Revenue growth remains steady at 17.8% year-over-year, yet operating leverage remains constrained with a 2026Q1 operating margin of -8.0%.
| Sales/Revenue | 4.37B | 4.22B | 3.65B | 3.06B | 2.8B | 2.58B | 1.69B | 1.14B | 755.93M | 472.85M |
| Revenue Growth % | 16.3% | 15.79% | 19.35% | 9.01% | 8.71% | 52.31% | 48.12% | 51.17% | 59.87% | - |
| Cost of Goods Sold | 880.8M | 841.52M | 750.36M | 688.76M | 678.6M | 529.32M | 449.36M | 358.9M | 241.58M | 178.66M |
| COGS % of Revenue | - | 19.93% | 20.58% | 22.54% | 24.21% | 20.53% | 26.55% | 31.41% | 31.96% | 37.78% |
| Gross Profit | 3.49B | 3.38B | 2.9B | 2.37B | 2.12B | 2.05B | 1.24B | 783.86M | 514.35M | 294.19M |
| Gross Margin % | 79.86% | 80.07% | 79.42% | 77.46% | 75.79% | 79.47% | 73.45% | 68.59% | 68.04% | 62.22% |
| Gross Profit Growth % | - | 16.73% | 22.38% | 11.41% | 3.67% | 64.78% | 58.61% | 52.4% | 74.84% | - |
| Operating Expenses | 3.22B | 3.06B | 2.72B | 2.49B | 2.23B | 1.72B | 1.39B | 2.17B | 589.07M | 432.12M |
| OpEx % of Revenue | - | 72.49% | 74.49% | 81.44% | 79.41% | 66.82% | 81.87% | 190.13% | 77.93% | 91.39% |
| Selling, General & Admin | 1.69B | 1.63B | 1.48B | 1.42B | 1.28B | 942.26M | 779.61M | 965.66M | 337.41M | 224.15M |
| SG&A % of Revenue | - | 38.68% | 40.47% | 46.6% | 45.55% | 36.55% | 46.06% | 84.5% | 44.63% | 47.4% |
| Research & Development | 1.48B | 1.43B | 1.24B | 1.07B | 948.98M | 780.26M | 606.19M | 1.21B | 251.66M | 207.97M |
| R&D % of Revenue | - | 33.81% | 34.02% | 34.97% | 33.86% | 30.27% | 35.81% | 105.63% | 33.29% | 43.98% |
| Other Operating Expenses | 1000K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 275.07M | 319.88M | 179.82M | -125.68M | -101.68M | 326.19M | -142.5M | -1.39B | -74.72M | -137.93M |
| Operating Margin % | 6.29% | 7.58% | 4.93% | -4.11% | -3.63% | 12.65% | -8.42% | -121.54% | -9.88% | -29.17% |
| Operating Income Growth % | - | 77.89% | 243.08% | -23.61% | -131.17% | 328.9% | 89.74% | -1758.74% | 45.83% | - |
| EBITDA | 294.37M | 345.03M | 201.08M | -104.17M | -55.19M | 353.69M | -105.52M | -1.36B | -53.86M | -121.8M |
| EBITDA Margin % | 6.73% | 8.17% | 5.51% | -3.41% | -1.97% | 13.72% | -6.23% | -119.1% | -7.13% | -25.76% |
| EBITDA Growth % | 33.19% | 71.59% | 293.04% | -88.75% | -115.6% | 435.2% | 92.25% | -2426.97% | 55.78% | - |
| D&A (Non-Cash Add-back) | 19.3M | 25.15M | 21.27M | 21.51M | 46.49M | 27.5M | 36.99M | 27.79M | 20.86M | 16.14M |
| EBIT | 412.58M | 319.88M | 179.82M | -125.68M | -101.68M | 326.19M | -126.39M | -1.36B | -61.57M | -129.62M |
| Net Interest Income | 83.2M | 110.49M | 127M | 105.44M | 15.73M | -5.22M | 15.48M | 28.03M | 12.16M | 8.2M |
| Interest Income | 83.2M | 110.49M | 127M | 105.44M | 30.94M | 4.2M | 16.12M | 30.16M | 13.15M | 8.31M |
| Interest Expense | 17.79M | 0 | 0 | 0 | 15.21M | 9.42M | 635K | 2.14M | 995K | 112K |
| Other Income/Expense | 110.99M | 126.01M | 107.79M | 109.24M | 15.73M | -5.22M | 15.48M | 28.03M | 12.16M | 8.2M |
| Pretax Income | 386.06M | 445.89M | 287.61M | -16.44M | -85.94M | 320.97M | -127.02M | -1.36B | -62.56M | -129.73M |
| Pretax Margin % | 8.83% | 10.56% | 7.89% | -0.54% | -3.07% | 12.45% | -7.5% | -119.08% | -8.28% | -27.44% |
| Income Tax | 51.71M | 29.04M | -1.57B | 19.17M | 10.1M | 4.53M | 1.3M | 532K | 410K | 311K |
| Effective Tax Rate % | 13.39% | 6.51% | -547.45% | -116.61% | -11.76% | 1.41% | -1.03% | -0.04% | -0.66% | -0.24% |
| Net Income | 334.35M | 416.86M | 1.86B | -35.61M | -96.05M | 316.44M | -128.32M | -1.36B | -62.97M | -130.04M |
| Net Margin % | 7.64% | 9.87% | 51.07% | -1.17% | -3.43% | 12.27% | -7.58% | -119.13% | -8.33% | -27.5% |
| Net Income Growth % | -82.36% | -77.61% | 5329.17% | 62.92% | -130.35% | 346.59% | 90.57% | -2061.8% | 51.57% | - |
| Net Income (Continuing) | 334.35M | 416.86M | 1.86B | -35.61M | -96.05M | 316.44M | -128.32M | -1.36B | -62.97M | -130.04M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.53 | 0.61 | 2.67 | -0.05 | -0.14 | 0.41 | -0.22 | -3.24 | -0.12 | -0.29 |
| EPS Growth % | -82.68% | -77.15% | 5156.82% | 62.29% | -134.15% | 286.36% | 93.21% | -2600% | 58.62% | - |
| EPS (Basic) | - | 0.62 | 2.74 | -0.05 | -0.14 | 0.49 | -0.22 | -3.24 | -0.12 | -0.29 |
| Diluted Shares Outstanding | 636.59M | 687.77M | 698.38M | 674.64M | 665.73M | 776.07M | 596.26M | 420.47M | 529.34M | 448.64M |
| Basic Shares Outstanding | 636.59M | 674.71M | 678.83M | 674.64M | 665.73M | 640.03M | 596.26M | 420.47M | 529.34M | 448.64M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - |
Ad-spend cyclicality and competition
According to recent financial disclosures, Pinterest maintained a steady revenue growth trajectory, posting a 17.8% year-over-year increase in 2026Q1, which suggests that the platform's intent-based advertising model continues to capture market share despite the inherent volatility of the digital advertising sector's seasonal planning cycles.
The company's ability to sustain double-digit growth reflects the successful integration of third-party ad demand, which appears to be mitigating the impact of broader discretionary spending pullbacks. Investors should monitor whether this growth remains durable as the platform attempts to transition from a discovery tool to a full-funnel commerce destination.
As reported in quarterly filings, Pinterest consistently maintains gross margins near 80%, with 2026Q1 figures reaching 76.3%, indicating that the underlying cost of revenue remains well-contained despite the platform's ongoing investments in infrastructure and AI-driven recommendation engines to support its visual search utility.
This high gross margin profile provides a significant buffer, yet the company's inability to consistently translate this into positive operating margins suggests that high fixed costs, particularly in R&D, remain a structural hurdle. The stability of these margins implies that the core product delivery is efficient, even if the monetization layer requires further optimization.
Based on the provided income statements, Pinterest's operating leverage appears constrained, as evidenced by the 2026Q1 operating margin of -8.0%, which highlights the difficulty of scaling revenue faster than the heavy investment in personnel and research required to maintain the platform's competitive moat.
The persistent gap between gross profit and operating income suggests that management is prioritizing long-term product development over immediate profitability. Analysts should investigate whether the current SG&A and R&D spend levels are truly variable or if they represent a permanent, high-cost base that limits future margin expansion.
Analysis of recent financial statements reveals that stock-based compensation remains a significant factor in the company's expense structure, with quarterly figures frequently exceeding $200 million, which complicates the assessment of true cash-generative capacity and dilutes the quality of reported net income for long-term shareholders.
While the company reports positive net income in peak seasonal quarters, the reliance on equity-based incentives suggests that the underlying operational profitability is lower than headline figures might imply. Investors should focus on the relationship between SBC and free cash flow to determine if the business is creating genuine economic value.
Data from recent periods suggests that Pinterest faces mounting pressure from short-form video competitors, as evidenced by the volatility in operating margins and the ongoing need for heavy R&D investment to defend its position as the primary destination for visual discovery and consumer planning.
The core risk remains that TikTok and other platforms may successfully replicate the 'intent-based' search experience, potentially eroding Pinterest's pricing power in the advertising market. If the platform fails to convert its visual discovery traffic into direct transactions, the current valuation may prove difficult to justify against more mature, cash-generative peers.
Quick answers to the most common questions about buying PINS stock.
For fiscal year 2025, Pinterest, Inc. (PINS) reported total revenue of $4.22B. This represents a 792.8% increase compared to $472.9M in 2017.
Pinterest, Inc. (PINS) is profitable, generating $416.9M in net income for the fiscal year ending 2025 with a net profit margin of 9.9%.
Pinterest, Inc. (PINS) reported an operating income of $319.9M, resulting in an operating profit margin of 7.6%. This margin reflects the operational efficiency of the business before interest and taxes.
Pinterest, Inc. (PINS) generated $3.38B in gross profit for the year, representing a gross profit margin of 80.1%. This demonstrates the company's core pricing power and production efficiency.