The Trade Desk Slides After Q4 Beat as Cautious Q1 Outlook Disappoints
Weak guidance highlighted slowing growth, leadership turnover, softness in auto and CPG budgets, plus intensifying competition from Amazon.
Overview
- Q4 revenue reached $847 million and full-year 2025 revenue totaled $2.9 billion, topping forecasts.
- Q1 2026 revenue was guided to at least $678 million, roughly 10% year over year and below the Street’s ~$688 million view, with adjusted EBITDA projected around $195 million, down from a year ago.
- Shares fell about 16% in after-hours trading to roughly $21 following the outlook.
- Leadership uncertainty continued with an interim CFO in place as revenue growth decelerated from 25% in Q1 2025 to 14% in Q4.
- Management cited weaker spending from automotive and CPG advertisers and mounting pressure from Amazon, while the CEO pointed to a client test claiming superior performance versus Amazon’s DSP.