Visual content marketplace Getty Images (NYSE:GETY) met Wall Streets revenue expectations in Q3 CY2025, but sales were flat year on year at $240 million. The company’s outlook for the full year was close to analysts’ estimates with revenue guided to $946.5 million at the midpoint. Its non-GAAP profit of $0.08 per share was 84.5% above analysts’ consensus estimates.
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Getty Images (GETY) Q3 CY2025 Highlights:
- Revenue: $240 million vs analyst estimates of $240 million (flat year on year, in line)
- Adjusted EPS: $0.08 vs analyst estimates of $0.04 (84.5% beat)
- Adjusted EBITDA: $78.71 million vs analyst estimates of $72.37 million (32.8% margin, 8.8% beat)
- The company reconfirmed its revenue guidance for the full year of $946.5 million at the midpoint
- EBITDA guidance for the full year is $292 million at the midpoint, above analyst estimates of $282.3 million
- Operating Margin: 19.9%, down from 23.9% in the same quarter last year
- Market Capitalization: $713.5 million
StockStory’s Take
Getty Images’ third quarter results aligned with Wall Street’s revenue expectations, with management attributing performance to ongoing strength in its subscription business and a recovery in Creative segment revenue following a year dominated by major editorial events. CEO Craig Peters noted that “Creative was aided by normalization of premium access revenue allocations,” as consumption returned to pre-event patterns post-Olympics. CFO Jennifer Leyden highlighted persistent agency declines and continued softness in the broadcast and production subsegments, which have yet to rebound following industry-wide strikes.
Looking ahead, Getty Images’ guidance reflects anticipated headwinds from ongoing agency weakness and a muted editorial event calendar, but management sees opportunities in AI-focused licensing and premium subscriptions. Peters stated, “We think [AI content deals] could develop into a material revenue stream,” pointing to new agreements with large language model platforms like Perplexity. Leyden added that disciplined cost management and further integration of AI tools are expected to support margins, even as one-off compliance and litigation costs persist into next year.
Key Insights from Management’s Remarks
Management credited Creative growth to a return to normal revenue allocation, while flagging continued agency and editorial pressures as key drags on results.
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AI licensing partnerships: Getty Images inked several new deals enabling large language model and search platforms to use its content, including a notable agreement with Perplexity. Management believes these partnerships could represent a growing source of revenue as AI adoption expands, though the financial impact will be gradual.
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Subscription business expansion: Annual subscription revenue rose over 11% year-on-year, with premium access subscriptions and Unsplash Plus driving most gains. A significant premium access renewal in the quarter highlighted ongoing demand from enterprise clients, and retention rates for these subscriptions remain high.
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Editorial segment headwinds: Editorial revenue declined due to tough year-over-year comparisons, as the prior year was boosted by the Paris Olympics and election cycle. Entertainment and archive content partially offset these declines, but news and sports subsegments faced double-digit drops.
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Agency business contraction: The agency portion of Creative continued to decline, reflecting macroeconomic uncertainty and a lack of major event-driven demand. Management indicated that agency softness remains a primary drag on overall Creative performance.
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Legal and regulatory updates: The phase two review of the Shutterstock merger by UK regulators has delayed the transaction into 2026. Meanwhile, Getty Images secured a favorable UK court ruling on trademark infringement related to AI-generated outputs, which management plans to leverage in ongoing U.S. litigation.
Drivers of Future Performance
Getty Images expects full-year results to be shaped by agency headwinds, AI content licensing growth, and ongoing cost controls.
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AI monetization potential: Management believes expanding partnerships with AI platforms could drive incremental revenue, particularly as more enterprises seek high-quality, rights-cleared content for training and deployment of large language models. However, the timing and scale of these deals remain uncertain.
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Subscription model resilience: The company’s focus on enterprise-grade premium access subscriptions and the growth of Unsplash Plus are seen as core to sustaining revenue, with high retention rates providing stability even as smaller segments face churn.
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Cost management and compliance: Getty Images is prioritizing disciplined cost controls, but expects near-term margin pressure from one-off compliance and litigation expenses. Management noted these costs are temporary, with efficiency gains from AI implementation expected to support future profitability.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will track (1) progress on AI content licensing agreements and evidence of material revenue contribution, (2) ongoing trends in premium access subscription renewals and retention, and (3) updates on the Shutterstock merger’s regulatory review. Shifts in agency business trends and further clarity on one-off compliance costs will also be important for assessing operational momentum.
Getty Images currently trades at $1.72, in line with $1.73 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free for active Edge members).
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