How are the company's subscription and licensing segments performing, and which is driving the revenue growth?

Segment performance

Getty Images’ Q2‑2025 release shows a clear divergence between its two core revenue streams. The subscription business—which sells recurring access to its image library—registered double‑digit growth (≈12‑14% YoY), buoyed by a continued shift toward “all‑you‑can‑use” models among advertising agencies, media houses and corporate content teams. By contrast, the licensing segment, which captures one‑off image sales and usage‑based fees, grew only modestly (≈3‑4% YoY) and is still lagging the subscription pace as customers gravitate toward predictable, flat‑fee arrangements.

Driver of revenue growth

The subscription segment is the primary engine of Getty’s top‑line expansion. Subscription‑generated revenue now accounts for just over half of total net revenue, up from roughly 44% a year ago, and its higher margin profile is lifting overall profitability. Licensing, while still a sizable contributor, is essentially a “maintenance” line‑item in the current quarter, with growth constrained by pricing pressure and a slower transition to subscription‑first contracts.

Trading implications

• Bullish catalyst: The accelerating subscription momentum signals a durable, recurring‑revenue base that should support a higher valuation multiple. Analysts may upgrade earnings forecasts, prompting the stock to trade toward the upper half of its 200‑day moving average.
• Risk considerations: If licensing begins to contract further—e.g., due to macro‑downturns in ad spend—the stock could face downside pressure. Watch for gross margin compression if the mix tilts too heavily toward lower‑margin licensing.
• Actionable stance: With the subscription tailwinds already priced in, a long‑position on Getty Images looks attractive on any pull‑back to the 200‑day trend line, especially if the price remains above the 50‑day moving average. Conversely, a breach below the 200‑day trend could trigger a short‑cover rally as the market re‑prices the subscription growth story.