Getty Images Holdings Inc ((GETY)) has held its Q3 earnings call. Read on for the main highlights of the call.
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Getty Images Holdings Inc.’s recent earnings call painted a mixed picture, reflecting both achievements and challenges. The company reported significant strides in AI content licensing and subscription growth, yet faced declines in overall revenue and adjusted EBITDA. Additionally, challenges in the agency and editorial segments, coupled with ongoing regulatory hurdles concerning a proposed merger, added layers of uncertainty to the financial landscape.
New AI Content Licensing Deals
Getty Images Holdings Inc. announced multiple new AI content licensing agreements, including a notable multiyear deal with Perplexity. These partnerships are designed to integrate Getty’s content into AI large language models and search experiences, marking a strategic move to capitalize on the growing AI market.
Increase in Premium Access Revenue
The company reported a 17% year-on-year increase in premium access revenue. This growth was largely driven by a significant renewal that expanded both the scope and term of existing agreements, highlighting the strength of Getty’s premium offerings.
Growth in Subscription Revenue
Subscription revenue saw a notable rise, accounting for 58.4% of total revenue, up from 52.4% in the previous year. This represents an 11.2% year-on-year growth, or 9.3% when adjusted for currency fluctuations, underscoring the company’s successful shift towards a subscription-based model.
Positive Legal Outcome
In a legal victory, Getty Images Holdings Inc. successfully defended its copyright in the UK against Ability.ai. The court affirmed that Getty’s copyright-protected works were unlawfully used to train stable diffusion models, reinforcing the company’s intellectual property rights.
Slight Decrease in Overall Revenue
Getty Images reported third-quarter revenue of $240 million for 2025, reflecting a slight year-over-year decrease of 0.22% on a currency-neutral basis. This minor decline indicates a stable revenue stream despite broader market challenges.
Decline in Adjusted EBITDA
The company’s adjusted EBITDA for the quarter was $78.7 million, marking a decrease of 2.4% or 4.4% on a currency-neutral basis. This decline points to ongoing operational challenges that the company needs to address.
Editorial Revenue Decline
Editorial revenue fell to $89.3 million, down 3.7% year-on-year and 5.6% on a currency-neutral basis. This decrease was primarily due to significant drops in news and sports segments, reflecting the volatility in these sectors.
Continued Decline in Agency Business
The agency segment, part of Getty’s Creative division, experienced a 22% year-on-year revenue decline. This ongoing downturn highlights the need for strategic adjustments to revitalize this part of the business.
Challenges with Regulatory Approval
Getty Images faces regulatory challenges as the UK’s Competition and Markets Authority has referred its proposed merger with Shutterstock to a phase two review. This delay pushes any potential closure into 2026, adding uncertainty to the company’s strategic plans.
Forward-Looking Guidance
Looking ahead, Getty Images Holdings Inc. provided updated full-year 2025 guidance, projecting revenue between $942 million and $951 million and adjusted EBITDA between $291 million and $293 million. These projections take into account currency fluctuations and comparisons with the previous year’s editorial event calendar, indicating cautious optimism despite current challenges.
In summary, Getty Images Holdings Inc.’s earnings call highlights a company navigating a complex landscape of growth opportunities and operational challenges. While achievements in AI licensing and subscription growth are promising, declines in revenue and regulatory hurdles present significant obstacles. The company’s forward-looking guidance suggests a strategic focus on stabilizing revenue and optimizing operational efficiency in the coming year.