Pinterest Q3 Revenue Rises 12% as Users Reach 661 Million

Pinterest Inc. (NYSE: PINS) reported 12% year-over-year revenue growth for the third quarter of 2026 as its global user base reached another record, while weaker European monetization limited international performance. The company guided for fourth-quarter revenue growth of 8% to 12% and maintained its expectation for a full-year adjusted EBITDA margin of approximately 30%.

Revenue totaled $1.174 billion, up 12% on both a reported and constant-currency basis. GAAP net income was $21.5 million, representing a 2% net income margin, compared with $92.1 million and a 9% margin a year earlier.

Adjusted EBITDA increased 11% to $339.2 million. The adjusted EBITDA margin was 29%, down 30 basis points year over year as revenue growth slightly outpaced adjusted profit growth. Quarterly free cash flow was $300.3 million, compared with $318.4 million in the prior-year period.

Record Users, Mixed Monetization

Global monthly active users rose 10% to 661 million, marking Pinterest’s 13th consecutive quarter of record users and its 12th straight quarter of double-digit user growth. Rest of World led the expansion with a 13% increase to 394 million users. Europe grew 7% to 161 million, while users in the U.S. and Canada increased 4% to 107 million.

Gen Z accounted for 57% of Pinterest’s user base and remained its most engaged cohort across monthly retention, saves and sessions, according to the presentation. The company also said Gen Z average revenue per user in the U.S. and Canada was comparable to that of Millennials. Searches, Boards created and outbound clicks in the region all grew faster than its user base.

Global ARPU increased 1% to $1.80, reflecting significant regional differences. U.S. and Canada ARPU rose 10% to $8.38, Rest of World ARPU increased 9% to $0.23, and European ARPU declined 7% to $1.21.

Revenue in the U.S. and Canada increased 14% to $894 million. Rest of World revenue rose 24% to $87 million, while European revenue was unchanged at $193 million. Pinterest said international growth was primarily affected by regulatory changes in Europe involving cross-border sellers. Its international go-to-market transformation also created minor near-term headwinds, in line with the company’s expectations.

AI and Advertising Investment

Pinterest is positioning its platform as an AI-powered visual search and shopping destination. Its Pinterest Intelligence foundation combines proprietary first-party data, visual-understanding technology and purpose-built AI models to support personalized discovery and advertiser performance. The platform handled more than 80 billion searches per month, with about 70% of search journeys beginning with a proactive recommendation before a user entered a query.

The company expanded Pinterest Assistant to general availability in the U.S. and continued developing features such as Restyle, which lets users redesign a room from a photo using shoppable catalog products. It also introduced lower-funnel advertising formats, including Visual Search Ads and App Promotion, and added controls and transparency features to its automated Pinterest Performance+ campaigns.

Non-GAAP cost of revenue increased 21% to $250 million, while non-GAAP research and development expense rose 9% to $234 million. Non-GAAP sales and marketing expense increased 12% to $286 million, and general and administrative expense declined 2% to $71 million. These measures exclude items including share-based compensation, related payroll taxes, acquired-intangible amortization and restructuring charges.

Pinterest appointed James Dibbo as chief financial officer effective October 26. Dibbo joined after a decade at Amazon, where his roles included vice president and CFO for Advertising, Global Entertainment and Corporate Development, as well as CFO of Worldwide Consumer.

Fourth-Quarter Outlook

Pinterest expects fourth-quarter revenue of $1.425 billion to $1.475 billion, representing year-over-year growth of 8% to 12%. The forecast includes a modest foreign-exchange headwind. Adjusted EBITDA is projected at $538 million to $588 million, while the company continues to expect a full-year adjusted EBITDA margin of approximately 30%.

The outlook remains subject to risks including economic and political uncertainty, inflation, tariffs, currency movements and regulatory changes. Pinterest also identified challenges related to user engagement, international monetization, advertiser retention, AI development, data privacy, cybersecurity, competition and its dependence on third-party infrastructure. The company noted that its user and ARPU metrics rely on internal data and estimates that may change as its technology and measurement methods evolve.