Trade Desk (TTD)
Communication Services · $6.2B market cap · SEC CIK 0001671933
fundamentals score out of 100
Next reports on Nov 4, 2026, after the close, with analysts expecting $0.26 in earnings per share.
The case for TTD
- Generated $796M of free cash flow in FY2025, 27% of revenue.
- Free cash flow of 12.8% of its market value a year: a lot of cash for the price.
- Revenue growing 11.6% year over year.
- Reasonably priced at 15.3× earnings.
- Has compounded revenue at 28.2% a year over five years.
- Return on equity of 16%.
The case against
- Down 68.8% over the past year.
- Growth is slowing: revenue up 11.6% this year against 28.2% a year over five.
- Near the bottom of its 52-week range, 77% below the high. Falling prices usually have a reason; find it first.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Communication Services companies (momentum is judged against fixed thresholds only), and the five are blended by weight. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 72 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 74 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 75 |
| Momentumhow the price has behaved lately | 6 |
| Stabilityhow violently it moves, what it owes and what it pays you | 47 |
- Each factor except momentum is half fixed thresholds, half rank among the 19 Communication Services companies.
Key numbers
| Price / earnings | 15.3× |
|---|---|
| Price / book | 3.30× |
| Price / sales | 2.1× |
| Revenue growth (YoY) | +11.6% |
| EPS growth (YoY) | +1.6% |
| Gross margin | 77% |
| Operating margin | 20% |
| Net margin | 14% |
| Return on equity | 16% |
| Debt / equity | 0.00× |
| Current ratio | 1.72 |
| Dividend yield | none |
| Beta | 0.99 |
| 52-week range | $12.83 – $56.39 |
| Position in that range | 1% of the way up |
| 3-month return | -25.0% |
| 1-year return | -68.8% |
Five years of financials, as filed
Pulled from Trade Desk's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue | $2.9B | $2.4B | $1.9B | $1.6B | $1.2B |
| Operating income | $589M | $427M | $200M | $114M | $125M |
| Net income | $443M | $393M | $179M | $53.4M | $138M |
| Operating cash flow | $993M | $739M | $598M | $549M | $379M |
| Capital expenditure | $197M | $98.2M | $46.8M | $84.2M | $54.8M |
| Total assets | $6.2B | $6.1B | $4.9B | $4.4B | $3.6B |
| Total liabilities | $3.7B | $3.2B | $2.7B | $2.3B | $2.1B |
| Shareholder equity | $2.5B | $2.9B | $2.2B | $2.1B | $1.5B |
| Cash | $658M | $1.4B | $895M | $1.0B | $754M |
| Free cash flow | $796M | $641M | $552M | $465M | $324M |
| Operating margin | 20.3% | 17.5% | 10.3% | 7.2% | 10.4% |
| Net margin | 15.3% | 16.1% | 9.2% | 3.4% | 11.5% |
| Diluted shares | 494M | 502M | 500M | 500M | 499M |
Share count is essentially flat over 4 years.
What Trade Desk says it does
Overview We are a global leader in advertising technology. We empower ad buyers to create, manage and optimize digital advertising campaigns across ad formats, channels and devices. Our platform’s depth, artificial intelligence ("AI") capabilities and rich ecosystem of inventory, publisher and data partner integrations enable superior reach and decisioning for clients. In addition to the primary capabilities provided by our self-service platform, our enterprise application programming interfaces ("APIs") equip our clients with the ability to customize and expand platform functionality. Our clients are advertising agencies, advertisers and other service providers for agencies or advertisers, with whom we enter into ongoing master services agreements ("MSAs"). We generate revenue by charging our clients a platform fee generally based on a percentage of our clients’ total platform spend and from providing value-added services and data to…
Risk factors TTD lists in its 10-K
- Trends, Opportunities and Challenges
- Growth in and Retention of Client Spend
- Ability to Expand our Omnichannel Reach, Including CTV, and Innovate across our Platform
- Growth of the Programmatic Advertising Market
- Development of International Markets
- Note 12—Segment and Geographic Information
- Components of Our Results of Operations
- Foreign Currency Exchange Loss (Gain), Net
- Results of Operations for the Year Ended December 31, 2025, Compared with the Year Ended December 31, 2024
- SEC on February 21, 2025. References to "Notes" are notes to our consolidated financial statements in "Item 8. Financial Statements and Supplementary Data."
- Contractual Obligations and Known Future Cash Requirements
- Critical Accounting Policies and Estimates
- Note 2—Basis of Presentation and Summary of Significant Accounting Policies
- Recently Issued Accounting Pronouncements