Trade Desk misses Q1 profit estimates

The Trade Desk

07/05/2026 21:12

Overview

US adtech platform's Q1 revenue rose 12% yr/yr, beating analyst expectations

Adjusted EPS for Q1 missed analyst expectations

Company repurchased $164 mln of its shares in Q1

Outlook

Company expects Q2 revenue of at least $750 mln

Company projects Q2 adjusted EBITDA of approximately $260 mln

Result Drivers

STRATEGIC UPGRADES - Co said strategic upgrades and innovation across the business contributed to Q1 performance, per CEO Jeff Green

PRODUCT INNOVATION AND PARTNERSHIPS - New product launches and expanded partnerships, including Koa Agents, OpenTTD, and LinkedIn integration, supported growth

STRONG CUSTOMER RETENTION - Customer retention remained over 95% during the first quarter, as it has for over a decade

Company press release: ID:nBw6nxs3Qa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
$689 mln
$679.20 mln (32 Analysts)
Q1 Adjusted EPS
Miss
$0.28
$0.32 (19 Analysts)
Q1 EPS
$0.08
Q1 Net Income
$40 mln
Q1 Adjusted EBITDA Margin
30.00%
Q1 Income From Operations
$66.65 mln
Q1 Pretax Profit
$78.96 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 18 "strong buy" or "buy", 19 "hold" and 1 "sell" or "strong sell"

The average consensus recommendation for the software peer group is "buy"

Wall Street's median 12-month price target for Trade Desk Inc is $30.00, about 24.9% above its May 6 closing price of $24.01

The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 15 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)