PINS

Pinterest has crossed from a perennially-breakeven social platform into a genuinely profitable, cash-generative business. FY2025 revenue grew 15.8% to $4.22B and, more importantly, operating income jumped 77.9% to $320M — the cleanest signal of the underlying trend. The headline net income decline of 77.6% to $417M (EPS $0.61, down 77.2%) is misleading: FY2024 net income of $1.86B was inflated relative to the $3.65B revenue base, indicating a large non-operating item (a deferred-tax-asset benefit) in the prior year. Judged on operations, the business is accelerating, not deteriorating.

The balance sheet is a standout. Liabilities/equity is just 0.16x, the company carries no meaningful debt, holds $969M cash, and generated $1.28B of operating cash flow (up 33.1%) against trivial capex of $32.4M — an extremely asset-light, high-conversion model. Management is returning that cash aggressively, buying back $927M of stock (up 54.5%), while investing heavily in product with R&D up 15.1% to $1.43B. Retained earnings turned solidly positive at $129M.