PINS — Pinterest, Inc.

Summary of Pinterest Q2 2026 Earnings Call

1. Key Financial Results and Metrics

• Monthly Active Users (MAUs): 640 million globally, an 11% year-over-year increase, marking the 12th consecutive quarter of record users and 11th straight quarter of double-digit growth.
• Revenue: $1.180 billion, up 18% year-over-year, with UCAN (U.S. and Canada) revenue growth accelerating to 18%.
• Adjusted EBITDA: $311 million, with an adjusted EBITDA margin of 26%, up 130 basis points year-over-year.
• Free Cash Flow: $270 million in Q2, with a trailing 12-month total of nearly $1.3 billion, representing a 94% free cash flow conversion.
• Stock Repurchases: $58 million allocated towards share repurchases, with over $2 billion repurchased year-to-date.

2. Strategic Updates and Business Highlights

• AI Integration: Continued focus on AI to enhance user experience and ad performance, with the introduction of Pinterest Assistant to facilitate user interactions and shopping journeys.
• Ad Platform Enhancements: Launch of Pinterest Performance+ and Smart Assembly to improve advertiser performance and automate campaign management.
• Geographic Performance: Strong growth in UCAN, with 4% user growth; Europe and Rest of World showed varying growth rates, with Europe facing tougher comparisons.
• Brand Campaign: Launched a new campaign emphasizing the unique value of Pinterest as a platform for discovery and inspiration.

3. Forward Guidance and Outlook

• Q3 Revenue Guidance: Expected to be between $1.190 billion and $1.210 billion, representing 13% to 15% growth year-over-year.
• Adjusted EBITDA Guidance: Anticipated to be in the range of $335 million to $355 million for Q3.
• Long-term Margin Outlook: Full-year 2026 adjusted EBITDA margin projected at approximately 30%, up from a previous expectation of 29%.

4. Bad News, Challenges, or Points of Concern

• International Growth: Slower growth in Europe attributed to structural changes in the go-to-market strategy and tougher year-over-year comparisons.
• Ad Impressions: Overall ad impressions grew 16%, but the deceleration from prior quarters was noted, partly due to lapping previous growth in undermonetized international markets.
• Stock-Based Compensation: Q2 saw a spike in stock-based compensation expenses due to annual equity grants, expected to remain elevated but step down in subsequent quarters.

5. Notable Q&A Insights

• User Engagement: Continued strength in engagement, particularly among Gen Z, with confidence in durability driven by personalized experiences and the unique human curation on the platform.
• Monetization of Pinterest Assistant: Monetization is integrated into the product from the start, with ongoing enhancements to improve advertiser outcomes.
• Challenges in Europe: New leadership is focused on improving market prioritization and advertiser relationships, with expectations for gradual improvement in international markets.
• AI Cost Management: Investments in GPU capacity are yielding returns, with a blended model approach to AI that balances cost and performance effectively.

Overall, Pinterest reported strong Q2 results, driven by user growth and strategic AI initiatives, while navigating challenges in international markets and managing costs effectively.