The Trade Desk (TTD) delivered a painful set of second-quarter results after Thursday’s closing bell, missing analyst expectations on both revenue and earnings per share.
Revenue came in at $715.1 million, falling well short of the $751.4 million analysts had anticipated heading into the print.
Adjusted earnings per diluted share landed at $0.34, below the $0.40 consensus estimate and down from $0.41 reported in the same quarter a year earlier.
Second-quarter revenue grew only 3% year over year, while adjusted EBITDA declined 11%, signaling a meaningful deterioration in operating leverage across the business.
Customer retention held above 95% during the quarter, one of the few bright spots the company highlighted in its earnings release.
The outlook, however, proved far more damaging to investor confidence than the quarterly miss itself.
For the third quarter, The Trade Desk guided for revenue of at least $650 million, sharply below the analyst consensus estimate of $805 million, implying a 12% year-over-year revenue decline.
That guidance also points to an adjusted EBITDA margin of roughly 25%, a significant step down from the 34% margin delivered during the second quarter of last year.
Shares had already slid 7% during regular trading hours ahead of the report, as the market braced for bad news, and the stock dropped another 22% after the results hit.
Since shares traded at $88.33 following the Q2 2025 earnings report, TTD has fallen roughly 80%, reflecting sustained erosion in investor confidence over the past year.
CEO Jeff Green addressed the shortfall directly, stating: “This quarter did not meet the standard we set for ourselves, but it has reinforced our belief that we are focused on the right opportunities for the future.”
Green added: “Marketers are navigating a complex environment, but complexity increases the value of decisioning, measurement and AI. We have a clear understanding of the factors that impacted our performance, and we are taking decisive action to strengthen our execution, upgrade our platform, and sharpen our focus on the areas where we can create the greatest value.”
The broader adtech ecosystem faces mounting pressure as marketers tighten budgets and demand more measurable, transparent returns on their advertising investments.
Connected TV and retail media growth, once considered powerful tailwinds for The Trade Desk, now appear to be hitting a stage of maturation that is limiting the company’s revenue trajectory.
