Pinterest 2025 Q2 Earnings Strong Performance as Net Income Surges 336%

Pinterest (PINS) reported its fiscal 2025 Q2 earnings on Aug 07th, 2025. The company delivered strong results, surpassing expectations with robust revenue growth and record net income. Management provided optimistic guidance for the remainder of the year.

Pinterest's fiscal 2025 Q2 earnings exceeded expectations, with revenue rising 16.9% year-over-year to $998.23 million from $853.68 million in the same period the prior year. The company also reported a significant increase in net income, surging 336.1% to $38.76 million, setting a new record high for the fiscal Q2 net income in eight years.

Revenue

Earnings/Net Income

Pinterest’s earnings per share (EPS) experienced a substantial increase of 500.0%, rising to $0.06 in 2025 Q2 from $0.01 in 2024 Q2. This marked a continuation of the company’s earnings growth trajectory. Alongside the improved EPS, Pinterest’s net income saw a dramatic leap to $38.76 million in 2025 Q2, reflecting a 336.1% increase from $8.89 million in 2024 Q2. This significant boost in profitability highlights the company’s growing financial strength. The EPS increase and net income growth are both positive indicators of Pinterest's improved earnings performance.

Price Action

Post Earnings Price Action Review

The strategy of purchasing Pinterest shares following the announcement of improved revenue in its financial report and holding for 30 days yielded a 52.08% return. Although this return was slightly above the benchmark by 0.39%, the strategy was accompanied by considerable volatility, as indicated by a maximum drawdown of 49.01%. The Sharpe ratio of 0.31 suggests that while the returns were decent for the risk taken, they were not highly efficient in a risk-adjusted context. This highlights the potential for both substantial gains and significant losses in short-term trading around earnings events.

CEO Commentary

Bill Ready, CEO & Director of Pinterest, emphasized the company's transformation through AI-driven curation, which contributed to a record 578 million Monthly Active Users (MAUs) and 11% year-over-year growth. He underlined Pinterest’s unique value proposition as an AI winner, utilizing its taste graph and first-party signals to deliver highly personalized content. This has led to improved search fulfillment rates and user retention. Pinterest is strategically expanding lower-funnel ad offerings like Pinterest Performance+ and has formed partnerships, including with Instacart, for shoppable ads. Bill expressed confidence in Pinterest’s role as a performance-driven, intent-focused platform, particularly resonating with Gen Z and appealing to broader demographics and categories, including male users. He highlighted Pinterest’s ethos of positivity and belonging as a core differentiator, fostering brand alignment and user trust.

Guidance

Pinterest provided revenue guidance for Q3 2025 of $1.033 billion to $1.053 billion, representing 15% to 17% year-over-year growth. The company also noted that foreign exchange provided a 1-point tailwind. Pinterest expects adjusted EBITDA of $282 million to $302 million, with slightly lower growth in cost of revenue leverage compared to Q2. Bill Ready and Julia Goldfarb, CFO, mentioned continued investments in R&D for AI and global enterprise sales, with margin expansion expected in H2 2025, albeit at a more modest pace than H1 due to strategic investments. They expressed confidence in the durability of Pinterest’s revenue growth and its ability to outperform market trends through its performance ad platform and diversified monetization strategies.

Additional News

On the same date, significant events and developments included a Nigerian state governor gifting a football player a monetary reward and property, a political party threatening sanctions against members supporting a sitting president, and a country expanding its social welfare program to reach more beneficiaries. Other notable developments included a government halting arms exports to another country in response to regional tensions, a health advisory issued regarding a mosquito-borne illness, and a political figure predicting their own death during a Sunday church service. In the corporate sector, a former state deputy governor resigned from a political party, while a political advocacy group issued a warning to a party leader over event participation.