The Trade Desk — Third Quarter 2026 Earnings Summary

Financial Performance:

• Revenue for the three months ended September 30, 2026, was $736 million, a 0.5% decrease year-over-year from $739 million in the same period in 2025; revenue for the nine months ended September 30, 2026, was $2,140 million, a 4% increase year-over-year from $2,049 million.
• GAAP net income for the three months ended September 30, 2026, was $38 million, down from $116 million in 2025, with a net income margin of 5% compared to 16% in the prior year period; for the nine months, GAAP net income was $142 million, down from $256 million in 2025, with a margin of 7% versus 13%.
• GAAP diluted earnings per share (EPS) were $0.08 for the quarter ended September 30, 2026, compared to $0.23 in 2025; for the nine months, GAAP diluted EPS were $0.30 compared to $0.52.
• Non-GAAP Adjusted EBITDA for the quarter ended September 30, 2026, was $266 million, a decrease from $317 million in 2025, with an Adjusted EBITDA margin of 36% versus 43%; for the nine months, Adjusted EBITDA was $713 million, down from $796 million, with a margin of 33% versus 39%.
• Non-GAAP net income for the quarter ended September 30, 2026, was $155 million, down from $221 million in 2025; for the nine months, it was $447 million, down from $589 million.
• Non-GAAP diluted EPS were $0.33 for the quarter ended September 30, 2026, compared to $0.45 in 2025; for the nine months, Non-GAAP diluted EPS were $0.95 compared to $1.18.
• Operating expenses for the three months ended September 30, 2026, totaled $643 million, including $95 million in stock-based compensation expense, compared to $578 million in operating expenses and $121 million in stock-based compensation in 2025.
• Cash and cash equivalents as of September 30, 2026, were $1,229 million, up from $658 million as of December 31, 2025.
• Net cash provided by operating activities for the nine months ended September 30, 2026, was $804 million, compared to $681 million in 2025.
• Net cash used in financing activities for the nine months ended September 30, 2026, was $253 million, primarily driven by $241 million in repurchases of Class A common stock, compared to $985 million used in 2025.

Guidance and Future Outlook:

• The Company provided Fourth Quarter 2026 outlook guidance of revenue of at least $755 million and Adjusted EBITDA of at least $280 million.
• The Company did not provide an outlook for GAAP net income or a reconciliation of Adjusted EBITDA guidance to net income due to the variability and complexity of stock-based compensation expense and other charges.

Business Segments and Product Lines:

• The Trade Desk introduced Kokai Zuma, the latest release of Kokai, featuring agentic AI capabilities and an improved user experience.
• The Company expanded healthcare measurement and optimization integrations with Veeva Crossix and IQVIA Digital.
• Kijiji made its first-party consumer intent data available for programmatic activation through The Trade Desk for the first time.
• OptimizeRx integrated authenticated healthcare professional (HCP) reach via OpenPath.
• LoopMe announced a brand lift measurement integration with The Trade Desk.
• Olyzon launched an agentic orchestration platform with agents live across DSPs including The Trade Desk.
• Netflix expanded its integration with The Trade Desk, enabling advertisers to use first-party and third-party data to target audiences on Netflix through Kokai, with in-platform measurement capabilities expected to follow; Netflix also joined The Trade Desk's Sellers and Publishers 500+.
• The Trade Desk expanded its Connected TV (CTV) offering in Italy with access to Pause Ads on HBO Max and Discovery+.
• Gracenote (a Nielsen company) announced its first DSP integration with The Trade Desk, enabling show-level CTV targeting and reporting.
• Customer retention remained over 95% during the third quarter, consistent with performance over the last decade.

Market and Competitive Landscape:

• The Trade Desk was recognized on Newsweek's America's Greatest Companies 2026 list for business performance, innovation, workforce investment, and stakeholder trust.
• The Company was recognized on Business Insider's America's Most Innovative Businesses 2027 list for excellence in innovation, technological impact, and R&D investment.
• Taylor Ash was named to AdExchanger's Top Women in Media & Ad Tech 2026 list and Cynopsis' Top Women in Media Awards 2026 list.
• Kristi Argyilan received an AdExchanger Top Women in Media & Ad Tech Industry Impact Award.

Risks and Challenges:

• The Company noted that stock-based compensation expense is directly impacted by unpredictable fluctuations in share price, which could have a significant and potentially unpredictable impact on future U.S. GAAP financial results.
• Forward-looking statements involve risks including the ability to maintain and grow the client base, the market for programmatic advertising developing slower or differently than expected, and the demands and expectations of clients.

Management Commentary and Tone:

• CEO Jeff Green stated that Q3 results were well ahead of expectations entering the quarter but that the company is still operating below the level of growth it expects from itself.
• Management indicated they are moving with greater urgency, strengthening engagement with largest customers, and improving the platform through innovations like Zuma, Audience Unlimited, and agentic AI.
• CEO Jeff Green expressed belief that current actions are improving the underlying trajectory of the business and positioning The Trade Desk for stronger, more durable long-term growth.

Other Key Points:

• The Board of Directors approved an additional $731 million increase to the share repurchase authorization, bringing the total amount available for future repurchases of Class A common stock to $1 billion.
• Approximately $269 million was available and authorized for repurchases as of September 30, 2026, prior to the new authorization.
• The Company excluded restructuring charges of $44 million related to its 2026 Restructuring Plan from Adjusted EBITDA and Non-GAAP net income, noting these charges are infrequent and non-recurring.
• The Company has offices across North America, Europe, and Asia Pacific, with headquarters in Ventura, CA.