.

Please note all other merger related costs are excluded from this guidance. As they are considered 1-time in nature and therefore, excluded from adjusted Ava.

Finally any potential broader impacts which may result from tariffs and other Global macroeconomic conditions remain unknown. And may not be fully reflective in this guidance.

With that operator, please open the call for questions.

Operator 3: We'll move first to Ronald Josey with Citi. Your line is open.

At this time, if you would like to ask a question, please press the star and 1 on your telephone keypad. You may withdraw yourself from the Queue at any time by pressing star 2.

We'll move first to Ron Josie with City. Your line is open.

Jay Cilek: Hi, this is Jay Cilek on for Ronald Josey. Thanks so much for taking our questions. First, Craig, could you take a step back and unpack for us Getty's key AI initiatives in the quarter and how they tie back to your overall AI strategy and potential impacts to 2026 revenue? In particular, we'd really like to better understand the structure and benefits of the Perplexity partnership. With respect to iStock, I think you highlighted bundling those AI capabilities directly into the subs. Are you seeing that drive new customer acquisition, retention or upsell? Then I have a follow-up. Let's just start there.

Hi. This is Jay callick on for Ron Josie. Thanks so much for taking our questions.

First Craig.

Could you take a step back and unpack for us Getty P. AI initiatives in the quarter and how they tie back to your overall AI strategy and potential impacts to $26 revenue in particular? We'd really like to better understand the structure and benefits of the Perplexity partnership. And then, with respect to iStock, I think you highlighted bundling those AI capabilities directly into the subs.

Are you seeing that drive? New customer, acquisition retention or or upsell?

Craig Peters: Okay. Thanks, Jay. Well, obviously, I can't get into the specifics of the Perplexity deal. It's confidential in nature, but it is a licensing deal, very similar to other licensing deals that we've done traditionally with technology platforms that leverage our content within their product offering. You know, we think it's one of many that are out there. As I mentioned, we did multiple of those in the quarter. You know, given the volume and investment that's going in, the volume of these large language models and the investment that's going in, we think that could be something that could develop into a material revenue stream for the company.

And then my set my, my second and then I have a follow-up. So let's just start there.

Okay, thanks Jay. Um well obviously I can't get into the specifics of the perplexity deal. Um

It, it's confidential in nature, um, but it is a licensing deal.

Craig Peters: With respect to the bundling, yeah, one of the things that we talked about, you know, in our last call was bundling the generative AI, most notably modifications for our customers, so they get more value out of our pre-shot content. That's what we've been observing in terms of their utilization of our AI capabilities, prior to that bundling. That is a strategy that is ultimately focused in on, you know, providing value to our customers, our existing customers. We think that they are getting value out of it when we talk to them. We expect that that will show up over time in our renewal rates across that subscription business. We're happy to make those tools available to our existing customers.

So, um, you know, we think it's 1 of of many that are out there. As I mentioned, uh, we, we did, uh, multiple of those, in, in the quarter. Um, and you know, given the the volume, um, and investment that's going in the volume of these large language models and the Investments going in, we think that could be something that that could develop into a, a material Revenue stream for the company.

Craig Peters: From a new customer standpoint, we continue to see that our content and the value delivered through our pre-shot content is the primary driver. We'll see how that evolves over time. It's too early to give you anything with respect to 20. Those are the, you know, the two primary, you know, kind of fundamentals of our, you know, kind of AI strategy with respect to customer-facing. Clearly, we continue to do some level of data licensing for AI training to our third-party platforms, and that continues. That's kind of the third revenue leg of the AI. Obviously we're deploying AI within our, you know, within our cost base and within our functions across the business to better operationalize, you know, the business and drive efficiency.

Delivered through our pre-shot content is the primary driver. Um, but we'll see how that evolves over time. But it's too early to give you anything with respect to 2025.

But those are the, you know, the 2 primary, uh, you know, kind of fundamentals of our, you know, kind of AI strategy with respect to customer facing. Um, clearly we continue to do some level of data, uh, licensing for AI training, uh, to a third party platforms and that continues. Um, so that's kind of the third Revenue leg of the AI and then, obviously, we're deploying AI within our, um, you know, within our cost base and within our functions across the business to, to better operationalize. Um, you know, the business and drive efficiency.

Jay Cilek: Thanks, Craig. That's helpful. Just quickly, Jen, on the results, in terms of the customer segments, you gave good details on agency, 22%, down 22% in the quarter. Could you dive a little deeper into the health of the corporate and media customer segments? In particular on media, maybe just double-click on what you said about the Hollywood strikes. Like, we're not seeing production come back to those pre-strike levels. Just wanna better understand how those other segments are faring. I know you've mentioned corporate retention rates in the past have been north of 100. Just wanna get a sense of the health on those two segments. Thanks.

Thanks Greg. That's that's helpful.

uh, and then just quickly Jen on

Uh maybe just double click on what you said about uh the Hollywood strikes. Like we're not seeing production come back to those pre.

Strike levels. Uh so just just want to better understand how those other segments are fairing. I know you've you've mentioned corporate. Uh retention rates in the past have been north of a 100 so just want to want to get a sense of the health on those 2 segments. Thanks?

Jennifer Leyden: Yeah. Hey, Jay Cilek. Within media, in Q3, media was in decline about 3%. Broadly speaking, within media itself, the only segments, you know, there's many sub-segments within media. The only sub-segments within media that were in decline were still those sort of broadcast and production segments. You know, we're still seeing those production, you know, film segments, subsegments inside of that broad media space in decline. Not quite the levels of decline, of course, that we saw in the height of that, the dual strike period. You know, they're not back, certainly not back to pre-strike levels and in this quarter, we did see them in decline. That's what we're referencing there.

Jennifer Leyden: corporate this quarter we did see in a slight decline, but broadly speaking, you know, that remains a growth segment for us. By far the largest portion of our revenue base, you know, approaching 60%. That is the portion of the business where we see, you know, both SMBs and enterprise. You're correct, you know, when we think about those enterprise customers, we still see those customers, you know, in the 100%, close to 100% retention level. Very, very healthy portion of our business.

Yeah, so, Hey, Jake. So um, within media uh, in Q3 media was in Decline about 3%, but broadly speaking within media itself. The only segments, you know, there's there's many suggest Sub sub segments within media. The only sub segments within media that were in Decline, we're still, those sort, of broadcast and production segments. So, you know, we're still seeing those, um, those production, um, you know, film segments sub segments and inside of that broad media space in the climb, um, not quite the levels of decline, of course that we saw in the height of that, the dual strike period but you know, they're not back um, certainly not back to pre-strike levels and and and in this quarter we did see them in Decline. Um, so that's what we're referencing there. Um, corporate this quarter, we

We did see, um, in a slight decline. Uh, but broadly speaking, you know, that remains a growth segment for us. Um, by far the largest portion of our Revenue base, you know, approaching 60%. Um, that is the portion of the business where we see,

You know, both smbs and Enterprise. You are correct. You know when you think about those Enterprise customers, we still see those customers, you know, in the 100% uh close to 100% retention level. So very, very healthy portion of our business.

Jay Cilek: Oh, thanks. Appreciate the color.

Jennifer Leyden: Welcome.

Oh thanks. Appreciate that caller.

Operator 3: We'll take our next question from Mark Zgutowicz with Benchmark. Your line is open.

We'll take our next question from Mark Gutowitz with Benchmark.

Is open.

Mark Zgutowicz: Thank you. Craig and Jen, question on Premium Access subscription retention. Just curious what that was in Q3 versus Q2, and how does the rest of the subscription business compare? I have a follow-up.

Thank you. Uh, question on premium access description that retention is curious what that was in 32 versus 2q and how um how how does the rest of the subscription business compared in the middle?

Craig Peters: Hey, Mark, this is Craig. It's not a statistic that we that we offer out into the market, but our Premium Access First of all, it's our largest subscription offering that we have out in the market. It represents roughly about a third of the company revenue. The retention rates on that are our highest levels across all of the subscriptions that we offer. That's held consistent over time. We haven't seen any variability, you know, within this year, Q2 to Q3, nor have we seen any variability, you know, over years in recent periods. That continues to be an incredibly durable offering for our customers.

Yeah. Hey hey Mark this is Craig um it's not a statistic that we um that we offer out into the market but our premium access is our its first of all it's it's our largest subscription offering.

Uh, that we have out in the market. It represents roughly about a third of the company Revenue, um, and the retention, uh, rates on that are our highest, um, levels, um, ac across all of the subscriptions that we offer, um, and that's held consistent.

Craig Peters: As you move down the subscription stack, most notably into iStock or into Unsplash, we see higher levels of churn there. Obviously, they're focusing in on small businesses and freelancers, those two brands respectively. You see more in and out of that subscription. Still healthy, relative to other subscription offerings that would target those same customers. Our subscription business continues to perform well. As Jen referenced in her remarks, we're continuing to see high utilization of those subscriptions as demonstrated through the paid download side of things.

Uh, small businesses and freelancers, those two brands respectively. Um, and so, you see more in and out of that subscription, but still healthy, um, relative to other, uh, subscription offerings that would target those same customers. Um, so, um, our subscription business continues to perform well, as Jen referenced in our remarks. We're still continuing to see high utilization.

Craig Peters: We continue to see retention, you know, really strong with the historical, you know, kind of benchmarks across each and every subscription, but that Premium Access one is, you know, the strongest at the top of the ladder. Jen, anything that you would add?

The subscriptions as, as demonstrated to the the paid download side of things. Um, and we continue to see, you know, retention, um, really strong with with historical.

Kind of benchmarks across each and every subscription. But that premium access 1 is is you know, the strongest at the top of the ladder.

attend anything that you would add,

Jennifer Leyden: No, you just broke up a bit for me there, Mark. I wasn't sure. Were you asking Premium Access or the annual subscription revenue retention rate overall compared to last quarter?

No, you just broke up a bit for me there. Mark, I wasn't sure. Were you asking premium access or the annual subscription Revenue retention rate overall compared to last quarter?

Mark Zgutowicz: No, that was it. Craig covered it. We're good there.

Jennifer Leyden: Oh, perfect.

Mark Zgutowicz: Yeah.

Jennifer Leyden: You're welcome.

Jennifer Leyden: That's good. Maybe one follow-up, if I could. Just in terms of creative, what was the cohort's growth, the sequential recovery there, and how should we think about Q4 compares either sequentially or year-over-year?

No, that was a great coverage. So perfect. You're welcome. Um, maybe 1 follow a good. Um,

Just in terms of uh creative. What customer cohorts drove the sequential recovery there and how should we think about a fourth quarter Compares, either sequentially or or year-over-year?

Craig Peters: Well, both Jen and I touched on this, and I wouldn't read too much into the creative growth within Q3. Last year, I don't know if you remember, Mark, but we talked about kind of the creative decline in Q3 of last year because of the Premium Access allocation between creative and editorial. As the editorial consumption went up because of things like the Paris Olympics, the allocation of Premium Access revenues to creative went down, and that created a bit more of a negative impact on creative. Well, the reversal of that this year, right? We don't have a Paris Olympics, and it isn't creating that level of consumption shift. We benefit on a year over year compare basis.

Craig Peters: As both Jen and I referenced, you know, our agency business continues to be in decline, and that is, you know, something that has been the primary pressure point against the creative business, is really the agency portion of our business. That kind of performance was, you know, I'd say consistent to where on an event-adjusted basis, 'cause again, we do generate some agency business as a result of things like the Olympics, where sponsors do activation, on an event that's been fairly consistent. We're seeing the business kind of continue as it did in Q2 on the creative side of things, which is, you know, a bit soft, and that softness focused in on the agency portion of the business.

We both both Jen and I touched on this, and, and I wouldn't read too much into the creative, um, growth within Q3. Um, it's it last year, I don't know if you remember, Mark, but we talked about kind of the creative decline in, in Q3 of last year because of the premium access allocation between creative and editorial. And as the editorial consumption went up because of things like the Paris Olympics the allocation of Premium access revenues to to create a 1 down and that created a bit more of a negative uh impact on on Creative. Well, the reversal of that this year, right? We don't have a Paris Olympics. Um, and it isn't creating that level of consumption shift, so we benefit on a year-over-year compared basis.

Both Jen and I reference that our agency business continues to be in decline, and that is...

You know, something that has been the primary pressure point against the creative business is really the agency portion of our business. And that kind of performance was, you know, I’d say consistent to where, on an event-adjusted basis. Because again, we do generate some agency business as a result of things like the Olympics, where sponsors do.

Activation, um, on an event that's been fairly consistent. So we're we're seeing the business kind of continue as it did in in Q2 on the creative side of things, which is, you know, a bit soft and that softness focused in on the agency portion of the business,

Mark Zgutowicz: Okay.

Mark Zgutowicz: Yeah. I'm just gonna add a little bit more context there. That PA mix shift that Craig mentioned, and we both mentioned in our remarks, that's about, you know, creative growth this quarter on a currency neutral basis. About half of that growth came from that year-on-year comparison with that mix shift flipping back to what we know to be the historical allocation between creative and editorial. That's just sort of that business kind of right-sizing back between creative and editorial. That's about half of that growth coming from that normalization flipping back. Then we mentioned we had, you know, a deal hit creative this quarter, which is a great deal for creative that came with some really healthy upfront revenue recognition.

Okay. Yeah. And I

want to contact their, um, that that PA mix shift, um, that Craig mentioned. And we both mentioned our remarks that's about, you know, creative, um, growth Discord and a currency Mutual basis about half of that growth.

Came from that year-on-year comparison with that mixed shift slipping back to what we know to be the to be the historical allocation between creative and and editorial. So that's just sort of that business kind of right sizing back between creative and editorial. So that's about half of that growth.

Jennifer Leyden: And that, you know, a little less than half of creative's growth came from that. Again, a legitimate bump in creative growth for the quarter, but a bit of a skewing of creative performance in the quarter as a result of that upfront revenue recognition. To Craig's point, as you think forward to Q4, you know, probably puts us back to, you know, very, very low single-digit growth for creative in Q4 when you think about those agency drags continuing into Q4.

Coming from from that normalization flipping back. Um, and then we mentioned, we had, you know, a, a, a deal hit creative this quarter, which is a, a great deal for Creative that came with, um, some really healthy upfront, Revenue recognition. Um, and that, you know, a little less than half of of creative growth came from that. So, you know, again, um, a legitimate

Bump in creative growth for the quarter. But there's a bit of a skewing of creative performance in the quarter as a result of that upfront revenue recognition. So, to Craig's point, as you think forward to Q4, you know, it probably puts us back to.

you know, very, very low single digit growth, uh, for Creative in in Q4 when you think about those agency drags continuing into Q4,

Mark Zgutowicz: Got it. Thank you.

Jennifer Leyden: You're welcome.

Got it. Thank you.

You're welcome.

Operator 3: It does appear that there are no further questions at this time. I would now like to turn it back to Steven Kanner for any additional or closing remarks.

And it does appear that there are no further questions at this time. I would now like to turn it back to Stephen caner for any additional or closing remarks.

Steven Kanner: Thank you again for joining us today and for your continued interest in our company. As always, our team is available to follow up on any additional inquiries you may have after the call. We look forward to staying connected and updating you on our progress in the quarters ahead. Have a great day.

As always, our team is available to follow up on any additional inquiries. You may have after the call,

we look forward to staying connected and updating you on our progress. In the quarters ahead, have a great day.

Operator 3: This does conclude today's program. Thank you for your participation. You may disconnect at any time, and have a wonderful afternoon.

This does conclude today's program, thank you for your participation. You may disconnect at any time and have a wonderful afternoon.