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(NYSE:PINS)
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Rating:69Neutral
Price Target:
$26.00
▲(17.49% Upside)
Action:Reiterated
Date:08/07/26
Overall score reflects strong cash-flow generation and high gross margins with steady revenue growth as the primary positives, reinforced by a constructive earnings update and higher margin guidance. The main constraints are elevated valuation (P/E ~49), uneven GAAP profitability, and a recent step-up in leverage, which collectively justify a moderate risk discount despite improving operating momentum.
Positive Factors
Strong free cash flow generation
Sustained, high free cash flow gives Pinterest durable financial flexibility: it can fund AI and ad-product investments, opportunistic buybacks, and debt servicing without relying on external financing. Robust FCF mitigates ad-cycle volatility and supports long-term strategy execution.
Negative Factors
Rising leverage
A meaningful step-up in debt relative to prior conservative leverage reduces balance-sheet optionality. Higher leverage can constrain capital allocation choices, increase interest exposure, and limit downside protection if advertising demand softens over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow generation
Sustained, high free cash flow gives Pinterest durable financial flexibility: it can fund AI and ad-product investments, opportunistic buybacks, and debt servicing without relying on external financing. Robust FCF mitigates ad-cycle volatility and supports long-term strategy execution.
Read all positive factors
Pinterest Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down where Pinterest earns its revenue, highlighting dependence on particular markets, regional growth hotspots, and exposure to currency or regulatory shifts that can affect top-line stability.
Breaks down where Pinterest earns its revenue, highlighting dependence on particular markets, regional growth hotspots, and exposure to currency or regulatory shifts that can affect top-line stability.
Data provided by:
The Fly
The FlyPinterest (PINS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$13.43B
Dividend YieldN/A
Average Volume (3M)13.31M
Price to Earnings (P/E)69.6
Beta (1Y)1.25
Revenue Growth16.64%
EPS Growth-87.65%
CountryUS
Employees5,116
SectorCommunication Services
Sector Strength97
IndustryInternet Content & Information
Share Statistics
EPS (TTM)0.35
Shares Outstanding492,198,000
10 Day Avg. Volume9,438,084
30 Day Avg. Volume13,310,372
Financial Highlights & Ratios
PEG Ratio-0.54
Price to Book (P/B)3.68
Price to Sales (P/S)4.14
P/FCF Ratio13.95
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$28.82Price Target Upside30.22% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering23
EPS Forecast (FY)2.02
Revenue Forecast (FY)$4.91B
Pinterest Business Overview & Revenue Model
Company Description
Pinterest, Inc. functions globally as a platform dedicated to visual discovery. Its core purpose is to empower individuals to unearth inspiration for various aspects of their lives, encompassing everything from culinary creations and personal styl...
How the Company Makes Money
Pinterest primarily makes money from digital advertising. Advertisers pay to promote content on Pinterest’s platform, typically through auction-based ad buying and pricing models such as cost-per-click (CPC) and cost-per-impression (CPM) (exact mi...
Pinterest Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The call presented a predominantly constructive picture: strong user and revenue growth, expanding monetization in UCAN, improving adjusted EBITDA margins, robust free cash flow and meaningful AI-driven product progress (Pinterest Assistant, Performance+, open-source model cost advantages). At the same time, notable investments increased cost of revenue and operating expenses, Europe and broader international monetization are undergoing a deliberate multi-quarter transformation with near-term disruption, and several advertiser-facing initiatives remain early in their adoptive cycles. On balance, the positive operational and financial momentum, margin improvement and cash generation outweigh the execution and investment headwinds.Positive Updates
Record User Growth and Engagement
Reached 640 million global MAUs (up 11% YoY), 12th consecutive quarter of record users and 11th straight quarter of double-digit user growth overall; U.S. & Canada MAUs 106M (up 4%), Europe 157M (up 8%), Rest of World 377M (up 15%). Gen Z represents over half the user base and is the largest, fastest-growing cohort.
Negative Updates
Rising Cost of Revenue and Infrastructure Investment
Cost of revenue increased to $245M, up 25% YoY and up 6% vs Q1, driven by tvScientific inclusion and additional GPU capacity. Company expects modest headwinds from cost of revenue as a percentage of revenue in H2 2026 as GPU and tvScientific investments continue.
Read all updates
Q2-2026 Updates
Positive
Negative
Record User Growth and Engagement
Reached 640 million global MAUs (up 11% YoY), 12th consecutive quarter of record users and 11th straight quarter of double-digit user growth overall; U.S. & Canada MAUs 106M (up 4%), Europe 157M (up 8%), Rest of World 377M (up 15%). Gen Z represents over half the user base and is the largest, fastest-growing cohort.
Read all positive updates
Company Guidance
Pinterest guided Q3 revenue of $1.190–$1.210 billion (up 13%–15% YoY) and Q3 adjusted EBITDA of $335–$355 million, with non‑GAAP cost of revenue expected roughly flat versus Q2; management warned of a modest FX headwind in Q3 after a 1‑point tailwind in Q2, a ~0.5‑point headwind from Prime Day timing (which benefited Q2 by ~0.5 points) and the loss of a nearly 1‑point World Cup benefit that helped Q2. They raised full‑year 2026 adjusted EBITDA margin guidance to ~30% (from ~29%), building on Q2 results of $1.180B revenue (+18% YoY; +17% constant currency), $311M adjusted EBITDA (26% margin), 640M MAUs (+11% YoY; UCAN 106M, Europe 157M, Rest of World 377M), ad impressions +16%, ad pricing +1%, Q2 cost of revenue $245M (+25% YoY), non‑GAAP OpEx $629M (+13%), Q2 free cash flow $270M and TTM FCF of nearly $1.3B (94% conversion).Pinterest Financial Statement Overview
Summary
Income Statement
67
Positive
Balance Sheet
58
Neutral
Cash Flow
82
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.56B | 4.22B | 3.65B | 3.06B | 2.80B | 2.58B |
| Gross Profit | 3.62B | 3.38B | 2.90B | 2.37B | 2.12B | 2.05B |
| EBITDA | 352.82M | 471.04M | 308.87M | 5.07M | -24.25M | 357.89M |
| Net Income | 248.92M | 416.86M | 1.86B | -35.61M | -96.05M | 316.44M |
Balance Sheet | ||||||
| Total Assets | 4.76B | 5.51B | 5.34B | 3.59B | 3.86B | 3.54B |
| Cash, Cash Equivalents and Short-Term Investments | 1.27B | 2.47B | 2.51B | 2.51B | 2.70B | 2.48B |
| Total Debt | 1.20B | 262.02M | 185.79M | 196.28M | 228.97M | 250.87M |
| Total Liabilities | 1.87B | 765.69M | 591.51M | 503.73M | 581.08M | 498.50M |
| Stockholders Equity | 2.89B | 4.75B | 4.75B | 3.09B | 3.28B | 3.04B |
Cash Flow | ||||||
| Free Cash Flow | 1.59B | 1.25B | 939.99M | 604.90M | 440.22M | 743.88M |
| Operating Cash Flow | 1.66B | 1.28B | 964.59M | 612.96M | 469.20M | 752.91M |
| Investing Cash Flow | 211.29M | -134.48M | -221.02M | -36.99M | -128.25M | -25.86M |
| Financing Cash Flow | -3.26B | -1.32B | -968.32M | -826.76M | -148.93M | 22.16M |
Pinterest Technical Analysis
Positive
22.13
Price Trends
22.15
Positive
20.79
Positive
22.63
Positive
Market Momentum
0.59
Positive
58.23
Neutral
33.39
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PINS, the sentiment is Positive. The current price of 22.13 is below the 20-day moving average (MA) of 23.50, below the 50-day MA of 22.15, and below the 200-day MA of 22.63, indicating a bullish trend. The MACD of 0.59 indicates Positive momentum. The RSI at 58.23 is Neutral, neither overbought nor oversold. The STOCH value of 33.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PINS.
Pinterest Risk Analysis
Pinterest disclosed 45 risk factors in its most recent earnings report. Pinterest reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Pinterest Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $31.11B | 34.73 | 29.02% | ― | 66.59% | 285.68% | |
76 Outperform | $1.41B | 11.64 | 18.61% | ― | 1.50% | -6.82% | |
70 Outperform | $8.55B | 12.33 | -303.57% | 2.06% | 1.70% | 40.52% | |
69 Neutral | $13.43B | 69.63 | 6.50% | ― | 16.64% | -87.65% | |
65 Neutral | $7.71B | 53.40 | 8.04% | ― | 11.20% | ― | |
61 Neutral | $9.01B | -28.93 | -14.61% | ― | 12.65% | 42.94% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% |
* Communication Services Sector Average
PINS
Pinterest
24.37
-9.82
-28.72%
YELP
Yelp
24.55
-5.93
-19.46%
SNAP
Snap
5.35
-1.84
-25.59%
BILI
Bilibili
18.99
-4.14
-17.90%
MTCH
Match Group
36.73
1.84
5.27%
RDDT
Reddit Inc Class A
158.72
-62.03
-28.10%
Pinterest Corporate Events
Executive/Board Changes
Pinterest bolsters finance leadership with new accounting chief
Positive
Aug 7, 2026
On August 5, 2026, Pinterest appointed Renee Jewell as Chief Accounting Officer, effective August 26, 2026, strengthening its senior finance leadership with a seasoned executive from the tech and online marketplace sectors. Jewell, currently Contr...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.