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Trade Desk
(NASDAQ:TTD)
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Rating:69Neutral
Price Target:
$15.00
▼(-13.24% Downside)
Action:Reiterated
Date:08/09/26
TTD scores 69 mainly due to strong underlying financial performance (high margins, solid profitability, strong cash generation, and low leverage). The score is held back by weak technicals (price well below major moving averages with negative MACD) and a cautious near-term outlook from the latest earnings call, including soft growth, conservative guidance, and rising investment costs. Valuation is moderately supportive with a ~20 P/E, but no dividend yield is provided.
Positive Factors
High margins and operating profitability
Sustained high gross and operating margins reflect a software‑services economics with strong gross leverage on incremental revenue. Durable margin structure supports reinvestment in product, measurement and international expansion while preserving operating cash generation over the medium term.
Negative Factors
Top‑line growth slowdown
A material deceleration in revenue growth reduces the company’s ability to scale high‑margin operating leverage. If sustained, it can slow cash flow expansion and limit funding for product investments, making it harder to restore prior growth trajectories over coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
High margins and operating profitability
Sustained high gross and operating margins reflect a software‑services economics with strong gross leverage on incremental revenue. Durable margin structure supports reinvestment in product, measurement and international expansion while preserving operating cash generation over the medium term.
Read all positive factors
Trade Desk Key Performance Indicators (KPIs)
Any
Gross Spend
The total advertising dollars transacted through Trade Desk’s platform, reflecting demand, client adoption, and overall platform scale. Growth in gross spend drives future revenue potential but can mask margin effects since most spend is passed on to publishers and exchanges.
The total advertising dollars transacted through Trade Desk’s platform, reflecting demand, client adoption, and overall platform scale. Growth in gross spend drives future revenue potential but can mask margin effects since most spend is passed on to publishers and exchanges.
Data provided by:
The Fly
The FlyTrade Desk (TTD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.64B
Dividend YieldN/A
Average Volume (3M)16.71M
Price to Earnings (P/E)15.8
Beta (1Y)0.95
Revenue Growth11.61%
EPS Growth0.19%
CountryUS
Employees3,843
SectorCommunication Services
Sector Strength97
IndustryAdvertising Agencies
Share Statistics
EPS (TTM)0.85
Shares Outstanding426,771,580
10 Day Avg. Volume13,163,503
30 Day Avg. Volume16,714,819
Financial Highlights & Ratios
PEG Ratio2.75
Price to Book (P/B)7.33
Price to Sales (P/S)6.29
P/FCF Ratio22.90
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$13.86Price Target Upside-19.81% Downside
Rating ConsensusHold
Number of Analyst Covering30
EPS Forecast (FY)0.42
Revenue Forecast (FY)$2.77B
Trade Desk Business Overview & Revenue Model
Company Description
The Trade Desk, Inc. is a global technology company that provides a self-service, cloud-based platform. This platform enables advertising buyers to efficiently create, manage, and optimize data-driven digital ad campaigns across diverse formats an...
How the Company Makes Money
The Trade Desk primarily makes money by charging platform fees tied to customers’ programmatic advertising spend executed through its DSP. In practice, when an advertiser (often via an agency) uses The Trade Desk to buy ad inventory through real-t...
Trade Desk Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Neutral
The call presented a balanced picture: meaningful strengths (solid cash generation, JBPs accelerating revenue under strategic partnerships, strong regional and CTV/audio growth, promising early results from Audience Unlimited, and a robust product/measurement roadmap plus experienced new leadership) are offset by clear near‑term challenges (Q2 revenue growth only 3% YoY, admitted execution shortcomings, rising operating expenses from infrastructure and AI investments, concentration in pressured categories like CPG and autos, and cautious Q3 guidance). Management emphasized disciplined prioritization and product initiatives to drive longer‑term recovery, but near‑term visibility remains limited.Positive Updates
Q2 Revenue and Profitability
Reported revenue of $715 million in Q2, up 3% year‑over‑year. Adjusted EBITDA was $241 million representing a 34% margin. Adjusted net income was $158 million ($0.34 per diluted share).
Negative Updates
Revenue Growth Below Expectations
Company stated revenue growth is below its expectations; Q2 revenue only grew 3% year‑over‑year and management acknowledged underperformance driven by macro pressures and execution issues.
Read all updates
Q2-2026 Updates
Positive
Negative
Q2 Revenue and Profitability
Reported revenue of $715 million in Q2, up 3% year‑over‑year. Adjusted EBITDA was $241 million representing a 34% margin. Adjusted net income was $158 million ($0.34 per diluted share).
Read all positive updates
Company Guidance
The Trade Desk guided Q3 revenue of at least $650 million and adjusted EBITDA of about $160 million (vs. Q2 revenue $715M and Q2 adjusted EBITDA $241M, a 34% margin); Q2 net income was $64M ($0.14 diluted, ~9% of revenue) and adjusted net income $158M ($0.34), with net cash from operations $154M, free cash flow $136M and ~ $1.5B in cash/cash equivalents/short‑term investments. Q2 operating expenses were $613M (up 6% YoY) and $504M ex‑stock‑based comp (up 12% YoY); the company repurchased $78M of stock in Q2 with $269M remaining authorization. Key mix and growth metrics cited: video/CTV ~low‑50s% of revenue, mobile ~high‑20s%, display ~low‑double‑digits, audio ~7% (fastest‑growing channel); U.S. ~83% of revenue, international ~17%; EMEA and APAC ~30% YTD growth, China >100% YTD; JBPs totaled 217 clients (38% YoY) with revenue under JBPs growing ~6x the overall rate. Management said visibility is limited, is not assuming meaningful near‑term improvement, and will invest with discipline in measurement, Audience Unlimited and platform usability to drive durable growth.Trade Desk Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
82
Very Positive
Cash Flow
79
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.99B | 2.90B | 2.44B | 1.95B | 1.58B | 1.20B |
| Gross Profit | 2.48B | 2.28B | 1.97B | 1.58B | 1.30B | 974.91M |
| EBITDA | 800.30M | 774.54M | 594.79M | 348.41M | 181.79M | 165.28M |
| Net Income | 406.89M | 443.30M | 393.08M | 178.94M | 53.38M | 137.76M |
Balance Sheet | ||||||
| Total Assets | 5.76B | 6.15B | 6.11B | 4.89B | 4.38B | 3.58B |
| Cash, Cash Equivalents and Short-Term Investments | 1.49B | 1.30B | 1.92B | 1.38B | 1.45B | 958.78M |
| Total Debt | 434.11M | 436.33M | 312.21M | 235.89M | 260.96M | 284.60M |
| Total Liabilities | 3.19B | 3.67B | 3.16B | 2.72B | 2.27B | 2.05B |
| Stockholders Equity | 2.57B | 2.48B | 2.95B | 2.16B | 2.12B | 1.53B |
Cash Flow | ||||||
| Free Cash Flow | 860.39M | 795.71M | 632.39M | 543.30M | 456.85M | 318.54M |
| Operating Cash Flow | 1.08B | 992.72M | 739.46M | 598.32M | 548.73M | 378.51M |
| Investing Cash Flow | 218.44M | -292.63M | -157.51M | -107.59M | -304.37M | -93.64M |
| Financing Cash Flow | -1.07B | -1.41B | -107.61M | -626.11M | 31.99M | 31.93M |
Trade Desk Technical Analysis
Negative
17.29
Price Trends
18.00
Negative
20.09
Negative
27.27
Negative
Market Momentum
-1.38
Positive
31.84
Neutral
17.91
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TTD, the sentiment is Negative. The current price of 17.29 is above the 20-day moving average (MA) of 16.64, below the 50-day MA of 18.00, and below the 200-day MA of 27.27, indicating a bearish trend. The MACD of -1.38 indicates Positive momentum. The RSI at 31.84 is Neutral, neither overbought nor oversold. The STOCH value of 17.91 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TTD.
Trade Desk Risk Analysis
Trade Desk disclosed 48 risk factors in its most recent earnings report. Trade Desk reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Trade Desk Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $11.85B | 38.10 | 16.36% | ― | 8.42% | -70.89% | |
74 Outperform | $3.55B | 20.68 | 18.62% | ― | 8.32% | 280.46% | |
72 Outperform | $801.23M | -57.57 | -5.41% | ― | -1.04% | -710.67% | |
71 Outperform | $865.65M | 94.74 | 11.42% | ― | 21.99% | 271.66% | |
69 Neutral | $6.64B | 15.76 | 16.09% | ― | 11.61% | 0.19% | |
69 Neutral | $91.73B | 497.43 | 4.57% | ― | 31.52% | 37.42% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% |
* Communication Services Sector Average
TTD
Trade Desk
13.40
-39.13
-74.49%
MGNI
Magnite
24.19
2.35
10.76%
DOCU
DocuSign
59.82
-11.06
-15.60%
DDOG
Datadog
247.32
118.33
91.74%
PUBM
PubMatic
17.27
9.07
110.61%
DSP
Viant Technology
12.61
3.19
33.86%
Trade Desk Corporate Events
Business Operations and StrategyExecutive/Board Changes
Trade Desk Adds AI-Focused Veteran Penry Price to Board
Positive
Jul 13, 2026
On July 7, 2026, The Trade Desk’s board of directors appointed advertising industry veteran Penry Price as a Class II director, effective July 9, 2026, expanding the board from six to seven members. Price will serve on the audit committee an...
Business Operations and StrategyExecutive/Board Changes
Trade Desk Adds Veteran Executive David Haddad to Board
Positive
Jun 9, 2026
On June 5, 2026, The Trade Desk’s board of directors appointed veteran media and entertainment executive David Haddad as a Class III director and member of its audit committee, effective June 11, 2026, expanding the board from five to six me...
Business Operations and StrategyExecutive/Board Changes
Trade Desk Appoints Nate Olmstead as New CFO
Positive
Jun 1, 2026
On June 1, 2026, The Trade Desk announced that industry veteran Nate Olmstead will become chief financial officer on July 9, 2026, succeeding interim CFO Tahnil Davis, who returns to her prior role as chief accounting officer. Olmstead brings exte...
Executive/Board Changes
Trade Desk Aligns Compensation for New Non-Employee Director
Neutral
May 29, 2026
On May 24, 2026, The Trade Desk’s board of directors approved former company officer Samantha Jacobson’s participation in its non-employee director compensation program, aligning her pay with other outside directors following her trans...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.