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Leadership change puts investors in focus

Pinterest’s CFO departure has raised fresh questions about whether the company can sustain its growth momentum despite strong financial results. Pinterest said on Aug. 28 that Chief Financial Officer Julia Donnelly will step down on Oct. 30, and that it has begun an external search for her successor. During the transition, vice president of finance and business operations Vikram Naidu will serve as interim chief financial officer.

Donnelly is leaving after nearly three years in the role to join an early-stage private company. Management highlighted the company’s 11 straight quarters of double-digit revenue growth, but the timing of the change has also become important for whether that performance can continue in the next phase.

What do the revenue, user and profitability figures show?

In the second quarter of 2026, Pinterest’s revenue reached $1.18 billion, up 18% from the same period last year. That marked the fourth consecutive quarter in which the company topped the $1 billion threshold. Global monthly active users also rose 11% to 640 million, and Gen Z users made up more than half of the total audience.

North America and AI investments stand out

Revenue in the U.S. and Canada, Pinterest’s most profitable market, grew 18%. With the sales team being reorganized and mid-sized advertisers receiving tighter account management, average revenue per user in the region rose 14% to $8.30. Pinterest also expanded its chat-based Pinterest Assistant to most users in the U.S. by late July, and management said the open-source models it uses run at less than 8% of the cost of similar closed systems.

Profitability also remained solid. Adjusted EBITDA came in at $311 million, with the margin rising to 26% and expanding by 130 basis points year over year. Free cash flow over the past 12 months reached $1.3 billion, while the company spent more than $2 billion on buybacks this year and removed about 111 million shares from the market.

Slower growth signals and pressure on the stock

Factors weighing on third-quarter guidance

Pinterest expects revenue growth in the third quarter to slow to the 13%-15% range. That forecast is below the 18% growth seen in the second quarter and has shifted market attention to what comes next.

  • A shift in the timing of Prime Day
  • Weaker support from foreign exchange rates
  • European regulatory moves increasing pressure on cross-border retailers based in Asia
  • Competition in digital ad spending with Meta’s Instagram platform

Costs also grew faster than revenue in some areas. Cost of revenue rose 25% due to added GPU capacity and the full-quarter effect of the tvScientific acquisition, while non-GAAP operating expenses increased 13% on brand campaigns and AI-focused hiring. Ad impression growth slowed to 16%. On the other hand, board member Benjamin Silbermann sold 93,750 shares for about $2.2 million on Aug. 18-19, and the stock was 34% below its level a year earlier as of Aug. 19, both of which added to investor caution. Still, hedge fund interest held steady at 49 funds, while the short interest ratio stood at 11.81%.

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