Executive Summary

Pinterest delivered solid Q3 2025 results: revenue of $1.049B (+17% YoY) and all‑time high 600M MAUs (+12% YoY). Adjusted EBITDA rose to $306M with 29% margin; GAAP net income was $92M with 9% margin .
Results vs consensus: revenue slightly beat ($1.049B vs $1.048B consensus*) while non‑GAAP EPS missed ($0.38 vs $0.42 consensus*); this continues a 2025 pattern of revenue beats with EPS misses* [GetEstimates].
Q4 2025 guidance: revenue $1.313–$1.338B (+14–16% YoY) and Adjusted EBITDA $533–$558M; FX tailwind ~1pt; non‑GAAP cost of revenue expected to grow sequentially by high single digits % .
Catalysts: accelerating international monetization (Europe +41% YoY; ROW +66% YoY revenue), AI-powered visual search and the beta rollout of “Pinterest Assistant,” plus new ad formats (Top‑of‑Search Ads) and ROAS bidding penetration (22% of lower‑funnel retail revenue) .

What Went Well and What Went Wrong

What Went Well

International growth led the quarter: Europe revenue +41% YoY to $193M and Rest of World +66% to $70M, as shopping ads now represent ~30% of international revenue .
User scale and engagement: MAUs reached a record 600M (+12% YoY), with Gen Z over 50% of users; queries per user grew, and latest visual search queries up 44% YoY .
Performance ads momentum: outbound clicks to advertisers +40% YoY; Top‑of‑Search Ads testing demonstrates higher CTR (+29%) and new user attraction (+32%), and ROAS bidding doubled SKUs with paid impressions .

“Pinterest has effectively turned our platform into an AI‑powered shopping assistant for 600 million consumers” — Bill Ready, CEO .
“P+ campaigns… help advertisers reach the right audience… with 50% fewer inputs” — Bill Ready .

What Went Wrong

EPS miss versus consensus (non‑GAAP $0.38 vs $0.42*), driven by higher operating investments (R&D and sales) and mix shift to lower‑priced international ad inventory; ad pricing declined 24% YoY .
UCAN pockets of moderating ad spend: larger US retailers pulled back amid tariff‑related margin pressure; additional Q4 tariff impacts expected in home furnishings .
Cost trajectory: non‑GAAP cost of revenue guided to increase sequentially high single digits %, with diminishing returns from prior infra optimization noted; implies nearer‑term margin expansion moderating .

Financial Results

Core P&L and Profitability (YoY and sequential context)

Metric	Q1 2025	Q2 2025	Q3 2025
Revenue ($USD Billions)	$0.855	$0.998	$1.049
Revenue YoY Growth (%)	16%	17%	17%
GAAP Diluted EPS ($)	$0.01	$0.06	$0.13
Non-GAAP EPS ($)	$0.23	$0.33	$0.38
Adjusted EBITDA ($USD Millions)	$172	$251	$306
Adjusted EBITDA Margin (%)	20%	25%	29%
GAAP Net Income Margin (%)	1%	4%	9%

Geographic Revenue and KPIs (Q3 2025)

Metric	Q3 2024	Q3 2025
Revenue – Global ($USD Billions)	$0.898	$1.049
Revenue – U.S. & Canada ($USD Millions)	$719	$786
Revenue – Europe ($USD Millions)	$137	$193
Revenue – Rest of World ($USD Millions)	$42	$70
MAUs – Global (Millions)	537	600
MAUs – U.S. & Canada (Millions)	99	103
MAUs – Europe (Millions)	139	150
MAUs – Rest of World (Millions)	300	347
ARPU – Global ($)	$1.70	$1.78
ARPU – U.S. & Canada ($)	$7.31	$7.64
ARPU – Europe ($)	$1.00	$1.31
ARPU – Rest of World ($)	$0.14	$0.21

Engagement and Ad Dynamics

Metric	Q2 2025	Q3 2025
Ad Impressions YoY Growth (%)	55%	54%
Ad Pricing YoY Change (%)	-25%	-24%
Outbound Clicks to Advertisers YoY	—	+40%
Operating Cash Flow ($USD Millions)	—	$322
Free Cash Flow ($USD Millions)	—	$318

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue ($USD Billions)	Q3 2025	$1.033–$1.053	Actual $1.049	In line/high end achieved
Adjusted EBITDA ($USD Millions)	Q3 2025	$282–$302	Actual $306	Beat
Revenue ($USD Billions)	Q4 2025	—	$1.313–$1.338; FX tailwind ~1pt	New
Adjusted EBITDA ($USD Millions)	Q4 2025	—	$533–$558	New
Non-GAAP Cost of Revenue	Q4 2025	—	High single digits % sequential increase	New

Note: Company did not provide GAAP reconciliations for forward Adjusted EBITDA due to variability in SBC and taxes .

Earnings Call Themes & Trends

Topic	Q1 2025 (prior two quarters)	Q2 2025	Q3 2025	Trend
AI/Visual Search & Multimodal	Foundational AI models; strong relevance; actionability improving	Launched multimodal search; proprietary model +30% relevancy vs off-the-shelf; generative retrieval model; LLMs in search	Beta “Pinterest Assistant” (voice conversational), visual query growth +44% YoY; queries/user up	Expanding capabilities; AI more foregrounded
Performance Ads/Automation	Building Performance Plus; add deep links/direct links	P+ Creative Preview; Campaign Customer Groups; ROAS bidding launched; adoption rising	ROAS bidding now 22% of lower‑funnel retail revenue; Top‑of‑Search Ads (CTR +29%, more new users +32%)	Scaling feature set and adoption
International Monetization	Early playbooks; reseller partners ramping	Acceleration; Europe +34% YoY; ROW +65%; narrowing ARPU gap	Europe +41% YoY; ROW +66%; shopping ads = 30% of int’l revenue	Strong acceleration; multi‑year runway
Tariffs/Macro	Tariff uncertainty noted; Asia e‑commerce pullback in UCAN	Smaller-than-feared Q2 tariff impact; normalization varies by advertiser	UCAN pockets of pullback; new Q4 tariff impacting home furnishings	Persistent headwind in select verticals
Infra/Costs/Margins	Margin expansion targeted over multi‑years	Elevated H1 margin expansion; continued investment in R&D and sales	Q4 non-GAAP CoR sequential up; long‑term adj. EBITDA target 30–34% reaffirmed	Modest near‑term expansion; longer-term intact
Partnerships/Commerce	Instacart announced to make CPG ads shoppable	Instacart details; mobile deep links; first‑party + third‑party demand	Where to Buy Links; Local Inventory Ads rollouts	Growing shoppability across categories

Management Commentary

Strategic positioning: “We’ve become a leader in visual search… an AI‑powered shopping assistant for 600 million consumers” — Bill Ready (press release) .
International runway: “Shopping ad revenue in both Europe and RoW grew over two times faster than overall regional revenue; shopping ads reached 30% of international revenue” — Bill Ready .
Cost-efficient AI: “We’re getting tremendous performance from fine‑tuned open‑source models… orders of magnitude reduction in cost vs proprietary models” — Bill Ready .
Capital allocation: “Over 90% of adjusted EBITDA converting to free cash flow over the trailing 12 months… $2.7B in cash and securities” — Julia Donnelly .
Margin framework: “Target a 30%–34% adjusted EBITDA margin over a 3–5 year horizon; already approaching 30% for 2025” — Julia Donnelly .

Q&A Highlights

Agentic commerce and AI assistant: Management emphasized proactive, visual-first “agentic” experiences and the beta of Pinterest Assistant to guide users through decision journeys; highlighted open‑source model economics .
UCAN ad environment and tariffs: Larger US retailers faced tariff‑related margin pressure; Q4 home furnishings tariff noted; emerging verticals (e.g., financial services) and SMB/mid‑market are offsets .
Programmatic/third-party demand: Magnite integration progressing; early testing on value of Pinterest’s audience beyond the platform .
SMB/mid-market and ROAS: Performance Plus drove 24% higher conversion lift vs traditional campaigns; adopters saw 12% higher monthly spend growth; ROAS bidding deepened catalog coverage .
Infrastructure strategy: AWS remains a strong partner; company continuously benchmarks across LLMs, chip providers, and hyperscalers for AI-driven needs .

Estimates Context

Metric	Q1 2025	Q2 2025	Q3 2025	Q4 2025 (forward)
Revenue – Consensus ($USD Billions)	$0.846*	$0.976*	$1.048*	$1.331*
Revenue – Actual/Guidance ($USD Billions)	$0.855	$0.998	$1.049	$1.313–$1.338 (guide)
EPS (non‑GAAP) – Consensus ($)	$0.26*	$0.35*	$0.42*	$0.72*
EPS (non‑GAAP) – Actual ($)	$0.23	$0.33	$0.38	—

Q3 2025: revenue slight beat; EPS miss. Q1–Q3 show a pattern of revenue beats and EPS misses, suggesting higher operating investments and/or pricing mix effects (international) driving near‑term EPS underperformance* [GetEstimates] .
Estimate counts: Q3 EPS (22), revenue (32); implies broad coverage* [GetEstimates].
Values retrieved from S&P Global.*

Key Takeaways for Investors

Revenue durability with expanding international monetization: Europe and ROW growth outpaced UCAN; shopping ads international mix reached ~30%, implying sustained ARPU uplift opportunity .
AI differentiation drives engagement and performance: multimodal search, Pinterest Assistant, and recommender improvements are increasing queries per user and outbound clicks (+40% YoY) .
Advertiser ROI features scaling: Top‑of‑Search Ads, ROAS bidding (22% of lower‑funnel retail), and Performance Plus adoption should lift conversion and catalog depth, supporting share gains .
Near‑term EPS sensitivity: Mix shift to lower‑priced int’l inventory and increased R&D/sales investment contribute to EPS misses; margin expansion remains intact but more modest near term .
Q4 setup: Mid‑teens revenue growth with FX tailwind; watch tariff impact in home furnishings and cost of revenue step‑up; expect continued S/H margin progress and strong FCF conversion .
Tactical: Lean into catalysts around holiday season (Boards Made for You, Holiday Edit, Local Inventory Ads) and P+ adoption in SMB/mid‑market; monitor UCAN retailer spend and international ARPU trajectory .

Cross-References and Notes

All Q3 financials, MAUs, ARPU, geography, cash flow, margins: press release and 8‑K .
Guidance metrics and forward commentary: press release and call .
Prior quarters for trend: Q2 8‑K/press release/transcript; Q1 8‑K .

PINTEREST, INC. (PINS)·Q3 2025 Earnings Summary