Pinterest Hits Record 661 Million Users as GAAP Profit Falls 77%

Pinterest grew third-quarter revenue 12% to $1.17 billion and reached a record 661 million monthly active users, but GAAP net income fell 77% to $21.5 million as costs rose faster than sales, according to the earnings release it filed with an 8-K on Thursday.

Diluted earnings were $0.04 a share, down from $0.13 a year earlier. On an adjusted basis, non-GAAP net income rose 3% to $270.3 million, or $0.46 a share, up from $0.38, helped by a much smaller share count.

"Pinterest reached an all-time high of 661 million monthly active users in Q3, with revenue growing 12% year over year," CEO Bill Ready said in the release. He said the company is "focused on sharpening our execution, scaling our performance advertising solutions" and building an ecosystem that turns discovery into "durable, long-term growth."

Costs squeeze GAAP profit

Total costs and expenses rose 15% to $1.14 billion, outpacing revenue growth. Research and development climbed to $428.1 million from $371.3 million, and sales and marketing rose to $337.0 million from $296.7 million. Share-based compensation rose to $291.7 million from $235.1 million, according to the cash flow statement.

The quarter also included $4.1 million of restructuring charges, and interest income fell to $6.0 million from $28.5 million. Income from operations dropped to $30.3 million from $58.5 million.

Adjusted EBITDA, which excludes share-based compensation and other items, rose 11% to $339.2 million, holding the adjusted EBITDA margin at 29%.

North America leads, Europe stalls

Revenue from the U.S. and Canada grew 14% to $894 million, and average revenue per user there rose 10% to $8.38. Rest of World revenue jumped 24% to $87 million.

Europe was flat at $193 million, even though European users grew 7% to 161 million, and European ARPU fell 7% to $1.21. Users in the U.S. and Canada rose 4% to 107 million, while Rest of World users increased 13% to 394 million.

Cash flow and buybacks

Operating cash flow dipped 2% to $315.7 million, and free cash flow fell 6% to $300.3 million. Pinterest did not repurchase Class A stock in the third quarter, but it bought back $2.02 billion of shares in the first nine months of 2026. Diluted weighted-average shares fell to 582.7 million from 694.5 million a year earlier.

Holiday-quarter outlook

For the fourth quarter, Pinterest expects revenue of $1,425 million to $1,475 million, up 8% to 12% from a year earlier, assuming a modest foreign-exchange headwind. It expects adjusted EBITDA of $538 million to $588 million.

By the numbers

• $1.17 billion: third-quarter revenue, up 12%
• 661 million: monthly active users, up 10%
• $21.5 million: GAAP net income, down 77%
• $0.46: non-GAAP EPS, up from $0.38
• 8% to 12%: expected fourth-quarter revenue growth

Sources

1. Pinterest Form 8-K with third-quarter 2026 earnings release (Exhibit 99.1), filed Oct. 29, 2026 (accession 0001506293-26-000151)

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