Quarterly Revenue (Reported)
Q1 revenue of $226.6 million, up 1.1% year over year (reported). Management notes currency-neutral comparisons vary slightly but the reported growth shows top-line stability.
Editorial Strength and Event-Driven Demand
Editorial revenue of $91.7 million, up 11.0% year over year (7.1% currency-neutral), driven by strong global sports coverage (Milan Cortina Winter Olympics), entertainment events, and archive demand. Revenue allocation shifts for big events contributed materially to Editorial growth.
Custom Content and AI-Related Growth
Custom content (including video and custom AI) showed strong performance, up over 250% year over year, indicating accelerating demand for higher-value, differentiated creative services.
Subscription Mix and Share Stability
Annual subscription revenue represented 57.4% of total revenue (up from 57.2% a year ago and 54.2% in 2025). Subscription revenue was up 1.4% (reported). Premium Access retention held at 100% in Q1 and Unsplash retention remains well over 90%.
Paid Downloads and Unsplash Growth
Paid downloads were stable at 92.2 million (essentially flat year over year). Unsplash Plus continued growth of approximately 20% year over year.
Free Cash Flow and Cash Position Improvement
Free cash flow improved to $24.0 million in Q1 compared with negative $0.3 million in Q1 2025. Cash on hand was $90.6 million, up $6.5 million sequentially, supported by lower cash interest and reduced merger cash outflows.
Operational Recognition and Competitive Differentiation
Editorial and photographer teams earned nearly 90 industry awards during the quarter. Management emphasizes unique archive, global coverage, and execution at tentpole events (Olympics, World Cup, America 250) as durable competitive advantages.