Pinterest Q4 2025 Earnings: Revenue Up, Profit Drops
Pinterest Q4 2025 earnings reported revenue growth and record users but a steep GAAP profit drop and cautious Q1 revenue guide that tightened risk-reward.
KEY TAKEAWAYS
- Q4 revenue rose 14.0% to $1,319 million.
- GAAP net income fell 85.0% to $277 million amid a prior-year tax benefit swing.
- Q1 revenue guidance of $951 million to $971 million fell below $980.1 million consensus and tightened risk-reward.
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Pinterest Inc. (PINS) reported on Feb. 12, 2026, that its Q4 2025 earnings showed revenue growth and record users but a steep decline in GAAP profit and cautious first-quarter guidance, citing advertising competition and tariff pressures.
Earnings, Guidance, and User Growth
Pinterest’s Q4 2025 revenue rose 14.0% year over year to $1.32 billion, increasing 13.0% on a constant-currency basis. Full-year 2025 revenue reached $4.2 billion, up 16.0% year over year and 15.0% in constant currency. GAAP net income for the quarter fell 85.0% to $277 million, while full-year GAAP net income dropped 78.0% to $417 million. The profit decline reflected a prior-year tax benefit of $1.85 billion. Adjusted EBITDA, a proxy for operating profit, rose 15.0% to $542 million in Q4 and 23.0% to $1.27 billion for the full year, signaling underlying operating strength despite the GAAP swing.
For the first quarter of 2026, Pinterest projected revenue between $951 million and $971 million, representing 11.0% to 14.0% growth year over year and assuming a roughly three-point foreign-exchange tailwind. This guidance fell short of the analyst consensus of $980.1 million. Adjusted EBITDA guidance ranged from $166 million to $186 million. Management highlighted strategic investments in artificial intelligence and sales execution, including its Performance+ advertising suite and recent hires targeting mid-market advertisers.
Global monthly active users reached 619 million in Q4 2025, up 12.0% year over year, marking continued user growth.
Cash Flow Strength Amid Profit Decline
Operating cash flow strengthened significantly. Net cash from operations in Q4 rose 54.0% year over year to $391 million, with free cash flow of $380 million. For the full year, net cash from operations totaled $1.28 billion, up 33.0%, and free cash flow was $1.25 billion. These cash-flow gains support ongoing product investment despite near-term softness in advertising demand.
The combination of rising revenue, user growth, and stronger cash flow contrasts with the sharp GAAP profit decline and cautious near-term revenue outlook. This creates a risk-reward inflection for investors assessing the stock amid a challenging advertising market.
