The Trade Desk delivered third quarter results that met or exceeded Wall Street expectations, driven by ongoing strength in connected TV (CTV) advertising and continued adoption of its AI-powered Kokai platform. Management highlighted that CTV remains the company’s fastest-growing channel, with CEO Jeff Green stating, “CTV remains our largest and fastest-growing channel, continuing to grow at a faster rate than our overall business.” The company also benefited from deeper relationships with large brands and agencies, supported by operational changes and product innovations introduced over the past year.
Is now the time to buy TTD? Find out in our full research report (it’s free for active Edge members).
The Trade Desk (TTD) Q3 CY2025 Highlights:
- Revenue: $739.4 million vs analyst estimates of $719.4 million (17.7% year-on-year growth, 2.8% beat)
- Adjusted EPS: $0.45 vs analyst estimates of $0.44 (in line)
- Adjusted Operating Income: $282.5 million vs analyst estimates of $119.7 million (38.2% margin, significant beat)
- Revenue Guidance for Q4 CY2025 is $840 million at the midpoint, above analyst estimates of $831.6 million
- EBITDA guidance for Q4 CY2025 is $375 million at the midpoint, above analyst estimates of $367.6 million
- Operating Margin: 21.8%, up from 17.3% in the same quarter last year
- Billings: $3.51 billion at quarter end, up 16% year on year
- Market Capitalization: $21.18 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From The Trade Desk’s Q3 Earnings Call
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Shyam Patil (SIG): Asked CEO Jeff Green to clarify whether Amazon is considered a competitor and about the evolving competitive landscape. Green distinguished The Trade Desk’s focus on the open internet versus Amazon’s emphasis on owned and operated inventory. CFO Alex Kayyal discussed resource allocation to maximize return on investment and opportunities in the mid-market segment.
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Justin Patterson (KeyBanc): Inquired about organizational changes and remaining challenges. Green discussed new leadership roles and improved cross-regional coordination, adding that further investment in internal tooling and training is ongoing.
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Vasily Karasyov (Cannonball Research): Asked about macro trends influencing advertising in 2026. Green described a “tale of two cities,” noting pressure in some consumer categories but increasing interest from financial services and healthcare as brands seek measurable outcomes.
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Jason Helfstein (Oppenheimer): Questioned the impact of agentic search and AI on publisher inventory. Green stated the effect on ad supply is minimal given the continued dominance of premium CTV, sports, and music content.
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Youssef Squali (Truist): Sought insight on the potential impact of the Google antitrust lawsuit and which new products will drive the most impact. Green anticipates Google will focus more on owned inventory, and named Kokai, Deal Desk, and Audience Unlimited as significant contributors to future growth.
Catalysts in Upcoming Quarters
In the coming quarters, our team will be closely monitoring (1) the pace of adoption and impact of new features such as Audience Unlimited and trading modes, (2) continued growth in CTV and international markets as indicators of platform scalability, and (3) the effectiveness of operational changes following recent leadership hires. The impact of AI-driven enhancements and evolving advertiser preferences will also be key markers for execution.
The Trade Desk currently trades at $43.70, down from $45.86 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free for active Edge members).
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