The Trade Desk (TTD) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue grew 25% year-over-year to $616 million, driven by strong CTV growth, higher client spend, new business, and strategic platform upgrades including Kokai and AI integration.

• Net income increased to $51 million, up 60% from Q1 2024, with adjusted EBITDA reaching $208 million (34% margin) and robust free cash flow.

• The company operates a global omnichannel ad-buying platform, with CTV as the largest and fastest-growing channel and international expansion as a key growth driver.

• Customer retention remained above 95% for the eleventh consecutive year, and the company continues to gain market share, especially in CTV.

• Vivek Kundra was appointed COO, and the company completed the acquisition of Sincera to enhance supply chain transparency.

Financial highlights

• Q1 2025 revenue: $616 million, up 25% year-over-year; adjusted EBITDA: $208 million (34% margin); net income: $51 million; non-GAAP net income: $165 million; non-GAAP diluted EPS: $0.33.

• Free cash flow: $230 million; operating cash flow: $291 million; cash and equivalents: $1.12 billion; $622 million in short-term investments.

• No debt; $443 million available under the $450 million credit facility.

• Repurchased $386–$400 million of Class A common stock in Q1 2025; $631 million remains authorized for future repurchases.

• Stock-based compensation expense was $128 million, including $24 million related to a long-term CEO performance grant.

Outlook and guidance

• Q2 2025 revenue expected to be at least $682 million, with adjusted EBITDA projected at $259 million.

• Continued investment in platform operations, technology, infrastructure, and international expansion, with a focus on long-term growth despite near-term margin pressure.

• Shopper marketing and international markets identified as significant untapped opportunities.