The Trade Desk (TTD) Q4 2025 earnings summary

Executive summary

• 2025 revenue reached $2.9 billion, up 18% year-over-year, with strong profitability, record cash flow, and consistent double-digit growth over the past decade.

• Net income for 2025 was $443 million, up from $393 million in 2024, reflecting robust profitability and a 15% margin.

• Macro headwinds in CPG and auto, which represent over a quarter of business, led to softness, but other verticals like tech, travel, pharma, and communications performed strongly.

• Significant investments in AI, omnichannel ad buying, and platform innovation, with nearly all clients using the Kokai platform and continued expansion of Unified ID 2.0.

• Organizational upgrades included a brand-first, integrated go-to-market model, increased direct advertiser relationships, and new partnerships and product launches such as Audience Unlimited and PubDesk.

Financial highlights

• Full year 2025 revenue was $2.9 billion, up 18% year-over-year; Q4 revenue was $847 million, up 14% year-over-year.

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

• Adjusted EBITDA for 2025 was $1.2 billion (41% margin); Q4 Adjusted EBITDA was $400 million (47% margin).

• Q4 non-GAAP net income was $284 million; full-year non-GAAP net income was $873 million.

• Free cash flow for Q4 2025 was $282 million, up 59% year-over-year; ended Q4 with $1.3 billion in cash and equivalents.

Outlook and guidance

• Q1 2026 revenue expected to be at least $678 million, representing 10% year-over-year growth; Adjusted EBITDA guidance is approximately $195 million.

• Full-year 2026 adjusted EBITDA margin expected to be in line with 2025; continued investment in AI and infrastructure, with headcount growth below revenue growth.

• No GAAP net income outlook provided due to variability in stock-based compensation and related charges.

• Focus on Connected TV, shopper marketing, global expansion, and supply path optimization as primary growth drivers.