Getty Images' AI Licensing Shifts and Editorial Strategy U-Turn Highlight Earnings Call Contradictions

Date of Call: Mar 16, 2026

Financials Results

• Revenue: Q4: $282.3M, up 14.1% YOY and 12.7% currency neutral. Full year: $981.3M, up 4.5% YOY and 3.8% currency neutral.
• Gross Margin: Gross margin (revenue less cost of revenue) was 74.8% in Q4 vs 73.5% in Q4 2024. Full year: 73.4% vs 73.1% in 2024.
• Operating Margin: Adjusted EBITDA margin: Q4 36.9% vs 32.6% in Q4 2024. Full year 32.7% vs 32% in 2024.

Guidance:

• Revenue for 2026 expected to be $948M-$988M, down 3.4% to up 0.6% YOY (down 4.5% to 0.5% currency neutral).
• Adjusted EBITDA for 2026 expected to be $279M-$295M, down 12.9% to 8.1% YOY (down 13.9% to 9.1% currency neutral).
• The decline is entirely attributable to the timing of revenue recognition for the two large multi-year licensing agreements signed in Q4 2025, creating a challenging comparison.
• Excluding the $40M accelerated revenue from those deals, core business is expected to be in growth (0.7%-4.9% YOY and down 0.5% to up 3.7% currency neutral).
• Guidance includes approximately $5.6M in one-off increases in SG&A for SOX compliance acceleration.

Business Commentary:

Record Revenue and Strong Profitability:

• Getty Images reported record revenue of $981.3 million for 2025, representing a year-over-year growth of 4.5% and 3.8% on a currency-neutral basis. Adjusted EBITDA was $320.9 million at a margin of 32.7%.
• The growth was driven by strong performance across creative and editorial segments, significant multi-year licensing agreements, and a diversified revenue mix.

Impact of Licensing Agreements:

• Q4 revenue was $282.3 million, up 14.1% year-over-year, with approximately $40 million recognized from two new multi-year licensing agreements.
• These agreements included display rights for pre-shot visual content and the use of data and creative content, contributing to both immediate revenue acceleration and future recurring revenue streams.

Challenges in Subscription Metrics:

• Annual subscription revenue grew 1% year-over-year but was essentially flat on a currency-neutral basis. Active annual subscribers totaled 278,000 in Q4, a decline from 314,000 in the prior year.
• The decline was driven by the discontinuation of a free trial customer acquisition program in June 2025 and challenges in the agency business, although subscription retention rates remained stable.

Editorial Revenue Growth:

• Q4 editorial revenue was $109.4 million, up 21.4% year-over-year and 19.9% on a currency-neutral basis, with growth across all four editorial verticals.
• Strong performance was supported by new licensing deals and robust assignment growth, driven by comprehensive event coverage and historical visual content.

Outlook and Forecast for 2026:

• Getty Images anticipates 2026 revenue of $948 million-$988 million, reflecting a decline attributed to the timing of revenue recognition from the large multi-year deals signed in 2025.
• The company expects adjusted EBITDA of $279 million to $295 million, with a decline primarily due to the aforementioned revenue recognition timing, despite a strong editorial events calendar.

Sentiment Analysis:

Overall Tone: Positive

• "2025 was the 30th anniversary for Getty Images, and it was a strong year for the company. We delivered record revenue with growth across creative and editorial." "We ended 2025 with incredible momentum and a reaffirmation of the strength of our business." "Our performance demonstrates the durability of our business model." "I’m more excited than ever for what lies ahead."

Q&A:

• Question from Ronald Josey (Citi): Talk to us a little bit more about the licensing deals... and how you’re thinking about these licensing deals longer term. Should we expect more to come? On the subscription side... can you just help us a little bit more on how active annual subs declined as much as they did, and then a little bit more on retention rates, please.
  Response: CEO: Deals highlight content relevance for social media and LLMs; more similar deals expected. CFO: Subscriber decline due to discontinuation of free trial program; retention rate decline due to fewer one-off events and lower e-commerce subscription rates, but renewals remain consistent.

• Question from Alexander Lavin (Benchmark): For 2026 revenue guidance, can you qualify the mix of data licensing for training purposes relative to licensing display for LLMs, and whether it’s recurring revenue from deals struck in 2025 or converting to new deals in the pipeline and essentially whether either of those are baked into the 2026 guide.
  Response: CFO: Two large Q4 deals are not pure data licensing. The 2026 guide does not specify future deal mix; traditional data licensing remains low single-digit % of revenue. Some recurring revenue (~$10M) from the large Q4 deals carries into 2026.

• Question from Alexander Lavin (Benchmark): Just roughly what % of your exclusive editorial content remains untouched by LLMs for training purposes?
  Response: CEO: Editorial content is not licensed for AI training. Content is scraped from the web, but the company is enthusiastic about LLMs and social media licensing its creative content.

Contradiction Point 1

Nature and Revenue Contribution of AI Licensing Deals

It involves a change in characterizing the nature of key AI licensing deals, moving from a pure data licensing model to one that includes display rights, which could significantly alter the revenue recognition and growth trajectory.

What were the key takeaways from Benchmark's recent earnings call? - Alexander Lavin (Benchmark)

2025Q4: The two large Q4 deals are not pure data licensing; they include both data and display rights. - [Jen Leyden](CFO)

For 2026 revenue guidance, can you clarify the mix of data licensing for AI training versus display licensing for LLMs, and whether these are recurring from 2025 deals, new deals in the pipeline, or baked into the guidance? - Jay (Citi)

20251111-2025 Q3: Multiple similar deals were signed in the quarter... confidential licensing agreement similar to traditional content licensing deals, allowing AI platforms to use Getty's content. - [Craig Peters](CEO)

Contradiction Point 2

Licensing of Editorial Content for AI Training

It reflects a direct contradiction in company strategy regarding core content licensing, moving from an active licensing position to a complete stand-down, which could affect content usage and competitive positioning.

Alexander Lavin (Benchmark) - Alexander Lavin (Benchmark)

2025Q4: Editorial content is not licensed for AI training; the company has decided against it. - [Craig Peters](CEO)

Can you clarify the 2026 revenue guidance mix between data licensing for AI training and display licensing for LLMs, whether the revenue is recurring from 2025 deals or new pipeline deals, if it's included in the guidance, and the percentage of exclusive editorial content untouched by LLMs for training? - Jay (Citi)

20251111-2025 Q3: Getty continues data licensing for AI training and is using AI within its operations... - [Craig Peters](CEO)

Contradiction Point 3

Outlook for Subscription Retention Rates

It involves a change in the expected recovery trajectory for a key subscription metric, moving from a consistent performance narrative to a specific recovery target, impacting subscriber growth expectations.

Ronald Josey (Citi) - Ronald Josey (Citi)

2025Q4: The rate is expected to recover to the low- to mid-90s, likely by Q2 or Q3 2026. - [Jen Leyden](CFO)

What is the business applicability and long-term outlook of the new licensing deals, and should we expect more similar deals, along with an explanation for the decline in active annual subscribers and details on retention rates? - Mark Zgutowicz (Benchmark)

20251111-2025 Q3: Premium Access (PA) retention rates are the highest across all subscriptions and have remained consistent over time. - [Craig Peters](CEO)

Contradiction Point 4

Nature and Revenue Mix of AI/LLM Licensing Deals

It represents an inconsistency in defining the revenue contribution from AI-related deals, shifting from a low single-digit percentage to a more significant and integrated part of the business model.

Alexander Lavin (Benchmark) - Alexander Lavin (Benchmark)

2025Q4: The two large Q4 deals are not pure data licensing; they include both data and display rights. - [Jen Leyden](CFO)

"For 2026 revenue guidance, can you clarify the mix between data licensing for AI training and display licensing for LLMs, whether the revenue is from recurring 2025 deals or new pipeline deals included in the guidance, and what percentage of exclusive editorial content remains untouched by LLMs for training?" - Mark John Zgutowicz (The Benchmark Company, LLC)

2025Q2: [Other revenue] is driven by new multiyear corporate content deals that include AI rights. This revenue stream is expected to remain low single-digits as a percentage of total revenue for 2025. - [Jennifer Leyden](CFO)

Contradiction Point 5

Definition and Growth of Revenue Streams

It involves a change in explaining the drivers of subscription revenue, shifting from a growth-focused narrative to attributing decline to a specific program's end, affecting subscriber base expectations.

Ronald Josey (Citi) - Ronald Josey (Citi)

2025Q4: The active annual subscriber decline is almost entirely due to cycling through the impact of ending the free trial acquisition program in June 2025. - [Jen Leyden](CFO)

Can you discuss the business impact and future plans for the new licensing deals, and provide details on the decline in active annual subscribers and retention rates? - Jake (on behalf of Ron Josey, Citi)

2025Q2: Subscription growth (up 3%) is primarily in corporate subscriptions (premium access, Unsplash+), with annual subscriptions now at 53.5% of total revenue. - [Jennifer Leyden](CFO)