The Trade Desk’s Kokai AI platform has reached an 85% default adoption rate among its demand-side customers. Early results show cost-per-acquisition (CPA) reductions of up to 20%, a 15% lift in audience reach and a 25% improvement in click-through rates (CTR) compared with legacy bidding protocols. Management estimates that full Kokai integration across all programmatic channels could boost annualized revenue by $150 million and expand gross margins by 200 basis points by year-end.

Despite a 70% share price decline in 2025, analysts maintain a Strong Buy rating, arguing that recent revenue growth deceleration—from 30% year-over-year in Q1 to 12% in Q4—was driven by macroeconomic headwinds rather than structural market share loss. The Trade Desk’s CEO forecasts a return to mid-20s percentage growth in 2026, supported by new product rollouts in retail media and audio inventory, which now represent 18% of total spend versus 10% one year ago.

The company’s neutral demand-side platform (DSP) model continues to differentiate it from vertically integrated rivals. With connections to over 2,000 publisher endpoints in connected TV, audio and digital out-of-home channels, The Trade Desk claims a 35% higher fill rate on premium inventory compared with major platform-owned DSPs. These advantages underpin a recently announced partnership with three leading global retail chains collectively processing $45 billion in annual digital ad sales.

Shares hit a new 52-week low after news of a proposed 10% tariff on U.S. imports from eight European countries. Analysts estimate potential incremental costs of $8 million next quarter related to higher data-transfer and server hosting fees in Europe. While this could compress operating margins by up to 50 basis points, management is exploring cost-offset measures, including revised data center agreements and greater reliance on cloud spot instances to limit expense growth.