Trade Desk Q2 2026: revenue up 3.0%, Q3 guided below Q2
The Trade Desk's fiscal Q2 2026 revenue rose 3.0% to $715.1 million, but non-GAAP EPS of $0.34 missed the $0.40 consensus and Q3 guidance of at least $650.0 million points below the quarter just reported. That combination — stalled growth, a thinner gross margin and a lower guide — is why our read is Neutral. Below, judge the report on growth, guidance credibility and cash conversion.
1 · Expected vs. Actual
Free preview belowGAAP diluted EPS was $0.14, down from $0.18 a year ago, and non-GAAP EPS of $0.34 came in 15.1% below the $0.4003 consensus. The gap between the two EPS figures is mostly $109.6 million of stock-based compensation that the company adds back. Net income fell to $64.4 million from $90.1 million, and the effective tax rate rose to 43.1%.
Revenue of $715.1 million was up 3.0% from $694.0 million a year earlier, a big slowdown from the 19.0% growth posted in the same quarter last year. Gross margin fell to 74.2% from 78.2%, so the platform kept less of every dollar it processed even as it sold more. Sequentially, revenue rose 3.8% from $688.9 million in fiscal Q1 2026.
Management guided third-quarter revenue to at least $650.0 million and adjusted EBITDA of approximately $160 million, which works out to roughly a 24.6% adjusted EBITDA margin on that revenue. The revenue floor sits 9.1% below the $715.1 million just reported, so the company is not assuming a rebound. The previous guide of $750.0 million was missed by 4.7%, which is why this new number deserves skepticism.
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Figures on this page come from the company's original SEC filings. The analysis is generated automatically and checked against validation rules, but may still contain errors or omissions. Not investment advice. · Generated 2026-09-17
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