Trade Desk Reports Strong Q4 2025 Earnings Amid Challenges
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy TTD?
Source: seekingalpha
- Revenue Growth: Trade Desk reported $847 million in revenue for Q4 2025, reflecting a 14% year-over-year increase, with full-year revenue reaching $2.9 billion, marking an 18% growth rate, indicating the company's sustained potential in the digital advertising sector.
- Profitability Maintained: Despite facing macroeconomic pressures, Trade Desk maintained strong profitability, with adjusted EBITDA for Q4 approximately $400 million, representing 47% of revenue, showcasing a solid balance between innovation investment and profitability.
- AI Strategy at Core: CEO Jeffrey Green emphasized that nearly all clients are utilizing the Kokai platform, which is viewed as the most advanced AI-driven buying platform, aimed at enhancing advertising effectiveness and client trust.
- Market Challenges and Outlook: While ongoing softness in the CPG and automotive sectors impacted overall performance, management expects Q1 2026 revenue to be at least $678 million, reflecting a 10% year-over-year growth, demonstrating the company's confidence in future prospects.
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Analyst Views on TTD
Wall Street analysts forecast TTD stock price to rise
28 Analyst Rating
15 Buy
12 Hold
1 Sell
Moderate Buy
Current: 24.940
Low
38.00
Averages
53.33
High
85.00
Current: 24.940
Low
38.00
Averages
53.33
High
85.00
About TTD
The Trade Desk, Inc. is a global advertising technology company. The Company offers a self-service, cloud-based ad-buying platform that empowers its clients to plan, manage, optimize and measure more expressive data-driven digital advertising campaigns. Its platform allows clients to execute integrated campaigns across ad formats and channels, including connected television (CTV) and other video, display, audio, and native, on a multitude of devices, such as televisions, streaming devices, mobile devices, computers and digital-out-of-home devices. Its platform’s integrations with inventory, publisher and data partners provide ad buyers reach and decisioning capabilities, and its enterprise application programming interfaces (APIs) enable its clients to customize and expand platform functionality. Its platform provides auto-optimization features that allow buyers to automate their campaigns and support them with computer-generated modeling and decision-making.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
The Trade Desk Reports Earnings in Line with Expectations
- Earnings Performance: The Trade Desk reported earnings of $0.59 per share, aligning with the Zacks Consensus Estimate, indicating stability in the digital advertising sector as it matches last year's figures.
- Revenue Growth: The company achieved revenues of $846.79 million for the quarter, surpassing the Zacks estimate by 0.58% and reflecting a 14.3% increase from $741.01 million a year ago, showcasing enhanced competitiveness in the market.
- Market Performance: Despite a 34.3% decline in share price since the beginning of the year, The Trade Desk has exceeded consensus EPS estimates three times over the past four quarters, demonstrating some earnings resilience.
- Future Outlook: With a current Zacks Rank of 4 (Sell), the stock is expected to underperform the market in the near term, prompting investors to monitor trends in future earnings estimate revisions closely.
See More
Trade Desk Reports Strong Q4 2025 Earnings Amid Challenges
- Revenue Growth: Trade Desk reported $847 million in revenue for Q4 2025, reflecting a 14% year-over-year increase, with full-year revenue reaching $2.9 billion, marking an 18% growth rate, indicating the company's sustained potential in the digital advertising sector.
- Profitability Maintained: Despite facing macroeconomic pressures, Trade Desk maintained strong profitability, with adjusted EBITDA for Q4 approximately $400 million, representing 47% of revenue, showcasing a solid balance between innovation investment and profitability.
- AI Strategy at Core: CEO Jeffrey Green emphasized that nearly all clients are utilizing the Kokai platform, which is viewed as the most advanced AI-driven buying platform, aimed at enhancing advertising effectiveness and client trust.
- Market Challenges and Outlook: While ongoing softness in the CPG and automotive sectors impacted overall performance, management expects Q1 2026 revenue to be at least $678 million, reflecting a 10% year-over-year growth, demonstrating the company's confidence in future prospects.
See More
Major U.S. Stock Indexes Rise, Tech Stocks Shine
- Nasdaq Strong Performance: The Nasdaq index rose nearly 1.3% to close at 23,152.07, reflecting strong investor interest in tech stocks, which may attract more capital inflows into the sector amid an overall positive market backdrop.
- Nvidia Beats Earnings Expectations: Nvidia shares increased by 1.44% to $195.62, with first-quarter revenue guidance of $76.44 billion to $79.56 billion exceeding market expectations of $71.96 billion, indicating robust demand in the data center market despite excluding revenue from China.
- Snowflake Revenue Growth: Snowflake's stock surged 5.09% to $169.21, reporting fourth-quarter revenue of $1.28 billion, up 30% year-over-year and above estimates, showcasing strong performance in the cloud computing market with expectations for continued product revenue growth.
- IonQ Revenue Surge: IonQ shares climbed 6.3% to $33.59, with fourth-quarter revenue of $61.89 million, up 429% year-over-year and above estimates, indicating strong growth potential in the quantum computing sector as future quarters are expected to maintain this momentum.
See More
The Trade Desk Shares Plunge 16% on Softer Q1 Outlook
- Strong Earnings Report: The Trade Desk reported fourth-quarter revenue of $847 million, a 14% year-over-year increase that surpassed Wall Street's expectation of $841 million, indicating robust performance in the adtech sector.
- Declining Profitability: While net income rose to $187 million, the net income margin fell from 25% to 22% year-over-year, reflecting margin compression pressures that could undermine investor confidence moving forward.
- Cautious 2026 Outlook: The company guided for at least $678 million in revenue and approximately $195 million in adjusted EBITDA for Q1 2026, implying lower margins and slower growth, which adds uncertainty to market expectations.
- Ongoing Stock Buybacks: The Trade Desk repurchased $1.4 billion in stock in 2025; however, persistent stock-based compensation costs and margin pressures continue to negatively impact the stock price.
See More
The Trade Desk Q4 Revenue Beats Estimates, Shares Drop 17%
- Revenue Growth: The Trade Desk reported Q4 revenue of $847 million, a 14% increase from $741 million year-over-year, exceeding analysts' expectations of $841 million, indicating strong performance in the advertising market.
- Stable Customer Retention: The company maintained a customer retention rate of over 95% for the past year, consistent for twelve consecutive years, reflecting its success in customer relationship management.
- Weak Guidance: Despite a strong Q4, the company forecasted first-quarter 2026 revenue of at least $678 million, falling short of analysts' estimates of $689.5 million, leading to a 17% drop in shares during after-hours trading.
- Share Buyback Program: The board approved an additional $350 million under its share repurchase program, bringing the total available for future repurchases to $500 million, aimed at enhancing shareholder value and boosting market confidence.
See More
Nvidia's Strong Earnings Propel Stock Upward
- Nvidia Earnings Beat: Nvidia reported adjusted earnings of $1.62 per share for the fourth quarter, exceeding analysts' expectations of $1.53, leading to a more than 1% increase in after-hours trading.
- Snowflake Revenue Guidance: Snowflake projected first-quarter product revenue between $1.262 billion and $1.267 billion, slightly above the FactSet consensus of $1.26 billion, but shares fell over 2%.
- Trade Desk Misses Expectations: Trade Desk forecasted first-quarter adjusted EBITDA of approximately $195 million, significantly below the $223 million expected by analysts, resulting in a 16% drop in shares.
- Nutanix and AMD Partnership: Nutanix announced a multi-year partnership with AMD to develop an AI infrastructure platform, with AMD investing $150 million in Nutanix, leading to a 17% surge in its stock price.
See More
The Trade Desk Reports Earnings in Line with Expectations
- Earnings Performance: The Trade Desk reported earnings of $0.59 per share, aligning with the Zacks Consensus Estimate, indicating stability in the digital advertising sector as it matches last year's figures.
- Revenue Growth: The company achieved revenues of $846.79 million for the quarter, surpassing the Zacks estimate by 0.58% and reflecting a 14.3% increase from $741.01 million a year ago, showcasing enhanced competitiveness in the market.
- Market Performance: Despite a 34.3% decline in share price since the beginning of the year, The Trade Desk has exceeded consensus EPS estimates three times over the past four quarters, demonstrating some earnings resilience.
- Future Outlook: With a current Zacks Rank of 4 (Sell), the stock is expected to underperform the market in the near term, prompting investors to monitor trends in future earnings estimate revisions closely.
See More
Trade Desk Reports Strong Q4 2025 Earnings Amid Challenges
- Revenue Growth: Trade Desk reported $847 million in revenue for Q4 2025, reflecting a 14% year-over-year increase, with full-year revenue reaching $2.9 billion, marking an 18% growth rate, indicating the company's sustained potential in the digital advertising sector.
- Profitability Maintained: Despite facing macroeconomic pressures, Trade Desk maintained strong profitability, with adjusted EBITDA for Q4 approximately $400 million, representing 47% of revenue, showcasing a solid balance between innovation investment and profitability.
- AI Strategy at Core: CEO Jeffrey Green emphasized that nearly all clients are utilizing the Kokai platform, which is viewed as the most advanced AI-driven buying platform, aimed at enhancing advertising effectiveness and client trust.
- Market Challenges and Outlook: While ongoing softness in the CPG and automotive sectors impacted overall performance, management expects Q1 2026 revenue to be at least $678 million, reflecting a 10% year-over-year growth, demonstrating the company's confidence in future prospects.
See More
Major U.S. Stock Indexes Rise, Tech Stocks Shine
- Nasdaq Strong Performance: The Nasdaq index rose nearly 1.3% to close at 23,152.07, reflecting strong investor interest in tech stocks, which may attract more capital inflows into the sector amid an overall positive market backdrop.
- Nvidia Beats Earnings Expectations: Nvidia shares increased by 1.44% to $195.62, with first-quarter revenue guidance of $76.44 billion to $79.56 billion exceeding market expectations of $71.96 billion, indicating robust demand in the data center market despite excluding revenue from China.
- Snowflake Revenue Growth: Snowflake's stock surged 5.09% to $169.21, reporting fourth-quarter revenue of $1.28 billion, up 30% year-over-year and above estimates, showcasing strong performance in the cloud computing market with expectations for continued product revenue growth.
- IonQ Revenue Surge: IonQ shares climbed 6.3% to $33.59, with fourth-quarter revenue of $61.89 million, up 429% year-over-year and above estimates, indicating strong growth potential in the quantum computing sector as future quarters are expected to maintain this momentum.
See More
The Trade Desk Shares Plunge 16% on Softer Q1 Outlook
- Strong Earnings Report: The Trade Desk reported fourth-quarter revenue of $847 million, a 14% year-over-year increase that surpassed Wall Street's expectation of $841 million, indicating robust performance in the adtech sector.
- Declining Profitability: While net income rose to $187 million, the net income margin fell from 25% to 22% year-over-year, reflecting margin compression pressures that could undermine investor confidence moving forward.
- Cautious 2026 Outlook: The company guided for at least $678 million in revenue and approximately $195 million in adjusted EBITDA for Q1 2026, implying lower margins and slower growth, which adds uncertainty to market expectations.
- Ongoing Stock Buybacks: The Trade Desk repurchased $1.4 billion in stock in 2025; however, persistent stock-based compensation costs and margin pressures continue to negatively impact the stock price.
See More
The Trade Desk Q4 Revenue Beats Estimates, Shares Drop 17%
- Revenue Growth: The Trade Desk reported Q4 revenue of $847 million, a 14% increase from $741 million year-over-year, exceeding analysts' expectations of $841 million, indicating strong performance in the advertising market.
- Stable Customer Retention: The company maintained a customer retention rate of over 95% for the past year, consistent for twelve consecutive years, reflecting its success in customer relationship management.
- Weak Guidance: Despite a strong Q4, the company forecasted first-quarter 2026 revenue of at least $678 million, falling short of analysts' estimates of $689.5 million, leading to a 17% drop in shares during after-hours trading.
- Share Buyback Program: The board approved an additional $350 million under its share repurchase program, bringing the total available for future repurchases to $500 million, aimed at enhancing shareholder value and boosting market confidence.
See More
Nvidia's Strong Earnings Propel Stock Upward
- Nvidia Earnings Beat: Nvidia reported adjusted earnings of $1.62 per share for the fourth quarter, exceeding analysts' expectations of $1.53, leading to a more than 1% increase in after-hours trading.
- Snowflake Revenue Guidance: Snowflake projected first-quarter product revenue between $1.262 billion and $1.267 billion, slightly above the FactSet consensus of $1.26 billion, but shares fell over 2%.
- Trade Desk Misses Expectations: Trade Desk forecasted first-quarter adjusted EBITDA of approximately $195 million, significantly below the $223 million expected by analysts, resulting in a 16% drop in shares.
- Nutanix and AMD Partnership: Nutanix announced a multi-year partnership with AMD to develop an AI infrastructure platform, with AMD investing $150 million in Nutanix, leading to a 17% surge in its stock price.
See More
