Overview
- The Trade Desk reported Q2 revenue of $715.1 million and adjusted EBITDA of $241.3 million, both missing Wall Street estimates and falling short of the company’s prior guidance.
- Management guided Q3 revenue of at least $650 million and adjusted EBITDA of $160 million, a projection that implies year‑over‑year revenue contraction and far below consensus expectations.
- The stock plunged more than 27% to a roughly $12.86 52‑week low after Friday’s results, and year‑to‑date losses approach roughly 65–80 percent in some reports.
- A cluster of sell‑side firms cut ratings and targets, including Citi’s downgrade to Sell with an $11 price target, while analysts flagged accelerated management turnover and execution shortfalls.
- Analysts said a structural shift by large advertisers from open‑web auctions to cheaper, fixed‑price programmatic guaranteed deals now reduces the addressable market for The Trade Desk’s DSP and could pressure revenue and market share into 2027.