Rapid User and Revenue Growth Could Be A Game Changer For Pinterest (PINS)

• Pinterest recently reported past-quarter results showing monthly active users up 17% year over year to a record 600 million, with revenue growth supported by AI-integrated advertiser tools and guidance for fourth-quarter 2025 revenue to rise 14–16% alongside adjusted EBITDA of US$533–US$558 million.
• These results, combined with an average EBITDA margin of 28.3%, a 27.4% free cash flow margin over the last two years, and a sharp reduction in short interest, highlight both operational strength and improving investor sentiment toward Pinterest.
• Now we’ll explore how rapid user growth to 600 million monthly active users could reshape Pinterest’s investment narrative in light of analyst expectations.

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Pinterest Investment Narrative Recap

To own Pinterest, you have to believe its growing 600 million–strong user base can be translated into durable advertising and commerce revenue without eroding its strong profitability. The latest results appear to support that thesis in the near term, with rapid user growth and solid margins reinforcing the key catalyst of better monetization, while the most immediate risk remains pressure on ad pricing as Pinterest leans further into international growth.

Among recent updates, Pinterest’s outlook for fourth quarter 2025 revenue to rise 14–16% alongside adjusted EBITDA of US$533–US$558 million ties directly into this catalyst, because it underlines how management expects to balance user expansion with profitability. If that balance holds, it could help offset concerns that lower effective ad prices in newer markets eventually weigh on earnings quality.

But even as user numbers hit new highs, investors should be aware that expanding into lower priced ad markets could...

Read the full narrative on Pinterest (it's free!)

Pinterest's narrative projects $5.9 billion revenue and $1.0 billion earnings by 2028. This requires 14.6% yearly revenue growth and a $0.9 billion earnings decrease from $1.9 billion today.

Uncover how Pinterest's forecasts yield a $37.64 fair value, a 41% upside to its current price.

Exploring Other Perspectives

Fourteen members of the Simply Wall St Community value Pinterest between US$32.65 and US$51.31, showing how far opinions can stretch on the same stock. As you weigh those views, keep in mind that rapid user growth and AI driven ad tools still sit against the real risk that weaker ad pricing in new markets could limit how much of that audience turns into profitable revenue over time.

Explore 14 other fair value estimates on Pinterest - why the stock might be worth as much as 92% more than the current price!

Build Your Own Pinterest Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Pinterest research is our analysis highlighting 5 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Pinterest research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Pinterest's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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