Getty Images Q2 Earnings Call Highlights

Getty Images reported second-quarter 2026 revenue of $229.1 million, down 2.5% from a year earlier, as weakness in its agency and iStock businesses offset growth in its enterprise-focused Getty Images offerings, media coverage and corporate business.

Chief Executive Officer Craig Peters said the company’s results “are not where we wanted them to be,” citing the costs and opportunity costs associated with pursuing its proposed merger with Shutterstock, along with continued market pressures in agency and iStock e-commerce operations.

Revenue declined 4.1% on a currency-neutral basis.

The company said timing of revenue recognition contributed about 50 basis points to second-quarter growth.

Getty Images terminated its proposed merger with Shutterstock after more than 18 months of work and more than $100 million in professional fees and financing costs, Peters said.

He said the regulatory requirements, uncertainty and costs associated with completing the transaction were no longer in the company’s best interest.

The company is now pursuing a standalone operating plan centered on improving liquidity and reducing debt.

In July, Getty Images hired Guggenheim Securities to explore strategic financing alternatives and balance-sheet management initiatives.

Peters said he expects that process to continue through the third and fourth quarters, though the company has not established a timeline.

Getty Images ended the quarter with $51.6 million in cash, down $45 million sequentially.

Total debt stood at $2.1 billion as of June 30.

During the quarter, the company made a $30 million mandatory repayment on its 14% senior unsecured notes and a €6.3 million amortization payment on its euro term loan.

Following termination of the Shutterstock transaction, Getty Images used escrowed proceeds to redeem $628.4 million of 10.5% senior secured notes at par.

The company also drew another $30 million on its revolving credit facility, bringing revolver borrowings to $150 million.

Because the financing review could affect its capital structure, liquidity and financial outlook, Getty Images said it would not provide earnings guidance at this time.

Peters said the agency business continues to face secular headwinds, industry consolidation and a business model that incentivizes customers toward internal production, including AI-enabled production.

Agency revenue declined 13% during the quarter.

At iStock, search-engine referral traffic continued to decline as search platforms implement AI-generated answers, weighing on new-customer acquisition and affiliate...