The Trade Desk (TTD) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue was $715 million, up 3% year-over-year, with adjusted EBITDA of $241 million (34% margin) and net income of $64 million, down 29% from Q2 2025.

• Growth was below expectations due to macroeconomic pressures and internal execution challenges, especially in CPG and auto sectors, but most clients and sectors, including financial services, technology, pharma, and international markets, showed strength.

• Customer retention remained above 95% for the quarter, continuing a decade-long trend.

• Strategic focus remains on innovation, AI-driven decisioning, and deepening partnerships through joint business plans (JBPs), which grew 38% year-over-year.

• Leadership was strengthened with several executive appointments and new board members with expertise in advertising, AI, and global scaling.

Financial highlights

• Q2 2026 revenue: $715 million (up 3% year-over-year); net income: $64 million (down from $90 million in Q2 2025); adjusted EBITDA: $241 million (34% margin); non-GAAP net income: $158 million; non-GAAP diluted EPS: $0.34.

• Six-month revenue: $1.4 billion (up 7% year-over-year); six-month net income: $104 million (down from $140.8 million); adjusted EBITDA: $447 million (32% margin).

• Free cash flow for Q2 2026 was $136 million, a 71% decrease year-over-year.

• Diluted EPS for Q2 2026 was $0.14, compared to $0.18 in Q2 2025.

• Cash and equivalents at quarter end: $1.12 billion; short-term investments: $362 million; working capital: $2.0 billion.

Outlook and guidance

• Q3 2026 revenue expected to be at least $650 million; adjusted EBITDA guidance for Q3 is approximately $160 million.

• Management expects continued investment in platform operations, technology, and international expansion, which may pressure near-term profitability.

• Investment will focus on high-priority growth initiatives and operational discipline.

• Management emphasizes top-line growth, customer retention, and efficiency as business priorities.