Pinterest’s second quarter results for 2025 reflected robust user and revenue growth, but the market responded negatively due to profitability concerns. Management highlighted that product improvements, especially advanced AI-driven personalization and visual search, drove record user engagement and accelerated adoption among Gen Z. CEO Bill Ready noted, “Pinterest is resonating with our users more than ever before, and we have found our strongest ever product market fit.” However, the company faced margin pressures, with international expansion and higher infrastructure investments impacting short-term earnings.
Is now the time to buy PINS? Find out in our full research report (it’s free).
Pinterest (PINS) Q2 CY2025 Highlights:
- Revenue: $998.2 million vs analyst estimates of $976.4 million (16.9% year-on-year growth, 2.2% beat)
- Adjusted EPS: $0.33 vs analyst expectations of $0.35 (6.2% miss)
- Adjusted EBITDA: $250.8 million vs analyst estimates of $233.3 million (25.1% margin, 7.5% beat)
- Revenue Guidance for Q3 CY2025 is $1.04 billion at the midpoint, above analyst estimates of $1.03 billion
- EBITDA guidance for Q3 CY2025 is $292 million at the midpoint, in line with analyst expectations
- Operating Margin: -0.4%, up from -2.5% in the same quarter last year
- Monthly Active Users: 577 million, up 55 million year on year
- Market Capitalization: $24.33 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Pinterest’s Q2 Earnings Call
- Ronald Victor Josey (Citigroup) asked about Gen Z usage trends and search habits. CEO Bill Ready emphasized the platform’s growing relevance with Gen Z, citing a 50%+ share of monthly active users and strong visual search adoption.
- Eric James Sheridan (Goldman Sachs) inquired about digital ad market volatility. CFO Julia Donnelly explained that while retail and financial services remain strong, some uncertainty persists due to tariffs and macroeconomic factors.
- Douglas Till Anmuth (JPMorgan) questioned the adoption of Performance+ tools. Ready responded that lower funnel campaign adoption has more than doubled since last year, especially among mid-market advertisers, and expects continued multi-quarter growth.
- Mark Elliott Shmulik (Societe Generale) asked about international growth drivers. Donnelly highlighted tailored go-to-market strategies and progress in narrowing the monetization gap as key contributors.
- Ross Adam Sandler (Barclays) sought clarity on investment priorities and margin trends. Donnelly clarified that R&D and enterprise sales expansion are the main investment areas, leading to more modest margin gains in the second half.
Catalysts in Upcoming Quarters
In future quarters, the StockStory team will be watching (1) whether Pinterest can maintain user growth and engagement, particularly among Gen Z and international audiences; (2) the adoption and impact of new AI-powered features and shoppable ad formats; and (3) the ability to narrow the international monetization gap without further compressing margins. Execution on R&D investments and partnership initiatives will be key to sustaining momentum.
Pinterest currently trades at $35.80, down from $39.21 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free).
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