PINSPinterest, Inc.
Is the business good?
A genuinely good business: earnings fully cash-backed (7.2×) and margins widening.
Mixed fundamental signals. Nine pass/fail tests of year-over-year health from the filings.
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Negative operating leverage, costs are rising faster than sales, squeezing margins as it grows.
Efficiency-driven, thin margins turned over fast (the retail model). ROE 18% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is PINS?
Pinterest, Inc. earns 11% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 1.9 points above what the capital costs: growth creates value
- Operating margin
- 4.9%
Operating margin · Internet Content & Information median 4.9% · 12 months to Q2 2026
- Cash conversion
- 7.22×
Cash conversion · 6.29× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −18%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | −8.4% |
| FY2021 | 13% |
| FY2022 | −3.6% |
| FY2023 | −4.1% |
| FY2024 | 4.9% |
| FY2025 | 7.6% |
Details›
- Gross margin12 months to Q2 2026
- 79%
- Operating margin12 months to Q2 2026
- 4.9%
- Net margin12 months to Q2 2026
- 5.5%
- Free cash flow margin
- 28%
- R&D as % of revenue
- 34%
- Revenue, trailing twelve months
- $4.56B
- Free cash flow, trailing twelve months
- $1.28B
- Net income, trailing twelve months
- $249M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 11%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Internet Content & Information
Ranks #18 of 31 by RyuScore