# PINTEREST, INC. (PINS)

Informational only - not investment advice.

CIK: 0001506293
SIC: 7370 Services-Computer Programming, Data Processing, Etc.
SIC breadcrumb: [Services](/division/I/) > [Business Services](/major-group/73/) > [SIC 7370 Services-Computer Programming, Data Processing, Etc.](/industry/7370/)
Latest 10-K filed: 2026-02-12
SEC page: https://www.sec.gov/edgar/browse/?CIK=1506293
Filing source: https://www.sec.gov/Archives/edgar/data/1506293/000150629326000021/pins-20251231.htm

## At a glance

FY2025 · period end 2025-12-31 · filed 2026-02-12 · accession 0001506293-26-000021 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001506293.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 4,221,767,000 USD | 2025 | verified |
| Net income | 416,855,000 USD | 2025 | verified |
| Assets | 5,492,132,000 USD | 2025 | verified |
| Free cash flow | 1,251,889,000 USD | 2025 | computed |
| Net margin | 9.87% | 2025 | computed |
| Operating margin | 7.58% | 2025 | computed |
| Revenue YoY | +15.79% | 2025 | computed |
| ROE | 8.78% | 2025 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | PINS | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | 9.9% | 2.4% | 60 | 31 |
| Operating margin | 7.6% | 4.2% | 57 | 31 |
| Revenue growth | 15.8% | 5.5% | 71 | 32 |
| FCF margin | 29.7% | 15.0% | 87 | 31 |
| ROE | 8.8% | 4.5% | 62 | 27 |
| ROA | 7.6% | 1.6% | 68 | 32 |
| Liabilities / equity | 0.16 | 1.05 | 8 | 27 |
| Current ratio | 7.64 | 1.98 | 94 | 32 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 7370 Services-Computer Programming, Data Processing, Etc., not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 4221767000 | USD | 2025 | 2026-02-12 |
| Net income | 416855000 | USD | 2025 | 2026-02-12 |
| Assets | 5492132000 | USD | 2025 | 2026-02-12 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-12. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001506293.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue |  | 472,852,000 | 755,932,000 | 1,142,761,000 | 1,692,658,000 | 2,578,027,000 | 2,802,574,000 | 3,055,071,000 | 3,646,166,000 | 4,221,767,000 |
| Net income |  | -130,044,000 | -62,974,000 | -1,361,371,000 | -128,323,000 | 316,438,000 | -96,047,000 | -35,610,000 | 1,862,106,000 | 416,855,000 |
| Operating income |  | -137,934,000 | -74,721,000 | -1,388,866,000 | -142,504,000 | 326,187,000 | -101,677,000 | -125,678,000 | 179,817,000 | 319,883,000 |
| Diluted EPS |  |  |  | -3.24 | -0.22 | 0.46 | -0.14 | -0.05 | 2.67 | 0.61 |
| Operating cash flow |  | -102,913,000 | -60,369,000 | 657,000 | 28,826,000 | 752,907,000 | 469,202,000 | 612,961,000 | 964,594,000 | 1,284,264,000 |
| Capital expenditures |  |  |  |  |  |  | 28,984,000 | 8,063,000 | 24,606,000 | 32,375,000 |
| Share buybacks |  |  |  |  |  | 0.00 | 0.00 | 500,000,000 | 600,198,000 | 927,013,000 |
| Assets |  |  |  | 2,393,317,000 | 2,609,459,000 | 3,537,238,000 | 3,862,730,000 | 3,594,405,000 | 5,342,660,000 | 5,492,132,000 |
| Liabilities |  |  |  | 369,612,000 | 367,088,000 | 498,495,000 | 581,076,000 | 503,725,000 | 591,506,000 | 746,894,000 |
| Stockholders' equity | -448,286,000 | -546,464,000 |  | 2,023,705,000 | 2,242,371,000 | 3,038,743,000 | 3,281,654,000 | 3,090,680,000 | 4,751,154,000 | 4,745,238,000 |
| Cash and cash equivalents |  | 71,468,000 | 122,509,000 | 649,666,000 | 669,230,000 | 1,419,630,000 | 1,611,063,000 | 1,361,936,000 | 1,136,460,000 | 969,342,000 |
| Free cash flow |  |  |  |  |  |  | 440,218,000 | 604,898,000 | 939,988,000 | 1,251,889,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin |  | -27.50% | -8.33% | -119.13% | -7.58% | 12.27% | -3.43% | -1.17% | 51.07% | 9.87% |
| Operating margin |  | -29.17% | -9.88% | -121.54% | -8.42% | 12.65% | -3.63% | -4.11% | 4.93% | 7.58% |
| Return on equity |  |  |  | -67.27% | -5.72% | 10.41% | -2.93% | -1.15% | 39.19% | 8.78% |
| Return on assets |  |  |  | -56.88% | -4.92% | 8.95% | -2.49% | -0.99% | 34.85% | 7.59% |
| Liabilities / equity |  |  |  | 0.18 | 0.16 | 0.16 | 0.18 | 0.16 | 0.12 | 0.16 |
| Current ratio |  |  | 8.20 | 11.74 | 11.51 | 12.25 | 9.08 | 10.53 | 8.75 | 7.64 |

## As-reported value updates

No tracked differences above grepcent's stated thresholds and capped precision rule were found between the earliest XBRL-filed value and the value currently on file for the standardized annual metrics grepcent tracks.


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-04. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001506293.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2022-Q3 | 2022-09-30 |  |  | -0.10 | reported discrete quarter |
| 2023-Q1 | 2023-03-31 |  |  | -0.31 | reported discrete quarter |
| 2023-Q2 | 2023-06-30 |  |  | -0.05 | reported discrete quarter |
| 2023-Q3 | 2023-09-30 | 763,203,000 | 6,733,000 | 0.01 | reported discrete quarter |
| 2023-Q4 | 2023-12-31 | 981,262,000 | 201,178,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2024-03-31 | 739,983,000 | -24,812,000 | -0.04 | reported discrete quarter |
| 2024-Q2 | 2024-06-30 | 853,680,000 | 8,887,000 | 0.01 | reported discrete quarter |
| 2024-Q3 | 2024-09-30 | 898,373,000 | 30,556,000 | 0.04 | reported discrete quarter |
| 2024-Q4 | 2024-12-31 | 1,154,130,000 | 1,847,475,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2025-03-31 | 854,988,000 | 8,922,000 | 0.01 | reported discrete quarter |
| 2025-Q2 | 2025-06-30 | 998,227,000 | 38,755,000 | 0.06 | reported discrete quarter |
| 2025-Q3 | 2025-09-30 | 1,049,205,000 | 92,108,000 | 0.13 | reported discrete quarter |
| 2025-Q4 | 2025-12-31 | 1,319,347,000 | 277,070,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2026-03-31 | 1,007,514,000 | -73,587,000 | -0.12 | reported discrete quarter |
| 2026-Q2 | 2026-06-30 | 1,179,654,000 | -46,669,000 | -0.08 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from PINS's latest 10-K: [/company/PINS/business/](/company/PINS/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from PINS's latest 10-K: [/company/PINS/risk-factors/](/company/PINS/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1506293/000150629326000104/pins-20260630.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary.
Confidence: high
Filing date: 2026-08-04
Report date: 2026-06-30

ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis of our financial condition and results of operations should be read together with our condensed consolidated financial statements and related notes and other financial information appearing elsewhere in this Quarterly Report on Form 10-Q. This discussion and analysis contains forward-looking statements that involve risks, uncertainties and assumptions. Our actual results could differ materially from these forward-looking statements as a result of many factors, including those discussed in “Risk Factors” and “Note About Forward-Looking Statements” included elsewhere in this Quarterly Report on Form 10-Q.

Overview of Second Quarter Results

Our key financial and operating results as of and for the three months ended June 30, 2026, unless noted otherwise, are as follows:

•Revenue was $1,179.7 million, an increase of 18% on a reported and 17% on a constant currency basis compared to the three months ended June 30, 2025.

•Monthly active users ("MAUs") were 640 million, an increase of 11% compared to June 30, 2025.

•Share-based compensation expense was $324.5 million, an increase of $97.3 million compared to the three months ended June 30, 2025.

•Loss from operations was $55.2 million, an increase of $50.9 million compared to the three months ended June 30, 2025.

•Net loss was $46.7 million and Adjusted EBITDA was $311.3 million.

•Net cash provided by operating activities was $620.9 million and free cash flow was $581.6 million during the six months ended June 30, 2026.

•Cash, cash equivalents and marketable securities was $1,274.9 million.

•Headcount was 5,116.

29

Trends in User Metrics

Monthly Active Users. We define an MAU as an authenticated Pinterest user who visits our website, opens our mobile application or interacts with Pinterest through one of our browser or site extensions, such as the Save button, at least once during the 30-day period ending on the date of measurement. The number of MAUs does not include Shuffles users unless they would otherwise qualify as MAUs. We present MAUs based on the number of MAUs measured on the last day of the current period. We calculate average MAUs based on the average of the number of MAUs measured on the last day of the current period and the last day prior to the beginning of the current period. MAUs are the primary metric by which we measure the scale of our active user base.

Quarterly Monthly Active Users

(in millions)

Note: U.S. and Canada, Europe and Rest of World may not sum to Global due to rounding. Europe includes Russia and Turkey for our reporting of Revenue, MAUs and ARPU by geographic region.

30

As of June 30, 2026, global MAUs increased compared to June 30, 2025 primarily due to our ongoing investments in relevance and personalization.

Trends in Monetization Metrics

Revenue. We calculate revenue by user geography based on our estimate of the geographic location of our users when they perform a revenue-generating activity. The geography of our users affects our revenue and financial results because we currently only monetize certain countries and currencies and because we monetize different geographies at different average rates. Our revenue in U.S. and Canada and, to a lesser extent, Europe is higher primarily due to the relative size and maturity of the digital advertising markets in these geographies.

Quarterly Revenue

(in millions)

Note: Revenue by geography in the charts above is geographically apportioned based on our estimate of users' geographic location when they perform a revenue-generating activity. This allocation differs from our disclosure of revenue disaggregated by geography in the notes to our condensed consolidated financial statements where revenue is geographically apportioned based on our customers’ billing addresses. U.S. and Canada, Europe and Rest of World may not sum to Global and quarterly amounts may not sum to annual due to rounding.

31

Average Revenue per User. We measure monetization of our platform through our average revenue per user metric. We define ARPU as our total revenue in a given geography during a period divided by average MAUs in that geography during the period. We calculate ARPU by geography based on our estimate of the geography in which revenue-generating activities occur. We present ARPU on a U.S. and Canada, Europe and Rest of World basis because we currently monetize users in different geographies at different average rates. Our ARPU in U.S. and Canada and, to a lesser extent, Europe is higher primarily due to the relative size and maturity of the digital advertising markets in these geographies.

Quarterly Average Revenue per User

For the three months ended June 30, 2026, global ARPU was $1.86, which represents an increase of 7% compared to the three months ended June 30, 2025. For the three months ended June 30, 2026, U.S. and Canada ARPU was $8.30, an increase of 14%, Europe ARPU was $1.35, an increase of 4%, and Rest of World ARPU was $0.23, an increase of 21% compared to the three months ended June 30, 2025.

We use MAUs and ARPU to assess the growth and health of the overall business and believe that these metrics best reflect our ability to attract, retain, engage and monetize our users, and thereby drive revenue.

32

Non-GAAP Financial Measure

To supplement our condensed consolidated financial statements presented in accordance with generally accepted accounting principles in the United States ("GAAP"), we consider certain non-GAAP financial measures, as described below.

We use Adjusted EBITDA to evaluate our operating results and for financial and operational decision-making purposes. We define Adjusted EBITDA as net income (loss) adjusted to exclude depreciation and amortization expense, share-based compensation expense, payroll tax expense related to share-based compensation, interest income (expense), net, other income (expense), net, provision for (benefit from) income taxes and certain other non-recurring or non-cash items impacting net income (loss) that we do not consider indicative of our ongoing business performance. We believe Adjusted EBITDA helps identify underlying trends in our business that could otherwise be masked by the effect of the income and expenses that it excludes.

We use constant currency revenue to evaluate our operating and financial results. We calculate constant currency revenue by translating our current period revenue using the corresponding prior period’s monthly exchange rates for currencies other than the U.S. dollar. We believe constant currency revenue provides useful information to investors because it excludes the effects of foreign currency volatility that are not indicative of our core operating results.

We present free cash flow because we believe it provides useful information to investors about the amount of cash generated from operations, after purchases of property and equipment, that can be used to strengthen our balance sheet or invest in our business among other things. We define free cash flow as net cash provided by operating activities less purchases of property and equipment. Free cash flow is not intended to represent our residual cash flow available for discretionary expenditures.

We present these non-GAAP financial measures because we believe they provide useful information about our operating results, enhance the overall understanding of our past performance and future prospects, and allow for greater transparency with respect to key metrics we use for financial and operational decision-making. We present these non-GAAP financial measures to assist investors in seeing our operating results through the eyes of management and because we believe that these measures provide an additional tool for investors to use in comparing our core business operating results over multiple periods with other companies in our industry.

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,

•Adjusted EBITDA excludes:

•certain recurring, non-cash charges such as depreciation of fixed assets and amortization of acquired intangible assets, although these assets may have to be replaced in the future; and

•share-based compensation expense and related payroll tax expense, which have been and will continue to be for the foreseeable future, significant recurring expenses and an important part of our compensation strategy.

•Constant currency revenue excludes the effect of changes in foreign currency exchange rates, which have an actual effect on our operating results; and

•Free cash flow does not reflect our future contractual commitments arising from purchases of property and equipment.

In addition, these non-GAAP financial measures are not based on any standardized methodology prescribed by GAAP, and may differ from similarly titled measures used by other companies (if used at all), which reduces their usefulness as comparative measures.

Because of these limitations, you should consider these non-GAAP financial measures alongside other financial performance measures, and our other financial results presented in accordance with GAAP.

33

Adjusted EBITDA

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):

[[GREPCENT_TABLE]]
[["","","Three Months Ended June 30,","","Six Months Ended June 30,"],["","","2026","","2025","","2026","","2025"],["Net income (loss)","$","(46,669)","","","$","38,755","","","$","(120,256)","","","$","47,677"],["Depreciation and amortization (1)","10,216","","","6,090","","","17,668","","","11,938"],["Share-based compensation (1)","319,729","","","227,234","","","541,850","","","414,660"],["Payroll tax expense related to share-based compensation","10,027","","","8,287","","","20,159","","","22,139"],["Interest (income) expense, net","(7,334)","","","(28,022)","","","(25,120)","","","(55,315)"],["Other (income) expense, net","1,295","","","(10,960)","","","2,289","","","(15,479)"],["Provision for (benefit from) income taxes","(2,490)","","","(4,103)","","","7,597","","","(16,690)"],["Restructuring charges (2)","14,335","","","\u2014","","","61,432","","","\u2014"],["Non-cash charitable contributions","12,198","","","13,495","","","12,198","","","13,495"],["Adjusted EBITDA","$","311,307","","","$","250,776","","","$","517,817","","","$","422,425"]]
[[/GREPCENT_TABLE]]

(1)Excludes share-based compensation expense of $4.8 million and $14.1 million, and amortization expense of $1.6 million and $2.9 million for the three and six months ended June 30, 2026, respectively included in restructuring charges.

(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.

Constant currency revenue

The following table presents revenue and period-over-period changes on an as reported and constant currency basis (in thousands, except percentages):

[[GREPCENT_TABLE]]
[["","","Three Months Ended June 30,","","% Change","","Six Months Ended June 30,","","% Change"],["","","2026","","2025","","As Reported","","Constant Currency(1)","","2026","","2025","","As Reported","","Constant Currency(1)"],["Revenue","$","1,179,654","","","$","998,227","","","18","%","","17","%","","$","2,187,168","","","$","1,853,215","","","18","%","","16","%"]]
[[/GREPCENT_TABLE]]

(1)On a constant currency basis, revenue for the three and six

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/1506293/000150629326000021/pins-20251231.htm
Complete FY 2025 MD&A: /company/PINS/mda/fy2025/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary.
Confidence: high
Filing date: 2026-02-12
Report date: 2025-12-31

Item 7. Management's discussion and analysis of financial condition and results of operations

The following discussion and analysis of our financial condition and results of operations should be read together with our consolidated financial statements and related notes and other financial information appearing elsewhere in this Annual Report on Form 10-K. This discussion and analysis contains forward-looking statements that involve risks, uncertainties and assumptions. Our actual results could differ materially from these forward-looking statements as a result of many factors, including those discussed in “Risk Factors” and “Note About Forward-Looking Statements” included elsewhere in this Annual Report on Form 10-K.

A discussion regarding our financial condition and results of operations for the year ended December 31, 2025 compared to the year ended December 31, 2024 is presented below. A discussion regarding our financial condition and results of operations for the year ended December 31, 2024 compared to the year ended December 31, 2023 is included under “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2024.

Overview of 2025 results

Our key financial and operating results as of and for the year ended December 31, 2025 are as follows:

•Revenue was $4,221.8 million, an increase of 16% on a reported and 15% on a constant currency basis compared to 2024.

•MAUs were 619 million, an increase of 12% compared to December 31, 2024.

•Share-based compensation expense was $880.5 million, an increase of $114.7 million compared to 2024.

•Income from operations was $319.9 million, an increase of $140.1 million compared to 2024.

•Net income was $416.9 million and Adjusted EBITDA was $1,270.0 million.

•Net cash provided by operating activities was $1,284.3 million and free cash flow was $1,251.9 million.

•Cash, cash equivalents and marketable securities were $2,467.2 million.

•Headcount was 5,265.

47

Part II

Trends in user metrics

Monthly Active Users. We define an MAU as an authenticated Pinterest user who visits our website, opens our mobile application or interacts with Pinterest through one of our browser or site extensions, such as the Save button, at least once during the 30-day period ending on the date of measurement. The number of MAUs does not include Shuffles users unless they would otherwise qualify as MAUs. We present MAUs based on the number of MAUs measured on the last day of the current period. We calculate average MAUs based on the average of the number of MAUs measured on the last day of the current period and the last day prior to the beginning of the current period. MAUs are the primary metric by which we measure the scale of our active user base.

Quarterly monthly active users

(in millions)

Note: U.S. and Canada, Europe and Rest of World may not sum to Global due to rounding. Europe includes Russia and Turkey for our reporting of Revenue, MAUs and ARPU by geographic region.

48

Part II

A portion of our MAUs visit Pinterest on a weekly basis. We define a weekly active user (“WAU”) as an authenticated Pinterest user who visits our website, opens our mobile application or interacts with Pinterest through one of our browser or site extensions, such as the Save button, at least once during the seven-day period ending on the date of measurement. As of December 31, 2025, the proportion of WAUs to MAUs, which has stayed relatively consistent over time, was 62%.

As of December 31, 2025, global MAUs increased compared to December 31, 2024, primarily due to our ongoing investments in relevance and personalization.

49

Part II

Trends in monetization metrics

Revenue. We calculate revenue by user geography based on our estimate of the geographic location of our users when they perform a revenue-generating activity. The geography of our users affects our revenue and financial results because we currently only monetize certain countries and currencies and because we monetize different geographies at different average rates. Our revenue in U.S. and Canada and, to a lesser extent, Europe is higher primarily due to the relative size and maturity of the digital advertising markets in these geographies.

Quarterly revenue

(in millions)

Note: Revenue by geography in the charts above is geographically apportioned based on our estimate of users' geographic location when they perform a revenue-generating activity. This allocation differs from our disclosure of revenue disaggregated by geography in the notes to our consolidated financial statements where revenue is geographically apportioned based on our customers’ billing addresses. U.S. and Canada, Europe and Rest of World may not sum to Global and quarterly amounts may not sum to annual due to rounding.

50

Part II

Average Revenue per User. We measure monetization of our platform through our ARPU metric. We define ARPU as our total revenue in a given geography during a period divided by average MAUs in that geography during the period. We calculate ARPU by geography based on our estimate of the geography in which revenue‑ generating activities occur. We present ARPU on a U.S. and Canada, Europe and Rest of World basis because we currently monetize users in different geographies at different average rates. Our ARPU in U.S. and Canada and, to a lesser extent, Europe is higher primarily due to the relative size and maturity of the digital advertising markets in these geographies.

Quarterly average revenue per user

For the year ended December 31, 2025, global ARPU was $7.21, which represents an increase of 4% compared to the year ended December 31, 2024. For the year ended December 31, 2025, U.S. and Canada ARPU was $30.84, an increase of 6%, Europe ARPU was $5.12, an increase of 21%, and Rest of World ARPU was $0.83, an increase of 40% compared to the year ended December 31, 2024.

We use MAUs and ARPU to assess the growth and health of the overall business and believe that these metrics best reflect our ability to attract, retain, engage and monetize our users, and thereby drive revenue.

51

Part II

Non-GAAP financial measures

To supplement our consolidated financial statements presented in accordance with generally accepted accounting principles in the United States ("GAAP"), we consider certain non-GAAP financial measures, as described below.

We use Adjusted EBITDA to evaluate our operating results and for financial and operational decision-making purposes. We define Adjusted EBITDA as net income (loss) adjusted to exclude depreciation and amortization expense, share-based compensation expense, payroll tax expense related to share-based compensation, interest income (expense), net, other income (expense), net, provision for (benefit from) income taxes and certain other non-recurring or non-cash items impacting net income (loss) that we do not consider indicative of our ongoing business performance. We believe Adjusted EBITDA helps identify underlying trends in our business that could otherwise be masked by the effect of the income and expenses that it excludes.

We use constant currency revenue to evaluate our operating and financial results. We calculate constant currency revenue by translating our current period revenue using the corresponding prior period’s monthly exchange rates for currencies other than the U.S. dollar. We believe constant currency revenue provides useful information to investors because it excludes the effects of foreign currency volatility that are not indicative of our core operating results.

We present free cash flow because we believe it provides useful information to investors about the amount of cash generated from operations, after purchases of property and equipment, that can be used to strengthen our balance sheet or invest in our business among other things. We define free cash flow as net cash provided by operating activities less purchases of property and equipment. Free cash flow is not intended to represent our residual cash flow available for discretionary expenditures.

We present these non-GAAP financial measures because we believe they provide useful information about our operating results, enhance the overall understanding of our past performance and future prospects, and allow for greater transparency with respect to key metrics we use for financial and operational decision-making. We present these non-GAAP financial measures to assist investors in seeing our operating results through the eyes of management and because we believe that these measures provide an additional tool for investors to use in comparing our core business operating results over multiple periods with other companies in our industry.

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,

•Adjusted EBITDA excludes:

•certain recurring, non-cash charges such as depreciation of fixed assets and amortization of acquired intangible assets, although these assets may have to be replaced in the future; and

•share-based compensation expense and related payroll tax expense, which have been and will continue to be for the foreseeable future, significant recurring expenses and an important part of our compensation strategy.

•Constant currency revenue excludes the effect of changes in foreign currency exchange rates, which have an actual effect on our operating results; and

•Free cash flow does not reflect our future contractual commitments arising from purchases of property and equipment.

In addition, these non-GAAP financial measures are not based on any standardized methodology prescribed by GAAP, and may differ from similarly titled measures used by other companies (if used at all), which reduces their usefulness as comparative measures.

Because of these limitations, you should consider these non-GAAP financial measures alongside other financial performance measures, and our other financial results presented in accordance with GAAP.

52

Part II

Adjusted EBITDA

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):

[[GREPCENT_TABLE]]
[["","","","","","Year Ended December 31,"],["","","","","","","","2025","","2024","","2023"],["Net income (loss)","","","","","","$","416,855","","","$","1,862,106","","","$","(35,610)"],["Depreciation and amortization","","","","","","25,151","","","21,266","","","21,509"],["Share-based compensation","","","","","","880,463","","","765,795","","","647,860"],["Payroll tax expense related to share-based compensation(1)","","","","","","30,984","","","30,787","","","24,131"],["Interest (income) expense, net","","","","","","(110,493)","","","(127,003)","","","(105,439)"],["Other (income) expense, net","","","","","","(15,514)","","","19,215","","","(3,799)"],["Provision for (benefit from) income taxes(2)","","","","","","29,035","","","(1,574,501)","","","19,170"],["Legal settlement(3)","","","","","","\u2014","","","34,650","","","\u2014"],["Restructuring charges","","","","","","\u2014","","","\u2014","","","126,882"],["Non-cash charitable contributions","","","","","","13,495","","","\u2014","","","12,890"],["Adjusted EBITDA","","","","","","$","1,269,976","","","$","1,032,315","","","$","707,594"]]
[[/GREPCENT_TABLE]]

(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 ou

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/PINS/mda/fy2025/
All MD&A years: /company/PINS/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/PINS/mda/fy2024/): filed 2025-02-06; accession 0001506293-25-000022 (https://www.sec.gov/Archives/edgar/data/1506293/000150629325000022/pins-20241231.htm)
- [FY 2023 MD&A](/company/PINS/mda/fy2023/): filed 2024-02-08; accession 0001506293-24-000018 (https://www.sec.gov/Archives/edgar/data/1506293/000150629324000018/pins-20231231.htm)
- [FY 2022 MD&A](/company/PINS/mda/fy2022/): filed 2023-02-06; accession 0001506293-23-000023 (https://www.sec.gov/Archives/edgar/data/1506293/000150629323000023/pins-20221231.htm)
- [FY 2021 MD&A](/company/PINS/mda/fy2021/): filed 2022-02-03; accession 0001506293-22-000016 (https://www.sec.gov/Archives/edgar/data/1506293/000150629322000016/pins-20211231.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 7370 Services-Computer Programming, Data Processing, Etc.) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm
- [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity

Macro-to-micro threads including this sector: [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/PINS.md · JSON record: /company/PINS.json · verified financials: /company/PINS/financials.json / /company/PINS/financials.csv · machine TOC for the whole site: /llms.txt