The Trade Desk reported fiscal 2025 fourth‑quarter results with revenue of $847 million, up 14% year‑over‑year from $741 million in Q4 2024. Adjusted earnings per share were $0.59, matching consensus estimates, and adjusted EBITDA reached $400 million, or 47% of revenue, in line with expectations. The company repurchased $423 million of stock during the quarter and $1.4 billion for the full year, underscoring its commitment to returning capital to shareholders.
For the first quarter of 2026, the company guided revenue of at least $678 million and adjusted EBITDA of about $195 million, both below analyst estimates of $688.4 million revenue and $224 million EBITDA. The guidance signals a deceleration to roughly 10% year‑over‑year growth and a lower EBITDA margin than the 47% achieved in Q4 2025.
CEO Jeff Green said the quarter was not the company’s best earnings report, citing softness in consumer packaged goods and automotive verticals and the rise of Amazon. He noted that Q4 revenue grew about 19% year‑over‑year when excluding political‑spend‑related revenue, and 14% on an absolute basis.
The Q4 growth rate has slowed from 18% for the full year 2025 and 26% for the full year 2024. Headwinds include macro uncertainty, softness in CPG and automotive demand, and competitive pressure from Amazon. Tailwinds remain in AI innovation—particularly the Kokai platform—retail data, connected TV, audio, and international markets. Net income margin slipped to 22% from 25% in Q4 2024, while adjusted EBITDA margin stayed flat at 47% year‑over‑year.
The market reacted with a decline in the company’s stock price, falling more than 16% in pre‑market trading on February 26 and sharply in extended trading the previous day. Loop Capital downgraded the stock to “Hold.” The decline reflects investor focus on the softer outlook and the absence of full‑year guidance.
The share‑repurchase program was expanded with an additional $350 million authorization, bringing the total available for future repurchases to $500 million, reinforcing the company’s commitment to shareholder returns.
The Trade Desk differentiates itself as an objective platform that does not own inventory, positioning it against competitors such as Amazon while continuing to invest in AI‑driven solutions.
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