Key points for investors:
- User growth and engagement: Pinterest reported 600 million MAUs in Q3 2025 (9th consecutive quarter of record users), up 12% YoY. Gen Z is the largest and fastest-growing cohort (>50% of users). Queries per user and related visual search queries showed strong YoY growth, with visual search queries up 44% YoY.
- Revenue and profitability: Q3 revenue $1.049 billion, +17% YoY (16% constant currency). Ad impressions rose 54% while ad pricing declined 24% YoY (driven by higher mix of impressions in lower-priced international markets). Adjusted EBITDA was $306 million (29% margin), and free cash flow was $318 million. Cash, cash equivalents and marketable securities totaled $2.7 billion.
- Guidance and capital allocation: Q4 2025 revenue guidance $1.313–$1.338 billion (+14–16% YoY). Q4 adjusted EBITDA guidance $533–$558 million. Company continues share repurchases and net share settlement to offset dilution and remains committed to a four-pillar capital allocation framework (product investment, balance sheet optimization, opportunistic M&A, dilution management).
- AI and product differentiation: Management emphasizes AI as core competitive advantage—Pinterest positions itself as an "AI-powered visual-first shopping assistant." New product initiatives include multimodal visual search (initially for women’s fashion), the Pinterest Assistant (beta), Boards Made for You, and expanded shopping features (top-of-search ads, Where to Buy Links, local inventory ads). Proprietary multimodal models reportedly outperform off-the-shelf models for Pinterest use cases.
- Ads product momentum: Performance+ (AI-powered, automated ad suite) is driving stronger advertiser outcomes: retail advertisers using P+ show a 24% higher conversion lift vs. traditional campaigns; mid-market/smaller managed advertisers who adopt P+ show ~12% higher monthly spend growth post-adoption. ROAS bidding (launched Q1 2025) now accounts for 22% of lower-funnel retail revenue and has driven >100% YoY growth in unique SKUs with paid impressions.
- International opportunity: ~500 million MAUs outside UCAN (~83% of users) but represented 25% of revenue in Q3 — management sees significant upside from increasing international ARPU by exporting lower-funnel/shopping playbooks. Shopping ad share of international revenue grew from 9% (Sept 2023) to 30% (Q3 2025).
- Risks and headwinds: Some UCAN moderation in ad spend tied to tariff-related margin pressure for large U.S. retailers and category-specific tariff impacts in Q4 (home furnishings). Ad pricing pressure continues as international mix increases. Management highlights ongoing investments in R&D (AI) and sales, and expects infrastructure costs to rise with user/engagement growth though partially offset by model cost optimizations (including open-source models).
Overall, Pinterest is emphasizing AI-driven product differentiation (visual & multimodal search, assistant), profitable growth (strong adjusted EBITDA and free cash flow), and international monetization expansion while guiding for continued margin improvement and measured investments.
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