Pinterest’s fourth quarter was met with a significant negative reaction from the market, as revenue came in just below Wall Street’s expectations and guidance for the next quarter disappointed. Management attributed the gap to continued advertising pullbacks from large retail clients, who have been disproportionately impacted by tariffs and margin pressures. CEO Bill Ready described the company’s performance as not meeting its potential and highlighted the urgent need to diversify Pinterest’s advertiser base and accelerate its sales transformation. He specifically pointed to the company’s exposure to large retailers as a key reason why Pinterest felt industry-wide ad spending headwinds more acutely than some competitors.
Is now the time to buy PINS? Find out in our full research report (it’s free for active Edge members).
Pinterest (PINS) Q4 CY2025 Highlights:
- Revenue: $1.32 billion vs analyst estimates of $1.33 billion (14.3% year-on-year growth, 0.8% miss)
- Adjusted EPS: $0.67 vs analyst estimates of $0.67 (in line)
- Adjusted EBITDA: $541.5 million vs analyst estimates of $547.1 million (41% margin, 1% miss)
- Revenue Guidance for Q1 CY2026 is $961 million at the midpoint, below analyst estimates of $981.8 million
- EBITDA guidance for Q1 CY2026 is $176 million at the midpoint, below analyst estimates of $205.4 million
- Operating Margin: 22.8%, in line with the same quarter last year
- Monthly Active Users: 619 million, up 66 million year on year
- Market Capitalization: $10.89 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Pinterest’s Q4 Earnings Call
- Doug Anmuth (JPMorgan) asked about the drivers of Q4 revenue softness and Q1 guidance. CFO Julia Donnelly explained that large retail advertisers pulled back on spend due to tariffs, and that these headwinds may persist into the next quarter.
- Ross Sandler (Barclays) questioned the timing and impact of the salesforce transformation. CEO Bill Ready said near-term disruption is likely, with full benefits expected over several quarters as the new sales organization matures.
- Ken Gawrelski (Wells Fargo) probed the need for further technology investment to broaden the advertiser base. Ready responded that AI-driven automation and third-party measurement integrations will be critical for attracting and retaining small business clients.
- Eric Sheridan (Goldman Sachs) asked how Pinterest is positioned in a competitive digital advertising market increasingly shaped by AI and new entrants. Ready highlighted Pinterest’s unique visual-first platform and high commercial intent audience as key differentiators.
- Colin Alan Sebastian (Baird) inquired about the factors influencing margin guidance. Donnelly detailed that deliberate AI investments and restructuring costs will be balanced by targeted operating expense reductions, resulting in roughly flat adjusted EBITDA margins excluding the impact of the TV Scientific acquisition.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be watching (1) evidence of successful expansion into mid-market, small business, and international advertisers, (2) the pace and impact of AI-powered product rollouts like Pinterest Assistant and Performance Plus enhancements, and (3) the speed and effectiveness of the new sales and go-to-market transformation. Progress on these fronts will be critical for closing the gap between user engagement and monetization.
Pinterest currently trades at $16.40, down from $18.54 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free).
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