The Trade Desk (TTD) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue was $715 million, up 3% year-over-year, but net income declined to $64 million, down 29% from Q2 2025, with adjusted EBITDA at $241 million and a 34% margin.

• Revenue growth was driven by new client campaigns, value-added services, and strong CTV, audio, and international performance, but offset by macroeconomic headwinds, especially in CPG and auto sectors.

• Strategic focus includes product innovation, AI-driven automation, leadership enhancement, and deepening client partnerships to drive long-term growth.

• Customer retention remained above 95% for the quarter, continuing a decade-long trend.

• The company operates a buy-side ad platform with proprietary technology, serving agencies, brands, and tech companies globally, with over 3,800 employees in more than 35 markets.

Financial highlights

• Q2 2026 revenue was $715.1 million, up from $694.0 million in Q2 2025; six-month revenue reached $1.4 billion, up 7% year-over-year.

• Q2 2026 net income was $64.4 million, down from $90.1 million in Q2 2025; adjusted EBITDA was $241 million (34% margin); non-GAAP net income was $158 million.

• Free cash flow for Q2 2026 was $136 million, a 71% decrease year-over-year; operating cash flow for the first six months was $545 million.

• Diluted EPS for Q2 2026 was $0.14, compared to $0.18 in Q2 2025; non-GAAP diluted EPS was $0.34, down from $0.41.

• Cash and equivalents at quarter end totaled $1.12 billion; short-term investments were $362 million; working capital was $2.0 billion.

Outlook and guidance

• Q3 2026 revenue expected to be at least $650 million; adjusted EBITDA guidance is approximately $160 million.

• Management expects continued investment in platform operations, technology, and international expansion, which may pressure near-term profitability.

• No meaningful improvement in the macro environment is assumed in the near-term outlook.

• Revenue growth continues, with 2025 revenue projected at $2.90 billion and net income at $443 million.

• The company believes its operating leverage will support long-term profitable growth.