TTD US S&P 500Russell 1000 Earnings call

The Trade Desk (TTD) · Q2 2026 results and valuation

Share price: $15.98 · 2026-11-11

The Trade Desk provides an advertising technology platform that allows ad buyers to create, manage, and optimize digital advertising campaigns across various formats and devices. The company serves advertising agencies, advertisers, and service providers by offering tools for programmatic advertising and data-driven campaign management. It operates globally in the digital advertising market. Source: 10-K annual report (2026-02-27)

Results Q2 2026 vs Q1 2026 · previous quarter · published 6 Aug 2026 and 7 May 2026

Net income up 61.0% on the previous quarter. Management sounded about as positive as a typical company call, in its script and in answers to analysts.

1 · Numbers

+61.0%

Net income vs Q1 2026

Outlook given

Net income 64.4M vs 40.0M

Revenue +3.8%

Against the same quarter last year (Q2 2025) it is −28.6%, so the move on last quarter looks seasonal or timing-related rather than a trend.

2 · How management spoke

Typical

Less upbeat than 59% of company calls

Answers to analysts: typical, in line with the script.

Similar to last call.

3 · What stood out

Participating retailers on The Trade Desk platform now represent more than 80% of U.S. retail sales.

Valuation

Is The Trade Desk undervalued?

Reverse DCF. Free cash flow from the last full fiscal year (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.

At 20.0% growth a year (3-year revenue growth), the model's fair value is $82.44 a share — the stock trades 81% below it. Today's price assumes −5.0% growth a year.

Current price

$15.98

close of 2026-11-11

Market implies growth of i

-5.0% for 10 yrs

Fair value / share

$82.44

Buy below

$61.83

Price vs fair value

Undervalued 81%

Price vs buy-below price

Undervalued 74%

FCF growth / yr i Discount rate i Terminal growth i Margin of safety i

Official channels

The company's own website and social media accounts.

Read between the lines

Guidance

The company expects Q3 revenue to be at least $650 million.
Figure

The company grew revenue at a roughly 34% CAGR over the specified period.

Source quote
“Over that time, we have grown revenue at roughly a 34% CAGR.”
Figure

Participating retailers on the platform now represent more than 80% of U.S. retail sales, expanding the company's reach within the retail market.

Source quote
“Participating retailers on our platform now represent more than 80% of U.S. retail sales.”
Figure

The company reported revenue of $715 million in Q2, which represents a 3% increase year-over-year.

Source quote
“In Q2, we delivered revenue of $715 million, up 3% year-over-year.”
Figure

The company generated $241 million of adjusted EBITDA during the quarter, representing a 34% margin.

Source quote
“We generated $241 million of adjusted EBITDA during the quarter, representing a 34% margin.”

4 more

Key theme

The company reported that revenue growth is below its expectations and the standards it holds for itself.

Source quote
“Our revenue growth is below our expectations and below the standard we hold ourselves to.”
Figure

Advertisers outside the top 500 are growing over 50% year-over-year, year-to-date, representing growth from smaller up-and-coming and challenger brands.

Source quote
“Outside of our top 500 advertisers, the remainder are growing over 50% year-over-year, year-to-date, which represents green shoots from smaller up-and-coming and challenger brands.”
Key theme

The company will launch a significant upgrade focused on platform usability later this month to improve product features.

Source quote
“Lastly, on the product front, later this month, we will launch a significant upgrade focused on platform usability.”
Figure

Joint Business Partnerships are growing at a rate 6x higher than overall revenue growth this year, highlighting a significant opportunity for the company's future growth.

Source quote
“But JBPs grow at least this year at a rate 6x higher than overall revenue growth, which I just think might be the most bullish number that we can share and have shared today is that as we continue to double down on JBPs and getting closer to our partners and developing plans to grow well into the future that we see just a tremendous opportunity.”

Tone

How upbeat the language was, compared with other companiesi. Dot: Q2 2026. Ring: Q1 2026.

Prepared remarks Typical (was typical)

Answers to analysts Typical (was typical)

Script and answers carried a similar tone, so the script's message held up under questioning.

Sentences that drove the tone

“We believe that combination of focused investment and improved execution will position The Trade Desk to deliver stronger, more durable growth and improved profitability.”

“As we continue to map out plans to grow our position and improve our revenue growth, we reflect on what we have learned from past quarters and especially from this...”

“Automotive remains an area of strength overall, though we believe this business could be growing faster absent the impact of increased tariffs on the industry.”

Full figures

USD · SEC EDGAR XBRL (10-Q, period end 2026-06-30)

Metric	Q2 2026period end 2026-06-30	Q1 2026period end 2026-03-31	Change	Q2 2025	YoY
Revenue	715.1M	688.9M	+3.8%	694.0M	+3.0%
Gross profit	530.7M	506.9M	+4.7%	543.1M	−2.3%
Operating income	101.6M	66.6M	+52.4%	116.8M	−13.0%
Net income	64.4M	40.0M	+61.0%	90.1M	−28.6%
EPS	0.14	0.08	+75.0%	0.18	−22.2%
P/E today 15.4	21.5	25.8	−4.3	86.7	−65.2

Topics

Most discussed now

New As CFO, my focus is straightforward, ensuring Trade Desk invests behind its highest priority opportunities, allocate capital with…
Income tax expense was $49 million in the second quarter, driven primarily by Trade Desk's pretax profitability and the impact of...
Geographically, the United States represented approximately 83% of Trade Desk's revenue in Q2 and international represented approximately…
This represents substantial platform usability upgrades and helps it get the best out of AI, which Trade Desk has already added.
Trade Desk justs want to continue to innovate in some of its key products, and this is definitely not all...

Faded since Q1 2026

Dropped CTV growth remains strong, fueled by the continued shift away from linear TV and expanding decisioned inventory at the world's...
Fading While there are clearly near-term headwinds and a cloudier macro environment...
Fading Advertisers are increasingly using retail data from Trade Desk's marketplace to tie ad spend to real-world sales.
Fading I'm hopeful that Trade Desk's discussion today puts an end to it.

Latest announcements

Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.

2026-10-20 Director or officer change; Shareholder vote results · SEC 8-K
2026-09-15 Director or officer change · SEC 8-K
The Board approved a performance-based stock option for CEO Jeff Green to purchase up to 7,000,000 shares of Class A Common Stock at an exercise price of $14.97 per share.
2026-09-04 Restructuring costs · SEC 8-K
The Trade Desk, Inc. announced an organizational realignment involving a 15% workforce reduction and estimated restructuring costs of $39 million to $51 million.
2026-08-06 Results of operations · SEC 8-K
The Trade Desk, Inc. issued a press release on August 6, 2026, reporting financial results for the quarter ended June 30, 2026.
2026-07-13 Director or officer change · SEC 8-K
The Trade Desk, Inc. appointed Penry Price to the board as a Class II director, effective July 9, 2026, with an initial equity grant valued at $290,000.
2026-06-09 Director or officer change · SEC 8-K
The Trade Desk, Inc. appointed David Haddad to the board and audit committee effective June 11, 2026, with an annual compensation of $50,000 and $12,500 for committee service.
2026-06-01 Director or officer change · SEC 8-K
The Trade Desk, Inc. appointed Nate Olmstead as Chief Financial Officer effective July 9, 2026, with a base salary of $600,000, a target annual bonus of $600,000, and a signing bonus of $600,000.
2026-05-29 Director or officer change · SEC 8-K
The Board approved Samantha Jacobson's eligibility for a $50,000 annual compensation and a $290,000 annual equity grant following her resignation as an officer on May 18, 2026.

Balance sheet & ownership

From SEC filings; short interest is FINRA data via Yahoo. Collected 2026-10-12.

Cash & runway

Cash & equivalents

$1.12B

2026-06-30

Short-term investments

$362.4M

total $1.49B

Implied runway

—

operating cash flow positive over the TTM window

Dilution

weighted-average basic shares, per quarter. Change: -4.5% YoY, -1.3% QoQ.

Quarter	Shares
Q3 2024	491.6M
Q1 2025	494.9M
Q2 2025	490.6M
Q3 2025	487.7M
Q1 2026	474.7M
Q2 2026	468.4M

Insider transactions

Form 4 open-market trades (codes S/P), trailing 12 months. 41 filings parsed.

Sold by insiders

206.5K shares

$5.8M · 3 transactions

Bought by insiders

6.0M shares

$148.1M · 4 transactions

Net direction

net buying

Catalyst calendar

management-stated targets — from the latest earnings call; plans, not promises.

later this month

launch a significant upgrade focused on platform usability

Source quote
“Lastly, on the product front, later this month, we will launch a significant upgrade focused on platform usability.”
Over the rest of the year and into 2027

disciplined investment in high-priority growth initiatives

Source quote
“Over the rest of the year and into 2027, we're going to be more disciplined than ever about where we invest.”
2026

increase in platform operations expense due to transition of workloads to owned data centers

Source quote
“While this transition creates an increase in platform operations expense in 2026, it positions us to benefit from greater efficiency and operating le”
Q3

revenue to be at least $650 million

Source quote
“For Q3, we expect revenue to be at least $650 million.”
Q3

estimated adjusted EBITDA to be approximately $160 million

Source quote
“We estimate adjusted EBITDA for Q3 to be approximately $160 million.”