Pinterest delivers 17% revenue growth with record user base

Pinterest, the visual discovery platform, announced strong second quarter 2025 results on August 7, 2025, with revenue growth accelerating to 17% year-over-year and user engagement reaching new highs. The San Francisco-based company generated $998 million in revenue for the quarter ended June 30, 2025, compared to $854 million in the same period last year.

According to the earnings report, Pinterest achieved an all-time high of 578 million global monthly active users (MAUs), representing an 11% increase from the prior year period. This milestone underscores the platform's continued expansion as users increasingly turn to Pinterest for inspiration and shopping discovery.

"I'm proud of our Q2 results—delivering 17% revenue growth and another quarter of record users," said Bill Ready, CEO of Pinterest. "We're also excited that Gen Z has grown to over half of our user base." Ready emphasized that three years into the company's business transformation, he has "never been more confident in Pinterest's ability to deliver for our users and advertisers."

Strong performance across geographic regions

Pinterest demonstrated robust growth across all key markets during the second quarter. According to company data, U.S. and Canada revenue increased 11% year-over-year to $745 million, while Europe showed particularly strong momentum with revenue growing 34% to $191 million. The Rest of World segment posted impressive 65% growth, reaching $63 million in quarterly revenue.

The user growth patterns reflected similar geographic strength. Monthly active users in the U.S. and Canada reached 102 million, up 5% from the previous year. Europe MAUs grew 7% to 146 million users, while Rest of World MAUs expanded 14% to 329 million users.

Average revenue per user (ARPU) metrics showed meaningful improvement across all regions. Global ARPU reached $1.74, up 6% year-over-year. U.S. and Canada ARPU increased 6% to $7.29, Europe ARPU surged 26% to $1.30, and Rest of World ARPU jumped 44% to $0.19.

Financial performance and profitability metrics

Pinterest reported GAAP net income of $39 million for the quarter, compared to $9 million in the same period last year. The company's Adjusted EBITDA reached $251 million, representing a 33% increase from $188 million in Q2 2024. This translated to an Adjusted EBITDA margin of 25%, up from 22% in the prior year period.

Operating cash flow generation remained strong at $208 million for the quarter, while free cash flow reached $197 million. For the six-month period ended June 30, 2025, operating cash flow was $571 million and free cash flow totaled $553 million.

The company's balance sheet position remained robust with $2.66 billion in cash, cash equivalents and marketable securities as of June 30, 2025. Pinterest maintains financial flexibility through this substantial cash position, supporting continued investment in platform capabilities and advertising technology.

Advertising market dynamics

Pinterest's advertising revenue benefited from increased advertiser adoption and improved monetization efficiency. The platform served 55% more advertisements during the quarter compared to the same period last year, while average advertisement pricing decreased 25%. This dynamic reflects Pinterest's strategy to increase advertiser reach while maintaining competitive pricing.

The company continued expanding its advertising tools and measurement capabilities, addressing advertiser demands for better performance tracking and campaign optimization. Advertising platform developments remain central to Pinterest's growth strategy as competition intensifies in the digital advertising sector.

Ready noted that Pinterest has "found our best product market fit ever by becoming a personalized shopping destination for users and an AI-powered performance platform for advertisers." This positioning aligns with broader industry trends toward commerce-focused social platforms.

Cost structure and operational efficiency

Pinterest demonstrated improved operational leverage during the quarter. Total costs and expenses were $1.00 billion, compared to $875 million in Q2 2024. However, as a percentage of revenue, total costs declined to 100% from 103% in the prior year period.

Research and development expenses increased to $360 million from $313 million, reflecting continued investment in artificial intelligence capabilities and platform features. Sales and marketing costs rose to $313 million from $265 million as the company expanded its advertiser outreach efforts.

Share-based compensation expense totaled $227 million for the quarter, up from $196 million in the prior year. This increase primarily reflected headcount growth and equity awards to retain talent in a competitive technology labor market.

Strategic outlook and guidance

For the third quarter of 2025, Pinterest provided revenue guidance of $1.03 billion to $1.05 billion, representing 15% to 17% year-over-year growth. The company expects Q3 2025 Adjusted EBITDA in the range of $282 million to $302 million.

Management expressed confidence in Pinterest's long-term positioning despite macroeconomic uncertainties. The platform's focus on shopping discovery and AI-powered advertising tools differentiates it from broader social media platforms facing regulatory scrutiny and user engagement challenges.

Pinterest's international expansion efforts continue gaining momentum, particularly in Europe and emerging markets where digital advertising adoption is accelerating. International growth strategies remain important for the company's diversification beyond its core U.S. market.

Technical and product innovations

The company highlighted progress in artificial intelligence implementation across its platform. Pinterest uses machine learning algorithms to improve content personalization and advertising targeting, enhancing user experience while providing advertisers with better performance outcomes.

Video content consumption continued growing on the platform, with Pinterest investing in video creation tools and discovery features. The company also expanded shopping capabilities, allowing users to purchase products directly through the platform from merchant partners.

Ready emphasized Pinterest's unique position in the technology landscape: "With this focus, we believe we're well-positioned to further capture market share." The CEO's comments reflect management's confidence in the platform's competitive advantages as visual discovery becomes increasingly important for e-commerce.

Pinterest's employee headcount reached 4,982 as of the quarter end, supporting the company's growth initiatives while maintaining operational efficiency. The platform serves both individual users seeking inspiration and businesses looking to reach consumers during key shopping moments.

Timeline

• July 2025: Pinterest advertising growth strategies gain traction with small business advertisers
• June 2025: Platform introduces enhanced AI-powered recommendation features
• May 2025: E-commerce integration improvements boost shopping conversion rates
• April 2025: International expansion accelerates in European markets
• March 2025: Digital advertising investment increases among retail brands
• February 2025: Mobile user engagement metrics show sustained growth
• August 7, 2025: Pinterest announces Q2 2025 earnings results

Key terminology explained

Revenue: Pinterest's primary financial metric representing income generated from advertising sales across its platform. The company achieved $998 million in Q2 2025 revenue, marking 17% year-over-year growth. Revenue streams primarily consist of cost-per-click and cost-per-impression advertising models, with geographic distribution showing strongest performance in developed markets. The revenue growth demonstrates Pinterest's successful monetization of its expanding user base and improved advertiser adoption of the platform's shopping-focused advertising tools.

Monthly Active Users (MAUs): A critical user engagement metric measuring authenticated Pinterest users who interact with the platform at least once during a 30-day period. Pinterest reached a record 578 million global MAUs in Q2 2025, representing 11% year-over-year growth. The metric excludes Shuffles users unless they qualify as traditional MAUs, and geographic breakdown shows 102 million users in U.S. and Canada, 146 million in Europe, and 329 million in Rest of World markets.

Advertising: The core business model driving Pinterest's revenue generation through various ad formats and targeting capabilities. The company serves advertisements to users based on their interests, search behavior, and demographic characteristics. Pinterest's advertising platform benefits from unique visual discovery use cases, with users often in active shopping consideration phases. Recent developments include AI-powered targeting tools, performance measurement capabilities, and expanded programmatic advertising partnerships.

Adjusted EBITDA: A non-GAAP financial measure representing earnings before interest, taxes, depreciation, amortization, and certain non-recurring expenses. Pinterest reported $251 million in Q2 2025 Adjusted EBITDA, up 33% from the prior year period. This metric excludes share-based compensation, payroll taxes, and other items management considers non-indicative of ongoing business performance. The measure provides investors with clearer visibility into operational profitability trends.

Growth: A fundamental business metric encompassing user expansion, revenue increases, and market share gains across Pinterest's platform. The company demonstrated growth across multiple dimensions: 17% revenue growth, 11% user growth, and 33% Adjusted EBITDA growth year-over-year. Geographic growth patterns show particular strength in international markets, with Europe achieving 34% revenue growth and Rest of World reaching 65% revenue growth, indicating successful international expansion efforts.

Average Revenue Per User (ARPU): A monetization efficiency metric calculated by dividing total revenue by average monthly active users in specific geographic regions. Global ARPU reached $1.74 in Q2 2025, up 6% year-over-year. Regional ARPU varies significantly: $7.29 in U.S. and Canada, $1.30 in Europe, and $0.19 in Rest of World. The metric reflects Pinterest's ability to monetize users through advertising, with higher ARPU in developed markets indicating greater advertiser demand and spending capacity.

Platform: Pinterest's technology infrastructure and service offering that connects users, advertisers, and content creators. The platform serves as a visual discovery engine where users save, organize, and discover content through pins and boards. For advertisers, the platform provides targeting tools, campaign management interfaces, and performance measurement capabilities. Platform developments focus on AI-powered personalization, shopping features, and advertising technology enhancements to improve user engagement and advertiser effectiveness.

Quarter: The three-month reporting period used for financial disclosure and business performance measurement. Pinterest's Q2 2025 quarter ended June 30, 2025, with results announced August 7, 2025. Quarterly reporting enables investors and stakeholders to track business progress, seasonal trends, and strategic initiative outcomes. The quarter showed strong performance across revenue, user growth, and profitability metrics, with management providing forward guidance for Q3 2025.

Users: The individuals who actively engage with Pinterest's platform for inspiration, shopping discovery, and content creation. Pinterest's user base reached 578 million monthly active users globally, with demographics skewing toward women and Gen Z users representing over half the total user base. Users create boards, save pins, and interact with advertising content, generating the engagement that drives Pinterest's advertising revenue model. User growth remains essential for long-term platform sustainability and advertiser appeal.

Million: The numerical unit used throughout Pinterest's financial reporting to express large quantities of revenue, users, and financial metrics. Pinterest generated $998 million in Q2 2025 revenue and reached 578 million monthly active users. Financial figures are typically expressed in millions to simplify presentation of large numbers, with the company's market capitalization and cash position also measured in billions and millions respectively. The scale reflects Pinterest's position as a major technology platform with significant financial operations.

Summary

Who: Pinterest Inc., a Delaware corporation traded on NYSE under ticker PINS, led by CEO Bill Ready and serving 578 million monthly active users globally.

What: Strong second quarter 2025 financial results showing 17% revenue growth to $998 million, 11% user growth, and 33% Adjusted EBITDA increase to $251 million.

When: Results announced on August 7, 2025, covering the quarter ended June 30, 2025, with guidance provided for Q3 2025.

Where: Global platform performance with growth across U.S. and Canada (11% revenue growth), Europe (34% revenue growth), and Rest of World (65% revenue growth).

Why: Business transformation toward personalized shopping discovery and AI-powered advertising platform drives improved monetization efficiency and market share gains in digital advertising sector.