The Trade Desk Q1 Earnings Miss Estimates
The Trade Desk Q1 earnings show revenue growth but a non-GAAP EPS miss and below-consensus Q2 revenue guidance, raising near-term investor caution.
KEY TAKEAWAYS
- Revenue rose 12.0% to $689 million, modestly above consensus.
- Non-GAAP EPS missed at $0.28, showing margin pressure.
- Following the filing, Q2 revenue guided at a $750 million floor, below $771 million consensus.
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The Trade Desk (TTD) reported first-quarter earnings on May 7, showing 12% revenue growth but missing non-GAAP earnings per share (EPS) estimates. The company also issued second-quarter revenue guidance below consensus, signaling softer near-term growth for the programmatic-advertising firm.
Quarter Results, Margins, and Guidance
The Trade Desk posted revenue of $689 million for the quarter ended March 31, 2026, up 12.0% from $616 million a year earlier and exceeding analyst expectations by about 1.4%.
GAAP net income declined to $40 million, a 6.0% margin, from $51 million (8.0%) a year earlier. Diluted GAAP EPS fell to $0.08 from $0.10. Adjusted EBITDA dropped slightly to $206 million, a 30.0% margin, down from $208 million (34.0%). Non-GAAP diluted EPS missed estimates at $0.28, down from $0.33 a year earlier and below the $0.32–$0.33 consensus. Investors focused on the profit and margin compression despite the revenue beat.
Operating cash flow rose to about $392 million from roughly $291 million a year earlier. The company repurchased approximately $164 million of stock during the quarter and had $327 million of buyback authority remaining as of March 31. Cash and cash equivalents totaled $878 million, with short-term investments of $528 million. Customer retention remained strong at over 95%, supporting revenue continuity amid margin pressure.
Management set second-quarter revenue guidance at a floor of $750 million and projected adjusted EBITDA near $260 million. This revenue forecast falls short of the Street consensus of $771 million, tightening the near-term growth outlook.
Despite solid cash flow and an active buyback program that provide financial flexibility, the combination of margin compression, an EPS shortfall, and below-consensus guidance shifts the focus to execution as the company seeks to balance top-line growth with profitability.
