Pinterest Inc. (NYSE: PINS) saw its stock jump 10% on Tuesday following the announcement of a $1 billion strategic investment from Elliott Investment Management and a set of near-term share repurchase actions that together are expected to total about $2 billion.
Under the arrangement, Elliott will acquire $1 billion of Pinterest convertible senior notes maturing March 1, 2031. The notes carry a 1.75% annual interest rate and an initial conversion price of about $22.72 per share, which the company said equates to a 30% premium to the March 2, 2026 closing price.
Pinterest said proceeds from Elliott’s investment will be used to fund a $1 billion accelerated share repurchase (ASR). The company’s board has also authorized a new $3.5 billion share repurchase program to replace the existing program.
Beyond the ASR, Pinterest intends to repurchase up to an additional $500 million of shares from cash on hand via a 10b5-1 trading plan. Combined with $473 million in repurchases completed year-to-date under the prior program, the company expects to repurchase approximately $2 billion in total shares during the first half of 2026.
Pinterest provided a timetable for the ASR, saying it will pay $1 billion on March 5, 2026, and expects to receive initial delivery of approximately 80% of the total shares to be repurchased. The company anticipates completing the transactions no later than the second quarter of 2026.
In a prepared statement, Chief Executive Officer Bill Ready said, "Today’s repurchase announcement reflects our belief that our current share price undervalues the strength of our business and the significant long-term growth opportunity ahead."
The company noted operational milestones alongside the capital actions, reporting record revenue in 2025 and user growth that reached all-time highs for ten consecutive quarters. Pinterest additionally reported more than 80 billion monthly searches on its platform.
Marc Steinberg, a partner at Elliott who will serve on Pinterest’s board of directors, commented that Elliott has been a supporter of the company since its first investment in 2022.
Context and mechanics
The convertible notes have a March 1, 2031 maturity and a stated coupon of 1.75% per year, with the initial conversion price set near $22.72 per share. The ASR is expected to deliver the majority of repurchased shares up front, with final settlement by the second quarter of 2026.
Outlook as presented by the company
Pinterest expects the combination of the ASR, the 10b5-1 purchases, and the repurchases already completed to amount to roughly $2 billion of total share repurchases in the first half of 2026. The board’s $3.5 billion authorization provides scope for further buybacks beyond the near-term plans.