Pinterest Q2 2025: Strong Global Growth Fuels Revenue Surge, But EPS Miss Tempers Investor Optimism

Pinterest posted impressive second-quarter 2025 results, signaling continued growth across key operational metrics—though not without a few areas of concern. The company reported revenue of $998 million, marking a 17% year-over-year increase and comfortably surpassing its own guidance range of $960 million to $980 million. This performance represents a modest acceleration from Q1's 16% growth rate and was largely driven by strong international momentum. European revenue climbed 34% to $191 million, while the Rest of World segment surged by 65% to $63 million. In its largest segment, the U.S. and Canada, revenue rose a steady 11% to $745 million. Importantly, Pinterest grew its global Monthly Active Users (MAUs) to a record 578 million—an 11% increase from a year ago—driven mainly by international adoption.

Operationally, the company demonstrated improving efficiency. Adjusted EBITDA rose 33% year-over-year to $251 million, and its adjusted EBITDA margin expanded by 310 basis points to 25%. Pinterest also reported $196.7 million in free cash flow, translating to a 92% EBITDA-to-cash conversion rate. These figures reflect effective cost control, including a 4% decrease in general and administrative expenses, even as Pinterest continues to invest in research, development, and marketing to enhance platform experiences.

However, the quarter wasn't entirely flawless. Pinterest reported adjusted earnings per share (EPS) of $0.33, falling short of analyst expectations of $0.35. This miss, combined with ongoing competitive pressures in the social media and digital advertising space, led to a 12% decline in the company’s stock during after-hours trading. Despite the strong growth narrative, investor sentiment remains cautious, particularly around monetization potential and future margin stability.

In sum, Pinterest’s Q2 2025 performance underscores expanding global reach, strong user base growth, and improved financial execution. Yet, concerns over earnings performance and external market challenges have kept enthusiasm in check. For long-term investors, Pinterest remains a growth story with both promise and pressure.