The Trade Desk Reports Third Quarter 2025 Financial Results

The Trade Desk also announced an additional $500 millionshare repurchase authorization.

LOS ANGELES, November 06, 2025--(BUSINESS WIRE)--The Trade Desk, Inc. ("The Trade Desk," the "Company" or "we") (NASDAQ: TTD), a provider of a global technology platform for buyers of advertising, today announced financial results for its third quarter ended September 30, 2025.

"Q3 was another strong quarter for The Trade Desk, with revenue growing to $739 million, representing 18% year-over-year growth," said Jeff Green, CEO and Co-Founder of The Trade Desk. "Our momentum continues to be fueled by new product innovations we’ve launched across our Kokai platform, which are helping the world’s leading brands unlock the full potential of data-driven advertising. As AI transforms the advertising ecosystem, customers globally are relying on The Trade Desk to enable objective, data-rich buying across channels and partners, to drive real-world outcomes for their businesses. The pace of our innovation reinforces our leadership position across CTV, retail media, and the open internet more broadly. As we close out 2025 and look to the future, we believe The Trade Desk is uniquely positioned to capture more market share as we help advertisers succeed on the open internet and drive measurable business growth through data and AI."

Third Quarter 2025 Financial Highlights:

The following table summarizes the Company’s unaudited consolidated financial results for the three and nine months ended September 30, 2025 and 2024 ($ in millions, except per share amounts):

Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 GAAP Results Revenue $ 739 $ 628 $ 2,049 $ 1,704 Increase in revenue year over year 18 % 27 % 20 % 27 % Net income $ 116 $ 94 $ 256 $ 211 Net income margin 16 % 15 % 13 % 12 % GAAP diluted earnings per share $ 0.23 $ 0.19 $ 0.52 $ 0.42 Non-GAAP Results Adjusted EBITDA $ 317 $ 257 $ 796 $ 661 Adjusted EBITDA margin 43 % 41 % 39 % 39 % Non-GAAP net income $ 221 $ 207 $ 589 $ 536 Non-GAAP diluted earnings per share $ 0.45 $ 0.41 $ 1.18 $ 1.07

Third Quarter and Recent Business Highlights:

Strong Customer Retention: Customer retention remained over 95% during the third quarter, as it has for the past 11 consecutive years. Anders Mortensen joins The Trade Desk as Chief Revenue Officer:

He brings to The Trade Desk a 25-year track record of successfully scaling advertising businesses, including most recently at Google, where he led one of the largest and fastest-growing advertising business units globally, delivering double-digit growth and expanded market share. Strong Financial Profile: Delivered $317 million of Adjusted EBITDA, representing 43% of revenue, and $225 million of cash provided by operating activities in the third quarter, representing the strength of our operating model and our financial discipline. New Innovation and Partnership Announcements:

Audience Unlimited, a major upgrade to our third-party data marketplace. OpenAds, an open-source auction to promote transparency for buyers and publishers. Pharma ad marketplace, consolidates healthcare professional (HCP) and direct-to-consumer (DTC) targeting and reporting, including integrations with IQVIA and Swoop. Koddi, a leading commerce media platform, integrated with The Trade Desk to bring sponsored product and onsite retail inventory to advertisers, with Gopuff as first retail partner. Continued Collaboration and Support for Unified ID 2.0: The Trade Desk is building support for Unified ID 2.0 (UID2), an industry-wide approach to identity that preserves the value of relevant advertising, while putting user control and privacy at the forefront. UID2 is an upgrade and alternative to third-party cookies. Recent partnerships and pledges of integration and support include:

IPG’s Axiom integrated UID2 to help marketers connect their campaigns to real-world outcomes. Treasure Data’s CDP integrated UID2 for seamless audience activation and measurement. Connected TV (CTV): The Trade Desk offers advertisers access to premium inventory across major networks and streaming services around the world.

DIRECTV, in collaboration with The Trade Desk, is planning to develop a custom version of Ventura TV OS. OSN and The Trade Desk partnered to offer advertisers data-driven, premium CTV inventory across the Middle East and North Africa region. DAZN integrated EUID and OpenPath to enable precise, privacy-conscious targeting on its premium live sports inventory across Europe. Share Repurchases: The Company used $310 million of cash to repurchase its Class A common stock in the third quarter of 2025. As of September 30, 2025, the Company had $60 million available and authorized for repurchases.

In October 2025, the Company used the remaining $60 million authorization under the share repurchase program. The Company also announced that its board of directors approved an additional $500 million under its share repurchase program pursuant to which the Company may purchase its outstanding Class A common stock. Industry Recognition:

Newsweek America’s Greatest Companies, 2025 Forbes America’s Best Companies, 2025

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Financial Guidance:

Fourth Quarter 2025 outlook summary:

Revenue at least $840 million Adjusted EBITDA of approximately $375 million

The Company has not provided an outlook for GAAP net income or reconciliation of Adjusted EBITDA guidance to net income, the closest corresponding U.S. GAAP measure, because net income outlook is not available without unreasonable efforts on a forward-looking basis due to the variability and complexity with respect to the charges included in the calculation of this GAAP measure; in particular, the measures and effects of our stock-based compensation expense that are directly impacted by unpredictable fluctuations in our share price. The Company expects the variability of the above charges could have a significant and potentially unpredictable impact on our future U.S. GAAP financial results.

Use of Non-GAAP Financial Information

Included within this press release are the non-GAAP financial measures of Adjusted EBITDA, Adjusted EBITDA margin, Non-GAAP net income and Non-GAAP diluted earnings per share ("EPS") that supplement the Condensed Consolidated Statements of Operations of the Company prepared under generally accepted accounting principles ("GAAP"). Adjusted EBITDA is net income before depreciation and amortization expense; stock-based compensation expense; interest income, net; and provision for income taxes. Adjusted EBITDA margin is Adjusted EBITDA divided by revenue, and Adjusted EBITDA margin’s closest corresponding U.S. GAAP measure is net income margin, which is GAAP net income divided by revenue. Non-GAAP net income excludes charges and the related income tax effects for stock-based compensation. Tax rates on the tax-deductible portions of the stock-based compensation expense approximating 25% to 30% have been used in the computation of non-GAAP net income and non-GAAP diluted EPS. Reconciliations of GAAP to non-GAAP amounts for the periods presented herein are provided in schedules accompanying this release and should be considered together with the Condensed Consolidated Statements of Operations. These non-GAAP measures are not meant as a substitute for GAAP, but are included solely for informational and comparative purposes. The Company’s management believes that this information can assist investors in evaluating the Company's operational trends, financial performance, and cash-generating capacity. Management believes these non-GAAP measures allow investors to evaluate the Company’s financial performance using some of the same measures as management. However, the non-GAAP financial measures should not be regarded as a replacement for or superior to corresponding, similarly captioned, GAAP measures and may be different from non-GAAP financial measures used by other companies.

Third Quarter 2025 Financial Results Webcast and Conference Call Details

When: November 6, 2025 at 2:00 P.M. Pacific Time (5:00 P.M. Eastern Time). Webcast: A live webcast of the call can be accessed from the Investor Relations section of The Trade Desk’s website at http://investors.thetradedesk.com. Following the call, a replay will be available on the Company’s website. Dial-in: To access the call via telephone in North America, please dial 888-506-0062. For callers outside the United States, please dial +1-973-528-0011. Participants should reference the conference call ID code "280315" after dialing in. Audio replay: An audio replay of the call will be available beginning about two hours after the call. To listen to the replay in the United States, please dial 877-481-4010 (replay code: 53106). Outside the United States, please dial +1-919-882-2331 (replay code: 53106). The audio replay will be available via telephone until November 13, 2025.

The Trade Desk, Inc. uses its Investor Relations website (http://investors.thetradedesk.com), its X feed (@TheTradeDesk), LinkedIn page (https://www.linkedin.com/company/the-trade-desk), Facebook page (https://www.facebook.com/TheTradeDesk) and Jeff Green’s LinkedIn profile (https://www.linkedin.com/in/jefftgreen) as a means of disclosing information about the Company and for complying with its disclosure obligations under Regulation FD. The information that is posted through these channels may be deemed material. Accordingly, investors should monitor these channels in addition to The Trade Desk’s press releases, SEC filings, public conference calls and webcasts.

About The Trade Desk

The Trade Desk™ is a technology company that empowers buyers of advertising. Through its self-service, cloud-based platform, ad buyers can create, manage, and optimize digital advertising campaigns across ad formats and devices. Integrations with major data, inventory, and publisher partners ensure maximum reach and decisioning capabilities, and enterprise APIs enable custom development on top of the platform. Headquartered in Ventura, CA, The Trade Desk has offices across North America, Europe and Asia Pacific. To learn more, visit thetradedesk.com or follow us on Facebook, X, LinkedIn and YouTube.

Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to expectations concerning matters that (a) are not historical facts, (b) predict or forecast future events or results, or (c) embody assumptions that may prove to have been inaccurate, including statements relating to industry and market trends, the Company’s growth and financial targets, such as revenue and Adjusted EBITDA and the amount, timing and sources of funding for the Company’s share repurchase program. When words such as "believe," "expect," "anticipate," "will," "outlook" or similar expressions are used, the Company is making forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it cannot give readers any assurance that such expectations will prove correct. These forward-looking statements involve risks, uncertainties and assumptions, including those related to the Company’s ability to maintain and grow its client base and spend through its platform and related offerings, which makes it difficult to evaluate the Company’s business and prospects, the market for programmatic advertising developing slower or differently than the Company’s expectations, the demands and expectations of clients and the ability to attract and retain clients. The actual results may differ materially from those anticipated in the forward-looking statements as a result of numerous factors, many of which are beyond the control of the Company. These are disclosed in the Company’s reports filed from time to time with the Securities and Exchange Commission, including its most recent Form 10-K and any subsequent filings on Forms 10-Q or 8-K, available at www.sec.gov. Readers are urged not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company does not intend to update any forward-looking statement contained in this press release to reflect events or circumstances arising after the date hereof.

THE TRADE DESK, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Amounts in thousands, except per share amounts)

(Unaudited) Three Months Ended
September 30, Nine Months Ended
September 30, 2025 2024 2025 2024 Revenue $ 739,433 $ 628,016 $ 2,049,493 $ 1,703,819 Operating expenses (1): Platform operations 162,154 122,656 455,973 336,745 Sales and marketing 156,830 140,296 470,704 395,888 Technology and development 127,893 117,705 394,546 335,426 General and administrative 131,337 138,878 395,822 403,902 Total operating expenses 578,214 519,535 1,717,045 1,471,961 Income from operations 161,219 108,481 332,448 231,858 Other expense (income): Total other income, net (18,300 ) (18,697 ) (56,041 ) (53,845 ) Income before income taxes 179,519 127,178 388,489 285,703 Provision for income taxes 63,972 33,020 132,135 74,856 Net income $ 115,547 $ 94,158 $ 256,354 $ 210,847 Earnings per share: Basic $ 0.24 $ 0.19 $ 0.52 $ 0.43 Diluted $ 0.23 $ 0.19 $ 0.52 $ 0.42 Weighted-average shares outstanding: Basic 487,729 491,614 491,069 489,845 Diluted 492,984 502,563 497,198 500,273

___________________________ (1) Includes stock-based compensation expense as follows:

THE TRADE DESK, INC.

STOCK-BASED COMPENSATION EXPENSE

(Amounts in thousands)

(Unaudited) Three Months Ended
September 30, Nine Months Ended
September 30, 2025 2024 2025 2024 Platform operations $ 7,953 $ 7,617 $ 26,253 $ 20,444 Sales and marketing 28,133 25,294 87,437 70,654 Technology and development 40,197 36,958 123,978 97,441 General and administrative (1) 45,033 58,641 140,786 176,931 Total $ 121,316 $ 128,510 $ 378,454 $ 365,470

___________________________ (1) Includes stock-based compensation expense related to a long-term CEO performance grant of $14 million and $30 million for the three months ended September 30, 2025 and 2024, respectively, as well as $57 million and $102 million for the nine months ended September 30, 2025 and 2024, respectively.

THE TRADE DESK, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts in thousands)

(Unaudited) As of September 30,
2025 As of December 31,
2024 ASSETS Current assets: Cash and cash equivalents $ 653,134 $ 1,369,463 Short-term investments, net 792,313 552,026 Accounts receivable, net 3,478,338 3,330,343 Prepaid expenses and other current assets 196,501 84,626 Total current assets 5,120,286 5,336,458 Property and equipment, net 322,507 209,332 Operating lease assets 287,104 263,761 Deferred income taxes 110,514 230,214 Other assets, non-current 99,990 72,186 Total assets $ 5,940,401 $ 6,111,951 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 2,761,261 $ 2,631,213 Accrued expenses and other current liabilities 160,381 177,760 Operating lease liabilities 73,129 64,492 Total current liabilities 2,994,771 2,873,465 Operating lease liabilities, non-current 302,848 247,723 Other liabilities, non-current 41,996 41,618 Total liabilities 3,339,615 3,162,806 Stockholders’ equity: Preferred stock — — Common stock — — Additional paid-in capital 2,965,231 2,594,896 Retained earnings (accumulated deficit) (364,445 ) 354,249 Total stockholders’ equity 2,600,786 2,949,145 Total liabilities and stockholders’ equity $ 5,940,401 $ 6,111,951

THE TRADE DESK, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Amounts in thousands)

(Unaudited) Nine Months Ended September 30, 2025 2024 OPERATING ACTIVITIES: Net income $ 256,354 $ 210,847 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 83,824 63,378 Stock-based compensation 378,454 365,470 Deferred income taxes 118,163 — Noncash lease expense 51,234 41,522 Provision for expected credit losses on accounts receivable 1,498 837 Other (13,841 ) (11,901 ) Changes in operating assets and liabilities: Accounts receivable (149,053 ) (125,711 ) Prepaid expenses and other current and non-current assets (91,574 ) (68,490 ) Accounts payable 120,381 87,175 Accrued expenses and other current and non-current liabilities (26,798 ) 8,846 Operating lease liabilities (47,510 ) (31,918 ) Net cash provided by operating activities 681,132 540,055 INVESTING ACTIVITIES: Purchases of investments (826,210 ) (486,596 ) Maturities of investments 597,413 475,022 Purchases of property and equipment (170,688 ) (78,048 ) Capitalized software development costs (9,093 ) (6,708 ) Business acquisition (4,350 ) — Net cash used in investing activities (412,928 ) (96,330 ) FINANCING ACTIVITIES: Repurchases of Class A common stock (957,540 ) (177,428 ) Proceeds from exercise of stock options 20,287 127,690 Proceeds from employee stock purchase plan 32,446 30,122 Taxes paid relating to net settlement of restricted stock awards (79,726 ) (97,763 ) Net cash used in financing activities (984,533 ) (117,379 ) Increase (decrease) in cash and cash equivalents (716,329 ) 326,346 Cash and cash equivalents—Beginning of period 1,369,463 895,129 Cash and cash equivalents—End of period $ 653,134 $ 1,221,475

Non-GAAP Financial Metrics

(Amounts in thousands, except per share amounts)

(Unaudited) The following tables show the Company’s non-GAAP financial metrics reconciled to the comparable GAAP financial metrics included in this release. Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Net income $ 115,547 $ 94,158 $ 256,354 $ 210,847 Add back (deduct): Depreciation and amortization expense 33,135 20,754 83,824 63,378 Stock-based compensation expense 121,316 128,510 378,454 365,470 Interest income, net (16,490 ) (19,408 ) (54,657 ) (53,886 ) Provision for income taxes 63,972 33,020 132,135 74,856 Adjusted EBITDA $ 317,480 $ 257,034 $ 796,110 $ 660,665 Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 GAAP net income $ 115,547 $ 94,158 $ 256,354 $ 210,847 Add back (deduct): Stock-based compensation expense 121,316 128,510 378,454 365,470 Adjustment for income taxes (16,141 ) (15,441 ) (46,019 ) (40,739 ) Non-GAAP net income $ 220,722 $ 207,227 $ 588,789 $ 535,578 GAAP diluted earnings per share $ 0.23 $ 0.19 $ 0.52 $ 0.42 GAAP weighted-average shares outstanding—diluted 492,984 502,563 497,198 500,273 Non-GAAP diluted earnings per share $ 0.45 $ 0.41 $ 1.18 $ 1.07 Non-GAAP weighted-average shares used in computing Non-GAAP earnings per share, diluted 492,984 502,563 497,198 500,273

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Contacts

Investors
Jake Graves
Senior Manager, Investor Relations
The Trade Desk
[email protected]

Media
Melinda Zurich
VP, Communications
The Trade Desk
[email protected]

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