Pinterest spent more to serve a bigger audience. Cost of revenue rose to $257.4 million in the three months ended June 30, up 27% from a year earlier, while revenue climbed 18.2% to $1.2 billion.
Revenue rose alongside higher costs, and what remained after the growth passed through the income statement was weaker. Operating income swung from a $4.3 million loss to a $55.2 million loss, and net income went from a $38.8 million profit to a $46.7 million loss.
Pinterest gives a direct reason for the cost increase:
"Cost of revenue for the three and six months ended June 30, 2026 increased by $54.3 million and $93.6 million, respectively, compared to the three and six months ended June 30, 2025 primarily due to increased users and engagement."
10-Q 2026-08-04; revenue, margin
The comparison shows higher revenue alongside higher costs. Cost of revenue consumed 22% of sales, up from 20% a year earlier, and the operating margin moved to negative 4.7% from negative 0.4%.
The spending pressure was not confined to serving users. Research and development rose 25.4% to $451.0 million, while stock compensation increased 42.8% to $324.5 million. Pinterest also increased capital spending 114.7%, and free-cash-flow margin declined 3.3 percentage points.
Cash adds another layer to the comparison. The balance fell to $422.5 million from $1.2 billion, while accounts receivable rose 22.6% to $932.0 million. Pinterest’s six-month cash-flow discussion attributes higher operating cash flow partly to timing of vendor payments and says the higher revenue increased accounts receivable, a reminder that reported sales and cash arriving in the bank are not the same event.
The company also had less investment income supporting the period’s results:
"Interest and other income (expense), net for the three and six months ended June 30, 2026 decreased by $32.9 million and $48.0 million, respectively, compared to the three and six months ended June 30, 2025, primarily due to lower invested balances and returns on our cash equivalents and marketable securities as well as lower foreign currency exchange gains."
10-Q 2026-08-04; margin, cash liquidity
That line matters because last year's three-month period included $39.0 million of net interest and other income. This year, the same line contributed just $6.0 million, while the operating business was already losing money.
Pinterest’s recent annual record shows why the current filing is not simply a no-growth story. Revenue reached $4.2 billion in 2025, up 15.8%, and operating margin was 7.6%. The latest three months show the narrower issue: growth is still arriving, but the cost structure and cash position moved in the opposite direction.
The next three-month report’s cleanest comparison is whether Pinterest’s cash balance has moved from the $422.5 million reported on June 30. Source: Pinterest 10-Q filed August 4, 2026.