Trade Desk Shares Fall 4% on Q1 Revenue and EBITDA Shortfall
Trade Desk beat fourth-quarter revenue and adjusted EBITDA forecasts but guided first-quarter revenue of at least $678 million versus a $688.1 million consensus and EBITDA of $195 million versus $222.4 million estimates. The outlook implies year-over-year growth slowing to about 10.1% from Q4’s 14.3% pace and sent shares down over 4%.
1. Strong Q4 Performance
Trade Desk outpaced forecasts in its fiscal fourth quarter, delivering revenue growth of 14.3% year-over-year and adjusted EBITDA above consensus projections, driven by heightened demand for its omnichannel advertising platform.
2. Soft Q1 Guidance
The company projected first-quarter revenue of at least $678 million, below the $688.1 million consensus, and adjusted EBITDA of $195 million versus $222.4 million expected, implying a sequential EBITDA decline exceeding 50% and a revenue growth slowdown to about 10.1%.
3. Market Reaction
Shares fell approximately 4.2% following the guidance, extending a 35.7% year-to-date decline as investors reassessed ad spending trends and margin pressures heading into early 2026.