Trade Desk shares plunge on weak revenue, guidance miss
Published: 09:19 07 Aug 2026 EDT
Trade Desk Inc (NASDAQ:TTD) shares tumbled almost 30% in premarket trading on Friday after the digital advertising technology company reported second-quarter revenue and profit that missed Wall Street estimates and issued a third-quarter forecast far below expectations.
The company posted revenue of $715 million for the quarter, up 3% year-over-year but short of analysts' estimate of $751 million. Adjusted earnings per share came in at $0.34, down 17% from a year earlier and below the $0.40 expected.
Adjusted EBITDA was $241 million, compared with estimates of $261 million, while adjusted net income totaled $158 million versus expectations of $187 million.
For the third quarter, Trade Desk guided revenue of at least $650 million, well short of the $805 million analysts had forecast. The company also guided EBITDA of approximately $160 million, compared with estimates of $341 million.
"This quarter did not meet the standard we set for ourselves," Trade Desk CEO Jeff Green told shareholders.
Other second-quarter metrics included a net income margin of 9%, down 400 basis points year-over-year, and an EBITDA margin of 34%, down 500 basis points. Customer retention remained above 95%. The company repurchased $78 million in shares during the quarter.
Analysts at Jefferies said the company's margin structure is breaking down as Trade Desk continues to invest in Kokai upgrades, measurement and other initiatives, and said it was skeptical of the returns from that spending.
Jefferies lowered its fiscal 2027 EBITDA margin estimate to 29% from 40%.
“With (revenue) in decline, margins rebasing lower, and structural concerns unresolved, it's difficult to envision a turnaround,” the analysts wrote.
