The Trade Desk (TTD) · Internet & Advertising
The Trade Desk Q3 2026 earnings: summary, key numbers & outlook
Results filed 9 Nov 2026 · Quarter ended 30 Sep 2026
Slides (47 pages)Official transcript (PDF) ↗Press release ↗Investor relations ↗
Summaries and transcripts are machine-generated and can contain errors.
In brief
The Trade Desk reported third quarter 2026 revenue of $736 million, down 0.5% year over year, GAAP net income of $38 million and Adjusted EBITDA of $266 million.
The Trade Desk's third-quarter revenue was $736 million, slightly below the $739 million a year earlier. GAAP net income fell to $38 million from $116 million. Adjusted EBITDA was $266 million, a 36% margin versus 43% a year ago. Costs rose, especially platform operations, and the quarter included $44 million of restructuring charges. CEO Jeff Green said results were well ahead of expectations but still below the growth the company expects from itself. Customer retention stayed above 95%.
For the fourth quarter, management expects revenue of at least $755 million and Adjusted EBITDA of at least $280 million. The board added $731 million to the buyback authorization, bringing the total available to $1 billion. The main tension is that revenue has stopped growing while expenses keep rising, so profit is shrinking. Management is betting that Kokai Zuma, agentic AI, Netflix integration and new measurement tools can restore stronger growth.
Slides & documents
Open the slide deck (PDF, 47 pages) ↗
Showing the first 6 of 47 pages.
From The Trade Desk investor relations
SEC filing
Key numbers
- Revenue · GAAP
- $736.0M
- Net income · GAAP
- $38.0M
- GAAP diluted EPS · GAAP
- $0.08
- Non-GAAP diluted EPS · non-GAAP
- $0.33
- Income from operations · GAAP
- $92.6M
- Net cash provided by operating activities · GAAP
- $258.3M
- Free cash flow · non-GAAP
- $153.3M
- Adjusted EBITDA · non-GAAP
- $266.0M
(0.5)% year over year
down from $116 a year ago
down from $0.23 a year ago
down from $0.45 a year ago
down from 161,219 a year ago
15% year over year
(1)% year over year
down from $317 a year ago
| Segment or metric | Value | Change |
|---|---|---|
| Adjusted EBITDA margin | 36% | 43% a year ago |
| Non-GAAP net income | $155.0M | $221 a year ago |
| Customer retention | over 95% | |
| Nine-month revenue | $2.1B | 4% year over year |
Where each number comes from
- Revenue: “GAAP Results Revenue | $736 | $739 | $2,140 | $2,049 Increase (decrease) in revenue year over year | (0.5)% | 18% | 4% | 20%”
- Net income: “Net income | $38 | $116 | $142 | $256 Net income margin | 5% | 16% | 7% | 13% GAAP diluted earnings per share | $0.08 | $0.23”
- GAAP diluted EPS: “Net income margin | 5% | 16% | 7% | 13% GAAP diluted earnings per share | $0.08 | $0.23 | $0.30 | $0.52”
- Non-GAAP diluted EPS: “Non-GAAP net income | $155 | $221 | $447 | $589 Non-GAAP diluted earnings per share | $0.33 | $0.45 | $0.95 | $1.18”
- Income from operations: “Total operating expenses | 643,359 | 578,214 | 1,879,049 | 1,717,045 Income from operations | 92,606 | 161,219 | 260,830 | 332,448”
- Net cash provided by operating activities: “Net cash provided by operating activities $224,686 $311,589 $391,805 $153,594 $258,269 15%”
- Free cash flow: “Free Cash Flow $154,996 $281,607 $276,035 $135,999 $153,322 (1)%”
- Adjusted EBITDA: “Non-GAAP Results Adjusted EBITDA | $266 | $317 | $713 | $796 Adjusted EBITDA margin | 36% | 43% | 33% | 39%”
- Adjusted EBITDA margin: “Non-GAAP Results Adjusted EBITDA | $266 | $317 | $713 | $796 Adjusted EBITDA margin | 36% | 43% | 33% | 39%”
- Non-GAAP net income: “Non-GAAP net income | $155 | $221 | $447 | $589 Non-GAAP diluted earnings per share | $0.33 | $0.45 | $0.95 | $1.18”
- Customer retention: “Customer retention remained over 95% during the third quarter, as it has for over a decade.”
- Nine-month revenue: “GAAP Results Revenue | $736 | $739 | $2,140 | $2,049 Increase (decrease) in revenue year over year | (0.5)% | 18% | 4% | 20%”
Copied from the press release ↗ and other documents in the SEC filing ↗. A figure is published only if its sentence is in the filing.
| From the filing | Q3 2026 | vs year ago | vs last quarter |
|---|---|---|---|
| Revenue | $736.0M | −0.5% | +2.9% |
| Operating income | $92.6M | −42.6% | −8.8% |
| Net income | $38.0M | −67.1% | −40.9% |
| Diluted EPS | $0.08 | −65.2% | −42.9% |
| Free cash flow | $157.5M | −0.5% | +12.2% |
| Operating margin | 12.6% | −9.2 pts | −1.6 pts |
Calculated by code from XBRL, not by the model.
Guidance check
| Metric | Outlook given with Q2 2026 | Reported | Result |
|---|---|---|---|
| Revenue | at least $650 million | $736.0M | see outlook |
Compared with the company's own guidance, not analyst estimates, and only where the outlook and the reported figure are the same measure on the same basis. Ranges are worked out by code from the company's wording. How this works.
Outlook
| Metric | Period | Outlook |
|---|---|---|
| Revenue | fourth quarter of 2026 | at least $755 million |
| Adjusted EBITDA | fourth quarter of 2026 | at least $280 million |
Key takeaways
Revenue slipped slightly year over year
Third quarter revenue was $736 million versus $739 million a year ago, a (0.5)% change. Nine-month revenue still rose 4% to $2,140 million.
Profit fell sharply on higher costs
GAAP net income was $38 million versus $116 million, and Adjusted EBITDA margin was 36% versus 43%. Platform operations expense rose to 200,163 thousand from 162,154 thousand.
Restructuring and taxes weighed on earnings
The quarter included restructuring charges of 44,258 thousand tied to the 2026 Restructuring Plan. The provision for income taxes was 68,400 thousand on income before taxes of 106,450 thousand.
Fourth quarter outlook implies a revenue step up
Management expects revenue of at least $755 million and Adjusted EBITDA of at least $280 million. That compares with third quarter revenue of $736 million and Adjusted EBITDA of $266 million.
Buyback expanded as cash balance grew
The board added $731 million to the repurchase authorization, bringing the total available to $1 billion. Cash and cash equivalents were 1,229,288 thousand at September 30, 2026.
Charts
Fourth quarter worked out from the annual figure.
Data
| Q4 2024 | $741.0M * |
| Q1 2025 | $616.0M |
| Q2 2025 | $694.0M |
| Q3 2025 | $739.4M |
| Q4 2025 | $846.8M * |
| Q1 2026 | $688.9M |
| Q2 2026 | $715.1M |
| Q3 2026 | $736.0M |
Data
| Q1 2025 | $0.10 |
| Q2 2025 | $0.18 |
| Q3 2025 | $0.23 |
| Q1 2026 | $0.08 |
| Q2 2026 | $0.14 |
| Q3 2026 | $0.08 |
Fourth-quarter EPS appears once the press release is read; filings report it only for the full year.
Data
| Q4 2024 | 26.4% |
| Q1 2025 | 8.8% |
| Q2 2025 | 16.8% |
| Q3 2025 | 21.8% |
| Q4 2025 | 30.3% |
| Q1 2026 | 9.7% |
| Q2 2026 | 14.2% |
| Q3 2026 | 12.6% |
Data
| Q4 2024 | $179.2M |
| Q1 2025 | $232.3M |
| Q2 2025 | $119.8M |
| Q3 2025 | $158.3M |
| Q4 2025 | $285.3M |
| Q1 2026 | $279.1M |
| Q2 2026 | $140.4M |
| Q3 2026 | $157.5M |
Operating cash flow minus capital expenditure, from cash flow statements.
Questions
How did The Trade Desk perform in Q3 2026?
Revenue was $736 million, down (0.5)% from $739 million a year earlier. GAAP net income was $38 million and GAAP diluted EPS was $0.08.
What is The Trade Desk's guidance for the fourth quarter of 2026?
Management guided to revenue of at least $755 million and Adjusted EBITDA of at least $280 million. It gave no GAAP net income outlook.
Why did profitability decline?
Operating expenses rose to 643,359 thousand from 578,214 thousand while revenue was flat, cutting income from operations to 92,606 thousand from 161,219 thousand. Restructuring charges of 44,258 thousand also hit GAAP results.
What did the company announce about share repurchases?
The board approved an additional $731 million, bringing the total available for future repurchases of Class A common stock to $1 billion. About $269 million was available as of September 30, 2026.
How strong was cash generation in the quarter?
Net cash provided by operating activities was $258,269 thousand, up 15% year over year. Free cash flow was $153,322 thousand, down 1%.