The Trade Desk Reports Fourth Quarter and Fiscal Year 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 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

Net income

187

182

443

393

Net income margin

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

Non-GAAP net income

284

297

873

832

Non-GAAP diluted earnings per share

0.59

1.77

1.66

Fourth Quarter and 2025 Recent Business Highlights

Financial Guidance:

First Quarter 2026 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 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

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

(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

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