Pinterest Misses Q2 Profit Estimates, Shares Plunge Over 11%

In the second quarter of 2025, the social media platform Pinterest missed analysts' estimates for profit, overshadowing its robust revenue and user growth. The company reported an adjusted profit per share of 33 cents, falling short of the average estimate of 35 cents.

However, Pinterest's quarterly revenue grew 17% to $998.2 million, beating expectations of $974.8 million. The growth was fueled by a surge in Gen Z users, who now represent more than half of Pinterest's user base, and the adoption of its AI-powered ad suite, Performance+, which has appealed to advertisers seeking personalized and automated campaigns.

Despite the strong revenue performance, Pinterest's shares fell over 11% in extended trading. The company's CEO, Bill Ready, noted that the adoption of Performance+ among mid-market advertisers was accelerating, cutting campaign creation time in half. However, Pinterest's revenue growth outlook for the third quarter, forecasted to be between $1.03 billion and $1.05 billion, was broadly in line with estimates, leading to a "sell-the-news reaction" from investors.

In contrast, Pinterest's rivals Meta and Reddit posted upbeat second-quarter results last week, while Snap reported its slowest quarterly revenue growth in over a year. The termination of the "de minimis" exemption, a U.S. duty-free import provision, led to tighter ad budgets for smaller platforms like Snap, as marketers preferred to larger platforms with wider reach.