"Shares of digital advertising specialist The Trade Desk tumbled on Friday morning after the company reported its first-quarter results late Thursday. The sell-off added to what has already been a brutal stretch for the growth stock, which is now down more than 40% year to date."
"The Trade Desk's first-quarter report wasn't necessarily bad. The ad-tech company posted revenue of $689 million during the period, up 12% year over year, living up to the company's guidance for revenue of "at least" $678 million. Additionally, customer retention remained above 95%, as it has for over a decade. And free cash flow stayed healthy, at $276 million -- 40% of revenue."
"Revenue grew 25% in the first quarter of 2025. By the fourth quarter, the growth rate had slipped to 14%. The first-quarter 2026 figure of 12% marks yet another step lower. And profitability went the wrong way, too. Non-GAAP (adjusted) earnings per share fell to $0.28 from $0.33 a year earlier, with adjusted EBITDA margins compressing meaningfully versus the year-ago period."
"During The Trade Desk's first-quarter earnings call, CEO Jeff Green indicated that the current macroeconomic environment is weighing on its business. "The macro environment has certain"
The Trade Desk shares dropped after first-quarter results were released. Revenue reached $689 million, up 12% year over year and meeting guidance of at least $678 million. Customer retention stayed above 95% and free cash flow was $276 million, equal to 40% of revenue. Despite these positives, growth slowed versus prior periods, with revenue growth at 25% in the first quarter of 2025, 14% by the fourth quarter, and 12% in the first quarter of 2026. Non-GAAP earnings per share declined to $0.28 from $0.33, and adjusted EBITDA margins compressed. The company also indicated macroeconomic conditions are weighing on the business, and the stock’s valuation still reflects growth expectations.
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