The Trade Desk announced robust first-quarter 2026 results, posting revenue of $689 million, surpassing analyst expectations of $679 million and marking 12% year-over-year growth. Despite the strong performance, shares fell following the report amid broader market concerns.5439
Key Financial Highlights
Adjusted EBITDA reached $206 million, achieving a 30% margin. Net income stood at $40 million, or $0.08 per diluted share, representing 6% of revenue. Adjusted net income was $134 million, or $0.28 per diluted share. Operating expenses rose 11% to $622 million, or 18% excluding stock-based compensation to $513 million.
Operating cash flow generated $392 million, with free cash flow at $276 million. The company holds approximately $1.4 billion in cash, equivalents, and short-term investments. It repurchased $164 million in Class A shares during the quarter.54
CEO Jeff Green on Performance
CEO and Co-Founder Jeffrey Green highlighted the team’s resilience: “We delivered a solid quarter once again. The core of our business remains resilient, and I am proud of our team and their dedication to supporting our clients, especially in what continues to be a dynamic macro environment for large brand advertisers.”
Green expressed confidence in programmatic advertising’s future: “We remain as confident as ever in the long-term opportunity for our business and for programmatic advertising as a whole. We are convinced that the lion’s share of the market will belong to a scaled, objective, and independent platform.”54
Growth Drivers
Connected TV and Video
Video, including connected TV (CTV), accounted for the low 50s% of the business. Demand shifts from linear TV continue, with expanding decisioned inventory at major publishers.
AI and Agentic Initiatives
A new partnership with Stagwell leverages Agentic AI for campaign creation and optimization. Green noted: “Our partnership is to leverage Agentic AI to create, edit, and modify campaigns. After these basics, we will move to agentic optimizations.”
Retail Media and Audio
Retail media networks cover over 80% of top U.S. retail sales, with Amazon share under 15%. New integrations include Kroger and Dollar General. The Audience Unlimited product delivered 30% lower CPMs, 38% lower data costs, 75% more efficient CPA, and 2.7x conversion lift.
Joint Business Partnerships (JBPs) grew 55% year-over-year, with 45 new deals in March. Audio represented 6% of business and outpaced other channels in growth.54
Macro Challenges
Green addressed headwinds: “The macro environment has certainly become more complex in 2026. Geopolitical tensions have increased. Global economic pressures, wars, and tariffs have created an environment that is harder for some brands.” Pressures hit home/garden and food/drink sectors, while automotive remained strong.
Industry measurement issues persist, with Green stating: “Both buyers and sellers agree that measurement is broken.” Supply outpaces demand significantly.54
Outlook for Q2 and Full Year
For Q2 2026, revenue guidance is at least $750 million, with adjusted EBITDA of $260 million. Full-year adjusted EBITDA margin targets at least 40%, aligning with 2025 levels. Headcount growth will trail revenue to boost productivity.
Insights from Q&A
Analysts probed deceleration factors, with Green attributing them to macro issues but reaffirming structural tailwinds in CTV, AI, and measurement. Discussions covered Publicis negotiations, leadership changes, and AI opportunities. Interim CFO Tahnil Davis emphasized reinvestments for sustained margins.54
