Pinterest Q2 Earnings Miss Estimates Despite Y/Y Revenue Growth

Pinterest, Inc. PINS reported modest second-quarter 2025 results, wherein the bottom line missed the Zacks Consensus Estimate while revenues beat the same. The San Francisco-based Internet content provider reported revenue growth year over year, driven by strong momentum in all regions. Management’s focus on improving shoppability and monetization potential across the platform and the incorporation of advanced AI-integrated tools to support advertisers and retailers led to top-line growth.

PINS’ Net Income

On a GAAP basis, net income was $38.7 million, or 6 cents per share, compared to an income of $8.9 million, or a penny per share, in the prior-year quarter. Top-line growth led to an improvement in net income.

Non-GAAP net income was $228.3 million, or 33 cents per share, up from $172.2 million, or 24 cents per share, in the year-ago quarter. The bottom line fell short of the Zacks Consensus Estimate by a penny.

PINS’ Revenues

During the quarter, revenues rose to $998.2 million from $853.6 million in the prior-year quarter, beating the Zacks Consensus Estimate of $975 million. Pinterest witnessed 11% year-over-year growth in global monthly active users (MAUs) to 578 million, which is an all-time record.

The company is witnessing healthy momentum in the retail sector, coupled with growing traction in some emerging markets, such as financial services, technology and entertainment are driving growth. The AI-powered Pinterest Performance+ suite has gained strong market traction among advertisers worldwide. 

Pinterest’s effort to bridge the gap between upper-funnel storytelling and inspiration to lower-funnel conversion is improving campaign performance. Focus on personalization through AI recommendation models is driving click-through rates. Initiatives to boost international expansion and open up new monetization opportunities are positive.

The United States and Canada generated $745 million in revenues, up 11% year over year. Net sales missed our revenue estimate of $752.7 million. Solid momentum in retail and emerging verticals, including financial services and technology, supported the net sales. Revenues from Europe totaled $191 million, up 34% from $143 million in the year-ago quarter. The top line surpassed our estimate of $162.5 million. Healthy traction in retail boosted the top line. Net sales from the Rest of World rose to $63 million from $38 million recorded in the prior-year quarter, exceeding our revenue estimate of $56.5 million.

MAUs from the United States and Canada were 102 million, up 5% year over year. The quarterly figure matches our estimate. The Rest of World registered MAUs of 329 million, up 14% from 288 million in the year-earlier quarter. MAUs from Europe increased to 146 million from 136 million in the year-ago quarter, but missed our estimate of 148.3 million.

In the June quarter, the global average revenues per user (ARPU) stood at $1.74 compared with the year-ago quarter’s figure of $1.64. ARPU in Europe improved 26% year over year to $1.3, while the United States and Canada rose 6% year over year to $7.29. ARPU from the Rest of World increased 44% year over year to 19 cents.

Other Details

Adjusted EBITDA was $250.8 million in the second quarter of 2025, up from the prior-year quarter’s tally of $188.3 million. Disciplined expense management and operational efficiency led to a 33.5% year-over-year improvement. Total costs and expenses were $1 billion, up from $875.1 million in the year-ago quarter. On a GAAP basis, research and development expenses rose to $359.6 million from $312.8 million.

PINS’ Cash Flow & Liquidity

In the second quarter, the company generated $207.7 million of cash from operating activities compared with $106.4 million in the prior-year quarter. As of June 30, 2025, Pinterest had $1.21 billion in cash and cash equivalents and $137.4 million of operating lease liabilities.

PINS’ Outlook for Q3

For the third quarter of 2025, Pinterest expects revenues in the range of $1.033-$1.053 billion, indicating 15-17% year-over-year growth. Management expects adjusted EBITDA to be in the range of $282-$302 million.

Zacks Rank & Stocks to Consider

Pinterest currently has a Zacks Rank #3 (Hold).

Ubiquiti Inc. UI carries a Zacks Rank of 2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

In the last reported quarter, it delivered an earnings surprise of 61.29%. Ubiquiti spends significantly on research and development activities for developing innovative products and state-of-the-art technology to expand its addressable market and remain at the cutting edge of networking technology. The company believes its new product pipeline will help to increase average selling prices for high-performance, best-value products, thus raising the top line. Ubiquiti is witnessing healthy traction in the Enterprise Technology segment.

Jabil, Inc. JBL currently carries a Zacks Rank #2. In the last reported quarter, it delivered an earnings surprise of 9.44%.

Jabil’s focus on end-market and product diversification is a key catalyst. The company’s target of “no product or product family should be greater than 5% operating income or cash flows in any fiscal year” is commendable. This initiative should position Jabil well on the growth trajectory.

Motorola Solutions, Inc. MSI currently carries a Zacks Rank 2. The company delivered an earnings surprise of 6.8% in the trailing four quarters.

Motorola expects to record strong demand across video security and services, land mobile radio products and related software while benefiting from a solid foundation. MSI intends to boost its position in the public safety domain by entering into strategic alliances with other players in the ecosystem.

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