Pinterest shares dropped 20% after hours due to CEO Bill Ready attributing it to tariffs affecting top retail advertisers. Q4 earnings missed, revenue matched estimates, and guidance for current period was weak. Sales rose 14% YoY, net income at $277 million. Pinterest expects Q1 sales between $951 million to $971 million, below estimates.

The impact of tariffs and trade war on large retailers led to a reduction in ad spend and layoffs. Pinterest plans to focus on small-to-medium-sized and international advertisers to reduce reliance on large retailers. Company laid off less than 15% of staff in January to prioritize AI development.

Despite disappointing results and weak outlook, Pinterest saw a 12% YoY increase in global monthly active users to 619 million. Fourth quarter U.S. and Canada sales were $979 million, beating estimates. Pinterest fell short of analysts’ EBIDTA projection of $550 million. The company plans to broaden revenue mix and transform sales strategy.

Read more at CNBC: Pinterest (Pins) Q4 2025 earnings