Pinterest Inc-Class A (NYSE:PINS) Reports Mixed Q2 2025 Earnings Amid Market Volatility

PINTEREST INC-CLASS A (NYSE:PINS) reported its second-quarter 2025 earnings, delivering mixed results that triggered a sharp market reaction. The company posted revenue of $998.2 million, up 17% year-over-year, slightly above analyst estimates of $994.3 million. However, earnings per share (EPS) of $0.33 fell short of the expected $0.36, contributing to a nearly 13% drop in after-hours trading.

Key Financial Highlights

• Revenue Growth: The company reported $998 million in Q2 revenue, a 17% increase from the same period last year, driven by strong user engagement and advertising demand.
• EPS Miss: Adjusted EPS came in at $0.33, below the consensus estimate of $0.36, reflecting higher operational costs despite revenue growth.
• User Growth: Global Monthly Active Users (MAUs) rose 11% year-over-year to 578 million, with Gen Z now representing over half of Pinterest’s user base.
• Profitability: GAAP net income was $39 million, up significantly from $8.9 million in Q2 2024, while Adjusted EBITDA grew 33% to $251 million.

Market Reaction

The stock’s steep decline suggests investor disappointment over the earnings miss, particularly given the broader market’s sensitivity to profitability metrics in the tech sector. While revenue growth remains robust, higher expenses—particularly in research and development ($359.6 million, up 15% YoY) and sales and marketing ($313.1 million, up 18% YoY)—weighed on margins.

Outlook vs. Analyst Estimates

Pinterest provided Q3 2025 revenue guidance of $1.033 billion to $1.053 billion, representing 15%-17% growth, which aligns closely with analyst expectations of $1.046 billion. The company also projected Adjusted EBITDA between $282 million and $302 million, reflecting continued investment in AI and platform enhancements.

Geographic Performance

• U.S. & Canada: Revenue grew 11% YoY to $745 million, though user growth slowed to 5%.
• Europe: Revenue surged 34% to $191 million, with MAUs up 7%.
• Rest of World: Revenue jumped 65% to $63 million, supported by a 14% increase in MAUs.

Cash Flow & Balance Sheet

Free cash flow nearly doubled year-over-year to $197 million, while the company maintained a strong liquidity position with $1.2 billion in cash and $1.4 billion in marketable securities.

Conclusion

Pinterest’s Q2 results underscore its ability to grow revenue and users, but the EPS miss highlights ongoing cost pressures. The market’s reaction reflects heightened scrutiny on profitability, even as the company positions itself for long-term growth in digital advertising and e-commerce.

For more detailed earnings estimates and historical performance, visit Pinterest’s earnings page.

Disclaimer: This article is not investment advice. Investors should conduct their own research or consult a financial advisor before making decisions.