Pinterest (PINS) Q2 Revenue Jumps 17%

Key Points

• Revenue jumped 17% year over year to $998 million (GAAP), beating GAAP revenue estimates by $23.07 million.

• Global monthly active users reached a record 578 million, up 11% year over year, with Gen Z comprising over half the user base.

• Guidance projects continued double-digit revenue growth of 15% to 17% year over year, with targeted Adjusted EBITDA of $282–$302 million.

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Pinterest (NYSE:PINS) is a visual discovery social media platform that helps users find and save ideas, serving as a destination for inspiration and shopping. On August 7, 2025, it released results for the second quarter of fiscal 2025, highlighted by a 17% year-over-year revenue increase to $998 million (GAAP) and a record high in its global user base. The company’s revenue (GAAP) exceeded analyst predictions by $23.07 million, while non-GAAP earnings per share (EPS) of $0.35 matched consensus estimates. Strong gains in adjusted EBITDA and free cash flow (both non-GAAP) contributed to a steady quarter overall, with ongoing advances in artificial intelligence (AI) and advertiser-focused products reinforcing its growth model.

Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.

What Pinterest Does and Where It’s Focusing

Pinterest is a social platform centered on sharing and discovering visual content, mostly images and videos. Users save “Pins,” organize them into themed boards, and use the platform for planning, shopping, and inspiration. This unique visual model, compared to text-driven social media, makes Pinterest especially popular among people planning major events, home projects, or life changes.

The company’s core growth drivers include expanding its user base, deepening engagement, and increasing advertising revenue. Key initiatives focus on leveraging AI for better personalization and visual search, rolling out new advertising solutions to improve returns for marketers, and closing the monetization gap in international markets—areas where the company sees significant long-term opportunity. User demographics are shifting, with Gen Z now making up over half the global audience.

Key Developments in the Quarter

Pinterest’s global monthly active users (MAUs) reached 578 million, an 11% increase year over year. Notably, Gen Z users are now the majority, supporting Pinterest’s position as a platform of choice for younger, digitally savvy consumers. Regional performance varied: MAUs grew 5% in the U.S. and Canada, 7% MAU growth in Europe, and 14% in the rest of the world.

Regional revenue trends mirrored user growth but also highlighted a longstanding challenge: average revenue per user (ARPU) remains much lower outside North America, with ARPU at $7.29 in the U.S. and Canada, $1.30 in Europe, and $0.19 in Rest of World. U.S. and Canada ARPU rose 6% to $7.29, while Europe’s ARPU increased 26% to $1.30, and the Rest of World saw a 44% leap to $0.19 in ARPU. These increases, though significant in percentage terms, reinforce the gap in monetization between mature and developing markets. Europe and Rest of World delivered the highest growth rates in revenue—up 34% and 65%, respectively—yet still represent a smaller proportion of total sales.

Financially, the company saw its non-GAAP net income rise 33%, and adjusted EBITDA (non-GAAP) improved by 33% year over year. Free cash flow increased 94% to $196.7 million. The balance sheet remains solid, with over $2.6 billion in cash and marketable securities at quarter-end. Share-based compensation (SBC), however, continues to be a substantial expense, totaling $227 million, nearly 23 % of revenue for the quarter.

On the advertising front, Pinterest emphasized the growing impact of its Performance+ campaign toolkit—an automated, AI-driven ad solution. Management reported that 80% of campaigns using Performance+ outperformed traditional ones, based on internal AB tests as discussed in Q1 2025, and campaign creation times were significantly reduced. Shopping ad revenue, especially in Europe and the Rest of World, grew at over three times the pace of overall regional revenue in Q1 2025. Internal productivity improvements were also notable: AI-generated code constituted over 25% of all new code created during Q1 2025, up 10 percentage points since the beginning of the year.

Outlook and What to Watch Next

Pinterest offered guidance, forecasting revenue between $1,033 million and $1,053 million.—representing 15–17% year-over-year growth. Adjusted EBITDA is expected to land in the $282 million to $302 million range, above the Adjusted EBITDA margin achieved last quarter. Management expects a minor positive contribution from foreign exchange rates and signaled ongoing investment in AI, product, and sales capabilities to support future periods.

Looking forward, investors and analysts will focus on how effectively Pinterest can continue to increase international ARPU, deepen Gen Z user engagement, and defend its niche amid intensifying competition from other digital platforms. Special attention will also be given to ongoing regulatory changes related to data privacy in key regions, as well as the balance between ambitious R&D spending and sustained profitability.

Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.

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JesterAI is a Foolish AI, based on a variety of Large Language Models (LLMs) and proprietary Motley Fool systems. All articles published by JesterAI are reviewed by our editorial team, and The Motley Fool takes ultimate responsibility for the content of this article. JesterAI cannot own stocks and so it has no positions in any stocks mentioned. The Motley Fool has positions in and recommends Pinterest. The Motley Fool has a disclosure policy.