The Trade Desk Reports Third Quarter 2025 Financial Results

LOS ANGELES--( BUSINESS WIRE)--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 third quarter ended September 30, 2025.

“Q3 was another strong quarter for The Trade Desk, with revenue growing to $739 million, representing 18% year-over-year growth,” said Jeff Green, CEO and Co-Founder of The Trade Desk. “Our momentum continues to be fueled by new product innovations we’ve launched across our Kokai platform, which are helping the world’s leading brands unlock the full potential of data-driven advertising. As AI transforms the advertising ecosystem, customers globally are relying on The Trade Desk to enable objective, data-rich buying across channels and partners, to drive real-world outcomes for their businesses. The pace of our innovation reinforces our leadership position across CTV, retail media, and the open internet more broadly. As we close out 2025 and look to the future, we believe The Trade Desk is uniquely positioned to capture more market share as we help advertisers succeed on the open internet and drive measurable business growth through data and AI.”

Third Quarter 2025 Financial Highlights:

The following table summarizes the Company’s unaudited consolidated financial results for the three and nine months ended September 30, 2025 and 2024 ($ in millions, except per share amounts):

Three Months Ended

September 30,

Nine Months Ended

September 30,

2025

2024

2025

2024

GAAP Results

Revenue

739

628

2,049

1,704

Increase in revenue year over year

Net income

116

256

211

Net income margin

GAAP diluted earnings per share

0.23

0.19

0.52

0.42

Non-GAAP Results

Adjusted EBITDA

317

257

796

661

Adjusted EBITDA margin

Non-GAAP net income

221

207

589

536

Non-GAAP diluted earnings per share

0.45

0.41

1.18

1.07

Third Quarter and Recent Business Highlights:

Financial Guidance:

Fourth Quarter 2025 outlook summary:

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 Condensed 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 Condensed 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 operational trends, financial performance, and cash-generating capacity. Management believes these non-GAAP measures allow investors to evaluate the Company’s financial performance using some of the same measures as management. However, the non-GAAP financial measures should not be regarded as a replacement for or superior to corresponding, similarly captioned, GAAP measures and may be different from non-GAAP financial measures used by other companies.

Third Quarter 2025 Financial Results Webcast and Conference Call Details

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 spend 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.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Amounts in thousands, except per share amounts)

(Unaudited)

Three Months Ended

September 30,

Nine Months Ended

September 30,

2025

2024

2025

2024

Revenue

739,433

628,016

2,049,493

1,703,819

Operating expenses (1):

Platform operations

162,154

122,656

455,973

336,745

Sales and marketing

156,830

140,296

470,704

395,888

Technology and development

127,893

117,705

394,546

335,426

General and administrative

131,337

138,878

395,822

403,902

Total operating expenses

578,214

519,535

1,717,045

1,471,961

Income from operations

161,219

108,481

332,448

231,858

Other expense (income):

Total other income, net

(18,300

)

(18,697

)

(56,041

)

(53,845

)

Income before income taxes

179,519

127,178

388,489

285,703

Provision for income taxes

63,972

33,020

132,135

74,856

Net income

115,547

94,158

256,354

210,847

Earnings per share:

Basic

0.24

0.19

0.52

0.43

Diluted

0.23

0.19

0.52

0.42

Weighted-average shares outstanding:

Basic

487,729

491,614

491,069

489,845

Diluted

492,984

502,563

497,198

500,273

___________________________

(1) Includes stock-based compensation expense as follows:

THE TRADE DESK, INC.

STOCK-BASED COMPENSATION EXPENSE

(Amounts in thousands)

(Unaudited)

Three Months Ended

September 30,

Nine Months Ended

September 30,

2025

2024

2025

2024

Platform operations

7,953

7,617

26,253

20,444

Sales and marketing

28,133

25,294

87,437

70,654

Technology and development

40,197

36,958

123,978

97,441

General and administrative (1)

45,033

58,641

140,786

176,931

Total

121,316

128,510

378,454

365,470

___________________________

(1) Includes stock-based compensation expense related to a long-term CEO performance grant of $14 million and $30 million for the three months ended September 30, 2025 and 2024, respectively, as well as $57 million and $102 million for the nine months ended September 30, 2025 and 2024, respectively.

THE TRADE DESK, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts in thousands)

(Unaudited)

As of September 30,

2025

As of December 31,

2024

ASSETS

Current assets:

Cash and cash equivalents

653,134

1,369,463

Short-term investments, net

792,313

552,026

Accounts receivable, net

3,478,338

3,330,343

Prepaid expenses and other current assets

196,501

84,626

Total current assets

5,120,286

5,336,458

Property and equipment, net

322,507

209,332

Operating lease assets

287,104

263,761

Deferred income taxes

110,514

230,214

Other assets, non-current

99,990

72,186

Total assets

5,940,401

6,111,951

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Accounts payable

2,761,261

2,631,213

Accrued expenses and other current liabilities

160,381

177,760

Operating lease liabilities

73,129

64,492

Total current liabilities

2,994,771

2,873,465

Operating lease liabilities, non-current

302,848

247,723

Other liabilities, non-current

41,996

41,618

Total liabilities

3,339,615

3,162,806

Stockholders’ equity:

Preferred stock

—

Common stock

—

Additional paid-in capital

2,965,231

2,594,896

Retained earnings (accumulated deficit)

(364,445

)

354,249

Total stockholders’ equity

2,600,786

2,949,145

Total liabilities and stockholders’ equity

5,940,401

6,111,951

THE TRADE DESK, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Amounts in thousands)

(Unaudited)

Nine Months Ended September 30,

2025

2024

OPERATING ACTIVITIES:

Net income

256,354

210,847

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

83,824

63,378

Stock-based compensation

378,454

365,470

Deferred income taxes

118,163

—

Noncash lease expense

51,234

41,522

Provision for expected credit losses on accounts receivable

1,498

837

Other

(13,841

)

(11,901

)

Changes in operating assets and liabilities:

Accounts receivable

(149,053

)

(125,711

)

Prepaid expenses and other current and non-current assets

(91,574

)

(68,490

)

Accounts payable

120,381

87,175

Accrued expenses and other current and non-current liabilities

(26,798

)

8,846

Operating lease liabilities

(47,510

)

(31,918

)

Net cash provided by operating activities

681,132

540,055

INVESTING ACTIVITIES:

Purchases of investments

(826,210

)

(486,596

)

Maturities of investments

597,413

475,022

Purchases of property and equipment

(170,688

)

(78,048

)

Capitalized software development costs

(9,093

)

(6,708

)

Business acquisition

(4,350

)

—

Net cash used in investing activities

(412,928

)

(96,330

)

FINANCING ACTIVITIES:

Repurchases of Class A common stock

(957,540

)

(177,428

)

Proceeds from exercise of stock options

20,287

127,690

Proceeds from employee stock purchase plan

32,446

30,122

Taxes paid relating to net settlement of restricted stock awards

(79,726

)

(97,763

)

Net cash used in financing activities

(984,533

)

(117,379

)

Increase (decrease) in cash and cash equivalents

(716,329

)

326,346

Cash and cash equivalents—Beginning of period

1,369,463

895,129

Cash and cash equivalents—End of period

653,134

1,221,475

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

September 30,

Nine Months Ended

September 30,

2025

2024

2025

2024

Net income

115,547

94,158

256,354

210,847

Add back (deduct):

Depreciation and amortization expense

33,135

20,754

83,824

63,378

Stock-based compensation expense

121,316

128,510

378,454

365,470

Interest income, net

(16,490

)

(19,408

)

(54,657

)

(53,886

)

Provision for income taxes

63,972

33,020

132,135

74,856

Adjusted EBITDA

317,480

257,034

796,110

660,665

Three Months Ended

September 30,

Nine Months Ended

September 30,

2025

2024

2025

2024

GAAP net income

115,547

94,158

256,354

210,847

Add back (deduct):

Stock-based compensation expense

121,316

128,510

378,454

365,470

Adjustment for income taxes

(16,141

)

(15,441

)

(46,019

)

(40,739

)

Non-GAAP net income

220,722

207,227

588,789

535,578

GAAP diluted earnings per share

0.23

0.19

0.52

0.42

GAAP weighted-average shares outstanding—diluted

492,984

502,563

497,198

500,273

Non-GAAP diluted earnings per share

0.45

0.41

1.18

1.07

Non-GAAP weighted-average shares used in computing Non-GAAP earnings per share, diluted

492,984

502,563

497,198

500,273