Pinterest Q4 Earnings Beat Estimates on Healthy Revenue Growth

Pinterest, Inc. PINS reported mixed fourth-quarter 2025 results, with revenues missing the Zacks Consensus Estimate but adjusted earnings beating the same.

The San Francisco-based Internet content provider reported revenue growth year over year, driven by strong user expansion and higher engagement, with more than 80 billion monthly searches on the platform. Rising adoption of AI-powered ad tools and solid demand from mid-market, SMB, international advertisers, and key verticals like retail and financial services led to top-line growth. 

Net Income

On a GAAP basis, net income was $277.1 million or 41 cents per share compared with $1.85 billion or $2.68 per share in the prior-year quarter. Despite higher revenues, GAAP earnings declined sharply due to higher costs and income tax expenses in the quarter and a healthy income tax benefit in the year-earlier quarter.

Non-GAAP net income was $450.5 million or 67 cents per share, up from $385.6 million or 56 cents per share in the year-ago quarter. The bottom line beat the Zacks Consensus Estimate by a penny.

For 2025, Pinterest reported GAAP net income of $416.9 million or 61 cents per share, compared with $1.86 billion or $2.67 per share in 2024. Non-GAAP net income for 2025 increased to $1.1 billion or $1.6 per share from $901 million or $1.29 per share in 2024.

Pinterest, Inc. Price, Consensus and EPS Surprise

Pinterest, Inc. price-consensus-eps-surprise-chart | Pinterest, Inc. Quote

Revenues

During the quarter, revenues rose to $1.32 billion from $1.15 billion in the prior-year quarter, but missed the Zacks Consensus Estimate of $1.33 billion. For 2025, revenues increased to $4.22 billion from $3.65 billion in 2024. Pinterest witnessed 12% year-over-year growth in global monthly active users (MAUs) to 619 million. 

The United States and Canada generated $979 million in revenues, up 9% year over year. Net sales beat our revenue estimate of $972.5 million. Revenues from Europe totaled $245 million, up 25% from $196 million in the year-ago quarter. Net sales missed our estimate of $261.5 million. Net sales from the Rest of World rose to $96 million from $58 million recorded in the prior-year quarter, exceeding our revenue estimate of $93.6 million.

MAUs from the United States and Canada were 105 million, up 4% year over year. The quarterly figure matches our estimate. The Rest of the World registered MAUs of 356 million, up 16% from 307 million in the year-earlier quarter. It surpassed our estimate of 353.8 million. MAUs from Europe increased to 158 million from 145 million in the year-ago quarter, beating our estimate of 155.8 million.

In the December quarter, global average revenues per user (ARPU) stood at $2.16 compared with the year-ago quarter’s figure of $2.12. ARPU in Europe improved 15% year over year to $1.59, while the United States and Canada rose 4% year over year to $9.41. ARPU from the Rest of World increased 42% year over year to 27 cents.

Other Details

Adjusted EBITDA was $541.5 million in the fourth quarter of 2025, up from the prior-year quarter’s tally of $470.9 million. Non-GAAP operating expenses increased to $782.7 million from the prior-year quarter figure of $687.4 million. 

Cash Flow & Liquidity

In the fourth quarter, Pinterest generated $391.2 million in cash from operations compared with $254 million in the year-earlier quarter. For 2025, the company generated $1.28 billion of cash from operating activities compared with $964.6 million in 2024.

As of Dec. 31, 2025, it had $969.3 million in cash and cash equivalents, with $220.6 million of operating lease liabilities compared with respective tallies of $1.14 billion and $151.4 million a year ago.

Outlook

For the first quarter of 2026, Pinterest expects revenues in the range of $951-$971 million, indicating 11-14% year-over-year growth. Management expects adjusted EBITDA to be in the range of $166-$186 million.

Zacks Rank

Pinterest currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Releases

Universal Display Corporation OLED is scheduled to release fourth-quarter 2025 earnings on Feb.19. The Zacks Consensus Estimate for earnings is pegged at $1.28 per share, suggesting growth of 4.92% from the year-ago reported figure.

Universal Display has a long-term earnings growth expectation of 6.61%. The company delivered an average earnings surprise of 9.25% in the last four reported quarters.

Keysight Technologies, Inc. KEYS is scheduled to release first-quarter fiscal 2026 earnings on Feb.23. The Zacks Consensus Estimate for earnings is pegged at $1.99 per share, suggesting growth of 9.34% from the year-ago reported figure.

Keysight has a long-term earnings growth expectation of 13.32%. The company delivered an average earnings surprise of 4.24% in the last four reported quarters.

Akamai Technologies, Inc. AKAM is slated to release fourth-quarter 2025 earnings on Feb.19. The Zacks Consensus Estimate for earnings is pegged at $1.75 per share, indicating 5.42% growth from the year-ago reported figure.

Akamai has a long-term earnings growth expectation of 6.98%. The company delivered an average earnings surprise of 10.46% in the last four reported quarters.

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This article originally published on Zacks Investment Research (zacks.com).

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