Trade Desk (TTD)
NASDAQ:TTD
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Trade Desk
(NASDAQ:TTD)
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Rating:71Outperform
Price Target:
$22.50
▲(0.13% Upside)
Action:Reiterated
Date:05/09/26
TTD scores well primarily on financial quality—strong margins and cash generation with conservative leverage—supporting a solid base score. The overall rating is held back by a weak longer-term technical trend (price well below longer-term moving averages) and a rich valuation (P/E ~67) that increases downside risk if growth or margins soften. Earnings call guidance reaffirmed longer-term profitability targets but reflected near-term macro and cost pressures, keeping the score in the low-70s rather than higher.
Positive Factors
Strong cash generation
Consistent, sizable operating cash flow and high free-cash-flow conversion provide durable financial flexibility. This funds buybacks, targeted product investment and debt-light growth, helping the business absorb advertising cyclicality and support long-term platform innovation without capital strain.
Negative Factors
US revenue concentration
Heavy reliance on U.S. advertisers concentrates cyclical and regulatory risk in one market. Slower international monetization or regional ad-market weakness would materially impact growth and could limit the company's ability to diversify revenue streams over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Consistent, sizable operating cash flow and high free-cash-flow conversion provide durable financial flexibility. This funds buybacks, targeted product investment and debt-light growth, helping the business absorb advertising cyclicality and support long-term platform innovation without capital strain.
Read all positive factors
Trade Desk Key Performance Indicators (KPIs)
Any
Gross Spend
Shows the total amount spent by advertisers through Trade Desk's platform, highlighting the scale of business and potential for revenue growth.
Shows the total amount spent by advertisers through Trade Desk's platform, highlighting the scale of business and potential for revenue growth.
Data provided by:
The Fly
The FlyTrade Desk (TTD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$10.60B
Dividend YieldN/A
Average Volume (3M)18.33M
Price to Earnings (P/E)67.3
Beta (1Y)1.14
Revenue Growth15.55%
EPS Growth6.91%
CountryUS
Employees3,522
SectorCommunication Services
Sector Strength97
IndustryAdvertising Agencies
Share Statistics
EPS (TTM)0.89
Shares Outstanding432,868,400
10 Day Avg. Volume22,079,608
30 Day Avg. Volume18,333,267
Financial Highlights & Ratios
PEG Ratio2.74
Price to Book (P/B)7.33
Price to Sales (P/S)6.29
P/FCF Ratio22.90
Enterprise Value/Market Cap0.90
Enterprise Value/Revenue3.20
Enterprise Value/Gross Profit4.11
Enterprise Value/Ebitda13.09
Forecast
1Y Price Target
$25.47Price Target Upside13.35% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering30
EPS Forecast (FY)1
Revenue Forecast (FY)$3.19B
Trade Desk Business Overview & Revenue Model
Company Description
Trade Desk, Inc. operates as a technology company in the United States and internationally. The company operates a self-service cloud-based platform that allows buyers to create, manage, and optimize data-driven digital advertising campaigns acros...
How the Company Makes Money
The Trade Desk primarily makes money by charging for the use of its programmatic advertising platform. Revenue is largely generated as advertisers spend through the platform to purchase ad impressions in real-time auctions and other programmatic t...
Trade Desk Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Positive
The call highlighted durable, structural strengths—profitable growth, strong cash generation, meaningful product and partnership momentum (CTV, audio, retail data, Audience Unlimited, agentic AI), and robust JBP traction—while acknowledging near-term headwinds driven by macro uncertainty, category-specific softening (CPG, auto tariffs), elevated operating expenses ex-SBC, and some leadership/agency noise. Management provided conservative near-term guidance but reiterated confidence in long-term TAM expansion and a disciplined reinvestment strategy.Positive Updates
Revenue and Profitability
Q1 revenue $689M, up 12% year-over-year; net income $40M ($0.08 diluted, ~6% of revenue); adjusted net income $134M ($0.28 diluted).
Negative Updates
Near-Term Deceleration and Macro Uncertainty
Management highlighted a cloudier macro environment with geopolitical tensions, tariffs and consumer pressures leading to a deceleration into Q2; Q2 guide reflects caution despite long-term conviction.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue and Profitability
Q1 revenue $689M, up 12% year-over-year; net income $40M ($0.08 diluted, ~6% of revenue); adjusted net income $134M ($0.28 diluted).
Read all positive updates
Company Guidance
Management guided Q2 revenue of at least $750 million and Q2 adjusted EBITDA of approximately $260 million, and reiterated full‑year 2026 adjusted EBITDA margin of at least 40% (roughly in line with 2025); as context they reported Q1 revenue of $689M (12% YoY), adjusted EBITDA $206M (30% margin), net income $40M ($0.08 diluted, ~6% of revenue), adjusted net income $134M ($0.28 diluted), operating expenses $622M (+11%; $513M ex‑SBC, +18%), income tax $39M, net cash from operations $392M, free cash flow $276M, cash/short‑term investments ~$1.4B, and $164M of share repurchases in Q1; channel and regional mix included video (CTV) in the low‑50s% of revenue, mobile in the high‑20s, display in the low‑teens, audio ~6% (fastest growing), US ~82%/international ~18%; they also flagged commercial momentum—March record 45 JBPs, Q1 JBP count +55% YoY, new JBP spend +40% YoY (ex renewals), a pharma win (+114% YoY spend), and product test KPIs for Audience Unlimited (−30% CPM, −38% data costs, −75% CPA, 2.7x conversion).Trade Desk Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
84
Very Positive
Cash Flow
80
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.97B | 2.90B | 2.44B | 1.95B | 1.58B | 1.20B |
| Gross Profit | 2.31B | 2.28B | 1.97B | 1.58B | 1.30B | 974.91M |
| EBITDA | 725.01M | 774.54M | 514.66M | 280.90M | 168.08M | 167.04M |
| Net Income | 432.62M | 443.30M | 393.08M | 178.94M | 53.38M | 137.76M |
Balance Sheet | ||||||
| Total Assets | 5.73B | 6.15B | 6.11B | 4.89B | 4.38B | 3.58B |
| Cash, Cash Equivalents and Short-Term Investments | 1.41B | 1.30B | 1.92B | 1.38B | 1.45B | 958.78M |
| Total Debt | 423.57M | 436.33M | 312.21M | 235.89M | 260.96M | 284.60M |
| Total Liabilities | 3.28B | 3.67B | 3.16B | 2.72B | 2.27B | 2.05B |
| Stockholders Equity | 2.45B | 2.48B | 2.95B | 2.16B | 2.12B | 1.53B |
Cash Flow | ||||||
| Free Cash Flow | 836.72M | 795.71M | 632.39M | 543.30M | 456.85M | 318.54M |
| Operating Cash Flow | 1.09B | 992.72M | 739.46M | 598.32M | 548.73M | 378.51M |
| Investing Cash Flow | -159.58M | -292.63M | -157.51M | -107.59M | -304.37M | -93.64M |
| Financing Cash Flow | -1.17B | -1.41B | -107.61M | -626.11M | 31.99M | 31.93M |
Trade Desk Technical Analysis
Negative
22.47
Price Trends
22.98
Negative
27.13
Negative
37.87
Negative
Market Momentum
-0.55
Positive
42.63
Neutral
34.15
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TTD, the sentiment is Negative. The current price of 22.47 is below the 20-day moving average (MA) of 22.81, below the 50-day MA of 22.98, and below the 200-day MA of 37.87, indicating a bearish trend. The MACD of -0.55 indicates Positive momentum. The RSI at 42.63 is Neutral, neither overbought nor oversold. The STOCH value of 34.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TTD.
Trade Desk Risk Analysis
Trade Desk disclosed 48 risk factors in its most recent earnings report. Trade Desk reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Trade Desk Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $73.87B | 198.31 | 3.78% | ― | 29.54% | -21.11% | |
74 Outperform | $9.52B | 29.16 | 15.65% | ― | 8.16% | -70.70% | |
71 Outperform | $10.60B | 67.32 | 16.91% | ― | 15.55% | 6.91% | |
69 Neutral | $1.92B | 96.63 | 18.57% | ― | 7.10% | 404.29% | |
67 Neutral | $681.27M | -109.70 | 16.65% | ― | 18.15% | 331.16% | |
61 Neutral | $460.25M | -7.70 | -6.98% | ― | -2.33% | -425.96% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% |
* Communication Services Sector Average
TTD
Trade Desk
21.16
-55.90
-72.54%
MGNI
Magnite
13.39
-2.65
-16.52%
DOCU
DocuSign
49.42
-40.31
-44.92%
DDOG
Datadog
215.15
98.86
85.01%
PUBM
PubMatic
10.06
-1.46
-12.67%
DSP
Viant Technology
10.94
-3.71
-25.32%
Trade Desk Corporate Events
Executive/Board Changes
Trade Desk Chief Strategy Officer Resigns, Remains on Board
Neutral
May 8, 2026
On May 7, 2026, The Trade Desk announced that Chief Strategy Officer Samantha Jacobson had notified the company of her intention to resign from her executive role, effective May 18, 2026. She will, however, remain on the company’s board of d...
Executive/Board ChangesShareholder Meetings
Trade Desk Stockholders Approve Directors and Governance Matters
Positive
May 8, 2026
On May 4, 2026, The Trade Desk held its 2026 annual meeting of stockholders, with 361,204,763 of 470,097,769 outstanding common shares represented, constituting a quorum and delivering 748,851,674 votes. Stockholders voted as a single class on mos...
Business Operations and StrategyPrivate Placements and Financing
Trade Desk Expands and Extends Revolving Credit Facility
Positive
Apr 20, 2026
On April 14, 2026, The Trade Desk entered into an amended and restated loan and security agreement that refinances and extends its revolving credit facility with a bank syndicate led by JPMorgan Chase to a new maturity date of April 14, 2031. The ...
Executive/Board Changes
Trade Desk Announces Routine Board Resignation and Transition
Neutral
Apr 6, 2026
On March 31, 2026, The Trade Desk, Inc. announced that board member Lise J. Buyer had informed the company of her decision to resign from its board of directors, effective April 3, 2026. The company stated that her departure, after serving on the ...
Executive/Board ChangesRegulatory Filings and Compliance
Trade Desk Faces Nasdaq Notice Amid Board Reshuffle
Neutral
Mar 25, 2026
On March 24–25, 2026, The Trade Desk disclosed that the resignations of board members Kathryn E. Falberg and Alexander Kayyal left its audit and compensation committees temporarily out of compliance with Nasdaq’s independence requireme...
Business Operations and StrategyExecutive/Board Changes
The Trade Desk Announces Board Resignation and Governance Transition
Neutral
Mar 9, 2026
On March 3, 2026, The Trade Desk announced that Gokul Rajaram had decided to resign from its board of directors, with his departure effective April 3, 2026, after serving on the board since May 2018. The company emphasized that Rajaram’s res...
Business Operations and StrategyStock BuybackFinancial Disclosures
Trade Desk Posts Strong 2025 Results, Expands Share Buybacks
Positive
Feb 25, 2026
On February 25, 2026, The Trade Desk reported fourth-quarter and full-year 2025 results showing revenue of $2.9 billion for 2025, up 18% year on year, with GAAP net income of $443 million and an adjusted EBITDA of $1.2 billion, maintaining a 41% a...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.