Pinterest (Pins) Q4 2025 earnings

on Pinterest Shares tumbled as much as 20% in after-hours trading Thursday after the social media company reported missing earnings in the fourth quarter and issued weak guidance.

Here’s how the company performed compared to analysts’ consensus estimates from LSEG:

• earnings per share: 67 cents corrected, 69 cents expected
• Revenues: $1.32 billion, expected $1.33 billion

Pinterest said it expects first-quarter sales to be between $951 million and $971 million, falling short of analysts’ estimates of $980 million.

This is the second quarter in a row that Pinterest has lost a fifth of its value after disappointing results on Wall Street.

The company’s fourth quarter sales increased 14% year over year. Net income for the fourth quarter was $277 million, down 85% from the prior year; Net income was $1.85 billion, including deferred tax benefits.

Fourth quarter sales in the U.S. and Canada region were $979 million; this was above StreetAccount’s estimates of $973 million.

Pinterest recorded $541.5 million in adjusted earnings before interest, taxes, depreciation and amortization, or EBITDA. This figure was below the $550 million that analysts predicted.

Global monthly active users rose 12% year over year to 619 million in the fourth quarter, the company said. Wall Street expected this figure to be 613 million.

Pinterest CEO Bill Ready told analysts during an earnings call that the company was “dissatisfied with our Q4 revenue performance and believes it is not reflective of what Pinterest can deliver over time.”

Ready said Pinterest this year “absorbed an exogenous shock related to tariffs” that affected the company’s top retail advertisers, thus hurting the social media firm’s online advertising business. He later added that Pinterest sees “long-term opportunity” from major advertisers, but that “the short-term outlook for this group on our platform remains subdued given these headwinds.”

Pinterest finance chief Julia Donnelly said during the earnings call that the disruptions affecting major retailers “created a more meaningful headwind than we expected.” The same major global retailers are also pulling back on ad spending in Europe, he said.

“Looking ahead to the first quarter, we expect these headwinds to continue and become slightly more pronounced in the first quarter, including in the UK and Europe,” Donnelly said.

Ready said the company plans to focus more heavily on small, medium-sized and international advertisers so that its core online advertising business is not so dependent on large retailers.

“Most importantly, we need to further expand our revenue mix and accelerate the next phase of our sales and go-to-market transformation,” Ready said.

Pinterest said in January that it would lay off less than 15% of its workforce and reduce office space in order to shift resources to technical teams that prioritize the development of “AI-powered products and capabilities.”

The company later fired employees who developed a tool to quantify layoffs, and Ready warned them at a companywide meeting that “there is a clear line between constructive discussion and obstructive behavior.”

Speaking about the layoffs, Donnelly told analysts that Pinterest’s January restructuring and ongoing sales unit overhaul “could cause some disruption in the short term, and we’ve factored that into our guidance out of caution.”

WRISTWATCH: The Magnificent 7 trade broke down and reversed.