"The Trade Desk said fourth-quarter 2025 revenue rose 14% year over year to $847 million. Highlighting how the company's growth has been decelerating, The Trade Desk's revenue grew 25% in the first quarter of 2025, followed by 19% growth in Q2 and 18% growth in Q3."
"The company's guidance calls for first-quarter 2026 revenue of at least $678 million, implying 10% year-over-year growth. For some companies, double-digit growth like this is fine. For The Trade Desk, however, it's dismal in the context of its historical growth rates."
"The Trade Desk guided for adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of about $195 million in the first quarter of 2026. This compares to the adjusted EBITDA of $208 million in the first quarter of last year. So the outlook implies both slower revenue growth and lower adjusted EBITDA."
The Trade Desk, a digital ad-buying specialist, experienced a significant stock price decline in early 2026, particularly following disappointing fourth-quarter results and first-quarter guidance. Revenue growth has decelerated substantially, declining from 25% year-over-year growth in Q1 2025 to 14% in Q4 2025, with first-quarter 2026 guidance implying only 10% growth. More concerning, adjusted EBITDA is projected to decline to approximately $195 million in Q1 2026 from $208 million in the prior year period. The company also faces leadership uncertainty with an interim CFO. While the stock's valuation has compressed significantly from its 2024 highs, these fundamental weaknesses suggest caution is warranted despite the attractive price.
Read at The Motley Fool
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