Pinterest delivered strong growth in the second quarter of 2025, reporting record-breaking engagement alongside improving financial performance. The platform now boasts 578 million monthly active users (MAUs), marking an 11% year-over-year increase and surpassing forecasts. Much of this momentum has been driven by advertisers targeting an increasingly engaged demographic, notably Gen Z users, who now make up over half of the user base.
Financially, Pinterest reported $998 million in revenue, a 17% increase year-over-year, outpacing analyst expectations of approximately $975 million. Meanwhile, the company posted a GAAP net income of $39 million, with Adjusted EBITDA reaching $251 million, and free cash flow reported at around $197 million.
Despite the revenue beat, investor enthusiasm waned due to a profit miss, with adjusted earnings per share of 33 cents falling short of the 35-cent consensus. This led to an 8–11% decline in shares during after-hours trading.
Pinterest attributes its growth to AI-powered enhancements that are attracting advertiser interest – particularly through tools like auto-collages and visual search enhancements. However, the reliance on advertising revenue leaves the company exposed to macroeconomic shifts, as evidenced by reduced ad spending from certain Asia-based retailers following tariff changes.
