PINTEREST, INC.
For the period ended Mar 31, 2026. Filed May 4, 2026.
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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.
Mar 31, 2026 · Filed May 4, 2026
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 2025-09-30; filed 2025-11-04.
0001506293-25-000229
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-04.
0001506293-26-000068
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 113 previous paragraphs and 125 current paragraphs.
68 unchanged; 33 reworded; 22 added; 12 removed; 0 previous and 2 current paragraphs rearranged.
Tables are not compared: 15 previous and 17 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 (22)
Current report
Overview of First Quarter Results
Current report
•Share-based compensation expense was $231.4 million, an increase of $44.0 million compared to the three months ended March 31, 2025.
Current report
•Loss from operations was $80.3 million, an increase of $44.8 million compared to the three months ended March 31, 2025.
Current report
•Cash, cash equivalents and marketable securities was $1,298.6 million.
Current report
•Headcount was 5,287.
Current report
Restructuring
Current report
In January 2026, we initiated a global restructuring plan (the “Restructuring Plan”) to support our transformation initiatives, including but not limited to (i) reallocating resources to AI-focused roles and teams that drive AI adoption and execution, (ii) prioritizing AI‑powered products and capabilities, and (iii) accelerating the transformation of our sales and go-to-market approach.
Current report
As part of the Restructuring Plan, we commenced a workforce reduction of less than 15% as well as office space reductions.
Current report
Restructuring charges during the three months ended March 31, 2026 were as follows (in thousands):
Current report
We expect to incur total charges of $59.6 million to $69.6 million under the Restructuring Plan, including additional charges of $12.5 million to $22.5 million, which we expect to incur through the end of the third quarter of 2026. We will record additional charges under the Restructuring Plan as incurred, and the timing and magnitude of such charges are subject to change. Liabilities under the Restructuring Plan are not material as of March 31, 2026.
Current report
(1)Excludes share-based compensation expense of $9.3 million and amortization expense of $1.4 million included in restructuring charges for the three months ended March 31, 2026.
Current report
Restructuring. Restructuring consists of expenses associated with our global restructuring plan, including employee severance and other personnel costs, share-based compensation expense related to workforce reductions and office space reductions that include abandonment charges related to our operating lease right-of-use assets.
Current report
Research and development for the three months ended March 31, 2026 increased by $49.1 million compared to the three months ended March 31, 2025. The increase was primarily due to a $21.2 million increase in share-based compensation expense and a 15% increase in personnel expenses due to higher headcount.
Current report
General and administrative for the three months ended March 31, 2026 decreased by $2.1 million compared to the three months ended March 31, 2025. The decrease was primarily due to a $15.4 million non income-based tax benefit due to the repeal of Canada's digital services tax, offset by a $6.8 million increase in outsourced services costs and a $4.4 million increase in share-based compensation expense.
Current report
Restructuring
Current report
Restructuring charges for the three months ended March 31, 2026 was $47.1 million primarily due to $36.2 million in severance and other personnel costs, $9.3 million share-based compensation and $1.6 million office space reductions associated with the Restructuring Plan.
Current report
Net Income (Loss) and Adjusted EBITDA
Current report
As of March 31, 2026, we had outstanding convertible senior notes (the "Notes")for a principal amount of$1.0 billion, which will mature on March 1, 2031, subject to earlier conversion, redemption or repurchase. In March 2026, we used the proceeds of the Notes to repurchase shares of our Class A common stock, as discussed below. Upon conversion of any Note, we will pay or deliver, as the case may be and subject to the indenture governing the Notes, cash and shares of our Class A common stock, if any. As of March 31, 2026, the Notes are not eligible for optional conversion.
Current report
Stock Repurchase Programs
Current report
During the three months ended March 31, 2026, we recorded $14.7 million of excise tax resulting from the Inflation Reduction Act of 2022 in relation to stock repurchases under the November 2024 and March 2026 programs.
Current report
Accelerated Share Repurchase Agreement
Current report
In March 2026, we entered into an accelerated share repurchase agreement (the “ASR”) with a financial institution to repurchase $1.0 billion of our Class A common stock as part of our March 2026 program. Under the terms of the ASR, we made an up-front payment of $1.0 billion and received an initial delivery of 41,279,670 shares of our Class A common stock, which represents approximately 80% of the total shares we expect to receive under the ASR. We accounted for the remaining 20% of the total shares we expect to receive under the ASR as an unsettled forward contract indexed to our own stock and recorded the full payment of $1.0 billion as a reduction to stockholders' equity during the three months ended March 31, 2026. The final number of shares to be repurchased under the ASR will be based on the average of the daily volume-weighted average price of our Class A common stock during the term of the ASR, less a discount and subject to adjustments pursuant to the terms and conditions of the ASR. The final settlement of the ASR will be no later than May 1, 2026 and may be accelerated at the option of the financial institution. If the total number of shares to be delivered is greater than the initial number of shares delivered in March 2026, we will receive the remaining shares of our Class A common stock from the financial institution. If the total number of shares to be delivered is less than the number of shares delivered in March 2026, we will be required to deliver shares of our Class A common stock or make a cash payment equal to the value of those shares, at our election.
Removed paragraphs (12)
Previous report
Overview of Third Quarter Results
Previous report
•Share-based compensation expense was $235.1 million, an increase of $27.2 million compared to the three months ended September 30, 2024.
Previous report
•Income from operations was $58.5 million, an increase of$64.4 million compared to the three months ended September 30, 2024.
Previous report
•Cash, cash equivalents and marketable securities was $2,671.3 million.
Previous report
•Headcount was 5,205.
Previous report
(1)We began excluding payroll tax expense related to share-based compensation from Adjusted EBITDA in the fourth quarter of 2024 because these taxes are variable due to our stock price and other factors outside our control and therefore are not reflective of our ongoing business operations or the underlying trends in our business. Accordingly, although payroll tax expense related to share-based compensation is a cash expense that we will continue to incur in the future, we believe excluding this expense provides investors with a better understanding of the performance of our core business and serves as a tool for investors to use in comparing our core business operating results over multiple periods with other companies in our industry. Prior period amounts have been restated to conform to this presentation.
Previous report
Three and Nine Months Ended September 30, 2025 and 2024
Previous report
Research and development for the three and nine months ended September 30, 2025 increased by $44.6 million and $142.8 million, respectively, compared to the three and nine months ended September 30, 2024. These increases were primarily due to 18% and 19% respective increases in personnel expenses due to higher headcount, $14.3 million and $48.9 million respective increases in share-based compensation expense, and for the nine months ended September 30, 2025, a $10.0 million increase in allocated facilities costs.
Previous report
General and administrative for the three and nine months ended September 30, 2025 decreased by $30.7 million and $17.1 million, respectively, compared to the three and nine months ended September 30, 2024. These decreases were primarily due to a legal settlement of $34.7 million, net of insurance proceeds in 2024, and for the nine months ended September 30, 2025, a $15.3 million decrease in outsourced services costs offset by $13.5 million in non-cash charitable contributions, a $9.4 million increase in share-based compensation expense and an 11% increase in personnel expenses due to higher headcount.
Previous report
Benefit from Income Taxes
Previous report
Net Income and Adjusted EBITDA
Previous report
Net income for the three and nine months ended September 30, 2025 was $92.1 million and $139.8 million compared to net income of $30.6 million and $14.6 million for the three and nine months ended September 30, 2024. Adjusted EBITDA was $306.1 million and $728.5 million for the three and nine months ended September 30, 2025 compared to
Reworded paragraphs (33)
Previous wording
•Revenue was $1,049.2 million, an increase of 17% on a reported and 16% on a constant currency basis compared to the three months ended September 30, 2024.
Current wording
•Revenue was $1,007.5 million, an increase of 18% on a reported and 15% on a constant currency basis compared to the three months ended March 31, 2025.
Previous wording
•Monthly active users ("MAUs") were 600 million, an increase of 12% compared to September 30, 2024.
Current wording
•Monthly active users ("MAUs") were 631 million, an increase of 11% compared to March 31, 2025.
Previous wording
•Net income was $92.1 million and Adjusted EBITDA was $306.1 million.
Current wording
•Net loss was $73.6 million and Adjusted EBITDA was $206.5 million.
Previous wording
•Net cash provided by operating activities was $893.1 million and free cash flow was $871.5 million during the nine months ended September 30, 2025.
Current wording
•Net cash provided by operating activities was $328.0 million and free cash flow was $311.7 million during the three months ended March 31, 2026.
Previous wording
For the three months ended September 30, 2025, global ARPU was $1.78, which represents an increase of 5% compared to the three months ended September 30, 2024. For the three months ended September 30, 2025, U.S. and Canada ARPU was $7.64, an increase of 5%, Europe ARPU was $1.31, an increase of 31%, and Rest of World ARPU was $0.21, an increase of 44% compared to the three months ended September 30, 2024.
Current wording
For the three months ended March 31, 2026, global ARPU was $1.61, which represents an increase of 6% compared to the three months ended March 31, 2025. For the three months ended March 31, 2026, U.S. and Canada ARPU was $7.12, an increase of 9%, Europe ARPU was $1.17, an increase of 17%, and Rest of World ARPU was $0.20, an increase of 38% compared to the three months ended March 31, 2025.
Previous wording
Adjusted EBITDA, constant currency revenue and free cash flow should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. There are a number of limitations related to the use of these non-GAAP financial measures rather than net income, revenue and net cash provided by operations, the nearest GAAP equivalents. For example,
Current wording
Adjusted EBITDA, constant currency revenue and free cash flow should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. There are a number of limitations related to the use of these non-GAAP financial measures rather than net income (loss), revenue and net cash provided by operations, the nearest GAAP equivalents. For example,
Previous wording
The following table presents a reconciliation of net income, the most directly comparable financial measure calculated and presented in accordance with GAAP, to Adjusted EBITDA (in thousands):
Current wording
The following table presents a reconciliation of net income (loss), the most directly comparable financial measure calculated and presented in accordance with GAAP, to Adjusted EBITDA (in thousands):
Previous wording
(2)On November 1, 2024, we reached a settlement to resolve pending litigation relating to allegations concerning the early development of Pinterest. We recorded legal settlement expense of $34.7 million, net of insurance proceeds, for the three and nine months ended September 30, 2024, which we have excluded from Adjusted EBITDA because it is non-recurring and not reflective of our ongoing business operations or the underlying trends in our business.
Current wording
(2)We have excluded restructuring charges associated with the Restructuring Plan from Adjusted EBITDA because it is non-recurring and not reflective of our ongoing business operations or the underlying trends in our business.
Previous wording
(1)On a constant currency basis, revenue for the three and nine months ended September 30, 2025 was $1,039.3 million and $2,899.4 million, respectively, due to $9.9 million and $3.0 million favorable impacts of changes in foreign exchange rates for the respective periods.
Current wording
(1)On a constant currency basis, revenue for the three months ended March 31, 2026 was $984.3 million due to a $23.2 million favorable impact of changes in foreign exchange rates for the respective periods.
Previous wording
Revenue. We generate revenue by delivering ads on our website and mobile application. Advertisers purchase ads directly with us or through their relationships with advertising agencies. We recognize revenue only after transferring control of promised goods or services to customers, which occurs when a user clicks on an ad contracted on a cost per click ("CPC") basis, views an ad contracted on a cost per thousand impressions ("CPM") basis or cost per day ("CPD") basis or views a video ad contracted on a cost per view ("CPV") basis. We recognize revenue over the service period for ads contracted on a CPD basis, which do not contain minimum impression guarantees.
Current wording
Revenue. We generate revenue by delivering ads on our website, mobile application and connected TV platforms. Advertisers purchase ads directly with us or through their relationships with advertising agencies. We recognize revenue only after transferring control of promised goods or services to customers, which occurs when a user clicks on an ad contracted on a cost per click ("CPC") basis or views an ad contracted on a cost per thousand impressions ("CPM") basis or cost per day ("CPD") basis. We recognize revenue over the service period for ads contracted on a CPD basis, which do not contain minimum impression guarantees.
Previous wording
Sales and Marketing. Sales and marketing consists primarily of personnel-related expense, including salaries, commissions, benefits and share-based compensation for our employees engaged in sales, sales support, marketing and customer service functions, advertising and promotional expenditures, professional services, amortization of acquired intangible assets and allocated facilities and other supporting overhead costs. Our marketing efforts also include user- and advertiser-focused marketing expenditures.
Current wording
Sales and Marketing. Sales and marketing consists primarily of personnel-related expense, including salaries, commissions, benefits and share-based compensation for our employees engaged in sales, sales support, marketing and customer service functions, advertising and promotional expenditures, services provided by third-party resellers, professional services, amortization of acquired intangible assets and allocated facilities and other supporting overhead costs. Our marketing efforts also include user- and advertiser-focused marketing expenditures.
Previous wording
General and Administrative. General and administrative consists primarily of personnel-related expense, including salaries, benefits and share-based compensation for our employees engaged in finance, legal, human resources and other administrative functions, professional services, including outside legal and accounting services, charitable contributions and allocated facilities and other supporting overhead costs.
Current wording
General and Administrative. General and administrative consists primarily of personnel-related expense, including salaries, benefits and share-based compensation for our employees engaged in finance, legal, human resources and other administrative functions, professional services, including outside legal and accounting services, charitable contributions, non income-based taxes and allocated facilities and other supporting overhead costs.
Previous wording
Interest and Other Income (Expense), Net. Interest and other income (expense), net consists primarily of interest earned on our cash equivalents and marketable securities and foreign currency exchange gains and losses.
Current wording
Interest and Other Income (Expense), Net. Interest and other income (expense), net consists primarily of interest earned on our cash equivalents and marketable securities, foreign currency exchange gains and losses, amortization of debt issuance costs and interest expense for our convertible senior notes.
Previous wording
Benefit from income taxes. Benefit from income taxes consists primarily of income taxes in foreign jurisdictions and U.S. federal and state income taxes.
Current wording
Provision for (Benefit from) Income Taxes. Provision for (benefit from) income taxes consists primarily of income taxes in foreign jurisdictions and U.S. federal and state income taxes.
Previous wording
(2)See “Non-GAAP Financial Measure” for more information and for a reconciliation of net income, the most directly comparable financial measure calculated and presented in accordance with GAAP, to Adjusted EBITDA.
Current wording
(2)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
Revenue for the three and nine months ended September 30, 2025 increased by $150.8 million and $410.4 million, respectively, compared to the three and nine months ended September 30, 2024 primarily due to growth from our conversion and awareness objectives. Revenue on a constant currency basis increased by 16% for the three and nine months ended September 30, 2025, compared to the three and nine months ended September 30, 2024. Revenue growth was primarily driven by a 5% increase in ARPU supported by a 12% increase in average MAUs for the three and nine months ended September 30, 2025 compared to the three and nine months ended September 30, 2024. The number of advertisements served increased by 54% and 53% while the price of advertisements decreased by 24% for the three and nine months ended September 30, 2025 compared to the three and nine months ended September 30, 2024, respectively.
Current wording
Revenue for the three months ended March 31, 2026 increased by $152.5 million compared to the three months ended March 31, 2025 primarily due to growth from our conversion and, to a lesser extent, consideration objectives. Revenue increased 18% on a reported and 15% on a constant currency basis compared to the three months ended March 31, 2025. Revenue growth was primarily driven by a 6% increase in ARPU supported by an 11% increase in average MAUs for the three months ended March 31, 2026 compared to the three months ended March 31, 2025. The number of advertisements served increased by 24% while the price of advertisements decreased by 5% for the three months ended March 31, 2026 compared to the three months ended March 31, 2025.
Previous wording
Revenue based on our estimate of the geographic location of our users increased by 9% in U.S. and Canada to $786.0 million and $2,194.1 million, Europe revenue increased by 41% and 34% to $193.2 million and $530.5 million, and Rest of World revenue increased by 66% and 61% to $70.0 million and $177.8 million for the three and nine months ended September 30, 2025 compared to the three and nine months ended September 30, 2024, respectively.
Current wording
Revenue based on our estimate of the geographic location of our users increased by 13% in U.S. and Canada to $750.4 million, Europe revenue increased by 27% to $185.6 million, and Rest of World revenue increased by 59% to $71.5 million for the three months ended March 31, 2026 compared to the three months ended March 31, 2025.
Previous wording
Cost of revenue for the three and nine months ended September 30, 2025 increased by $24.9 million and $61.2 million, respectively, compared to the three and nine months ended September 30, 2024 primarily due to increased users and engagement.
Current wording
Cost of revenue for the three months ended March 31, 2026 increased by $39.3 million compared to the three months ended March 31, 2025 primarily due to increased users and engagement.
Previous wording
Sales and marketing for the three and nine months ended September 30, 2025 increased by $47.6 million and $123.0 million, respectively, compared to the three and nine months ended September 30, 2024. These increases were primarily due to 31% and 21% respective increases in personnel expenses due to higher headcount, $7.9 million and $21.1 million respective increases in share-based compensation expense, and for the nine months ended September 30, 2025, a $16.4 million increase in marketing expenses and a $13.0 million increase in outsourced services costs.
Current wording
Sales and marketing for the three months ended March 31, 2026 increased by $63.9 million compared to the three months ended March 31, 2025. The increase was primarily due to a 21% increase in personnel expenses due to higher headcount, a $16.1 million increase in marketing expenses, a $12.9 million increase in outsourced services costs and a $8.6 million increase in share-based compensation expense.
Previous wording
Interest and other income (expense), net for the three months ended September 30, 2025 decreased by $7.0 million compared to the three months ended September 30, 2024, primarily due to higher foreign currency exchange losses and lower returns on our cash equivalents and marketable securities as a result of lower interest rates. Interest and other income (expense), net for the nine months ended September 30, 2025 increased by $6.9 million compared to the nine months ended September 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.
Current wording
Interest and other income (expense), net for the three months ended March 31, 2026 decreased by $15.0 million compared to the three months ended March 31, 2025. The decrease was primarily due to lower invested balances and returns on our cash equivalents and marketable securities as a result of lower interest rates and lower foreign currency exchange gains.
Previous wording
Benefit from income taxes was primarily due to excess tax benefits from share-based compensation for the three and nine months ended September 30, 2025, and due to losses generated in U.S. federal, state and certain foreign jurisdictions for the three and nine months ended September 30, 2024.
Current wording
Provision for income taxes was primarily due to tax deficiencies from share-based compensation offset by tax benefits from losses generated for the three months ended March 31, 2026. Benefit from income taxes was primarily due to excess tax benefits from shared-based compensation for the three months ended March 31, 2025.
Previous wording
On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted 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. The provisions of the OBBBA have multiple effective dates from 2025 through 2027. The changes effective in 2025 are included in our income tax benefits for thethree and nine months ended September 30, 2025 and were not material. We are currently evaluating the impact of the legislation on our condensed consolidated financial statements for future periods.
Current wording
On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted 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. The provisions of the OBBBA have multiple effective dates from 2025 through 2027. The changes effective in 2026 are included in our income tax benefits for the three months ended March 31, 2026 and were not material.
Previous wording
$247.0 million and $561.4 million for the three and nine months ended September 30, 2024, due to the factors described above. See “Non-GAAP Financial Measure” for more information and for a reconciliation of net income, the most directly comparable financial measure calculated and presented in accordance with GAAP, to Adjusted EBITDA.
Current wording
Net loss for the three months ended March 31, 2026 was $73.6 million compared to net income of $8.9 million for the three months ended March 31, 2025, and Adjusted EBITDA was $206.5 million for the three months ended March 31, 2026 compared to $171.6 million for the three months ended March 31, 2025, 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 September 30, 2025, we had $2,671.3 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 September 30, 2025, $190.5 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 well as our stock repurchase program as described below. As of March 31, 2026, we had $1,298.6 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, 2026, $215.9 million of our cash and cash equivalents was held by our foreign subsidiaries.
Previous wording
There have been no material changes to our material cash requirements or non-cancelable contractual commitments since December 31, 2024.
Current wording
There have been no other material changes to our material cash requirements or non-cancelable contractual commitments since December 31, 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 nine months ended September 30, 2025, we repurchased and retired 12,180,904 shares of our Class A common stock for an aggregate purchase price of $427.0 million at an average price per share of $35.06. As of September 30, 2025, $1,472.8 million remained available for repurchases under the stock repurchase program.
Current wording
In March 2026, our board of directors authorized a new stock repurchase program of up to $3.5 billion of our Class A common stock (the "March 2026 program") and canceled the November 2024 program, under which $499.9 million had remained available for repurchase. Under the March 2026 program, we are authorized to repurchase, from time to time, shares of our Class A common stock through open market purchases, block transactions, privately negotiated purchase transactions or in such other manner as deemed advisable by management. In addition, we may establish one or more trading plans pursuant to Rule 10b5-1 under the Securities Exchange Act of 1934, as amended, or enter into arrangements with brokers or other third parties for accelerated purchases of our Class A common stock. The March 2026 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, 2026, we repurchased and retired 26,188,857 shares of our Class A common stock through open market purchases under the March 2026 program for an aggregate purchase price of $493.0 million at an average price per share of $18.83. We also repurchased and retired 41,279,670 shares of our Class A common stock through an accelerated share repurchase agreement under the March 2026 program as described below. As of March 31, 2026, $2.0 billion remained available for repurchases under the March 2026 program.
Previous wording
For the nine months ended September 30, 2025 and 2024, our net cash flows were as follows (in thousands):
Current wording
For the three months ended March 31, 2026 and 2025, our net cash flows and free cash flow were as follows (in thousands):
Previous wording
Cash flows from operating activities consist of our net income 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 $182.5 million for the nine months ended September 30, 2025 compared to the nine months ended September 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.
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, and changes in our operating assets and liabilities. Net cash provided by operating activities decreased by $35.7 million for the three months ended March 31, 2026 compared to the three months ended March 31, 2025 primarily due to a decrease in our net income as adjusted for certain non-cash items offset by an increase 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 used in investing activities decreased by $84.6 million for the nine months ended September 30, 2025 compared to the nine months ended September 30, 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 and acquisitions of businesses. 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 investing activities increased by $100.9 million for the three months ended March 31, 2026 compared to the three months ended March 31, 2025, primarily due to an increase in net sales of marketable securities offset by the acquisition of tvScientific.
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 decreased by $54.0 million for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024, primarily due to a decrease 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, proceeds from the exercise of stock options and net proceeds from the issuance of the Notes. Net cash used in financing activities increased by $771.4 million for the three months ended March 31, 2026 compared to the three months ended March 31, 2025, primarily due to an increase in repurchases of our Class A common stock offset by net proceeds from the issuance of the Notes.
Previous wording
Free cash flow increased $181.7 million for the nine months ended September 30, 2025 compared to the nine months ended September 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.
Current wording
Free cash flow decreased $44.7 million for the three months ended March 31, 2026 compared to the three months ended March 31, 2025 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.
Previous wording
We generate revenue by delivering ads on our website and mobile application. We recognize revenue only after transferring control of promised goods or services to customers, which occurs when a user clicks on an ad contracted on a CPC basis, views an ad contracted on a CPM or CPD basis or views a video ad contracted on a CPV basis. We recognize revenue over the service period for ads contracted on a CPD basis, which do not contain minimum impression guarantees. We typically bill customers on a CPC, CPM, CPV or CPD basis, and our payment terms vary by customer type and location. The term between billing and payment due dates is not significant.
Current wording
We generate revenue by delivering ads on our website, mobile application and connected TV platforms. We recognize revenue only after transferring control of promised goods or services to customers, which occurs when a user clicks on an ad contracted on a CPC basis, or views an ad contracted on a CPM or CPD basis. We recognize revenue over the service period for ads contracted on a CPD basis, which do not contain minimum impression guarantees. We typically bill customers on a CPC, CPM or CPD basis, and our payment terms vary by customer type and location. The term between billing and payment due dates is not significant.
Previous wording
We recognize tax benefits from uncertain tax positions when we believe it is more likely than not that the tax position is sustainable on examination by tax authorities based on its technical merits. We recognize taxes on Global Intangible Low-Taxed Income as incurred.
Current wording
We recognize tax benefits from uncertain tax positions when we believe it is more likely than not that the tax position is sustainable on examination by tax authorities based on its technical merits. We recognize taxes on Net Controlled Foreign Corporation Tested Income as incurred.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
Three Months Ended March 31, 2026 and 2025
Current report — wording carried from elsewhere
Provision for (Benefit from) Income Taxes