Pinterest ((PINS)) has held its Q3 earnings call. Read on for the main highlights of the call.
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Pinterest’s recent earnings call painted a picture of robust growth and strategic advancements, despite some regional challenges. The company reported a strong quarter, with significant user and revenue growth, particularly in international markets. However, the UCAN region faced hurdles due to external economic factors and a decline in ad pricing. Overall, Pinterest’s strategic investments in AI and performance ad platforms are fostering positive engagement and financial health.
Record Growth in Monthly Active Users
Pinterest achieved a milestone in Q3 2025 by reaching 600 million monthly active users, marking the ninth consecutive quarter of record highs. Gen Z emerged as the largest and fastest-growing cohort, now comprising over 50% of the user base, highlighting Pinterest’s appeal to younger demographics.
Significant Revenue Growth
The company reported a 17% year-over-year revenue increase, totaling $1.049 billion for Q3 2025. This growth underscores Pinterest’s strong financial performance and its role as a trusted partner for brands and agencies worldwide.
International Revenue Expansion
International markets showed remarkable growth, with European revenue reaching $193 million, a 41% increase, and the Rest of World revenue at $70 million, a 66% rise. These figures illustrate Pinterest’s successful strategy in exporting its lower funnel playbook globally.
Impressive AI-Powered Features
Pinterest introduced new AI-powered features, such as Pinterest Assistant and multimodal search, enhancing user experience and boosting engagement. Visual search queries saw a 44% year-over-year increase, reflecting the platform’s technological advancements.
Strong Financial Health and Cash Flow
The company reported an adjusted EBITDA of $306 million, with a margin of 29%, and free cash flow of $318 million. These figures highlight Pinterest’s profitability and cash-generative capabilities.
Challenges in UCAN Region
The UCAN region faced challenges with moderating ad spend in the U.S. and Canada. Larger U.S. retailers are navigating tariff-related margin pressures, which impacted overall growth in this region.
Decline in Ad Pricing
Ad pricing declined by 24% year-over-year, primarily due to a growing mix shift from ad impressions in previously unmonetized or undermonetized international markets.
Forward-Looking Guidance
Looking ahead, Pinterest projected a revenue growth of 14% to 16% for Q4 2025, driven by continued investments in AI and product innovation. The company emphasized international monetization as a significant growth vector, with international markets contributing 25% of global revenue in Q3, reflecting ongoing efforts to capitalize on their large user base outside North America.
In summary, Pinterest’s earnings call highlighted a strong quarter characterized by significant growth in users and revenue, especially in international markets. While challenges persist in the UCAN region, the company’s strategic investments in AI and performance ad platforms are expected to drive future growth and engagement.