On February 13th, Pinterest delivered results that, by management's own admission, "do not reflect what Pinterest can deliver over time." That is a remarkable sentence for a CEO to put in an earnings call.
U.S. and Canada revenue — Pinterest's most mature and highest-monetized market — grew only 9% year-over-year in Q4. Ad impressions surged 41%, but pricing fell 19%. The company is reaching more eyeballs and making less money per eyeball. That is a sign of a platform being forced to discount its inventory to attract ad dollars it cannot command on merit.
The culprit, management says, is tariffs. Large retailers — the backbone of Pinterest's advertiser base — have been pulling back spend to protect margins. Meanwhile, Argus downgraded the stock explicitly because Google and Meta are intensifying competition in exactly the visual and shopping search verticals where Pinterest believes its future lies.
| Metric | Q1 | Q2 | Q3 | Q4 |
|---|---|---|---|---|
| Revenue | $855 | $998 | $1,049 | $1,319 |
| YoY Growth | +15.5% | +16.9% | +16.8% | +14.3% |
| Gross Profit | $656 | $795 | $837 | $1,092 |
| Gross Margin | 76.7% | 79.7% | 79.8% | 82.8% |
| Operating Income | -$35 | -$4 | $59 | $301 |
| Net Income | $9 | $39 | $92 | $277 |
| Adj. EBITDA | $172 | $251 | $306 | $542 |
| Adj. EBITDA Margin | 20% | 25% | 29% | 41% |
| Free Cash Flow | $356 | $197 | $318 | $380 |
| Share Buybacks | -$269 | -$158 | -$312 | -$587 |
| Item | Q1 '25 | Q4 '25 |
|---|---|---|
| Cash & Equivalents | $1,252 | $969 |
| Short-Term Investments | $1,363 | $1,498 |
| Total Liquid Assets | $2,615 | $2,467 |
| Total Assets | $5,283 | $5,492 |
| Total Liabilities | $594 | $747 |
| Shareholders' Equity | $4,688 | $4,745 |
| Net Debt (Cash Net) | -$2,471 | -$2,247 |
| Retained Earnings | -$279 | $129 |