Executive Summary

Pinterest delivered solid Q2 2025 revenue growth and record users: revenue $998.2M (+17% y/y) and global MAUs 578M (+11%), with Adjusted EBITDA $250.8M (25% margin) and free cash flow $196.7M .
Results vs Street: revenue beat S&P Global consensus by ~2.3% ($998.2M vs ~$975.5M*), while Primary EPS came in below consensus ($0.33 vs ~~$0.352*); Adjusted EBITDA outperformed company’s prior Q2 guide ($251M vs $217–$237M) and exceeded EBITDA consensus (~~$233.3M*) .
Q3 2025 guidance: revenue $1,033–$1,053M (+15–17% y/y) with ~1pt FX tailwind; Adjusted EBITDA $282–$302M, and management reiterated full-year margin expansion albeit at a lower pace vs 2024 as they invest in AI and enterprise sales capacity .
Stock reaction catalysts: growing Gen Z to >50% of MAUs and improving lower-funnel performance (e.g., 5% conversion lift in A/B tests, Instacart partnership to make CPG ads directly shoppable), alongside accelerating international monetization; tariff-related uncertainty noted in UCAN .

What Went Well and What Went Wrong

What Went Well
- Record users and strong growth narrative: “We’ve found our best product market fit ever… personalized shopping… AI-powered performance platform” and >50% of MAUs now Gen Z .
- Performance ads progress: Early tests of new conversion models drove ~5% conversion rate improvement on lowest-funnel OCPM; Performance Plus adoption expanding to mid-market, cutting campaign creation time and improving CPA .
- International strength: Europe +34% y/y revenue and Rest of World +65% y/y; narrowing ARPU gap with UCAN and better monetization via resellers/partners .
What Went Wrong
- EPS miss vs consensus: Q2 Primary EPS $0.33 vs Street ~$0.352*; GAAP diluted EPS only $0.06, reflecting high share-based compensation ($227.2M) .
- Ad pricing down 25% y/y driven by mix shift to lower-eCPM international markets; management emphasized it’s net revenue accretive but a headwind to pricing .
- Tariff/macro headwinds in UCAN: Asia-based e-commerce pulled back spend tied to de minimis change, partially offset by geographic diversification to Europe/RoW .

Financial Results

Income Statement and Profitability

Metric	Q2 2024	Q1 2025	Q2 2025
Revenue ($USD Millions)	$853.7	$855.0	$998.2
GAAP Diluted EPS ($)	$0.01	$0.01	$0.06
Non-GAAP EPS ($)	$0.24	$0.23	$0.33
Net Income ($USD Millions)	$8.9	$8.9	$38.8
Adjusted EBITDA ($USD Millions)	$188.3	$171.6	$250.8
Adjusted EBITDA Margin (%)	22%	20%	25%
Net Income Margin (%)	1%	1%	4%

Q2 2025 Actual vs S&P Global Consensus

Metric (Q2 2025)	Actual	Consensus*	Surprise
Revenue ($USD Millions)	$998.2	~$975.5*	Beat
Primary EPS ($)	$0.33	~$0.352*	Miss
EBITDA/Adj. EBITDA ($USD Millions)	$250.8 (Adj.)	~233.3*	Beat

Values retrieved from S&P Global.*

Segment/Geography

Revenue ($USD Millions)	Q2 2024	Q2 2025
Global	$854	$998
U.S. & Canada	$673	$745
Europe	$143	$191
Rest of World	$38	$63

MAUs (Millions)	Q2 2024	Q2 2025
Global	522	578
U.S. & Canada	98	102
Europe	136	146
Rest of World	288	329

ARPU ($)	Q2 2024	Q2 2025
Global	$1.64	$1.74
U.S. & Canada	$6.85	$7.29
Europe	$1.03	$1.30
Rest of World	$0.13	$0.19

Cash Flow and Balance Sheet Highlights (Q2 2025)
- Net cash from operating activities $207.7M; free cash flow $196.7M .
- Cash & equivalents $1,216.9M; marketable securities $1,442.4M; total cash & securities ~$2.66B; total stockholders’ equity $4.812B .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue ($USD Millions)	Q3 2025	N/A	$1,033–$1,053 (+15–17% y/y; ~1pt FX tailwind)	New
Adjusted EBITDA ($USD Millions)	Q3 2025	N/A	$282–$302	New
Non-GAAP CoR leverage	Q3 2025	N/A	“~Half of Q2 y/y leverage”	New (qualitative)
Non-GAAP OpEx focus	Q3 2025	N/A	Continued R&D headcount growth (AI/product), global enterprise sales team	Maintained investment focus
Full-year Adjusted EBITDA Margin	FY 2025	Prior commentary: expansion in 2025	Expansion in 2025, lower vs 2024 pace	Maintained, moderated
Non-GAAP tax assumption	2025	20% long-term projected rate	20% long-term projected rate	Maintained

Note: Q1 2025 provided Q2 2025 guidance ($960–$980 revenue; $217–$237 Adj. EBITDA), which Q2 actuals exceeded .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4 2024 / Q1 2025)	Current Period (Q2 2025)	Trend
AI/Technology initiatives	Introduced multimodal AI model; Performance+ GA in Q4; strong lower-funnel focus	“Pinterest is an AI winner”; launched generative retrieval; 230bps lift in search fulfillment; 5% CVR lift OCPM	Improving
Product performance (visual search, personalization)	New visual search flow for women’s fashion; personalization gains	Multimodal outperforms off-the-shelf by 30pp; proactive, personalized recommendations	Improving
Performance ads & mid-market adoption	Performance+ GA; ROAS bidding; early Y/Y click increases; 80% of A/B tests outperform	Lower-funnel revenue via Performance+ more than doubled share since end-2024; campaign creation time cut; CPA improvements	Improving
Regional trends	Q1: Europe +24% y/y; RoW +49% y/y; reseller ramp	Q2: Europe +34% y/y; RoW +65% y/y; narrowing ARPU gap with UCAN	Accelerating
Tariffs/macro	Q1: de minimis change starting to impact Asia e-comm in US	UCAN impact persisted but smaller than anticipated; advertisers cautious but environment more constructive than feared	Mixed
R&D execution & sales capacity	Q1: focus on AI; 25% code via AI; sales enablement	Continued R&D headcount growth and enterprise sales investment in UCAN/Europe	Ongoing investment
CPG/Health features (shopping)	Q1: food/beverage drag lapped; expanding measurement partners	Instacart partnership to make CPG ads shoppable; add-to-cart/buying functionality coming	Positive
Regulatory/legal	No major updates beyond standard risk language	Standard forward-looking risks reiterated	Stable

Management Commentary

CEO framing: “We’ve found our best product market fit ever by becoming a personalized shopping destination for users and an AI-powered performance platform for advertisers.”
User mix shift: “Over 50% of our monthly active users are Gen Z,” underscoring growth in high-value cohorts .
AI-led differentiation: “Our proprietary… multimodal AI model… is 30% more likely to identify and recommend relevant content… than leading off the shelf models.”
Advertiser value: Early tests “drove a 5% increase in conversion rates for ads on our lowest funnel OCPM bid type.”
CPG actionability: “Through [Instacart]… Pinterest ads will soon become directly shoppable via Instacart” enabling seamless purchases .

Q&A Highlights

Macro/tariffs: CFO noted tariff-related impacts (de minimis change) still affected UCAN, particularly Asia-based e-commerce, but were smaller than anticipated and offset by geographic diversification; overall ad environment more constructive than feared .
Performance Plus & mid-market: Adoption growing beyond largest retailers, with campaign creation time cut and lower CPA; suite expanding with Creative Preview and Customer Groups .
Agentic AI/search: Management views Pinterest as effectively an AI-enabled shopping assistant; expects compounding benefits rather than step-function growth; focus on user-centric experiences .
Margins/investments: Q2 outperformance drove elevated margin expansion; H2 margin expansion expected but at lower pace as R&D and enterprise sales investments ramp .
Pricing/impressions: Ad impressions +55% y/y with ad pricing −25% y/y due to international mix shift; net revenue accretive .

Estimates Context

Q2 2025 vs S&P Global consensus: revenue beat (~$998.2M vs ~~$975.5M*), Primary EPS missed (~~$0.33 vs ~~$0.352*), Adjusted EBITDA exceeded consensus (~~$250.8M vs ~$233.3M*). Company’s Adjusted EBITDA also beat prior Q2 guide ($217–$237M) .
Q3 2025: Company guides $1,033–$1,053M, broadly in-line with consensus (~$1,048.2M*); Primary EPS consensus ~$0.417*, EBITDA consensus ~$297.2M* .
Number of estimates: Q2 EPS ~20; Q2 revenue ~31; Q3 EPS ~22; Q3 revenue ~32*.
Values retrieved from S&P Global.*

Where estimates may adjust: stronger-than-expected international momentum (Europe/RoW), continued Gen Z growth, and demonstrated conversion lifts could support upward revenue/EBITDA revisions; EPS trajectories may reflect ongoing share-based compensation and investment intensity .

Key Takeaways for Investors

Revenue/FCF durability: Pinterest continues to take share with 17% y/y revenue growth and 25% Adj. EBITDA margin despite pricing headwinds; free cash flow remained strong [$196.7M] .
User mix as a growth lever: >50% Gen Z and all-time-high MAUs (578M) underpin future monetization, particularly in intent-driven categories .
Performance platform maturation: Performance Plus adoption, ROAS bidding, and AI-driven model improvements are compounding lower-funnel gains (CVR uplift, CPA improvement) .
International monetization ramp: Europe (+34% y/y) and RoW (+65% y/y) are accelerating; expect pricing headwinds but net revenue accretion as ARPU gap narrows over time .
Near-term setup: Q3 guide aligns with Street on revenue; watch tariff-related UCAN demand in Asia e-comm and pacing of R&D/sales hiring on margins .
Actionability catalysts: Instacart partnership and forthcoming add-to-cart/buying functionality in CPG expand shoppability; continued AI personalization should sustain engagement and advertiser ROI .
Clarification: CFO’s cost of revenue commentary referenced non-GAAP leverage dynamics; GAAP CoR was $203.0M vs non-GAAP expense framework discussed on the call .

Additional references and supporting detail

Q2 2025 press release and 8-K financials (revenue, margins, MAUs/ARPU, guidance) .
Q1 2025 prior quarter metrics and guidance .
Q4 2024 benchmark context .
Earnings call transcript (AI/product updates, ads performance, macro/tariffs, guidance color) .

PINTEREST, INC. (PINS)·Q2 2025 Earnings Summary