The Trade Desk reported strong full-year 2025 results with revenue growth and significant profitability, driven by advertiser prioritization of measurable outcomes and data-driven decisioning. The company highlighted ongoing innovation and strategic partnerships as key drivers for capturing greater market share in the global advertising market.
Full year 2025 revenue reached $2.9 billion, an 18% increase year-over-year.
positiveFourth quarter 2025 revenue was $847 million, up 14% year-over-year.
positiveCustomer retention remained over 95% for the twelfth consecutive year.
positiveAnnounced an additional $350 million share repurchase authorization, bringing the total available for future repurchases to $500 million.
positiveAdjusted EBITDA for the full year 2025 was $1.2 billion, a 18% increase year-over-year.
positiveAdjusted EBITDA margin remained strong at 47% in Q4 2025 and 41% for the full year 2025.
positiveNet income margin decreased to 15% in FY2025 from 16% in FY2024, despite revenue growth.
attentionGAAP diluted EPS grew 15% year-over-year to $0.90 in FY2025, a slower growth rate compared to the 18% revenue growth.
attentionCash and cash equivalents decreased significantly from $1.37 billion at the end of 2024 to $658 million at the end of 2025, primarily due to substantial share repurchases.
attentionTotal operating expenses increased by 14% year-over-year to $2.3 billion in FY2025, outpacing the 18% revenue growth.
attentionStock-based compensation expense, a significant non-cash expense, was $491 million in FY2025, a slight decrease from $495 million in FY2024.
neutralMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.
Advertisers increasingly prioritize measurable outcomes and data-driven decisioning over cheap reach, enhancing the role of objective platforms like The Trade Desk.
The company is well-positioned to capture greater share of the global advertising market in 2026 and beyond due to continued innovation.
Significant upgrades were made to the platform in 2025, including advancements in Kokai, retail data, and the supply chain.
Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.
Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.