Revenue growth has decelerated significantly to 11.8% in 2026Q1, while gross margins have faced pressure, contracting from a peak of 83.4% in 2023Q4 to 73.6% in 2026Q1.
| Sales/Revenue | 2.97B | 2.9B | 2.44B | 1.95B | 1.58B | 1.2B | 836.03M | 661.06M | 477.29M | 308.22M | 202.93M | 113.84M | 44.55M |
| Revenue Growth % | 15.55% | 18.47% | 25.63% | 23.34% | 31.87% | 43.11% | 26.47% | 38.5% | 54.86% | 51.89% | 78.26% | 155.54% | - |
| Cost of Goods Sold | 658.2M | 619.07M | 472.01M | 365.6M | 281.12M | 221.55M | 178.81M | 156.18M | 114.1M | 66.23M | 39.88M | 22.97M | 12.56M |
| COGS % of Revenue | - | 21.37% | 19.31% | 18.79% | 17.82% | 18.52% | 21.39% | 23.63% | 23.91% | 21.49% | 19.65% | 20.18% | 28.19% |
| Gross Profit | 2.31B | 2.28B | 1.97B | 1.58B | 1.3B | 974.91M | 657.22M | 504.88M | 363.2M | 241.99M | 163.05M | 90.87M | 31.99M |
| Gross Margin % | 77.83% | 78.63% | 80.69% | 81.21% | 82.18% | 81.48% | 78.61% | 76.37% | 76.09% | 78.51% | 80.35% | 79.82% | 71.81% |
| Gross Profit Growth % | - | 15.43% | 24.82% | 21.89% | 33% | 48.34% | 30.17% | 39.01% | 50.09% | 48.41% | 79.43% | 184.06% | - |
| Operating Expenses | 1.71B | 1.69B | 1.55B | 1.38B | 1.18B | 850.1M | 513.01M | 392.68M | 255.87M | 172.63M | 105.53M | 52.89M | 31.23M |
| OpEx % of Revenue | - | 58.28% | 63.22% | 70.91% | 74.98% | 71.05% | 61.36% | 59.4% | 53.61% | 56.01% | 52.01% | 46.46% | 70.09% |
| Selling, General & Admin | 1.17B | 1.16B | 1.08B | 968.25M | 863.14M | 623.96M | 346.36M | 275.93M | 171.98M | 119.83M | 78.22M | 40.07M | 23.98M |
| SG&A % of Revenue | - | 40.15% | 44.27% | 49.75% | 54.71% | 52.15% | 41.43% | 41.74% | 36.03% | 38.88% | 38.55% | 35.2% | 53.82% |
| Research & Development | 535.46M | 525.14M | 463.32M | 411.79M | 319.88M | 226.14M | 166.65M | 116.75M | 83.89M | 52.81M | 27.31M | 12.82M | 7.25M |
| R&D % of Revenue | - | 18.13% | 18.95% | 21.16% | 20.27% | 18.9% | 19.93% | 17.66% | 17.58% | 17.13% | 13.46% | 11.26% | 16.27% |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | -2.78M | -305K | 0 | 0 | 0 | 0 | -3K | 0 |
| Operating Income | 601.52M | 589.32M | 427.17M | 200.48M | 113.65M | 124.82M | 144.21M | 112.2M | 107.32M | 69.36M | 57.52M | 37.98M | 764K |
| Operating Margin % | 20.26% | 20.35% | 17.47% | 10.3% | 7.2% | 10.43% | 17.25% | 16.97% | 22.49% | 22.5% | 28.34% | 33.36% | 1.71% |
| Operating Income Growth % | - | 37.96% | 113.07% | 76.39% | -8.94% | -13.45% | 28.53% | 4.54% | 54.74% | 20.58% | 51.44% | 4871.2% | - |
| EBITDA | 693.32M | 705.11M | 514.66M | 280.9M | 168.08M | 167.04M | 172.84M | 133.86M | 119.14M | 76.56M | 61.32M | 39.81M | 1.44M |
| EBITDA Margin % | 23.35% | 24.35% | 21.05% | 14.43% | 10.65% | 13.96% | 20.67% | 20.25% | 24.96% | 24.84% | 30.22% | 34.97% | 3.24% |
| EBITDA Growth % | 27.75% | 37% | 83.22% | 67.12% | 0.62% | -3.36% | 29.12% | 12.35% | 55.61% | 24.87% | 54.03% | 2656.79% | - |
| D&A (Non-Cash Add-back) | 91.8M | 115.78M | 87.49M | 80.42M | 54.42M | 42.22M | 28.63M | 21.66M | 11.82M | 7.21M | 3.8M | 1.83M | 680K |
| EBIT | 633.21M | 658.75M | 427.17M | 200.48M | 113.65M | 124.82M | 144.21M | 112.2M | 107.32M | 69.36M | 46.91M | 31M | -100K |
| Net Interest Income | 34.52M | 0 | 78.84M | 68.51M | 12.76M | -1.03M | 656K | 4.72M | 333K | -1.7M | -3.08M | -1.14M | -843K |
| Interest Income | 34.88M | 0 | 78.84M | 68.51M | 12.76M | 0 | 656K | 4.72M | 333K | 93K | 0 | 0 | 0 |
| Interest Expense | 356K | 0 | 0 | 0 | 0 | 1.03M | 0 | 0 | 0 | 1.79M | 3.08M | 1.14M | 843K |
| Other Income/Expense | 60.43M | 69.43M | 80.14M | 67.52M | 13.72M | -2.78M | -305K | 4.02M | -1.59M | -5.73M | -13.68M | -8.13M | -1.71M |
| Pretax Income | 661.94M | 658.75M | 507.3M | 268M | 127.37M | 122.04M | 143.9M | 116.22M | 105.74M | 63.63M | 43.83M | 29.86M | -943K |
| Pretax Margin % | 22.29% | 22.74% | 20.75% | 13.77% | 8.07% | 10.2% | 17.21% | 17.58% | 22.15% | 20.64% | 21.6% | 26.23% | -2.12% |
| Income Tax | 229.32M | 215.45M | 114.23M | 89.06M | 73.98M | -15.73M | -98.41M | 7.9M | 17.6M | 12.83M | 23.35M | 13.93M | -948K |
| Effective Tax Rate % | 34.64% | 32.71% | 22.52% | 33.23% | 58.09% | -12.89% | -68.39% | 6.8% | 16.64% | 20.16% | 53.27% | 46.65% | 100.53% |
| Net Income | 432.62M | 443.3M | 393.08M | 178.94M | 53.38M | 137.76M | 242.32M | 108.32M | 88.14M | 50.8M | 20.48M | 15.93M | 5K |
| Net Margin % | 14.57% | 15.31% | 16.08% | 9.19% | 3.38% | 11.51% | 28.98% | 16.39% | 18.47% | 16.48% | 10.09% | 13.99% | 0.01% |
| Net Income Growth % | 4.98% | 12.78% | 119.67% | 235.19% | -61.25% | -43.15% | 123.71% | 22.89% | 73.51% | 148.01% | 28.58% | 318480% | - |
| Net Income (Continuing) | 432.62M | 443.3M | 393.08M | 178.94M | 53.38M | 137.76M | 242.32M | 108.32M | 88.14M | 50.8M | 20.48M | 15.93M | 5K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.91 | 0.91 | 0.78 | 0.36 | 0.11 | 0.28 | 0.49 | 0.23 | 0.19 | 0.12 | 0.05 | 0.01 | 0.00 |
| EPS Growth % | 8.54% | 16.67% | 116.67% | 227.27% | -60.71% | -42.86% | 113.04% | 21.05% | 58.33% | 138.1% | 281.82% | - | - |
| EPS (Basic) | - | 0.92 | 0.80 | 0.37 | 0.11 | 0.29 | 0.52 | 0.24 | 0.19 | 0.13 | 0.05 | 0.02 | 0.00 |
| Diluted Shares Outstanding | 476.88M | 482.73M | 501.92M | 500.18M | 499.93M | 498.54M | 489.88M | 478.06M | 457.93M | 440.56M | 406.26M | 497.92M | 130.88M |
| Basic Shares Outstanding | 474.66M | 479.99M | 490.88M | 489.26M | 486.94M | 476.85M | 462.87M | 445.33M | 457.93M | 402.62M | 384.09M | 472.82M | 158.67M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - |
Ad-spend cyclicality and regulation
As reported in recent financial filings, The Trade Desk's year-over-year revenue growth has decelerated from 28.3% in 2024Q1 to 11.8% by 2026Q1, suggesting that the company is facing increased difficulty in maintaining its historical high-growth trajectory within the competitive programmatic advertising landscape.
The consistent decline in quarterly growth rates indicates that the company may be reaching a saturation point in its core markets or facing headwinds from larger retail media networks. Investors should monitor whether this deceleration reflects a structural shift in ad-tech demand or merely a temporary cooling of the digital advertising cycle.
Based on the provided income statement data, gross margins have fluctuated between a high of 83.4% in 2023Q4 and a low of 73.6% in 2026Q1, indicating potential pressure on the company's ability to maintain its premium pricing power in a fragmented supply chain.
While the company maintains a high-margin profile relative to peers, the recent compression suggests that costs associated with data processing or infrastructure may be rising faster than revenue. This trend warrants further investigation into whether the company is sacrificing margin to incentivize agency adoption of its platform.
According to the company's reported figures, operating margins have swung significantly from 5.8% in 2024Q1 to 30.3% in 2025Q4, demonstrating that the firm's operating leverage is highly sensitive to seasonal revenue spikes rather than consistent, long-term structural efficiency gains.
The reliance on Q4 seasonal peaks to drive operating profitability suggests that the company's cost structure remains heavily weighted toward fixed investments in headcount and R&D. Without consistent scaling of operating income during non-peak quarters, the company may struggle to demonstrate sustainable margin expansion to shareholders.
Analysis of the income statement reveals that stock-based compensation remains a persistent expense, consistently exceeding $100 million per quarter, which significantly dilutes the quality of reported net income and complicates the assessment of the company's underlying cash-generating capability for equity holders.
The high level of SBC relative to net income suggests that GAAP earnings may overstate the company's true economic profitability. Investors should monitor the ratio of SBC to operating income, as persistent reliance on equity-based incentives may indicate a strategy to preserve cash at the expense of long-term shareholder dilution.
As indicated by the recent income statement trends, the company's reliance on agency-driven volume may be vulnerable to the rise of retail media networks, which could potentially bypass independent demand-side platforms and compress the company's take-rate over the coming fiscal periods.
Short-term margin volatility and slowing revenue growth may provide evidence for a bearish thesis centered on the commoditization of the DSP layer. If the company fails to successfully transition into a broader market-making role, it may find its competitive moat eroded by larger, vertically integrated advertising ecosystems.
Quick answers to the most common questions about buying TTD stock.
For fiscal year 2025, The Trade Desk, Inc. (TTD) reported total revenue of $2.90B. This represents a 6401.5% increase compared to $44.5M in 2014.
The Trade Desk, Inc. (TTD) is profitable, generating $443.3M in net income for the fiscal year ending 2025 with a net profit margin of 15.3%.
The Trade Desk, Inc. (TTD) reported an operating income of $589.3M, resulting in an operating profit margin of 20.3%. This margin reflects the operational efficiency of the business before interest and taxes.
The Trade Desk, Inc. (TTD) generated $2.28B in gross profit for the year, representing a gross profit margin of 78.6%. This demonstrates the company's core pricing power and production efficiency.