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 — marking the tenth consecutive quarter of double-digit expansion
- Second-quarter revenue forecast of $1.133B–$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 — 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 Zéphirin of The Zéphirin 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 — 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%–16% 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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