Key Highlights
- Pinterest shares soared approximately 16% in extended trading following a strong Q1 earnings report that exceeded analyst projections
- First-quarter revenue reached $1.01 billion, representing an 18% annual increase and surpassing the $965 million forecast
- Adjusted earnings per share of $0.27 outperformed the $0.23 projection; adjusted EBITDA climbed 20% to $207 million
- Monthly active users climbed to a record 631 million ā marking the tenth consecutive quarter of double-digit expansion
- Second-quarter revenue forecast of $1.133Bā$1.153B exceeded the $1.12 billion Wall Street estimate
Pinterest (PINS) shares experienced a significant rally of approximately 16% during after-hours trading Monday following the release of first-quarter financial results that exceeded Wall Street expectations across virtually all key performance indicators.
First-quarter revenue totaled $1.01 billion, marking an 18% increase from the $855 million reported in the comparable period last year, and easily surpassing the analyst forecast of $965 million. Adjusted earnings per share of $0.27 exceeded the Street’s $0.23 estimate by four cents.
Adjusted EBITDA increased 20% on an annual basis to $207 million. Free cash flow reached $312 million, although this represented a 13% decline from the $356 million generated in Q1 2025.
On a GAAP basis, Pinterest reported a net loss of $74 million, contrasting with net income of $9 million during the corresponding quarter of the previous year.
Global monthly active users reached an unprecedented 631 million, representing an 11% year-over-year increase. This achievement extends the company’s impressive streak of double-digit user expansion to ten consecutive quarters ā a milestone Pinterest has prominently highlighted in its communications with investors.
“Q1 revenue surpassing $1 billion, up 18% year over year, and global monthly active users growing to 631 million,” said CEO Bill Ready in a statement following the results.
Pinterest also executed $2 billion in share buybacks during the quarter, consistent with its prior announcement.
AI-Powered Advertising and SMB Growth Compensating for Large Advertiser Caution
The platform has been implementing enhancements to its Performance+ advertising suite, which automates creative development and delivers more sophisticated personalized targeting capabilities. These innovations are proving effective in attracting small- and medium-sized businesses, helping to counterbalance reduced spending from certain large advertisers navigating increased costs related to tariff pressures.
Analyst Lenny ZĆ©phirin of The ZĆ©phirin Group observed that while large advertisers continue to provide stability, they have ceased being the company’s primary engine for expansion.
In February, Pinterest finalized its acquisition of tvScientific, a connected television advertising platform, designed to tap into new advertising budgets beyond conventional social media channels.
Competitor Reddit similarly reported robust revenue growth last week, attributing gains to AI-enhanced advertising tools ā indicating that artificial intelligence-driven advertising is benefiting multiple platforms simultaneously.
Second-Quarter Outlook Exceeds Forecasts
For the upcoming quarter, Pinterest projected revenue in the range of $1.133 billion to $1.153 billion, indicating 14%ā16% year-over-year growth. The midpoint of $1.143 billion exceeds the analyst consensus estimate of $1.12 billion.
The company also provided guidance for Q2 adjusted EBITDA ranging between $256 million and $276 million.
From a geographic perspective, the Rest of World segment delivered the strongest performance, surging 59% year-over-year to $72 million. European revenue expanded 27% to $186 million.
In April, activist investor Elliott revealed a $1 billion equity position in Pinterest, endorsing the company’s advertising revenue approach and supporting its newly announced $3.5 billion share repurchase program.
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