A month has gone by since the last earnings report for Pinterest (PINS Quick QuotePINS - Free Report) . Shares have added about 6.5% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Pinterest due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

Pinterest Q3 Earnings Miss Estimates Despite Y/Y Revenue Growth

Pinterest reported modest third-quarter 2025 results, wheein 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 Income

On 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.

PINS’ Q3 Revenues

During 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 Details

Adjusted 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 & Liquidity

In 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 Q4

For 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.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates have trended downward during the past month.

The consensus estimate has shifted -9.25% due to these changes.

VGM Scores

At this time, Pinterest has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Pinterest has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.