Pinterest Q3 Earnings Miss Estimates Despite Y/Y Revenue Growth

Pinterest Inc. PINS reported modest third-quarter 2025 results, wherein the bottom line missed the Zacks Consensus Estimate while revenues beat the same. The San Francisco-based Internet content provider reported revenue growth year over year, driven by strong momentum in all regions. Management’s focus on improving shoppability and monetization potential across the platform and the incorporation of advanced AI-integrated tools to support advertisers and retailers led to top-line growth.PINS’ Net IncomeOn a GAAP basis, net income was $92.1 million, or 13 cents per share, compared to an income of $30.5 million, or 4 cents per share, in the prior-year quarter. Top-line growth led to an improvement in net income.Non-GAAP net income was $262.9 million, or 38 cents per share, up from $223.3 million, or 32 cents per share, in the year-ago quarter. The bottom line fell short of the Zacks Consensus Estimate by 2 cents.Pinterest, Inc. Price, Consensus and EPS Surprise Pinterest, Inc. price-consensus-eps-surprise-chart | Pinterest, Inc. QuotePINS’ Q3 RevenuesDuring the quarter, revenues rose to $1.049 billion from $898.4 million in the prior-year quarter, beating the Zacks Consensus Estimate of $975 million. Pinterest witnessed 17% year-over-year growth in global monthly active users (MAUs) to 600 million, which is an all-time record.The company is witnessing healthy momentum in the retail sector, coupled with growing traction in some emerging markets. The AI-powered Pinterest Performance+ suite has gained strong market traction among advertisers worldwide. Pinterest’s effort to bridge the gap between upper-funnel storytelling and inspiration to lower-funnel conversion is improving campaign performance. Focus on personalization through AI recommendation models is driving click-through rates. Initiatives to boost international expansion and open up new monetization opportunities are positive.The United States and Canada generated $786 million in revenues, up 9% year over year. Net sales beat our revenue estimate of $782.5 million. Solid momentum in retail, consumer packaged goods, telecom and entertainment supported the net sales. Revenues from Europe totaled $193 million, up 41% from $137 million in the year-ago quarter. Net sales missed our estimate of $198.5 million. Healthy traction in retail boosted the top line. Net sales from the Rest of World rose to $70 million from $42 million recorded in the prior-year quarter, exceeding our revenue estimate of $64.6 million.MAUs from the United States and Canada were 103 million, up 4% year over year. The quarterly figure matches our estimate. The Rest of the World registered MAUs of 347 million, up 16% from 300 million in the year-earlier quarter. It surpassed our estimate of 337.7 million. MAUs from Europe increased to 150 million from 139 million in the year-ago quarter, beating our estimate of 149.4 million.In the September quarter, global average revenues per user (ARPU) stood at $1.78 compared with the year-ago quarter’s figure of $1.7. ARPU in Europe improved 31% year over year to $1.31, while the United States and Canada rose 5% year over year to $7.64. ARPU from the Rest of World increased 44% year over year to 21 cents.Other DetailsAdjusted EBITDA was $306.1 million in the third quarter of 2025, up from the prior-year quarter’s tally of $246.9 million. Disciplined expense management and operational efficiency led to the improvement. Total costs and expenses were $990.6 million, up from $904.3 million in the year-ago quarter. On a GAAP basis, research and development expenses rose to $371.3 million from $326.7 million.PINS’ Cash Flow & LiquidityIn the third quarter, the company generated $321.6 million of cash from operating activities compared with $248 million in the prior-year quarter. As of Sept. 30, 2025, Pinterest had $1.13 billion in cash and cash equivalents and $205.3 million of operating lease liabilities.PINS’ Outlook for Q4For the fourth quarter of 2025, Pinterest expects revenues in the range of $1.313-$1.338 billion, indicating 14-16% year-over-year growth. Management expects adjusted EBITDA to be in the range of $533-$558 million.Zacks RankPinterest carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Upcoming ReleasesUbiquiti Inc. UI is scheduled to release third-quarter 2025 earnings on Nov. 14. The Zacks Consensus Estimate for earnings is pegged at $2.48 per share, suggesting growth of 15.89% from the year-ago reported figure.The company delivered an average earnings surprise of 49.5% in the last four reported quarters. It delivered an earnings surprise of 82.47% in the last reported quarter.Akamai Technologies, Inc. AKAM is slated to release third-quarter 2025 earnings on Nov. 6. The Zacks Consensus Estimate for earnings is pegged at $1.64 per share, indicating 3.1% growth from the year-ago reported figure.Akamai has a long-term earnings growth expectation of 4.9%. The company delivered an average earnings surprise of 7.1% in the last four reported quarters.Workday, Inc. WDAY is set to release third-quarter 2025 earnings on Nov. 25. The Zacks Consensus Estimate for earnings is pegged at $2.12 per share, implying growth of 12.17% from the year-ago reported figure.Workday has a long-term earnings growth expectation of 21.25%. The company delivered an average earnings surprise of 9.35% in the last four reported quarters.Zacks Names #1 Semiconductor StockThis under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Akamai Technologies, Inc. (AKAM): Free Stock Analysis Report Workday, Inc. (WDAY): Free Stock Analysis Report Pinterest, Inc. (PINS): Free Stock Analysis Report Ubiquiti Inc. (UI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks