The Trade Desk Inc.

TTD
Financial Analysis · Updated May 18, 2026 · Coverage 2026-Q2
TTM ROIC
32%
FY25 · ROIC vs WACC spread · WACC ~10% · Moat spread +22pp

Financial Snapshot


ticker: TTD step: 04 generated: 2026-05-13 source: quick-research

The Trade Desk, Inc. (TTD) — Financial Snapshot

Income Statement Summary

Metric FY2022 FY2023 FY2024 YoY
Revenue $1.58B $1.95B $2.44B +26%
Gross Margin ~81% ~81% ~81% stable
GAAP Operating Margin ~18% ~20% ~22%
Non-GAAP Operating Margin ~30% ~35% ~38%
Adj. EBITDA Margin ~40% ~42% ~43%

FY2025: Revenue $2.896B (+18% YoY). CTV = ~50% of revenue. Adj. EBITDA margin 43%. Q1 2026: softer guidance — auto/CPG category headwinds + Temu/Shein pullback from tariffs. Wedbush upgraded from Underperform to Buy in May 2026, signaling the worst may be priced in.

Cash Flow & Balance Sheet (FY2024)

Metric Value
Operating Cash Flow ~$700M
Free Cash Flow $632M (26% FCF margin)
Capital Expenditures ~$70M
Cash & Equivalents ~$1.4B
Total Debt $0 (debt-free)

TTD is a cash generation machine: 26% FCF margins on ~$2.4B revenue = $632M FCF in FY2024. Debt-free. Buyback programs initiated. FCF quality is high — minimal capex requirements for a software platform. FY2025 FCF likely $700–750M at similar margins on $2.9B revenue.

Key Ratios (approximate)

  • P/E: ~19–25x (non-GAAP FY2026E; compressed from 60x+ historical highs) | EV/Sales: ~9x | FCF Yield: ~2.5–3%
  • Revenue Growth (TTM): ~18% | Adj. EBITDA Margin: ~43%

Growth Profile

The Trade Desk compounded from $1.58B (FY2022) to $2.896B (FY2025) — 83% in 3 years. Growth decelerated from 32% (FY2022) to 18% (FY2025), primarily driven by Temu/Shein e-commerce advertiser pullback from US tariffs, Publicis agency billing dispute, and auto/CPG category softness. These are largely cyclical headwinds, not structural — CTV secular tailwinds (linear TV cord cutting, streaming ad tiers) continue to grow the TAM. The valuation compression from 60x+ P/E to ~19x forward represents an extraordinary de-rating for a profitable, cash-generative business.

Forward Estimates

  • FY2026: Revenue ~$3.3–3.5B (+15–20%); World Cup 2026 ad spend + political ads provide H2 tailwind
  • FCF margin: ~25–27%; $800M+ in annual FCF by FY2026
  • Ventura CTV ecosystem: incremental revenue from deeper streaming platform integrations
  • UID2 adoption: cookie deprecation pushes advertisers to UID2 — TTD's identity solution
  • Analyst range: wide dispersion; Wedbush upgraded to Buy May 2026; P/E at 19x historically cheap

Deeper Financial Analysis

The fundamental tier adds 9 additional research dimensions for $TTD.

Revenue Breakdown
Segment revenue, geographic mix, product-line contribution margins, and cohort dynamics.
Financial Trends
Quarter-over-quarter momentum, leading indicators, and inflection point analysis.
Balance Sheet
Debt structure, liquidity runway, dilution risk, and working capital dynamics.
Capital Allocation
Buyback cadence, M&A appetite, dividend policy, and reinvestment priorities.
Returns on Capital (ROIC)
Multi-year ROIC vs. WACC, marginal returns on reinvestment, sales-to-invested-capital efficiency, and moat spread.
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