Pinterest's CFO disclosed ongoing pressure from Asia-based cross-border retailers due to regulatory actions, particularly in Europe, impacting Q3. While stock-based compensation (SBC) will remain elevated in 2026, the company expects both SBC expense dollars and year-over-year growth to decrease starting in Q3 compared to Q2.
Pinterest's CFO revealed that the company is experiencing continued pressure in Q3 from Asia-based cross-border retailers, primarily due to regulatory actions in Europe. This indicates a potential headwind for revenue growth. Additionally, while stock-based compensation (SBC) is projected to remain high through 2026, the company anticipates a reduction in both SBC expense dollars and its year-over-year growth starting in Q3. This mixed bag of news suggests ongoing operational challenges but also some cost management improvements. For traders, the immediate concern is the sustained revenue pressure, which could lead to short-term negative sentiment, while the SBC outlook offers a longer-term, albeit modest, positive. The key risk is whether the regulatory impact on retailers intensifies or spreads.