The Trade Desk Reports Fourth Quarter and Fiscal Year 2025 Financial Results

View all news The Trade Desk Reports Fourth Quarter and Fiscal Year 2025 Financial Results February 25, 2026 The Trade Desk also announced an additional share repurchase authorization, bringing the total amount of authorized future repurchases to $500 million of its Class A common stock. The Trade Desk, Inc. (“The Trade Desk,” the “Company” or “we”) (NASDAQ: TTD), a provider of a global technology platform for buyers of advertising, today announced financial results for its fourth quarter and fiscal year ended December 31, 2025. “The Trade Desk delivered $2.9 billion in revenue in 2025 while continuing to generate significant profitability and cash flow,” said Jeff Green, Co-Founder and CEO of The Trade Desk. “We executed against a backdrop of macro uncertainty while making some of the most meaningful upgrades in our company’s history. As advertisers increasingly prioritize measurable outcomes and data-driven decisioning over cheap reach, our role as an objective platform becomes even more important. With continued innovation across Kokai, retail data, and the supply chain, we are well positioned to capture greater share of the global advertising market in 2026 and beyond.” Fourth Quarter and Full Year 2025 Financial Highlights: The following table summarizes the Company’s unaudited consolidated financial results for the three and twelve months ended December 31, 2025 and 2024 ($ in millions, except per share amounts): Three Months Ended December 31, Year Ended December 31, 2025 2024 2025 2024 GAAP Results Revenue $ 847 $ 741 $ 2,896 $ 2,445 Increase in revenue year over year 14 % 22 % 18 % 26 % Net income $ 187 $ 182 $ 443 $ 393 Net income margin 22 % 25 % 15 % 16 % GAAP diluted earnings per share $ 0.39 $ 0.36 $ 0.90 $ 0.78 Non-GAAP Results Adjusted EBITDA $ 400 $ 350 $ 1,196 $ 1,011 Adjusted EBITDA margin 47 % 47 % 41 % 41 % Non-GAAP net income $ 284 $ 297 $ 873 $ 832 Non-GAAP diluted earnings per share $ 0.59 $ 0.59 $ 1.77 $ 1.66 Fourth Quarter and 2025 Recent Business Highlights Continued Growth: 2025 gross spend of $13.4 billion.Strong Customer Retention: Customer retention remained over 95% during the year, as it has for the past twelve consecutive years.New Innovation and Partnership Announcements:PubDesk, a new dashboard designed to help publishers better understand demand-side behavior and pricing on our platform to improve overall supply chain transparency and efficiency.Intuit SMB MediaLab audiences now available on The Trade Desk platform, connecting advertisers with small and mid-market businesses.Optimove’s audience integration now available on The Trade Desk.Vidmob announced strategic DSP integrations, including The Trade Desk.Announced the Ventura Ecosystem, allowing participants across CTV to leverage Ventura’s monetization toolset.Continued Collaboration and Support for Unified ID 2.0: The Trade Desk is building support for Unified ID 2.0 (UID2), an industry-wide approach to identity that preserves the value of relevant advertising while putting user control and privacy at the forefront. UID2 is an upgrade and alternative to third-party cookies. Recent partnerships and pledges of integration and support include:Databricks announced a new integration with The Trade Desk, enabling UID2 support within the Databricks Data Clean Room.HighTouch launched ID Express targeting and conversion tracking through The Trade Desk and announced UID2 adoption.Connected TV (CTV): The Trade Desk offers advertisers access to premium inventory across major networks and streaming services around the world.NBCUniversal enabled programmatic access to the 2026 Winter Olympics and Paralympic Games through DSPs, including The Trade Desk.Share Repurchases: The Company used approximately $423 million of cash to repurchase its Class A common stock in the fourth quarter of 2025. The Company used approximately $1.4 billion of cash to repurchase its Class A common stock in the year ended December 31, 2025, at an average repurchase price of $52.60. As of December 31, 2025, the Company had approximately $150 million available and authorized for repurchases.The Company also announced that its board of directors approved an additional $350 million under its share repurchase program, bringing the total amount available for future repurchases of the Company’s outstanding Class A common stock to $500 million.Industry Recognition (2025):Fortune 100 Fastest Growing Companies, 2025Forbes America's Most Successful Mid-Cap Companies, 2026Time America’s Growth Leaders, 2026Gartner Customers’ Choice, Ad Tech Platform, 2025 Financial Guidance: First Quarter 2026 outlook summary: Revenue at least $678 millionAdjusted EBITDA of approximately $195 million The Company has not provided an outlook for GAAP net income or reconciliation of Adjusted EBITDA guidance to net income, the closest corresponding U.S. GAAP measure, because net income outlook is not available without unreasonable efforts on a forward-looking basis due to the variability and complexity with respect to the charges included in the calculation of this GAAP measure; in particular, the measures and effects of our stock-based compensation expense that are directly impacted by unpredictable fluctuations in our share price. The Company expects the variability of the above charges could have a significant and potentially unpredictable impact on our future U.S. GAAP financial results. Use of Non-GAAP Financial Information Included within this press release are the non-GAAP financial measures of Adjusted EBITDA, Adjusted EBITDA margin, Non-GAAP net income and Non-GAAP diluted earnings per share (“EPS”) that supplement the Consolidated Statements of Operations of the Company prepared under generally accepted accounting principles (“GAAP”). Adjusted EBITDA is net income before depreciation and amortization expense; stock-based compensation expense; interest income, net; and provision for income taxes. Adjusted EBITDA margin is Adjusted EBITDA divided by revenue, and Adjusted EBITDA margin’s closest corresponding U.S. GAAP measure is net income margin, which is GAAP net income divided by revenue. Non-GAAP net income excludes charges and the related income tax effects for stock-based compensation. Tax rates on the tax-deductible portions of the stock-based compensation expense approximating 25% to 30% have been used in the computation of non-GAAP net income and non-GAAP diluted EPS. Reconciliations of GAAP to non-GAAP amounts for the periods presented herein are provided in schedules accompanying this release and should be considered together with the Consolidated Statements of Operations. These non-GAAP measures are not meant as a substitute for GAAP, but are included solely for informational and comparative purposes. The Company’s management believes that this information can assist investors in evaluating the Company's profitability, operational trends and financial performance. Management believes these non-GAAP measures allow investors to evaluate the Company’s financial performance using some of the same measures as management and securities analysts. However, the non-GAAP financial measures should not be considered in isolation of, as a replacement for, or as superior to corresponding, similarly captioned, GAAP measures and may be different from non-GAAP financial measures used by other companies. Fourth Quarter and Fiscal Year 2025 Financial Results Webcast and Conference Call Details When: February 25, 2026 at 2:00 P.M. Pacific Time (5:00 P.M. Eastern Time).Webcast: A live webcast of the call can be accessed from the Investor Relations section of The Trade Desk’s website at http://investors.thetradedesk.com/. Following the call, a replay will be available on the Company’s website.Dial-in: To access the call via telephone in North America, please dial 888-506-0062. For callers outside the United States, please dial 1-973-528-0011. Participants should reference the conference call ID code “159997” after dialing in.Audio replay: An audio replay of the call will be available beginning about two hours after the call. To listen to the replay in the United States, please dial 877-481-4010 (replay code: 53520). Outside the United States, please dial 1-919-882-2331 (replay code: 53520). The audio replay will be available via telephone until March 4, 2026. The Trade Desk, Inc. uses its Investor Relations website (http://investors.thetradedesk.com), its X feed (@TheTradeDesk), LinkedIn page (https://www.linkedin.com/company/the-trade-desk), Facebook page (https://www.facebook.com/TheTradeDesk) and Jeff Green’s LinkedIn profile (https://www.linkedin.com/in/jefftgreen) as a means of disclosing information about the Company and for complying with its disclosure obligations under Regulation FD. The information that is posted through these channels may be deemed material. Accordingly, investors should monitor these channels in addition to The Trade Desk’s press releases, SEC filings, public conference calls and webcasts. About The Trade Desk The Trade Desk™ is a technology company that empowers buyers of advertising. Through its self-service, cloud-based platform, ad buyers can create, manage, and optimize digital advertising campaigns across ad formats and devices. Integrations with major data, inventory, and publisher partners ensure maximum reach and decisioning capabilities, and enterprise APIs enable custom development on top of the platform. Headquartered in Ventura, CA, The Trade Desk has offices across North America, Europe and Asia Pacific. To learn more, visit thetradedesk.com or follow us on Facebook, X, LinkedIn and YouTube. Forward-Looking Statements This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to expectations concerning matters that (a) are not historical facts, (b) predict or forecast future events or results, or (c) embody assumptions that may prove to have been inaccurate, including statements relating to industry and market trends, the Company’s growth and financial targets, such as revenue and Adjusted EBITDA and the amount, timing and sources of funding for the Company’s share repurchase program. When words such as “believe,” “expect,” “anticipate,” “will,” “outlook” or similar expressions are used, the Company is making forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it cannot give readers any assurance that such expectations will prove correct. These forward-looking statements involve risks, uncertainties and assumptions, including those related to the Company’s ability to maintain and grow its client base and revenue through its platform and related offerings, which makes it difficult to evaluate the Company’s business and prospects, the market for programmatic advertising developing slower or differently than the Company’s expectations, the demands and expectations of clients and the ability to attract and retain clients. The actual results may differ materially from those anticipated in the forward-looking statements as a result of numerous factors, many of which are beyond the control of the Company. These are disclosed in the Company’s reports filed from time to time with the Securities and Exchange Commission, including its most recent Form 10-K and any subsequent filings on Forms 10-Q or 8-K, available at www.sec.gov. Readers are urged not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company does not intend to update any forward-looking statement contained in this press release to reflect events or circumstances arising after the date hereof. THE TRADE DESK, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (Amounts in thousands, except per share amounts) (Unaudited) Three Months Ended December 31, Year Ended December 31, 2025 2024 2025 2024 Revenue $ 846,791 $ 741,012 $ 2,896,284 $ 2,444,831 Operating expenses(1): Platform operations 163,094 135,267 619,067 472,012 Sales and marketing 173,596 150,629 644,300 546,517 Technology and development 130,595 127,893 525,141 463,319 General and administrative 122,633 131,914 518,455 535,816 Total operating expenses 589,918 545,703 2,306,963 2,017,664 Income from operations 256,873 195,309 589,321 427,167 Other expense (income): Total other income, net (13,393 ) (26,290 ) (69,434 ) (80,135 ) Income before income taxes 270,266 221,599 658,755 507,302 Provision for income taxes 83,316 39,370 215,451 114,226 Net income $ 186,950 $ 182,229 $ 443,304 $ 393,076 Earnings per share: Basic $ 0.39 $ 0.37 $ 0.91 $ 0.80 Diluted $ 0.39 $ 0.36 $ 0.90 $ 0.78 Weighted-average shares outstanding: Basic 479,994 493,958 488,278 490,879 Diluted 482,725 506,843 493,551 501,924 ___________________________ (1) Includes stock-based compensation expense as follows: THE TRADE DESK, INC. STOCK-BASED COMPENSATION EXPENSE (Amounts in thousands) (Unaudited) Three Months Ended December 31, Year Ended December 31, 2025 2024 2025 2024 Platform operations $ 8,227 $ 8,866 $ 34,480 $ 29,310 Sales and marketing 25,072 28,481 112,509 99,135 Technology and development 39,372 40,952 163,350 138,393 General and administrative(1) 39,502 50,930 180,288 227,861 Total $ 112,173 $ 129,229 $ 490,627 $ 494,699 ___________________________ (1) Includes stock-based compensation expense related to a long-term CEO performance grant of $10 million and $27 million for the three months ended December 31, 2025 and 2024, respectively, as well as $67 million and $128 million for the twelve months ended December 31, 2025 and 2024, respectively. THE TRADE DESK, INC. CONSOLIDATED BALANCE SHEETS (Amounts in thousands) (Unaudited) As of December 31, 2025 As of December 31, 2024 ASSETS Current assets: Cash and cash equivalents $ 658,175 $ 1,369,463 Short-term investments, net 644,882 552,026 Accounts receivable, net 3,770,194 3,330,343 Prepaid expenses and other current assets 187,753 84,626 Total current assets 5,261,004 5,336,458 Property and equipment, net 396,819 209,332 Operating lease assets 342,042 263,761 Deferred income taxes 55,700 230,214 Other assets, non-current 97,655 72,186 Total assets $ 6,153,220 $ 6,111,951 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 3,007,651 $ 2,631,213 Accrued expenses and other current liabilities 181,991 177,760 Operating lease liabilities 76,355 64,492 Total current liabilities 3,265,997 2,873,465 Operating lease liabilities, non-current 359,975 247,723 Other liabilities, non-current 42,857 41,618 Total liabilities 3,668,829 3,162,806 Stockholders' equity: Preferred stock — — Common stock — — Additional paid-in capital 3,075,303 2,594,896 Retained earnings (accumulated deficit) (590,912 ) 354,249 Total stockholders' equity 2,484,391 2,949,145 Total liabilities and stockholders' equity $ 6,153,220 $ 6,111,951 THE TRADE DESK, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (Amounts in thousands) (Unaudited) Year Ended December 31, 2025 2024 OPERATING ACTIVITIES: Net income $ 443,304 $ 393,076 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization expense 115,784 87,490 Stock-based compensation expense 490,627 494,699 Deferred income taxes 167,690 (76,903 ) Noncash lease expense 69,682 57,403 Other (19,237 ) (7,028 ) Changes in operating assets and liabilities: Accounts receivable (432,718 ) (474,227 ) Prepaid expenses and other current and non-current assets (76,586 ) (38,783 ) Accounts payable 291,073 298,919 Accrued expenses and other current and non-current liabilities 6,926 46,564 Operating lease liabilities (63,824 ) (41,754 ) Net cash provided by operating activities 992,721 739,456 INVESTING ACTIVITIES: Purchases of investments (954,273 ) (679,539 ) Maturities of investments 875,754 629,088 Purchases of property and equipment (197,011 ) (98,238 ) Capitalized software development costs (12,752 ) (8,824 ) Business acquisition (4,350 ) — Net cash used in investing activities (292,632 ) (157,513 ) FINANCING ACTIVITIES: Repurchases of Class A common stock (1,380,422 ) (234,784 ) Proceeds from exercise of stock options 23,818 216,281 Proceeds from employee stock purchase plan 42,881 49,989 Taxes paid relating to net settlement of restricted stock (97,654 ) (139,095 ) Net cash used in financing activities (1,411,377 ) (107,609 ) Increase (decrease) in cash and cash equivalents (711,288 ) 474,334 Cash and cash equivalents—Beginning of period 1,369,463 895,129 Cash and cash equivalents—End of period $ 658,175 $ 1,369,463 Non-GAAP Financial Metrics (Amounts in thousands, except per share amounts) (Unaudited) The following tables show the Company’s non-GAAP financial metrics reconciled to the comparable GAAP financial metrics included in this release. Three Months Ended December 31, Year Ended December 31, 2025 2024 2025 2024 Net income $ 186,950 $ 182,229 $ 443,304 $ 393,076 Add back (deduct): Depreciation and amortization expense 31,960 24,112 115,784 87,490 Stock-based compensation expense 112,173 129,229 490,627 494,699 Interest income, net (14,060 ) (24,956 ) (68,717 ) (78,842 ) Provision for income taxes 83,316 39,370 215,451 114,226 Adjusted EBITDA $ 400,339 $ 349,984 $ 1,196,449 $ 1,010,649 Three Months Ended December 31, Year Ended December 31, 2025 2024 2025 2024 GAAP net income $ 186,950 $ 182,229 $ 443,304 $ 393,076 Add back (deduct): Stock-based compensation expense 112,173 129,229 490,627 494,699 Adjustment for income taxes (14,832 ) (14,733 ) (60,851 ) (55,472 ) Non-GAAP net income $ 284,291 $ 296,725 $ 873,080 $ 832,303 GAAP diluted earnings per share $ 0.39 $ 0.36 $ 0.90 $ 0.78 GAAP weighted-average shares outstanding—diluted 482,725 506,843 493,551 501,924 Non-GAAP diluted earnings per share $ 0.59 $ 0.59 $ 1.77 $ 1.66 Non-GAAP weighted-average shares used in computing Non-GAAP earnings per share, diluted 482,725 506,843 493,551 501,924 Source: The Trade Desk, Inc. 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