Trade Desk, Inc. (TTD) Earnings History

Trade Desk, Inc. - Q4 FY2025 EarningsBeat

Filed at: Feb 25, 2026, 4:08 PM EST|Read from source

EXECUTIVE SUMMARY

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.

POSITIVE HIGHLIGHTS

  • •

    Full year 2025 revenue reached $2.9 billion, an 18% increase year-over-year.

    positive
  • •

    Fourth quarter 2025 revenue was $847 million, up 14% year-over-year.

    positive
  • •

    Customer retention remained over 95% for the twelfth consecutive year.

    positive
  • •

    Announced an additional $350 million share repurchase authorization, bringing the total available for future repurchases to $500 million.

    positive
  • •

    Adjusted EBITDA for the full year 2025 was $1.2 billion, a 18% increase year-over-year.

    positive
  • •

    Adjusted EBITDA margin remained strong at 47% in Q4 2025 and 41% for the full year 2025.

    positive

CONCERNS & RISKS

  • •

    Net income margin decreased to 15% in FY2025 from 16% in FY2024, despite revenue growth.

    attention
  • •

    GAAP diluted EPS grew 15% year-over-year to $0.90 in FY2025, a slower growth rate compared to the 18% revenue growth.

    attention
  • •

    Cash 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.

    attention
  • •

    Total operating expenses increased by 14% year-over-year to $2.3 billion in FY2025, outpacing the 18% revenue growth.

    attention
  • •

    Stock-based compensation expense, a significant non-cash expense, was $491 million in FY2025, a slight decrease from $495 million in FY2024.

    neutral

FINANCIAL METRICS

Revenue
Quarterly
$846.79M
+14.0%
Prior year: $741.01M
Annual (YTD)
$2.90B
N/A
Prior year: $2.44B
Net Income
Quarterly
$186.95M
+2.6%
Prior year: $182.23M
Annual (YTD)
$443.30M
N/A
Prior year: $393.08M
EPS (Diluted)
Quarterly
$0.39
+8.3%
Prior year: $0.36
Annual (YTD)
$0.90
N/A
Prior year: $0.78
Operating Income
Quarterly
$256.87M
+31.5%
Prior year: $195.31M
Annual (YTD)
$589.32M
N/A
Prior year: $427.17M
EPS (Basic)
Quarterly
N/A
N/A

MARGIN ANALYSIS

Operating Margin
Current Quarter
30.3%
Prior Year
26.4%
YoY Change
+390 bps
Net Margin
Current Quarter
22.1%
Prior Year
24.6%
YoY Change
-250 bps

Margin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.

MANAGEMENT GUIDANCE

Q1 2026

revenue
"at least $678 million"
Adjusted EBITDA
"approximately $195 million"

Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.

MANAGEMENT COMMENTARY

Advertisers increasingly prioritize measurable outcomes and data-driven decisioning over cheap reach, enhancing the role of objective platforms like The Trade Desk.

— Trade Desk, Inc., Q4 FY2025 2025 Earnings Call

The company is well-positioned to capture greater share of the global advertising market in 2026 and beyond due to continued innovation.

— Trade Desk, Inc., Q4 FY2025 2025 Earnings Call

Significant upgrades were made to the platform in 2025, including advancements in Kokai, retail data, and the supply chain.

— Trade Desk, Inc., Q4 FY2025 2025 Earnings Call

Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.

OPERATIONAL METRICS

Gross Spend
13400.0M
dollars

Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.