Revenue Growth Acceleration
TTD grew total revenue 18.5% year-over-year to $2.90B in FY2025, up from $2.44B in the prior year, reflecting continued demand for programmatic advertising and connected TV inventory.
Source: 10-K Income Statement
Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
TTD delivered strong FY2025 revenue growth of 18.5% to $2.90B, expanded operating margins to 20.3%, and generated $993M in operating cash flow, while aggressively returning $1.38B to shareholders via buybacks.
Revenue
$2.9B
+18.47% YoY
EPS (Diluted)
$0.90
+15.38% YoY
Operating Income
$589.32M
+37.96% YoY
Source: SEC XBRL
Trade Desk (TTD) reported FY2025 revenue of $2.9B, up 18.5% year over year. Operating margin was 20.3%, up 2.8 points from 17.5% a year earlier. Operating cash flow was $992.72M, up 34.3% year over year.
Last 4 quarters: 2 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 0.34 | 0.40 | Miss -15.1% |
| Mar 2026 | 0.28 | 0.32 | Miss -13.3% |
| Dec 2025This filing | 0.59 | 0.59 | Beat +0.3% |
| Sep 2025 | 0.45 | 0.45 | Beat +1.1% |
Reported EPS of $0.59 versus the $0.59 analyst consensus — a +0.3% beat for Dec 2025.
Compiled by AI from this SEC filing
TTD grew total revenue 18.5% year-over-year to $2.90B in FY2025, up from $2.44B in the prior year, reflecting continued demand for programmatic advertising and connected TV inventory.
Source: 10-K Income Statement
Operating income surged 38.0% to $589M, pushing operating margin from 17.5% to 20.3%, a 2.9 percentage point improvement, demonstrating operating leverage as revenue scaled faster than operating expenses.
Source: 10-K Income Statement
Cost of revenue grew 31.2% to $619M, outpacing revenue growth of 18.5%, which compressed gross margins and signals rising platform infrastructure and data costs as TTD scales its business.
Source: 10-K Income Statement
TTD repurchased $1.38B in shares during FY2025, a 488% increase from $235M in the prior year, which drove a 51.9% decline in cash and equivalents to $658M and a 15.8% reduction in stockholders' equity to $2.48B.
Source: 10-K Cash Flow Statement & Balance Sheet
Operating cash flow increased 34.3% to $993M in FY2025, significantly outpacing net income of $443M, reflecting healthy non-cash add-backs including $116M in D&A and favorable working capital dynamics.
Source: 10-K Cash Flow Statement
Compiled by AI from this SEC filing · 2 high, 2 medium, 1 low
TTD spent $1.38B on share buybacks in FY2025, causing cash and equivalents to fall 51.9% to $658M. With current liabilities of $3.27B and a current ratio of only 1.61, the company's liquidity cushion has narrowed materially. Continued buybacks at this pace could constrain financial flexibility.
Source: 10-K Balance Sheet & Cash Flow Statement
Cost of revenue grew 31.2% in FY2025 versus revenue growth of 18.5%, indicating that gross margins are under pressure. If this trend continues, it could erode the profitability improvements achieved at the operating level. Sustained cost inflation in data, infrastructure, or third-party services poses a structural margin risk.
Source: 10-K Income Statement
Total liabilities rose 16.0% to $3.67B while stockholders' equity declined 15.8% to $2.48B, pushing the debt-to-equity ratio to 1.48. This increasing leverage reduces financial flexibility and could increase refinancing risk if market conditions tighten.
Source: 10-K Balance Sheet
R&D expenses grew 13.3% to $525M in FY2025, representing a significant ongoing investment in platform development. While necessary to maintain competitive differentiation, this level of spending constrains near-term profitability and must be justified by continued revenue growth and market share gains.
Source: 10-K Income Statement
Net income grew only 12.8% to $443M despite operating income growing 38.0%, suggesting significant below-the-line costs such as taxes or interest expense are dampening bottom-line performance. This divergence between operating and net income growth warrants monitoring.
Source: 10-K Income Statement
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 2.90 $B | 2.44 $B | +18.47% |
Cost of Revenue $M | 619.07 $M | 472.01 $M | +31.15% |
Operating Income $M | 589.32 $M | 427.17 $M | +37.96% |
Net Income $M | 443.30 $M | 393.08 $M | +12.78% |
EPS (Basic) $ | 0.91 $ | 0.80 $ | +13.75% |
EPS (Diluted) $ | 0.90 $ | 0.78 $ | +15.38% |
R&D Expense $M | 525.14 $M | 463.32 $M | +13.34% |
Answers draw on this SEC filing and the data on this page
The Trade Desk posted 3% revenue growth in Q2 FY2026 but saw net income drop 29% due to rising platform costs and tax headwinds.
TTD delivered 11.8% revenue growth to $688.9M in Q1 FY2026, with strong operating cash flow of $391.8M (+34.4% YoY), though net income fell 21.1% to $40.0M as cost of revenue surged 27.4% and cash balances declined amid ongoing share buybacks.
Other companies in Advertising