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Trade Desk's Q2 Earnings Miss Estimates, Revenues Up Y/Y, Stock Down
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Key Takeaways
TTD posted Q2 adjusted EPS of $0.41, missing estimates but up from $0.39 in the year-ago quarter.
Revenue rose 18.6% year over year to $694M, beating estimates and exceeding company guidance.
Kokai adoption surpassed 70% of spend, driving performance amid strong CTV and retail media growth.
The Trade Desk, Inc. (TTD - Free Report) reported second-quarter 2025 adjusted earnings per share (EPS) of 41 cents, which missed the Zacks Consensus Estimate by 2.4%. The bottom line compared favorably with 39 cents posted in the prior-year quarter.
Revenues increased 18.6% year over year to $694 billion. Also, it beat the consensus mark by 1.4%. This came above the company’s revenue expectation of at least $682 million for the second quarter.
In the quarter, the company maintained strong momentum across its key growth areas, as advertisers increasingly prioritized the efficiency and measurable outcomes of their media investments. Growth was especially robust in CTV and retail media, driven by the ongoing shift toward decision-based TV buying channels and the rapid adoption of retail media across various industries and regions.
With more than 70% of spend now flowing through Kokai, the new platform continues to deliver strong performance. Trade Desk remains focused on completing the Kokai transition and driving continued innovation for the industry and its clients.
After the announcement of the results, shares lost around 30% in the pre-market trading session today. In the past year, the stock has plunged 28% against the Zacks Internet – Services industry’s growth of 5.4%.
Image Source: Zacks Investment Research
Segment Details
Video, which includes connected CTV, accounted for a high-40s percentage of its overall business and continues to increase its share of the mix in the quarter. Mobile contributed a mid-30s percentage share of total spend, while display made up a low double-digit share and audio comprised approximately 5%.
TTD’s Operating Details
Adjusted EDITDA was $271 million compared with $242 million in the year-ago quarter, while adjusted EDITDA margin came in at 39%, down from 41%.
Balance Sheet & Cash Flow
As of June 30, 2025, cash & cash equivalents were $896.4 million compared with $1,118.5 million as of March 31, 2025.
In the quarter, net cash generated from operating activities totaled $165 million, while free cash flow amounted to $117 million.
In the first half of 2025, the company generated cash flow from operating activities of $456.4 million, from $266.7 million in the same period last year.
In the quarter, the company utilized $261 million in cash to repurchase its common stock. As of June 30, 2025, $375 million remained authorized and available for future repurchases.
Q3 Outlook
For the third quarter of 2025, the company anticipates revenues of at least $717 million, representing 14% year-over-year growth. Excluding the benefit of U.S. political ad spend in the third quarter of 2024, the company projected year-over-year growth for the third quarter to be approximately 18%.
Trade Desk projects adjusted EBITDA for the third quarter to be around $277 million.
TTD’s Latest Innovations and Strategic Collaborations
The Trade Desk introduced several innovations and strategic partnerships aimed at enhancing advertising performance and audience targeting. Among the key developments was the launch of OpenSincera, a new application that provides deeper visibility into advertising performance and the overall health of the digital advertising supply chain. The company also unveiled Deal Desk, a solution for understanding and managing digital advertising deal performance. Additionally, it released the Connector App on Snowflake, enabling access to retail conversion data natively within the platform.
Expanding its use of generative AI, Trade Desk formed creative partnership integrations with Rembrand, Nova, Bunny Studio and Spaceback. Instacart integrated its grocery catalog with TTD’s platform, allowing advertisers to build custom first-party audiences based on specific product criteria. Visa announced a new data partnership with the company in Australia and New Zealand to help marketers achieve more precise campaign targeting.
Further strengthening measurement capabilities, EDO integrated its Convergent TV measurement solution with Trade Desk to offer a new approach to CTV measurement in programmatic media buying. NIQ entered a global data collaboration with TTD to support advanced audience targeting. Also, Zepto partnered with TTD to offer brands access to rich commerce data for real-time measurement and improved targeting.
DoorDash (DASH - Free Report) reported second-quarter 2025 earnings of 65 cents per share against the year-ago quarter’s loss of 38 cents per share. The figure beat the Zacks Consensus Estimate by 54.76%.
Revenues increased 24.9% year over year to $3.28 billion, beating the consensus mark by 3.80%. The net revenue margin rose to 13.5% from 13.3% in the second quarter of 2024.
Shares of DASH have surged 118.9% in the past year.
Shopify (SHOP - Free Report) reported second-quarter 2025 non-GAAP earnings of 35 cents per share, which beat the Zacks Consensus Estimate by 25%. The figure jumped 34.6% year over year.
Revenues of $2.68 billion surpassed the Zacks Consensus Estimate by 5.47%. The top line soared 31.1% year over year.
In the past year, shares of SHOP have jumped 118%.
Uber Technologies (UBER - Free Report) reported solid second-quarter 2025 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate. Quarterly earnings per share of 63 cents outpaced the Zacks Consensus Estimate by a penny and improved 34% year over year.
Total revenues of $12.65 billion outpaced the Zacks Consensus Estimate of $12.45 billion. The top line jumped 18% year over year on a reported basis and constant currency basis.
Shares of UBER have increased 35.2% in the past year.
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Trade Desk's Q2 Earnings Miss Estimates, Revenues Up Y/Y, Stock Down
Key Takeaways
The Trade Desk, Inc. (TTD - Free Report) reported second-quarter 2025 adjusted earnings per share (EPS) of 41 cents, which missed the Zacks Consensus Estimate by 2.4%. The bottom line compared favorably with 39 cents posted in the prior-year quarter.
Revenues increased 18.6% year over year to $694 billion. Also, it beat the consensus mark by 1.4%. This came above the company’s revenue expectation of at least $682 million for the second quarter.
In the quarter, the company maintained strong momentum across its key growth areas, as advertisers increasingly prioritized the efficiency and measurable outcomes of their media investments. Growth was especially robust in CTV and retail media, driven by the ongoing shift toward decision-based TV buying channels and the rapid adoption of retail media across various industries and regions.
With more than 70% of spend now flowing through Kokai, the new platform continues to deliver strong performance. Trade Desk remains focused on completing the Kokai transition and driving continued innovation for the industry and its clients.
After the announcement of the results, shares lost around 30% in the pre-market trading session today. In the past year, the stock has plunged 28% against the Zacks Internet – Services industry’s growth of 5.4%.
Image Source: Zacks Investment Research
Segment Details
Video, which includes connected CTV, accounted for a high-40s percentage of its overall business and continues to increase its share of the mix in the quarter. Mobile contributed a mid-30s percentage share of total spend, while display made up a low double-digit share and audio comprised approximately 5%.
TTD’s Operating Details
Adjusted EDITDA was $271 million compared with $242 million in the year-ago quarter, while adjusted EDITDA margin came in at 39%, down from 41%.
Balance Sheet & Cash Flow
As of June 30, 2025, cash & cash equivalents were $896.4 million compared with $1,118.5 million as of March 31, 2025.
In the quarter, net cash generated from operating activities totaled $165 million, while free cash flow amounted to $117 million.
The Trade Desk Price, Consensus and EPS Surprise
The Trade Desk price-consensus-eps-surprise-chart | The Trade Desk Quote
In the first half of 2025, the company generated cash flow from operating activities of $456.4 million, from $266.7 million in the same period last year.
In the quarter, the company utilized $261 million in cash to repurchase its common stock. As of June 30, 2025, $375 million remained authorized and available for future repurchases.
Q3 Outlook
For the third quarter of 2025, the company anticipates revenues of at least $717 million, representing 14% year-over-year growth. Excluding the benefit of U.S. political ad spend in the third quarter of 2024, the company projected year-over-year growth for the third quarter to be approximately 18%.
Trade Desk projects adjusted EBITDA for the third quarter to be around $277 million.
TTD’s Latest Innovations and Strategic Collaborations
The Trade Desk introduced several innovations and strategic partnerships aimed at enhancing advertising performance and audience targeting. Among the key developments was the launch of OpenSincera, a new application that provides deeper visibility into advertising performance and the overall health of the digital advertising supply chain. The company also unveiled Deal Desk, a solution for understanding and managing digital advertising deal performance. Additionally, it released the Connector App on Snowflake, enabling access to retail conversion data natively within the platform.
Expanding its use of generative AI, Trade Desk formed creative partnership integrations with Rembrand, Nova, Bunny Studio and Spaceback. Instacart integrated its grocery catalog with TTD’s platform, allowing advertisers to build custom first-party audiences based on specific product criteria. Visa announced a new data partnership with the company in Australia and New Zealand to help marketers achieve more precise campaign targeting.
Further strengthening measurement capabilities, EDO integrated its Convergent TV measurement solution with Trade Desk to offer a new approach to CTV measurement in programmatic media buying.
NIQ entered a global data collaboration with TTD to support advanced audience targeting. Also, Zepto partnered with TTD to offer brands access to rich commerce data for real-time measurement and improved targeting.
TTD’s Zacks Rank
TTD currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Performance of Other Companies
DoorDash (DASH - Free Report) reported second-quarter 2025 earnings of 65 cents per share against the year-ago quarter’s loss of 38 cents per share. The figure beat the Zacks Consensus Estimate by 54.76%.
Revenues increased 24.9% year over year to $3.28 billion, beating the consensus mark by 3.80%. The net revenue margin rose to 13.5% from 13.3% in the second quarter of 2024.
Shares of DASH have surged 118.9% in the past year.
Shopify (SHOP - Free Report) reported second-quarter 2025 non-GAAP earnings of 35 cents per share, which beat the Zacks Consensus Estimate by 25%. The figure jumped 34.6% year over year.
Revenues of $2.68 billion surpassed the Zacks Consensus Estimate by 5.47%. The top line soared 31.1% year over year.
In the past year, shares of SHOP have jumped 118%.
Uber Technologies (UBER - Free Report) reported solid second-quarter 2025 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate. Quarterly earnings per share of 63 cents outpaced the Zacks Consensus Estimate by a penny and improved 34% year over year.
Total revenues of $12.65 billion outpaced the Zacks Consensus Estimate of $12.45 billion. The top line jumped 18% year over year on a reported basis and constant currency basis.
Shares of UBER have increased 35.2% in the past year.