The Trade Desk (TTD) Q4 2025 earnings summary

Executive summary

• Achieved $2.9 billion in revenue for 2025, up 18% year-over-year, with strong profitability and cash flow.

• Q4 2025 revenue grew 14% year-over-year (19% excluding political spend), capping a record year for revenue and strong profitability margins.

• Navigated macro headwinds in CPG and auto sectors, but other verticals like tech, pharma, and travel performed strongly.

• Continued investment in AI-driven innovation, omnichannel ad buying, and global expansion, including the rollout of Kokai, Audience Unlimited, and Deal Desk.

• Organizational upgrades included a brand-first, integrated go-to-market model and increased direct advertiser relationships, driving improved clarity and accountability.

Financial highlights

• Full year 2025 revenue reached $2.9 billion, up 18% year-over-year; Q4 revenue was $847 million, up 14% year-over-year (19% excluding political spend).

• Full-year GAAP net income was $443 million (15% margin); Q4 GAAP net income was $187 million (22% margin).

• Full-year Adjusted EBITDA was $1.2 billion (41% margin); Q4 Adjusted EBITDA was $400 million (47% margin).

• Q4 free cash flow was $282 million; cash and equivalents stood at $1.3 billion with no debt.

• Non-GAAP diluted EPS for 2025 was $1.77; Q4 non-GAAP net income was $284 million.

Outlook and guidance

• Q1 2026 revenue expected to be at least $678 million, representing 10% year-over-year growth.

• Q1 adjusted EBITDA estimated at $195 million; full-year 2026 adjusted EBITDA margin expected to be in line with 2025.

• Continued investment in infrastructure, AI, and global expansion, with headcount growth to remain below revenue growth.