Shutterstock reported a sharp revenue contraction and a substantial net loss for the third quarter 2026. Revenue fell 33% year-over-year to $173.9 million, missing the $195 million consensus estimate as Data Licensing revenue plummeted 76%. The bottom line was severely impacted by a $195.6 million after-tax goodwill impairment charge triggered by a previous dividend suspension. In a significant leadership shift, the company appointed Scott Grossman as Interim CFO to replace the departing Rik Powell as part of its ongoing operational restructuring.
Key Highlights
- Total revenue declined 33% to $173.9 million, driven by a 19% drop in core Content revenue and a 76% collapse in Data, Distribution, and Services.
- Net loss reached $197.8 million, primarily due to a $203.3 million pre-tax non-cash goodwill impairment charge following identifying a triggering event in its equity valuation.
- Adjusted EPS of $0.45 significantly outperformed the $0.08 estimate, as management cut Product Development and SG&A expenses by 30% year-over-year.
- Operating headcount has been reduced by 16% year-to-date, contributing to $39 million in quarterly expense savings.