PINTEREST, INC.
For the period ended Jun 30, 2025. Filed Aug 7, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 7, 2025
PINS$18.96-4.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-08.
0001506293-25-000108
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-07.
0001506293-25-000196
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 109 previous paragraphs and 111 current paragraphs.
78 unchanged; 24 reworded; 9 added; 7 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 15 previous and 15 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (9)
Current report
Overview of Second Quarter Results
Current report
•Share-based compensation expense was $227.2 million, an increase of $30.8 million compared to the three months ended June 30, 2024.
Current report
•Cash, cash equivalents and marketable securities was $2,659.4 million.
Current report
•Headcount was 4,982.
Current report
Sales and marketing for the three and six months ended June 30, 2025 increased by $47.7 million and $75.4 million, respectively, compared to the three and six months ended June 30, 2024. These increases were primarily due to 24% and 16% respective increases in personnel expenses due to higher headcount, $7.8 million and $13.2 million increases in share-based compensation expense, $6.8 million and $15.2 million increases in marketing expenses and for the six months ended June 30, 2025, a $7.4 million increase in outsourced services costs.
Current report
General and administrative for the three and six months ended June 30, 2025 increased by $14.8 million and $13.6 million, respectively, compared to the three and six months ended June 30, 2024. These increases were primarily due to $13.5 million in non-cash charitable contributions.
Current report
On July 4, 2025, the One Big Beautiful Bill Act was signed into law. The legislation includes provisions that allow for the immediate expensing of domestic U.S. research and development expenses and other changes to the U.S. taxation of profits derived from foreign operations. We are currently evaluating the effects of the new legislation on our condensed financial statements and will recognize any adjustments in the period of enactment.
Current report
Given our recent history of generating net income in Ireland, we believe that there is a reasonable possibility that sufficient positive evidence may become available to allow us to determine that the valuation allowance recorded against our Ireland deferred tax assets could be released within the next twelve months. The reversal would result in the recognition of Ireland deferred tax assets and a corresponding income tax benefit in the period the release is recorded. However, the exact timing and amount of the valuation allowance release are subject to change based on our actual operating results.
Current report
Net Income (Loss) and Adjusted EBITDA
Removed paragraphs (7)
Previous report
Overview of First Quarter Results
Previous report
•Share-based compensation expense was $187.4 million, an increase of $25.0 million compared to the three months ended March 31, 2024.
Previous report
•Cash, cash equivalents and marketable securities was $2,615.2 million.
Previous report
•Headcount was 4,778.
Previous report
Sales and marketing for the three months ended March 31, 2025 increased by $27.6 million compared to the three months ended March 31, 2024. The increase was primarily due to a $8.4 million increase in marketing expenses and a 9% increase in personnel expenses due to higher headcount.
Previous report
General and administrative for the three months ended March 31, 2025 decreased by $1.1 million compared to the three months ended March 31, 2024. The decrease was primarily due to a $7.9 million decrease in outsourced services costs, offset by a 10% increase in personnel expenses due to higher headcount.
Previous report
Net income and Adjusted EBITDA
Reworded paragraphs (24)
Previous wording
Our key financial and operating results as of and for the three months ended March 31, 2025 are as follows:
Current wording
Our key financial and operating results as of and for the three months ended June 30, 2025, unless noted otherwise, are as follows:
Previous wording
•Revenue was $855.0 million, an increase of 16% on a reported basis and 17% on a constant currency basis compared to the three months ended March 31, 2024.
Current wording
•Revenue was $998.2 million, an increase of 17% on a reported and constant currency basis compared to the three months ended June 30, 2024.
Previous wording
•Monthly active users ("MAUs") were 570 million, an increase of 10% compared to March 31, 2024.
Current wording
•Monthly active users ("MAUs") were 578 million, an increase of 11% compared to June 30, 2024.
Previous wording
•Loss from operations was $35.5 million, a decrease of$18.9 million compared to the three months ended March 31, 2024.
Current wording
•Loss from operations was $4.3 million, a decrease of$17.1 million compared to the three months ended June 30, 2024.
Previous wording
•Net income was $8.9 million and Adjusted EBITDA was $171.6 million.
Current wording
•Net income was $38.8 million and Adjusted EBITDA was $250.8 million.
Previous wording
•Net cash provided by operating activities was $363.7 million and free cash flow was $356.4 million.
Current wording
•Net cash provided by operating activities was $571.4 million and free cash flow was $553.1 million during the six months ended June 30, 2025.
Previous wording
For the three months ended March 31, 2025, global ARPU was $1.52, which represents an increase of 5% compared to the three months ended March 31, 2024. For the three months ended March 31, 2025, U.S. and Canada ARPU was $6.54, an increase of 8%, Europe ARPU was $1.00, an increase of 17%, and Rest of World ARPU was $0.14, an increase of 29% compared to the three months ended March 31, 2024.
Current wording
For the three months ended June 30, 2025, global ARPU was $1.74, which represents an increase of 6% compared to the three months ended June 30, 2024. For the three months ended June 30, 2025, U.S. and Canada ARPU was $7.29, an increase of 6%, Europe ARPU was $1.30, an increase of 26%, and Rest of World ARPU was $0.19, an increase of 44% compared to the three months ended June 30, 2024.
Previous wording
(1)On a constant currency basis, revenue for the three months ended March 31, 2025 was $865.1 million due to a $10.1 million unfavorable impact of changes in foreign exchange rates.
Current wording
(1)On a constant currency basis, revenue for the three and six months ended June 30, 2025 was $995.1 million and $1,860.1 million, respectively, due to a $3.1 million favorable and $6.9 million unfavorable impact of changes in foreign exchange rates.
Previous wording
Three Months Ended March 31, 2025 and 2024
Current wording
Three and Six Months Ended June 30, 2025 and 2024
Previous wording
Revenue for the three months ended March 31, 2025 increased by $115.0 million compared to the three months ended March 31, 2024 primarily due to growth from our awareness and conversion objectives. Revenue on a constant currency basis increased by 17% compared to the three months ended March 31, 2024. Revenue growth was primarily driven by a 5% increase in ARPU supported by a 10% increase in average MAUs. The number of advertisements served increased by 49% while the price of advertisements decreased by 22% for the three months ended March 31, 2025 compared to the three months ended March 31, 2024.
Current wording
Revenue for the three and six months ended June 30, 2025 increased by $144.5 million and $259.6 million, respectively, compared to the three and six months ended June 30, 2024 primarily due to growth from our conversion and awareness objectives. Revenue on a constant currency basis increased by 17% for the three and six month periods ended June 30, 2025, compared to three and six months ended June 30, 2024. Revenue growth was primarily driven by 6% and 5% respective increases in ARPU supported by an 11% increase in average MAUs for the three and six months ended June 30, 2025 compared to the three and six months ended June 30, 2024. The number of advertisements served increased by 55% and 52% while the price of advertisements decreased by 25% and 24% for the three and six months ended June 30, 2025 compared to the three and six months ended June 30, 2024, respectively.
Previous wording
Revenue based on our estimate of the geographic location of our users increased by 12% in U.S. and Canada to $663.5 million, Europe revenue increased by 24% to $146.7 million, and Rest of World revenue increased by 49% to $44.9 million for the three months ended March 31, 2025 compared to the three months ended March 31, 2024.
Current wording
Revenue based on our estimate of the geographic location of our users increased by 11% in U.S. and Canada to $744.7 million and $1,408.1 million, Europe revenue increased by 34% and 29% to $190.6 million and $337.3 million, and Rest of World revenue increased by 65% and 58% to $62.9 million and $107.8 million for the three and six months ended June 30, 2025 compared to the three and six months ended June 30, 2024, respectively.
Previous wording
Cost of revenue for the three months ended March 31, 2025 increased by $18.2 million compared to the three months ended March 31, 2024 primarily due to increased users and engagement.
Current wording
Cost of revenue for the three and six months ended June 30, 2025 increased by $18.2 million and $36.3 million, respectively, compared to the three and six months ended June 30, 2024 primarily due to increased users and engagement.
Previous wording
Research and development for the three months ended March 31, 2025 increased by $51.4 million compared to the three months ended March 31, 2024. The increase was primarily due to a 22% increase in personnel expenses due to higher headcount and a $17.1 million increase in share-based compensation expense.
Current wording
Research and development for the three and six months ended June 30, 2025 increased by $46.8 million and $98.2 million, respectively, compared to the three and six months ended June 30, 2024. These increases were primarily due to 17% and 20% respective increases in personnel expenses due to higher headcount and $17.5 million and $34.6 million respective increases in share-based compensation expense.
Previous wording
Interest and other income (expense), net for the three months ended March 31, 2025 increased by $5.1 million compared to the three months ended March 31, 2024. The increase was primarily due to higher foreign currency exchange gains offset by lower returns on our cash equivalents and marketable securities as a result of lower interest rates.
Current wording
Interest and other income (expense), net for the three and six months ended June 30, 2025 increasedby $8.9 million and $14.0 million, respectively, compared to the three and six months ended June 30, 2024, primarily due to higher foreign currency exchange gains offset by lower returns on our cash equivalents and marketable securities as a result of lower interest rates.
Previous wording
Benefit from income taxes was primarily due to excess tax benefits from share-based compensation for the three months ended March 31, 2025, and due to losses generated in U.S. federal, state and certain foreign jurisdictions for the three months ended March 31, 2024.
Current wording
Benefit from income taxes was primarily due to excess tax benefits from share-based compensation for the three and six months ended June 30, 2025, and due to losses generated in U.S. federal, state and certain foreign jurisdictions for the three and six months ended June 30, 2024.
Previous wording
Net income for the three months ended March 31, 2025 was $8.9 million compared to net loss of $24.8 million for the three months ended March 31, 2024, and Adjusted EBITDA was $171.6 million for the three months ended March 31, 2025 compared to $126.1 million for the three months ended March 31, 2024, due to the factors described above. See “Non-GAAP Financial Measure” for more information and for a reconciliation of net income (loss), the most directly comparable financial measure calculated and presented in accordance with GAAP, to Adjusted EBITDA.
Current wording
Net income for the three and six months ended June 30, 2025 was $38.8 million and $47.7 million compared to net income of $8.9 million for the three months ended June 30, 2024 and a net loss of $15.9 million for the six months ended June 30, 2024. Adjusted EBITDA was $250.8 million and $422.4 million for the three and six months ended June 30, 2025 compared to $188.3 million and $314.4 million for the three and six months ended June 30, 2024, due to the factors described above. See “Non-GAAP Financial Measure” for more information and for a reconciliation of net income (loss), the most directly comparable financial measure calculated and presented in accordance with GAAP, to Adjusted EBITDA.
Previous wording
We finance our operations primarily through payments received from our customers. Our primary uses of cash are personnel-related costs and the cost of hosting our website and mobile application. As of March 31, 2025, we had $2,615.2 million in cash, cash equivalents and marketable securities. Our cash equivalents and marketable securities are primarily invested in short-duration fixed income securities, including government and investment-grade corporate debt securities and money market funds. As of March 31, 2025, $176.6 million of our cash and cash equivalents was held by our foreign subsidiaries.
Current wording
We finance our operations primarily through payments received from our customers. Our primary uses of cash are personnel-related costs and the cost of hosting our website and mobile application. As of June 30, 2025, we had $2,659.4 million in cash, cash equivalents and marketable securities. Our cash equivalents and marketable securities are primarily invested in short-duration fixed income securities, including government and investment-grade corporate debt securities and money market funds. As of June 30, 2025, $177.4 million of our cash and cash equivalents was held by our foreign subsidiaries.
Previous wording
Our total borrowing capacity under the revolving credit facility is $500.0 million as of March 31, 2025. We have not issued any letters of credit and are in compliance with all covenants under the 2022 revolving credit facility as of March 31, 2025.
Current wording
Our total borrowing capacity under the 2022 revolving credit facility is $500.0 million as of June 30, 2025. We have not issued any letters of credit and are in compliance with all covenants under the 2022 revolving credit facility as of June 30, 2025.
Previous wording
In November 2024, our board of directors authorized a stock repurchase program of up to $2.0 billion of our Class A common stock. Under the stock repurchase program, we are authorized to repurchase, from time-to-time, shares of our Class A common stock through open market purchases, in privately negotiated transactions or in such other manner as permitted by securities law and as determined by management at such time and in such amounts as management may decide. The program does not obligate us to repurchase any specific number of shares and may be modified, suspended or discontinued at any time. The timing, manner, price and amount of any repurchases are determined by management in its discretion and depend on a variety of factors, including legal requirements, price and economic and market conditions. During the three months ended March 31, 2025, we repurchased and retired 4,997,892 shares of our Class A common stock for an aggregate purchase price of $175.0 million at an average price per share of $35.01. As of March 31, 2025, $1,724.8 million remained available for repurchases under the stock repurchase program.
Current wording
In November 2024, our board of directors authorized a stock repurchase program of up to $2.0 billion of our Class A common stock. Under the stock repurchase program, we are authorized to repurchase, from time-to-time, shares of our Class A common stock through open market purchases, in privately negotiated transactions or in such other manner as permitted by securities law and as determined by management at such time and in such amounts as management may decide. The program does not obligate us to repurchase any specific number of shares and may be modified, suspended or discontinued at any time. The timing, manner, price and amount of any repurchases are determined by management in its discretion and depend on a variety of factors, including legal requirements, price and economic and market conditions. During the six months ended June 30, 2025, we repurchased and retired 6,557,179 shares of our Class A common stock for an aggregate purchase price of $227.6 million at an average price per share of $34.71. As of June 30, 2025, $1,672.2 million remained available for repurchases under the stock repurchase program.
Previous wording
For the three months ended March 31, 2025 and 2024, our net cash flows were as follows (in thousands):
Current wording
For the six months ended June 30, 2025 and 2024, our net cash flows were as follows (in thousands):
Previous wording
Cash flows from operating activities consist of our net income (loss) adjusted for certain non-cash reconciling items, such as share-based compensation expense, depreciation and amortization, deferred income taxes, net amortization of investment premium and discount and changes in our operating assets and liabilities. Net cash provided by operating activities increased by $7.6 million for the three months ended March 31, 2025 compared to the three months ended March 31, 2024 primarily due to an increase in our net income as adjusted for certain non-cash items offset by a decrease in accrued expenses and other liabilities due to timing of payments to vendors.
Current wording
Cash flows from operating activities consist of our net income (loss) adjusted for certain non-cash reconciling items, such as share-based compensation expense, depreciation and amortization, deferred income taxes, net amortization of investment premium and discount, non-cash charitable contributions and changes in our operating assets and liabilities. Net cash provided by operating activities increased by $108.8 million for the six months ended June 30, 2025 compared to the six months ended June 30, 2024 primarily due to an increase in our net income as adjusted for certain non-cash items offset by a decrease in accrued expenses and other liabilities due to timing of payments to vendors.
Previous wording
Cash flows from investing activities consist of capital expenditures for improvements to new and existing office spaces. We also actively manage our operating cash and cash equivalent balances and invest excess cash in short-duration marketable securities, the sales and maturities of which we use to fund our ongoing cash requirements. Net cash provided by (used in) investing activities increased by $15.1 million for the three months ended March 31, 2025 compared to the three months ended March 31, 2024, primarily due to an increase in maturities of marketable securities offset by an increase in purchases of marketable securities.
Current wording
Cash flows from investing activities consist of capital expenditures for improvements to new and existing office spaces. We also actively manage our operating cash and cash equivalent balances and invest excess cash in short-duration marketable securities, the sales and maturities of which we use to fund our ongoing cash requirements. Net cash used in investing activities decreased by $140.2 million for the six months ended June 30, 2025 compared to the six months ended June 30, 2024, primarily due to an increase in maturities of marketable securities offset by an increase in purchases of marketable securities.
Previous wording
Cash flows from financing activities consist of tax remittances on release of RSUs and RSAs, repurchases of our Class A common stock and proceeds from the exercise of stock options. Net cash used in financing activities increased by $177.7 million for the three months ended March 31, 2025 compared to the three months ended March 31, 2024, primarily due to an increase in repurchases of our Class A common stock.
Current wording
Cash flows from financing activities consist of tax remittances on release of RSUs and RSAs, repurchases of our Class A common stock and proceeds from the exercise of stock options. Net cash used in financing activities increased by $185.5 million for the six months ended June 30, 2025 compared to the six months ended June 30, 2024, primarily due to an increase in repurchases of our Class A common stock.
Previous wording
Free cash flow increased $12.4 million for the three months ended March 31, 2025 compared to the three months ended March 31, 2024 and consists of net cash provided by operating activities and purchases of property and equipment. See “Non-GAAP Financial Measures” for more information and for a reconciliation of net cash flows provided by operating activities, the most directly comparable financial measure calculated and presented in accordance with GAAP, to free cash flow.
Current wording
Free cash flow increased $107.4 million for the six months ended June 30, 2025 compared to the six months ended June 30, 2024 and consists of net cash provided by operating activities and purchases of property and equipment. See “Non-GAAP Financial Measures” for more information and for a reconciliation of net cash flows provided by operating activities, the most directly comparable financial measure calculated and presented in accordance with GAAP, to free cash flow.