Free cash flow margins have collapsed to 2.9% in 2026Q1 from 25.7% in 2025Q3, raising concerns regarding the sustainability of the company's $12.8 million dividend payment.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 |
|---|
| Cash from Operations | 158.81M | 166.69M | 32.65M | 140.55M | 158.45M | 216.37M | 165.07M | 102.65M | 102.2M | 108.04M | 101.15M | 85.33M | 82.86M | 56.37M | 45.53M | 39.55M | 28.73M |
| Operating CF Margin % | - | 16.84% | 3.49% | 16.07% | 19.14% | 27.98% | 24.76% | 15.78% | 16.4% | 19.39% | 20.46% | 20.07% | 25.26% | 23.94% | 26.85% | 32.88% | 34.62% |
| Operating CF Growth % | 1096.01% | 410.59% | -76.77% | -11.3% | -26.77% | 31.08% | 60.82% | 0.43% | -5.4% | 6.81% | 18.54% | 2.98% | 46.98% | 23.8% | 15.14% | 37.67% | - |
| Net Income | -20.76M | -16.02M | 35.93M | 110.27M | 76.1M | 91.88M | 71.77M | 20.11M | 54.69M | 16.73M | 32.63M | 19.55M | 22.09M | 26.48M | 47.54M | 21.86M | 18.94M |
| Depreciation & Amortization | 68.32M | 90.89M | 87.63M | 79.73M | 68.47M | 48.77M | 41.36M | 49.91M | 45.65M | 35.49M | 19.95M | 14.84M | 7.92M | 3.87M | 2.64M | 1.52M | 874K |
| Stock-Based Compensation | 41.31M | 61.08M | 56.33M | 48.58M | 35.74M | 36.18M | 28.31M | 22.82M | 23.87M | 24.96M | 28.08M | 28.86M | 23.77M | 6.21M | 10.38M | 2.12M | 1.11M |
| Deferred Taxes | 7.02M | 7.57M | -10.96M | -26.18M | -10.59M | -1.77M | 1.02M | -2.02M | -6.27M | 12.49M | 1.77M | -4.84M | -4.9M | 15.85M | -31.3M | 253K | -293K |
| Other Non-Cash Items | 79.72M | 46.32M | -4.19M | -48.37M | 22.36M | 137K | 2.58M | 84K | -31.56M | -4.96M | 4.67M | 6.04M | -11.77M | -342K | 367K | 296K | 0 |
| Working Capital Changes | -16.8M | -23.15M | -132.09M | -23.48M | -33.64M | 41.17M | 20.04M | 11.75M | 15.82M | 23.33M | 14.05M | 20.88M | 45.75M | 4.31M | 15.9M | 13.49M | 8.09M |
| Change in Receivables | 9.26M | -16.32M | 4.94M | -24.41M | -22.11M | -4.09M | 513K | -6.17M | 2.64M | -10.02M | -13.23M | -10.68M | -9.74M | -4.86M | -1.42M | -553K | -350K |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 10.85M | 0 | 3.13M | -7.42M | -8.47M | 6.74M | 22.84M | -15.37M | 1.59M | -510K | 871K |
| Change in Payables | -20.55M | 0 | -48.6M | 20.89M | -24.33M | 34.44M | 8.59M | 8.36M | 6.39M | 12.04M | 10.78M | 2.24M | 10.05M | 10.38M | 6.24M | 5.74M | 2.2M |
| Cash from Investing | -47.71M | -47.8M | -166.17M | -54.32M | -275.55M | -250.44M | -35.31M | -27.23M | -12.83M | -57.37M | -57.19M | -71.85M | -29.01M | -70.09M | -4.26M | -3.42M | -1.22M |
| Capital Expenditures | -44.79M | -42.86M | -47.22M | -55.74M | -60.12M | -37M | -28.6M | -29.43M | -38.73M | -58.02M | -48M | -16.98M | -18.67M | -14.07M | -4.06M | -3.44M | -1.12M |
| CapEx % of Revenue | 4.73% | 4.33% | 5.05% | 6.37% | 7.26% | 4.78% | 4.29% | 4.52% | 6.21% | 10.42% | 9.71% | 3.99% | 5.69% | 5.97% | 2.39% | 2.86% | 1.34% |
| Acquisitions | 0 | 0 | -179.07M | -53.72M | -211.84M | -181.61M | -1.85M | 2.5M | 40.96M | -49.57M | 0 | -62.38M | -10.06M | 14.07M | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -2.92M | -4.94M | 60.12M | 55.15M | -3.59M | -31.83M | 0 | -309K | -15.06M | 50.23M | -9.19M | -288K | 97K | -15.66M | -197K | 23K | -103K |
| Cash from Financing | -63.23M | -59.1M | 150.1M | -102.7M | -79.49M | -77.72M | -4.59M | -1.7M | -109.74M | -33.89M | -53.53M | -4.06M | 24.94M | 66.97M | 46.72M | -28.57M | -25.9M |
| Debt Issued (Net) | -3.13M | -3.13M | 248.44M | -20M | 50M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -6M | 6M | 0 | 0 |
| Equity Issued (Net) | -5.56M | 0 | -41.59M | -28.2M | -73.49M | -26.49M | 23.15M | 0 | 0 | -24.98M | -58.43M | -5.75M | 2.12M | 67.81M | 81.81M | 0 | 0 |
| Dividends Paid | -47.81M | -46.53M | -42.38M | -38.67M | -34.59M | -30.65M | -24.4M | 0 | -104.92M | 0 | 0 | 0 | 0 | 0 | -36M | -28.57M | -25.9M |
| Share Repurchases | -5.56M | 0 | -41.59M | -28.2M | -73.49M | -26.49M | 0 | 0 | -7.27M | -24.98M | -60.23M | -14.81M | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -6.72M | -9.44M | -14.37M | -15.83M | -21.41M | -20.58M | -3.34M | -1.7M | -4.81M | -8.91M | 4.89M | 1.69M | 22.82M | 5.16M | -5.09M | 0 | 0 |
| Net Change in Cash | 50.29M | 66.99M | 10.76M | -14.66M | -198.86M | -114.56M | 122.7M | 72.41M | -22.58M | 29.24M | -17.11M | 7.85M | 78.1M | 53.26M | 88M | 7.55M | 1.61M |
| Free Cash Flow | 114.02M | 123.83M | -14.57M | 84.81M | 98.33M | 179.37M | 136.47M | 73.22M | 63.47M | 50.01M | 53.14M | 68.35M | 64.19M | 42.3M | 41.47M | 36.1M | 27.61M |
| FCF Margin % | 12.05% | 12.51% | -1.56% | 9.7% | 11.88% | 23.19% | 20.47% | 11.26% | 10.18% | 8.98% | 10.75% | 16.08% | 19.57% | 17.96% | 24.45% | 30.02% | 33.28% |
| FCF Growth % | 3705.64% | 949.96% | -117.18% | -13.75% | -45.18% | 31.44% | 86.38% | 15.36% | 26.91% | -5.89% | -22.24% | 6.48% | 51.73% | 2.01% | 14.87% | 30.77% | - |
| FCF per Share | 3.21 | 3.41 | -0.41 | 2.34 | 2.69 | 4.81 | 3.75 | 2.06 | 1.79 | 1.42 | 1.48 | 1.88 | 1.79 | 1.23 | 1.74 | 1.73 | 1.32 |
| FCF Conversion (FCF/Net Income) | -5.49x | 3.66x | 0.91x | 1.27x | 2.08x | 2.35x | 2.30x | 5.10x | 1.87x | 6.46x | 3.10x | 4.36x | 3.75x | 2.13x | 0.96x | 1.81x | 1.52x |
| Interest Paid | 7.78M | 0 | 7.83M | 1.72M | 1.04M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 34K | -67K | 0 | 0 |
| Taxes Paid | 963K | 0 | 34.03M | 33.07M | 23.44M | 19.09M | 8.75M | 1.9M | 580K | 4.98M | 19.19M | 14.48M | 254K | 14.19M | -4.84M | 1.23M | 1.18M |
Generative AI disruption risk
According to recent financial filings, the relationship between net income and operating cash flow has become increasingly erratic, with the OCF/NI ratio swinging from a negative 0.37 in 2026Q1 to a massive 5.86 in 2025Q3, highlighting significant volatility in the company's underlying cash generation capabilities.
The persistent gap between net income and operating cash flow suggests that GAAP earnings are currently failing to capture the true cash-generative capacity of the business. Investors should monitor whether this divergence is driven by non-cash charges or aggressive working capital management, as the current instability complicates any reliable assessment of core operational performance.
As reported in quarterly statements, Shutterstock's free cash flow trajectory has deteriorated sharply, with FCF margins collapsing from a peak of 25.7% in 2025Q3 to a meager 2.9% in 2026Q1, reflecting the company's struggle to maintain cash efficiency amidst a broader contraction in its core business.
The rapid decline in FCF margins indicates that the company's ability to convert revenue into discretionary cash is under significant pressure. This trend warrants further investigation into whether the current cost structure is too rigid to accommodate the recent revenue contraction, potentially limiting the company's flexibility to fund future growth initiatives.
Based on the provided cash flow data, working capital changes have acted as a recurring drag on liquidity, with a significant $55.1 million outflow in 2024Q3 and a $29.2 million outflow in 2025Q2, suggesting that the company is struggling to optimize its cash conversion cycle effectively.
The inconsistent nature of these working capital swings may indicate inefficiencies in accounts receivable collections or inventory management related to the company's evolving product mix. Such volatility suggests that cash flow remains highly sensitive to timing differences, which may mask underlying operational weaknesses during periods of lower demand.
As indicated by historical cash flow statements, Shutterstock has continued to prioritize dividend payments and share repurchases despite declining free cash flow, with $12.8 million paid in dividends during 2026Q1, a move that appears increasingly aggressive given the company's current negative net income and deteriorating cash position.
The decision to maintain capital returns while operational cash flow is under pressure may limit the company's ability to reinvest in its AI-driven pivot. Investors should monitor whether this allocation strategy is sustainable or if it may eventually necessitate a reduction in shareholder returns to preserve liquidity for core business operations.
Quick answers to the most common questions about buying SSTK stock.
Shutterstock, Inc. (SSTK) generated $166.7M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Shutterstock, Inc. (SSTK) generated $123.8M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Shutterstock, Inc. (SSTK) spent $42.9M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Shutterstock, Inc. (SSTK) returned $46.5M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.