Pinterest reported third‑quarter 2025 revenue of $1.049 billion, a 17% year‑over‑year increase and 16% on a constant‑currency basis. The growth was driven by a 41% rise in European revenue and a 66% jump in the rest of the world, while U.S. and Canada revenue grew modestly, reflecting a mix shift toward higher‑margin international markets.
Net income reached $92.1 million and adjusted EBITDA climbed to $306.1 million, giving a 29% margin that expanded 170 basis points from the same quarter last year. The margin lift was largely due to higher operating leverage from AI‑driven product innovation and a favorable mix of advertising revenue, offsetting increased infrastructure and R&D spend that the company has been investing in to support its AI‑powered shopping assistant strategy.
Earnings per share were $0.38, missing the consensus estimate of $0.42–$0.43 by $0.04–$0.05, an 8.8%–11.6% shortfall. The miss was driven by higher-than‑expected costs, including a one‑time charge for restructuring and increased spend on AI and sales initiatives, which outweighed the revenue growth and margin expansion. Compared with the $0.38 EPS reported in Q3 2024, the company’s profitability remained flat, underscoring the impact of the new investments.
For the fourth quarter, Pinterest guided revenue of $1.313 billion to $1.338 billion, a 14%–16% year‑over‑year increase that is slightly below the Street’s $1.34 billion projection. Adjusted EBITDA guidance of $533 million to $558 million reflects management’s caution about moderating ad spend in the U.S. and Canada, where tariff‑related margin pressures are affecting large retailers. The guidance signals confidence in continued international growth but also highlights headwinds that could constrain margin expansion.
CEO Bill Ready emphasized that the quarter “was another strong execution against our multiyear strategy” and highlighted the company’s transformation into an AI‑powered visual‑first shopping assistant. CFO Julia Donnelly noted pockets of moderating ad spend in the U.S. and Canada and warned that broader market uncertainty will persist into Q4. These comments explain why the market reacted sharply to the EPS miss and the slightly softer revenue outlook, as investors weighed the company’s strategic investments against short‑term profitability pressures.
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