Visual content marketplace Getty Images (NYSE: GETY) missed Wall Street’s revenue expectations in Q1 CY2026 as sales only rose 1.1% year on year to $226.6 million. On the other hand, the company’s outlook for the full year was close to analysts’ estimates with revenue guided to $968 million at the midpoint. Its non-GAAP loss of $0.02 per share was $0.02 below analysts’ consensus estimates.

Is now the time to buy GETY? Find out in our full research report (it’s free for active Edge members).

StockStory’s Take

Getty Images began 2026 with a first quarter that saw modest sales growth but fell short of market expectations, prompting a negative market reaction. Management attributed the performance to persistent declines in agency-related revenue and challenges in the MicroStock segment, which were partially offset by growth in editorial content, especially around the Winter Olympics. CEO Craig Peters acknowledged ongoing “secular challenges with agencies, and across the MicroStock category,” and highlighted that recent organizational changes, including a strategic focus on high-quality exclusive content, contributed to a near-term impact on some key metrics.

Looking ahead, Getty Images’ guidance for the year is shaped by expectations of steady performance in its core subscription and editorial businesses, with particular emphasis on upcoming global sporting and cultural events. Management remains cautious about uncertainties in global macroeconomic conditions but is optimistic about the company’s positioning for the World Cup cycle and the America 250th anniversary. CFO Jennifer Leyden stated that the company expects to see “solid growth across our core business” once one-time timing and event-related impacts subside.

Key Insights from Management’s Remarks

Management pointed to a mix of operational adjustments and shifting market dynamics as primary drivers behind the quarter’s results and updated strategic focus.

• Editorial momentum from major events: The Milan Cortina Winter Olympics drove significant growth in Getty Images’ editorial segment, reinforcing the company’s unique capability to deliver real-time coverage at global scale. Management emphasized how such events boost downstream demand across editorial, creative, and custom solutions, and provide long-term visibility for future revenue streams.

• Agency and MicroStock headwinds: Agency revenues continued to decline, now constituting less than 15% of total revenue, due to structural changes in media consumption and the adoption of AI tools by agencies. In the MicroStock segment, changes to search engine algorithms and the rise of bundled generative AI offerings have further pressured performance, with management responding by right-sizing resources and shifting focus toward higher-value customers.

• Strategic subscription product changes: The discontinuation of the iStock free trial program led to a sharp reduction in active annual subscribers but was designed to improve customer quality and lifetime economics. Management reported that although free trial conversions were high in volume, they delivered much lower revenue per subscriber and retention rates below 10%.

• Growth in custom and AI-powered offerings: Getty Images’ custom content and AI-integrated solutions saw strong year-over-year growth, particularly in video and custom AI, which more than doubled. The Unsplash Plus subscription product also achieved around 20% growth, signaling sustained demand for curated, high-quality content.

• Operational cost discipline and capital structure: The company managed a small layoff to align with agency revenue declines, absorbed elevated event-related costs, and drew on its revolving credit facility to resolve litigation. Management indicated that the majority of recent one-time costs are now behind the business, positioning Getty Images for improved free cash flow.

Drivers of Future Performance

Management’s outlook emphasizes recurring revenue from subscriptions, upcoming global events, and a greater focus on high-value content to support margin stability.

• Subscription and premium content focus: The company expects steady growth in core subscription revenues as it targets higher-value customers, especially through exclusive Signature content within iStock and ongoing investments in custom solutions. Management indicated that this shift should lead to improved renewal rates and customer economics, with the discontinuation of low-retention offers expected to lift metrics in the second half of the year.

• Editorial and event-driven revenue: Management highlighted the importance of global tentpole events, including the World Cup cycle and America’s 250th anniversary, as significant drivers for editorial and archive-based revenue. These events provide multi-year visibility, reinforcing Getty Images’ value proposition with both existing and new customers seeking unique, rights-cleared content.

• AI integration and licensing opportunities: While AI licensing revenue was minimal in Q1, management expects such deals to contribute more meaningfully in the second half of the year. The focus remains on embedding Getty Images’ proprietary content into large language models and AI experiences, which could yield recurring, higher-margin opportunities over time. Risks include continued macroeconomic uncertainty and ongoing shifts in digital media consumption patterns.

Catalysts in Upcoming Quarters

In the coming quarters, StockStory analysts will be monitoring (1) the pace of AI integration and licensing as a driver for new revenue streams, (2) improvements in subscription renewal rates and customer quality following the strategic changes in iStock and Unsplash, and (3) continued momentum from global events such as the World Cup and America’s 250th anniversary. Execution on cost normalization and capital allocation will also remain important indicators of operational discipline.

Getty Images currently trades at $0.81, in line with $0.81 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).

Now Could Be The Perfect Time To Invest In These Stocks

WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don't just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.

But our AI platform says the party isn't over. Find out which 9 stocks made the cut this week - FREE. Get Our Top 9 Market-Beating Stocks for Free HERE.

Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.