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 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.
Revenue
$688.86M
+11.82% YoY
EPS (Diluted)
$0.08
-20.00% YoY
Operating Income
$66.65M
+22.40% YoY
Source: SEC XBRL
Trade Desk (TTD) reported Q1 FY2026 revenue of $688.86M, up 11.8% year over year. Operating margin was 9.7%, up 0.9 points from 8.8% a year earlier. Operating cash flow was $391.81M, up 34.4% year over year. TTD's fiscal Q1 FY2026 corresponds to calendar Q1 2026.
Last 4 quarters: 2 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 0.34 | 0.40 | Miss -15.1% |
| Mar 2026This filing | 0.28 | 0.32 | Miss -13.3% |
| Dec 2025 | 0.59 | 0.59 | Beat +0.3% |
| Sep 2025 | 0.45 | 0.45 | Beat +1.1% |
Adjusted (non-GAAP) EPS of $0.28 versus the $0.32 analyst consensus — a -13.3% miss for Mar 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $0.08.
Compiled by AI from this SEC filing
TTD grew Q1 FY2026 revenue 11.8% year-over-year to $688.9M (from $616.0M), demonstrating continued demand for its programmatic advertising platform despite a challenging macro environment for ad spending.
Source: 10-Q Income Statement, Q1 FY2026
Cost of revenue rose a steep 27.4% YoY to $182.0M, outpacing revenue growth of 11.8%, which compressed gross profit margins and signals rising infrastructure or data costs associated with scaling the platform.
Source: 10-Q Income Statement, Q1 FY2026
Operating income grew 22.4% YoY to $66.6M, pushing operating margin to 9.7% from 8.8% in the prior year period, suggesting that operating expense discipline (outside of cost of revenue) is improving.
Source: 10-Q Income Statement & Key Ratios, Q1 FY2026
Net income fell 21.1% YoY to $40.0M despite higher operating income, implying significant non-operating headwinds such as higher interest expense, tax provisions, or other charges that reduced bottom-line profitability.
Source: 10-Q Income Statement, Q1 FY2026
Operating cash flow surged 34.4% YoY to $391.8M, reflecting healthy cash generation from operations; however, cash and equivalents declined 21.5% YoY to $878.4M, partly due to $163.5M in share buybacks and other financing outflows.
Source: 10-Q Cash Flow Statement & Balance Sheet, Q1 FY2026
Compiled by AI from this SEC filing · 2 high, 2 medium, 1 low
Cost of revenue grew 27.4% YoY versus revenue growth of only 11.8%, creating meaningful gross margin compression. If this trend continues, TTD's ability to convert revenue growth into profitability will be increasingly constrained. Sustained cost inflation in data, cloud infrastructure, or third-party inventory could structurally impair margins.
Source: 10-Q Income Statement, Q1 FY2026
Net income declined 21.1% YoY to $40.0M even as operating income rose 22.4%, indicating significant below-the-line costs that are eroding shareholder returns. This divergence between operating and net performance may signal rising interest expenses, tax burdens, or one-time charges not visible in operating metrics alone.
Source: 10-Q Income Statement, Q1 FY2026
Cash and equivalents fell 21.5% YoY to $878.4M, reducing TTD's liquidity cushion. While operating cash flow remains robust, continued share buybacks ($163.5M in Q1 FY2026) and rising liabilities (up 9.8% YoY to $3.28B) could pressure the balance sheet if revenue growth slows.
Source: 10-Q Balance Sheet & Cash Flow Statement, Q1 FY2026
Total liabilities increased 9.8% YoY to $3.28B while stockholders' equity declined 9.7% YoY to $2.45B, pushing the debt-to-equity ratio to 1.34x. This rising leverage reduces financial flexibility and increases vulnerability to interest rate changes or a revenue downturn.
Source: 10-Q Balance Sheet & Key Ratios, Q1 FY2026
R&D expense grew only 7.8% YoY to $142.7M, below the 11.8% revenue growth rate. While this improves near-term margins, underinvestment in product innovation relative to growth could risk TTD's competitive positioning in the rapidly evolving programmatic advertising technology landscape.
Source: 10-Q Income Statement, Q1 FY2026
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $M | 688.86 $M | 616.02 $M | +11.82% |
Cost of Revenue $M | 181.97 $M | 142.84 $M | +27.40% |
Operating Income $M | 66.65 $M | 54.45 $M | +22.40% |
Net Income $M | 40.00 $M | 50.68 $M | -21.08% |
EPS (Basic) $ | 0.08 $ | 0.10 $ | -20.00% |
EPS (Diluted) $ | 0.08 $ | 0.10 $ | -20.00% |
R&D Expense $M | 142.72 $M | 132.40 $M | +7.79% |
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 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.
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