Pinterest announced a $1 billion investment from Elliott Investment Management, which will be paid through the issuance of convertible senior notes that mature on March 1, 2031. The notes carry a 1.75% annual coupon and an initial conversion price of $22.72 per share, a 30% premium to the March 2, 2026 closing price, giving Elliott a potential equity stake at a favorable valuation while providing Pinterest with immediate capital.
In addition to the new debt, Pinterest’s Board authorized a fresh $3.5 billion share‑repurchase program, replacing the prior program. The company expects to repurchase roughly $2 billion of shares in the first half of 2026, including a $1 billion accelerated share‑repurchase (ASR) agreement with Goldman Sachs, up to $500 million in open‑market purchases under a 10b5‑1 plan, and $473 million of repurchases already completed year‑to‑date under the November 2024 program. The ASR will deliver about 80% of the shares by March 5, 2026, with final settlement on May 1.
Pinterest’s Q4 2025 results, released on the same day, showed revenue of $1,319 million, up 14% year‑over‑year, and global monthly active users of 619 million, a 12% increase. Adjusted EBITDA reached $542 million, a 41% margin, and the company guided Q1 2026 revenue to $951–$971 million, representing 11–14% growth and a 3% foreign‑exchange tailwind. Full‑year 2025 revenue was $4,222 million, up 16% YoY, with adjusted EBITDA of $1,270 million.
Bill Ready, Pinterest’s CEO, said, "We delivered record revenue in 2025, with users reaching all‑time highs for ten consecutive quarters and more than 80 billion monthly searches on our platform, as we continue to deliver strong innovation in visual search using AI. We are excited to continue our partnership with Elliott for the next phase of Pinterest's growth. Elliott's investment is a strong vote of confidence in the work we have done to build our business and the significant opportunities ahead for Pinterest." He added, "However, we are not satisfied with our Q4 revenue performance and believe it does not reflect what Pinterest can deliver over time. While we absorbed an exogenous shock this year related to tariffs, disproportionately affecting ad spend from our top retail advertisers, this quarter also underscored where we need to move faster."
Marc Steinberg, partner at Elliott, commented, "We have been steadfast supporters of Pinterest since we first invested in 2022, and have strong conviction in the Company's trajectory. We see substantial opportunity ahead for the Company, and I look forward to continuing to work with Bill and the Board to drive Pinterest's success."
The investment and share‑repurchase program together signal strong confidence in Pinterest’s business model and valuation. The convertible notes provide liquidity while preserving a premium conversion price, mitigating immediate dilution. The large buyback program reflects management’s belief that the current share price undervalues the company’s growth prospects, and it is expected to reduce the share count, potentially boosting earnings per share and shareholder value in the medium term.
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