Trade Desk shares tumble on slower growth, weak Q2 guide

Trade Desk shares fell more than 20% after the company reported first-quarter results and issued second-quarter revenue guidance that undershot market forecasts, extending a sell-off that began in late 2024. The share decline reflected investor reactions to the profit miss and the cautious outlook.

The company reported Q1 revenue of $689 million, up 12% year over year, compared with analyst estimates near $679.5 million. Adjusted earnings per share were $0.28, below an approximate $0.32 consensus. Management projected at least $750 million in revenue for Q2, under the market estimate of roughly $772 million and implying about 8% year-over-year growth.

Operational metrics showed adjusted EBITDA of $206 million and an adjusted EBITDA margin of 30% for the quarter. Customer retention remained above 95%. The Trade Desk reported about $2.9 billion in revenue for 2025.

Revenue growth has slowed from about 25% year over year in Q1 2025 to 12% in Q1 2026. The Q2 revenue guide points to further deceleration in growth in the near term.

Competition from larger platforms has increased. Amazon has expanded advertising tied to Prime Video and its retail data, allowing advertisers to combine media placement with shopping signals. Advertisers are showing interest in platforms that link media exposure to purchase behavior and measurement.

Analysts and investors will watch upcoming quarterly results and any further guidance for signs of demand, performance in connected TV and other key segments, and management plans to respond to competitive pressures.