10-Q · May 4, 2026
Pinterest reported strong financial results in its Q1 2026 10-Q filing, exceeding revenue and EPS estimates with total revenue of $1.007 billion, up 18% year-over-year. Despite a notable increase in average MAUs by 11%…
Earnings analysis · 10-Q
PINS earnings analysis
Filed August 4, 2026 · Our reading of the company's report
The latest report
Pinterest delivered strong top-line momentum, with Q2 revenue of $1.180 billion up 18% year over year and all geographic regions growing, supported by 640 million MAUs and $1.86 global ARPU. Profitability was weaker on…
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Pinterest delivered strong top-line momentum, with Q2 revenue of $1.180 billion up 18% year over year and all geographic regions growing, supported by 640 million MAUs and $1.86 global ARPU. Profitability was weaker on a GAAP basis: diluted EPS was negative $0.08, net loss was $46.7 million, and operating margin was negative 4.7%, although both gross and operating margins improved sequentially from Q1. Cash generation remained strong at $620.9 million of six-month operating cash flow, but heavy buybacks, new $1.0 billion convertibles, restructuring, and a $3.928 billion remaining AWS commitment add balance-sheet and execution considerations.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-0.08
What stood out
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Revenue growth accelerated to 18%
Q2 revenue rose 18% year over year to $1.180 billion (17% constant currency), accelerating from $1.006 billion in Q1 2026. Growth reflected an 11% increase in MAUs to 640 million and a 7% increase in global ARPU to $1.86.
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Broad-based geographic revenue growth
Every reported geographic revenue category expanded: U.S. and Canada rose 18% to $879.9 million, Europe increased 12% to $212.7 million, and Rest of World grew 38% to $87.0 million.
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Adjusted EBITDA expanded 24%
Adjusted EBITDA increased 24% year over year to $311.3 million despite a GAAP net loss of $46.7 million. The $311.3 million represented a 26.4% adjusted-EBITDA margin on $1.180 billion of revenue.
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Sequential margin recovery, still below year ago
Operating margin improved sequentially to negative 4.7% from negative 8.0% in Q1 2026, while gross margin rose to 78.2% from 76.3%. However, gross margin was below 79.7% in Q2 2025 and operating margin was below negative 0.4%.
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Operating cash flow rose despite higher capex
Six-month operating cash flow increased $49.5 million year over year to $620.9 million. Free cash flow was $581.6 million, down $28.5 million as capital expenditures more than doubled to $39.3 million from $18.3 million.
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Large buyback authorization remains
Capital return was substantial: Pinterest repurchased $1.551 billion of stock in the first six months of 2026, including a $1.000 billion accelerated share repurchase, leaving $1.948 billion available under its authorization.
What to watch
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GAAP loss and operating-margin pressure
GAAP profitability deteriorated from $38.8 million of net income in Q2 2025 to a $46.7 million net loss in Q2 2026. Operating loss widened to $55.2 million from $4.3 million, driven in part by $324.5 million of share-based compensation and $14.3 million of restructuring expense.
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Restructuring execution and charge risk
The restructuring plan involves a workforce reduction of less than 15% and is expected to generate total charges of up to $69.6 million through Q3 2026; $61.4 million had already been incurred during the first six months. Management cautions that benefits may be delayed or not achieved and that costs or cash-flow impacts could exceed expectations.
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Large AWS minimum-spend commitment
The updated AWS pricing addendum requires at least $4.000 billion of cloud-services purchases through May 2031, with $3.928 billion remaining at June 30, 2026. A spending shortfall requires payment of the difference, creating a sizable fixed infrastructure commitment.
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Debt and reduced liquidity flexibility
Liquidity declined following financing and capital return actions: Pinterest had $1.275 billion of cash, cash equivalents and marketable securities against $1.000 billion principal of 1.75% convertible notes due 2031. Net financing cash outflow was $1.327 billion in the first six months of 2026.
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Advertiser spending and pricing sensitivity
Advertising remains the core concentration risk, as substantially all revenue is advertising-derived. Management specifically notes reduced spending by certain advertisers due to tariffs and related retaliatory actions, while Q2 ad-price growth was only 1% despite a 16% increase in ads served.
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AI deployment and regulatory exposure
AI-related regulatory and execution risk has increased with the resource shift toward AI products. The filing notes potential EU AI Act penalties of up to 7% of global annual revenue, while the company is restructuring around AI-focused roles and capabilities.
Management's outlook
The 10-Q does not provide quantitative forward revenue, EPS, or EBITDA guidance; quantitative Q3 outlook was deferred to the separately filed earnings release/call.
Earlier filings 4
10-K · February 12, 2026
Pinterest reports continued multi-year revenue growth and a return to sustained operating profitability in 2025, driven by strong Q4 results (Q4 revenue $1.32B, gross margin 82.8%, operating margin 22.8%). The company…
10-Q · November 4, 2025
Pinterest reported Q3 revenue of $1,049,205 (in thousands), up $150,832 or 16.8% year-over-year from $898,373, and returned to operating profitability with income from operations of $58,516 (in thousands) versus an…
10-Q · August 7, 2025
Pinterest reported Q2 revenue of $998.2M, up $144.5M or ~16.9% year-over-year from $853.7M, with gross margin expanding to 79.7% and operating loss narrowing to $(4.3)M. GAAP diluted EPS improved to $0.06 from $0.01 and…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.