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The Trade Desk Repurchases $386M Stock: A Smart Capital Move?
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Key Takeaways
TTD repurchased $386M in shares in Q1 2025, exceeding its free cash flow of $230M for the quarter.
A $1B authorization backs TTD's repurchase strategy, supported by $1.7B in liquidity and no debt.
TTD expects Q2 revenues of at least $682M, implying 17% growth with stable macro conditions.
The Trade Desk, Inc. (TTD - Free Report) announced in its first-quarter 2025 earnings release that it used $386 million in cash to buy back its common stock. Strong balance sheet and consistent cash flow aided the repurchases. Operating cash flow was $291 million while free cash flow was $230 million in the first quarter, so the buyback exceeded quarterly cash generation.
The company’s balance sheet remained strong at the end of the first quarter with approximately $1.7 billion in cash, cash equivalents and short-term investments, and it has no debt. In prior filings, TTD’s board authorized a large repurchase program. In January 2025, an additional $564 million was approved, bringing the total authorization to $1 billion.
TTD is confident in its ability to outpace the market and seize future opportunities owing to solid execution across key initiatives—connected TV (CTV), retail media, international expansion, Kokai, UID2 and OpenPath. The Trade Desk emphasizes a balanced, efficient cost structure to stay agile amid evolving conditions.
TTD continues to drive advancements in the advertising world with fresh launches and collaborations. In June 2025, the company announced an expanded partnership with HOY, the media platform operated by i-CABLE Communications Limited. Moreover, it unveiled Deal Desk, an innovation within its Kokai platform designed to enhance how advertisers and publishers manage one-to-one deals and upfront commitments.
For the second quarter of 2025, the company expects revenues of at least $682 million, suggesting 17% year-over-year growth, assuming stable macroeconomic conditions. This includes the impact of lapping prior political ad spend, which contributed around 1% to the prior-year quarter revenues. Adjusted EBITDA is expected to be about $259 million for the second quarter.
Supported by a healthy balance sheet and steady cash generation, The Trade Desk plans to continue opportunistic buybacks and offset dilution from employee stock grants.
Repurchase Plans of TTD’s Competitors
Magnite, Inc. (MGNI - Free Report) announced a new share buyback program in February 2024, authorizing up to $125 million in repurchases, which includes both common stock and convertible notes. This program runs through Feb. 1, 2026. The stated objective is to return capital to shareholders and manage potential dilution related to convertible instruments. As of the end of the first quarter of 2025, Magnite had already utilized a portion of this authorization, leaving $88 million available for strategic deployment under the plan.
PubMatic, Inc. (PUBM - Free Report) has also been aggressive in its capital return initiatives. The company initially had a $75 million buyback program in place, which was expanded by $100 million in February 2024 and again by another $100 million in May 2025. This brings the total authorization to $275 million, with the latest extension running through the end of 2026. PubMatic’s management stated that the buyback reflects confidence in the company’s long-term value and strong financial position. As of the end of March 2025, the company had spent approximately $138.2 million to repurchase around 8.7 million shares, demonstrating consistent execution of the buyback strategy.
TTD’s Price Performance and Valuation
Shares of TTD have plunged 29.5% in the past year against the Zacks Internet -Services industry’s growth of 0.6%.
Image Source: Zacks Investment Research
From a valuation standpoint, TTD trades at a forward price-to-sales of 10.88X, higher than the industry’s average of 5.18X.
Image: Bigstock
The Trade Desk Repurchases $386M Stock: A Smart Capital Move?
Key Takeaways
The Trade Desk, Inc. (TTD - Free Report) announced in its first-quarter 2025 earnings release that it used $386 million in cash to buy back its common stock. Strong balance sheet and consistent cash flow aided the repurchases. Operating cash flow was $291 million while free cash flow was $230 million in the first quarter, so the buyback exceeded quarterly cash generation.
The company’s balance sheet remained strong at the end of the first quarter with approximately $1.7 billion in cash, cash equivalents and short-term investments, and it has no debt. In prior filings, TTD’s board authorized a large repurchase program. In January 2025, an additional $564 million was approved, bringing the total authorization to $1 billion.
TTD is confident in its ability to outpace the market and seize future opportunities owing to solid execution across key initiatives—connected TV (CTV), retail media, international expansion, Kokai, UID2 and OpenPath. The Trade Desk emphasizes a balanced, efficient cost structure to stay agile amid evolving conditions.
TTD continues to drive advancements in the advertising world with fresh launches and collaborations. In June 2025, the company announced an expanded partnership with HOY, the media platform operated by i-CABLE Communications Limited. Moreover, it unveiled Deal Desk, an innovation within its Kokai platform designed to enhance how advertisers and publishers manage one-to-one deals and upfront commitments.
For the second quarter of 2025, the company expects revenues of at least $682 million, suggesting 17% year-over-year growth, assuming stable macroeconomic conditions. This includes the impact of lapping prior political ad spend, which contributed around 1% to the prior-year quarter revenues. Adjusted EBITDA is expected to be about $259 million for the second quarter.
Supported by a healthy balance sheet and steady cash generation, The Trade Desk plans to continue opportunistic buybacks and offset dilution from employee stock grants.
Repurchase Plans of TTD’s Competitors
Magnite, Inc. (MGNI - Free Report) announced a new share buyback program in February 2024, authorizing up to $125 million in repurchases, which includes both common stock and convertible notes. This program runs through Feb. 1, 2026. The stated objective is to return capital to shareholders and manage potential dilution related to convertible instruments. As of the end of the first quarter of 2025, Magnite had already utilized a portion of this authorization, leaving $88 million available for strategic deployment under the plan.
PubMatic, Inc. (PUBM - Free Report) has also been aggressive in its capital return initiatives. The company initially had a $75 million buyback program in place, which was expanded by $100 million in February 2024 and again by another $100 million in May 2025. This brings the total authorization to $275 million, with the latest extension running through the end of 2026. PubMatic’s management stated that the buyback reflects confidence in the company’s long-term value and strong financial position. As of the end of March 2025, the company had spent approximately $138.2 million to repurchase around 8.7 million shares, demonstrating consistent execution of the buyback strategy.
TTD’s Price Performance and Valuation
Shares of TTD have plunged 29.5% in the past year against the Zacks Internet -Services industry’s growth of 0.6%.
Image Source: Zacks Investment Research
From a valuation standpoint, TTD trades at a forward price-to-sales of 10.88X, higher than the industry’s average of 5.18X.
Image Source: Zacks Investment Research
TTD currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.