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
The Trade Desk's second quarter of fiscal 2026 saw revenue increase 3% to $715 million, driven by an influx of new advertising clients and higher adoption of value-added services, though spend from existing clients declined. Platform operations costs rose 22% due to increased hosting, data center investments, and changes in supplier-provided component recognition, leading to operating margin contraction. Net income fell 29% to $64 million as a shift from tax benefits to detriments on stock-based awards compounded the cost pressures. The company continued its share repurchase program with $59 million in buybacks during the quarter and raised its credit facility to $750 million.
Revenue
$715.06M
+3.03% YoY
EPS (Diluted)
$0.14
-22.22% YoY
Operating Income
$101.58M
-13.02% YoY
Source: SEC XBRL
Trade Desk (TTD) reported Q2 FY2026 revenue of $715.06M, up 3.0% year over year. Operating margin was 14.2%, down 2.6 points from 16.8% a year earlier. TTD's fiscal Q2 FY2026 corresponds to calendar Q2 2026.
Last 4 quarters: 3 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Mar 2026 | 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% |
| Jun 2025 | 0.41 | 0.41 | Beat +0.2% |
Compiled by AI from 10-Q Item 2 of this filing
Revenue increased 3% YoY to $715 million, primarily from new client campaigns and higher adoption of value-added services, partially offset by a decline in gross spend from existing clients and volume discounts from strategic partnerships. [10-Q Item 2 MD&A]
Source: 10-Q Item 2 MD&A
Platform operations expense rose 22% YoY to $184 million, driven by $18 million in supplier-provided component costs for value-added services and $8 million in hosting costs, reflecting investment in data centers and AI capabilities. [10-Q Item 2 MD&A]
Source: 10-Q Item 2 MD&A
General and administrative expense decreased 13% YoY to $114 million, primarily due to a $20 million decline in stock-based compensation as the CEO Performance Option was fully recognized by the end of Q1 2026. [10-Q Item 2 MD&A]
Source: 10-Q Item 2 MD&A
In February 2026, an additional $350 million was authorized for share repurchases, and during Q2 the company repurchased 3 million shares for $59 million; $269 million remained available as of June 30, 2026. [10-Q Item 2 MD&A]
Source: 10-Q Item 2 MD&A
The company amended and restated its credit facility to a $750 million revolving loan facility, maturing April 14, 2031, with $745 million available and no outstanding debt balance as of quarter-end. [10-Q Item 2 MD&A]
Source: 10-Q Item 2 MD&A
Compiled by AI from 10-Q Item 1A of this filing · 5 high, 0 medium, 0 low
The company must continually add new clients and increase spend from existing ones; a decline from major clients could significantly reduce revenue, and clients can terminate or reduce spending with limited notice. Changes in agency affiliations or budget allocations also pose ongoing risks.
Source: 10-Q Item 1A Risk Factors
Two holding companies each represented more than 10% of gross billings in 2025, and the loss or consolidation of these relationships could materially impact the business, as client relationships are often decentralized and subject to change.
Source: 10-Q Item 1A Risk Factors
Growth has been significantly driven by CTV and video inventory; any decrease in the use of these channels, failure to expand within them, or unexpected shifts in channel mix could harm growth prospects and financial condition.
Source: 10-Q Item 1A Risk Factors
The company relies on suppliers like Google for inventory; if major suppliers limit access, or if supply chains become inefficient or nontransparent, revenue could decline. New offerings like OpenPath aim to mitigate this risk but may not succeed.
Source: 10-Q Item 1A Risk Factors
The market is highly competitive with low barriers to entry; some competitors offer artificially low prices enabled by conflicts of interest. Larger competitors with more resources could develop superior solutions or exert pricing pressure, potentially eroding market share.
Source: 10-Q Item 1A Risk Factors
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $M | 715.06 $M | 694.04 $M | +3.03% |
Cost of Revenue $M | 184.33 $M | 150.98 $M | +22.09% |
Operating Income $M | 101.58 $M | 116.78 $M | -13.02% |
Net Income $M | 64.39 $M | 90.13 $M | -28.55% |
EPS (Basic) $ | 0.14 $ | 0.18 $ | -22.22% |
EPS (Diluted) $ | 0.14 $ | 0.18 $ | -22.22% |
R&D Expense $M | 140.74 $M | 134.25 $M | +4.83% |
Answers draw on this SEC filing and the data on this page
Expected release date, analyst estimates & what to watch
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.
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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