Pinterest Inc. reported fourth‑quarter 2025 results on February 12, 2026, with revenue of $1.319 billion, up 14% year‑over‑year. The figure fell slightly short of the consensus estimate of $1.33 billion, a miss of $11 million. Net income dropped 85% to $277 million, while adjusted earnings before interest, taxes, depreciation and amortization reached $542 million, maintaining a 41% margin that matched the prior year’s 41% figure.
The company guided first‑quarter 2026 revenue to a range of $951 million to $971 million, representing 11% to 14% year‑over‑year growth. This guidance is below the consensus estimate of $980 million and reflects management’s concerns about tariff‑related headwinds that have reduced advertising spend from large U.S. and European retailers. Adjusted EBITDA guidance for the quarter was $166 million to $186 million, a slight contraction from the prior year’s guidance of $170 million to $190 million.
Pinterest’s monthly active user base grew to 619 million, a 12% year‑over‑year increase. The user expansion is driven by strong engagement in international markets, but the company noted that advertising spend from large retailers has pulled back, dampening revenue growth and pricing power.
Segment‑level data show U.S. & Canada revenue grew 9% year‑over‑year, Europe grew 25%, and the Rest of World segment grew 64%. The robust international growth helped offset the slower U.S. performance and contributed to the overall revenue increase, but the shift to under‑monetized markets also pressured ad pricing.
Adjusted EBITDA margin remained at 41% year‑over‑year, indicating that cost control and a favorable mix of higher‑margin international revenue offset the revenue miss. Net income fell sharply due to the revenue shortfall and a higher tax benefit in the prior year, which amplified the percentage decline. The company’s strong cash flow and ongoing AI‑driven product initiatives suggest a focus on long‑term growth despite short‑term pressure.
Management highlighted that the company is “not satisfied with Q4 revenue performance” and cited “tariff‑related headwinds” that disproportionately affected large retail advertisers. Bill Ready also emphasized the company’s commitment to AI‑powered product innovation and a sales transformation aimed at broadening its advertiser base, signaling confidence in future monetization opportunities.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.