The Trade Desk Stock Plummeted 17% Today - What Disappointed Investors?

• The company posted a revenue of $847 million, a rise of 14% compared to $741 million from a year-ago quarter. The revenue beat analysts' estimate of $841 million. 
• The company said that the customer retention remained over 95% during the year, as it has for the past twelve consecutive years. 

Shares of The Trade Desk (TTD) fell 17% in extended hours of trading after it forecasted weaker guidance for its first quarter. 

The company said that it expects first quarter of 2026 revenue of at least $678 million, which fell short of analysts' estimates of $689.5 million, as per data from fiscal. 

It also expects adjusted core profit of approximately $195 million for the first-quarter of 2026. 

“With continued innovation across Kokai, retail data, and the supply chain, we are well positioned to capture a greater share of the global advertising market in 2026 and beyond,” said Jeff Green, Co-Founder and CEO of The Trade Desk.

Q4 Earnings

The company posted a revenue of $847 million, a rise of 14% compared to $741 million from a year-ago quarter. The revenue beat analysts' estimate of $841 million. 

It reported adjusted earnings per share of $0.59 per share, that was flat compared to the year-ago quarter. However, it edged past Wall Street estimates of profit of $0.58 per share. 

“The Trade Desk delivered $2.9 billion in revenue in 2025 while continuing to generate significant profitability and cash flow,” Green said. 

“We executed against a backdrop of macro uncertainty while making some of the most meaningful upgrades in our company's history. As advertisers increasingly prioritize measurable outcomes and data-driven decisioning over cheap reach, our role as an objective platform becomes even more important,” he added. 

The company said that the customer retention remained over 95% during the year, as it has for the past twelve consecutive years. 

The company said its board of directors approved an additional $350 million under its share repurchase program, bringing the total amount available for future repurchases of the company's outstanding Class A common stock to $500 million. 

How Did Stocktwits Users React?

Retail sentiment around TTD trended in 'extremely bullish' territory amid 'extremely high' message volume. 

Shares in the company have fallen 71.6% over the past year. 

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