Key Highlights

  • Revenue was USD 736 million, down 0.5% year over year.
  • Adjusted EBITDA was USD 266 million, a 36% margin.
  • Operating expenses were USD 643 million, including USD 44 million of restructuring.
  • Joint business plans were up more than 30% year to date.

The Trade Desk, Inc. (NASDAQ:TTD) reported third quarter 2026 Revenue of USD 736 million, down 0.5% year over year and ahead of the outlook provided in August. Reported EPS was USD 0.08 and revenue was USD 735.97 million, compared with estimates of EPS of USD 0.04 and revenue of USD 650.93 million.

The results included a benefit to revenue of approximately 3 percentage points from business with a strategic partner that management said it does not expect to recur. Adjusted EBITDA was USD 266 million, a 36% margin, ahead of expectations.

Costs and Restructuring

Operating expenses were USD 643 million. The quarter included USD 44 million of restructuring charges, primarily severance and other employee benefits tied to organizational actions announced in September, including a reduction of the global workforce by approximately 15%. Excluding stock based compensation and restructuring charges, operating expenses were USD 504 million. Income tax expense was USD 68 million, driven primarily by pretax profitability and the impact of stock based awards. Platform operations expense increased 23% year over year.

Channel Mix and Regions

Video, including connected TV, represented a low 50s share of the business. Mobile represented a high 20s share, display a low double digit share and audio around 7%, with audio posting much stronger year over year growth than any other channel.

Outside the United States, the APAC business was up approximately 30% year over year in the first nine months, led by China, which grew 45% in the third quarter. EMEA growth was more than 20% for the first nine months.

Joint Business Plans and Product Updates

Through the end of the third quarter, the number of joint business plans was up more than 30% year over year, including growth of more than 20% in the third quarter, representing hundreds of agencies and brands. More than 100 joint business plans are in the pipeline. One team increased its client count by over 200% in the first three quarters, including 23 new clients in the third quarter.

On product, management said median active time to complete core setup workflows declined, including 9% for campaign creation, 15% for ad group creation and 9% for uploading creatives. Koa optimizations are enabled on 22% more strategies than before. In A/B tests across 62 campaigns, the upgraded Koa CPA model improved CPA by a median of 21% versus the prior model. More than 100 advertisers have tested the product, with several hundred campaigns live. In recent campaigns, advertisers improved CPA by more than 30% while reducing CPMs by approximately 14%.

Corporate Notes

The company marked its 10 year anniversary as a publicly traded company in the quarter. The chief executive said his co-founder is re-engaging more deeply with the company after serving as a long term adviser since stepping down as CTO in September 2023. Management said Q3 represented progress while measuring the company against where it believes it can go. It cited priorities for 2027 including serving large brands and agencies, making the platform easier to access and changing how Advertising is measured.