Financial Analysis

Commitments and Contingencies Unconditional purchase obligations and other obligations As of March 31, 2026, the Company had total other non-lease obligations in the amount of approximately $150.7 million, which consisted primarily of minimum royalty guarantees and unconditional purchase obligations related to contracts for infrastructure and other business services. As of March 31, 2026, the Companys other obligations for the remainder of 2026 and for the years ending December 31, 2027, and 2028 were approximately $61.2 million, $51.3 million, and $38.2 million, respectively. Legal Matters Although we are not currently a party to any material pending litigation (except as described below), from time to time, third parties assert claims against us regarding intellectual property rights, employment matters, privacy issues and other matters arising during the ordinary course of business. Although we cannot be certain of the outcome of any litigation or the disposition of any claims, nor the amount of damages and exposure, if any, that we could incur, we currently believe that the final disposition of all existing matters will not have a material adverse effect on our business, results of operations, financial condition or cash flows. In addition, in the ordinary course of our business, we are also subject to periodic threats of lawsuits, investigations and claims. Regardless of the outcome, litigation can have an adverse impact on us because of defense and settlement costs, div …

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Debt On May 6, 2022, the Company entered into a five-year $100 million unsecured revolving loan facility (the Credit Facility) with Bank of America, N.A., as Administrative Agent and other lenders. The Credit Facility included a letter of credit sub-facility and a swingline facility and it also permitted, subject to the satisfaction of certain conditions, up to $100 million of additional revolving loan commitments with the consent of the Administrative Agent. On July 22, 2024, the Company entered into an amended and restated credit agreement (the A&R Credit Agreement), which was entered into among the Company, as borrower, certain direct and indirect subsidiaries of the Company as guarantors, the lenders party thereto, and Bank of America, N.A., as Administrative Agent for the lenders. The A&R Credit Agreement provides for a five-year (i) senior unsecured term loan facility (the Term Loan) in an aggregate principal amount $125 million and (ii) senior unsecured revolving credit facility (the Revolver) in an aggregate principal amount of $250 million. The A&R Credit Agreement also provides for a letter of credit subfacility and a swingline facility. At the Companys option, loans under the A&R Credit Agreement accrue interest at a per annum rate based on either (i) the base rate plus a margin ranging from 0.375% to 0.750%, determined based on the Companys consolidated net leverage ratio or (ii) the Term Secured Overnight Financing Rate (SOFR) (for interest period …

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The Companys revenues by product offering for the three months ended March 31, 2026 and 2025 are as follows (in thousands): Three Months Ended March 31, 2026 2025 Content $ 178,126 $ 202,888 Data, Distribution, and Services 21,044 39,732 Total Revenue $ 199,170 $ 242,620 …

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Stockholders Equity and Equity-Based Compensation Stockholders Equity Common Stock The Company issued approximately 28,000 and 27,000 shares of common stock during the three months ended March 31, 2026 and 2025, respectively, related to the exercise of stock options and the vesting of restricted stock units. Treasury Stock In June 2023, the Companys Board of Directors approved a share repurchase program (the 2023 Share Repurchase Program), providing authorization to repurchase up to $100 million of its common stock. The Company expects to fund future repurchases, if any, through a combination of cash on hand, cash generated by operations and future financing transactions, if appropriate. Accordingly, the 2023 Share Repurchase Program is subject to the Company having available cash to fund repurchases. Under the 2023 Share Repurchase Program, management is authorized to purchase shares of the Companys common stock from time to time through open market purchases or privately negotiated transactions at prevailing prices as permitted by securities laws and other legal requirements, and subject to market conditions and other factors. As of March 31, 2026, the Company has repurchased approximately 5.5 million shares of common stock in total since 2015 under the repurchase programs (including the 2015 and 2017 Share Repurchase Programs and the 2023 Share Repurchase Program) at an average per-share cost of $48.86. During the three months ended March 31, 2026 and 2025, the Company did …

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Fair Value Measurements and Long-term Investments Fair Value Measurements The Company had no assets or liabilities requiring fair value hierarchy disclosures as of March 31, 2026 or December 31, 2025, except as noted below. Other Fair Value Measurements The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and accrued expenses approximate fair value because of the short-term nature of these instruments. Debt consists of principal amounts outstanding under our credit facility, which approximates fair value as underlying interest rates are reset regularly based on current market rates and is classified as Level 2. The Companys non-financial assets, which include long-lived assets, intangible assets and goodwill, are not required to be measured at fair value on a recurring basis. However, if the Company is required to evaluate a non-financial asset for impairment, whether due to certain triggering events or because annual impairment testing is required, a resulting asset impairment would require that the non-financial asset be recorded at fair value. Long-term Investments Investment in Meitu, Inc. (Meitu) In 2018, the Company invested $15.0 million in convertible preferred shares issued by ZCool Technologies Limited (ZCool) (the Preferred Shares). ZCools primary business is the operation of an e-commerce platform in the Peoples Republic of China (the PRC) whereby customers can pay to license content contributed by creative professionals. ZCool …

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Goodwill and Intangible Assets Goodwill The Companys goodwill balance is attributable to its Content reporting unit and is tested for impairment annually on October 1 or upon a triggering event. No triggering events were identified during the three months ended March 31, 2026. The following table summarizes the changes in the carrying value of the Companys goodwill balance during the three months ended March 31, 2026 (in thousands): Goodwill Balance as of December 31, 2025 $ 574,614 Foreign currency translation adjustment (445) Balance as of March 31, 2026 $ 574,169 Intangible Assets Intangible assets, all of which are subject to amortization, consisted of the following as of March 31, 2026 and December 31, 2025 (in thousands): As of March 31, 2026 As of December 31, 2025 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Life (Years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortizing intangible assets: Customer relationships $ 106,152 $ (47,009) $ 59,143 11 $ 106,557 $ (45,066) $ 61,491 Trade name 69,609 (20,410) 49,199 11 69,702 (19,072) 50,630 Developed technology 179,498 (118,891) 60,607 5 179,917 (113,223) 66,694 Contributor content 81,606 (46,734) 34,872 8 81,478 (44,682) 36,796 Patents 259 (201) 58 18 259 (197) 62 Total $ 437,124 $ (233,245) $ 203,879 $ 437,913 $ (222,240) $ 215,673 Amortization expense was $11.7 million and $12.1 million for the three months ended March 31, 2026 and 2025, respectively. Of the …

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Income Taxes The Companys effective tax rates were 3.7% and 8.5% for the three months ended March 31, 2026 and 2025, respectively. For the three months ended March 31, 2026, the net effect of discrete items decreased the effective tax rate by 33.2%. Excluding these items, the Companys effective tax rate would have been 36.9% for the three months ended March 31, 2026. For the three months ended March 31, 2025, the net effect of discrete items decreased the effective tax rate by 19.6%. Excluding these items, the Companys effective tax rate would have been 28.1% for the three months ended March 31, 2025. The Company has computed the provision for income taxes based on the estimated annual effective tax rate excluding loss jurisdictions with no tax benefit and the application of discrete items, if any, in the applicable period. During the three months ended March 31, 2026, uncertain tax positions recorded by the Company were a reserve of $6.6 million. During the three months ended March 31, 2025, uncertain tax positions recorded by the Company were not material. To the extent the remaining uncertain tax positions are ultimately recognized, the Companys effective tax rate may be impacted in future periods. The Company recognizes interest expense and tax penalties related to unrecognized tax benefits in income tax expense in the Consolidated Statements of Operations. The Companys accrual for interest and penalties related to unrecognized tax benefits was not material for the three …

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Revenue The Company distributes its products through two primary offerings: Content : The majority of the Companys customers license image, video, music and 3D content for commercial purposes either directly through the Companys self-service web properties or through the Companys dedicated sales teams. Content customers have the flexibility to purchase subscription-based plans that are paid on a monthly or annual basis. Customers are also able to license content on a transactional basis. These customers generally license content under the Companys standard or enhanced licenses, with additional licensing options available to meet customers individual needs. Certain content customers also have unique content, licensing and workflow needs. These customers communicate with dedicated sales professionals, service and research teams which provide a number of tailored enhancements to their creative workflows including non-standard licensing rights, multi-seat access, ability to pay on credit terms, multi-brand licensing packages, increased indemnification protection and content licensed for use-cases outside of those available on the e-commerce platform. Data, Distribution, and Services : The Companys Data, Distribution, and Services offerings address customer demand for products and services that are beyond the stock image, footage music and 3D model licenses. These offerings include access to the Companys metadata for machine learning and generative artificial intelligence model tr …

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Segment and Geographic Information The Company is currently organized and operates as one operating and reportable segment on a consolidated basis. The Companys revenues are supported by its searchable creative platform and driven by its large contributor network. The Companys chief executive officer, who is its chief operating decision maker (CODM), evaluates the performance of the Companys operating segment based on net income. The CODM considers budget-to-actual variances when making decisions about capital allocation to the segment. Asset information is not provided to the Companys CODM as that information is not used in the determination of resource allocation or in assessing the performance of the Companys segment. The following table reconciles the companys revenues and significant operating expense categories used to evaluate the business and allocate resources to Net income: Three Months Ended March 31, (in thousands) 2026 2025 Revenue $ 199,170 $ 242,620 Less: Technology costs 20,152 20,069 Advertising costs 17,648 21,663 Adjusted cost of revenue 1 82,860 89,432 Adjusted sales and marketing 1 29,343 30,522 Adjusted product and development 1 16,031 16,721 Adjusted general and administrative 1 64,090 54,012 Total operating expenses 230,124 232,419 (Loss) / Income from operations (30,954) 10,201 Interest expense (3,760) (4,298) Other (expense) / income, net (14,661) 14,515 (Loss) / income before income taxes (49,375) 20,418 (Benefit) / provision for income taxes (1,806 …

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