$PINS · PINTEREST, INC.
Pinterest filed its Q3 FY2026 10-Q, reporting revenue of $1.174B (+11.9% YoY) but net income of just $21.5M, down from $92.1M in Q3 2025. For the nine months ended September 30, 2026, the company swung to a net loss of $98.7M versus a $139.8M profit a year ago, driven by surging share-based compensation ($847.7M YTD) and restructuring charges of $65.5M. Operating margin for Q3 was a razor-thin 2.6%.
- Q3 revenue $1.174B (+11.9% YoY) vs $1.049B in Q3 2025
- Q3 net income collapsed to $21.5M from $92.1M YoY — a 76.6% drop
- Q3 operating income halved to $30.3M from $58.5M; operating margin just 2.6%
- Nine-month net loss of $98.7M vs $139.8M profit a year ago, driven by $847.7M in SBC (+30% YoY)
- March 2026 board authorized new $3.5B buyback; $472.9M repurchased YTD at avg $17.09/share
Extended-hours trading shows PINS at $17.51, down 12.05% from the regular close of $19.91. The market is punishing the dramatic profit erosion — Q3 net income fell 77% YoY despite double-digit revenue growth, and the nine-month period swung to a $98.7M loss.
Pinterest's profit collapse — from $92M to $21.5M in a single quarter — despite healthy revenue growth signals a cost-structure problem that the -12% after-hours selloff suggests the market did not fully anticipate.
Pinterest's margin compression contrasts with Meta and Google's digital-ad profit expansion. While revenue growth at 11.9% is respectable, the cost structure — particularly R&D spend up 18.6% YoY to $1.26B for nine months — suggests Pinterest is spending heavily just to maintain competitive positioning in AI-driven ad tech.
Share-based compensation ballooned to $847.7M for the nine months (+30% YoY), consuming 25% of revenue. Restructuring charges of $65.5M YTD signal ongoing cost realignment. Interest income collapsed to $31.1M from $83.9M YoY as rate tailwinds fade.