Pinterest Q2 2025 slides: revenue accelerates to 17% growth despite stock slump

Pinterest Inc (NYSE:PINS) reported accelerating revenue growth and expanding profit margins in its second quarter 2025 results, released on August 7, 2025. Despite the strong performance, the stock dropped 12.18% in premarket trading to $34.40, suggesting investor concerns beyond the headline numbers.

Quarterly Performance Highlights

Pinterest delivered $998 million in revenue for Q2 2025, representing a 17% year-over-year increase and exceeding the high end of the company’s previous guidance of $960-980 million. This marks an acceleration from the 16% growth reported in Q1 2025.

The company’s profitability metrics showed significant improvement, with Adjusted EBITDA reaching $251 million, up 33% year-over-year, and Adjusted EBITDA margin expanding by 310 basis points to 25%.

As shown in the following chart of quarterly revenue growth by region:

International markets were the primary growth drivers, with Europe growing 34% year-over-year to $191 million and Rest of World surging 65% to $63 million. The company’s core US & Canada market delivered a solid 11% growth to $745 million.

User Growth and Engagement

Pinterest continued to expand its user base, reaching 578 million monthly active users (MAUs) in Q2 2025, an 11% increase from the previous year. The growth was primarily driven by international markets, with Rest of World leading at 14% growth.

The following chart illustrates Pinterest’s user growth across regions:

The US & Canada region showed modest user growth of 5% year-over-year, reaching 102 million MAUs, while Europe grew 7% to 146 million MAUs. The Rest of World segment, which now represents 57% of Pinterest’s total user base, grew 14% to 329 million MAUs.

Revenue and Monetization Trends

Pinterest made significant progress in monetizing its international user base, with Average Revenue Per User (ARPU) showing strong growth outside the US & Canada market. Global ARPU increased 6% year-over-year to $1.74.

The company’s ARPU performance by region is detailed in the following chart:

While US & Canada ARPU grew 6% to $7.29, international markets showed much stronger monetization improvements. Europe ARPU increased 26% to $1.30, and Rest of World ARPU jumped 44% to $0.19, highlighting Pinterest’s success in expanding its advertising business globally.

Profitability and Cash Flow

Pinterest demonstrated strong profitability growth, with Adjusted EBITDA increasing 33% year-over-year to $251 million in Q2 2025. The company’s Adjusted EBITDA margin expanded by 310 basis points to 25%, reflecting improved operational efficiency.

The following chart shows Pinterest’s Adjusted EBITDA performance over the past five quarters:

On a trailing twelve-month basis, Pinterest generated $1.14 billion in Adjusted EBITDA with a 29% margin, as illustrated in the following chart:

The company also demonstrated strong cash generation capabilities, with free cash flow of $196.7 million for the quarter and $1.05 billion for the trailing twelve months, representing a 92% conversion rate of Adjusted EBITDA to free cash flow.

Cost Management and Operating Efficiency

Pinterest maintained disciplined cost management while investing in growth initiatives. Non-GAAP costs and expenses grew at a similar rate to revenue, with Research and Development expenses up 16% and Sales and Marketing expenses up 17% year-over-year.

The company’s cost structure breakdown is shown in the following chart:

General and Administrative expenses decreased by 4% year-over-year, contributing to the overall improvement in operating margins.

Market Reaction and Outlook

Despite Pinterest’s strong financial performance in Q2 2025, the stock dropped 12.18% in premarket trading to $34.40. This decline suggests that investors may have had even higher expectations or concerns about future growth prospects that weren’t addressed in the quarterly results.

The company’s previous guidance for Q2 2025 had projected revenue between $960 million and $980 million, representing 12-15% growth. The actual result of $998 million exceeded this guidance, demonstrating Pinterest’s ability to outperform its own projections.

Pinterest’s strong performance in international markets, both in user growth and monetization, indicates that the company’s global expansion strategy is yielding results. The significant improvements in ARPU in Europe and Rest of World regions suggest substantial runway for future revenue growth as these markets continue to mature.

The company’s robust free cash flow generation and expanding profit margins also position Pinterest well for continued investments in product development and market expansion while maintaining financial discipline.

Full presentation:

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