Pinterest reported robust top-line and cash-flow expansion through the first three quarters of 2025, with total revenue up 16% year-over-year. In Q3 alone, revenue climbed 17%, adjusted EBITDA increased 24%, and free cash flow surged 30%. The company ended the quarter with a $17 billion market capitalization and maintained a gross margin of 79.99%, reflecting efficient cost management even as it scales user-acquisition and platform investments.

Pinterest’s growth has been driven primarily by gains outside North America. European monthly active users rose 8% year-over-year, while European average revenue per user jumped 31% to $1.31. In the rest of the world, MAUs climbed 16% and ARPU soared 44% to $0.21. These gains underscore Pinterest’s success in localizing content and monetization strategies across key international markets.

Over the past year, Pinterest has transformed its discovery engine with a multimodal AI model that powers visual search, personalized recommendations and new shoppable features. The platform now offers an AI assistant to surface product suggestions, a virtual stylist tool and try-on capabilities. On the advertising side, its Performance+ suite leverages dynamic ROAS bidding and AI-generated creative to help brands capture high-intent users, improving campaign efficiency and advertiser ROI.

Despite its strong growth profile, Pinterest trades at roughly 13 times forward analyst earnings estimates for 2026, a significant discount to larger social media peers. This valuation gap reflects both the market’s underappreciation of Pinterest’s international ARPU momentum and its ongoing platform innovations, positioning the shares as a potentially undervalued play on social commerce expansion.