- Revenue Growth: Full-year 2025 revenue reached $2.9B (18% YoY), with Q4 revenue at $847M (14% YoY) and 19% growth excluding political spend.
- CTV Dominance: Connected TV accounted for 50% of Q4 revenue, driving faster growth than the overall business, with live sports and premium content leading adoption.
- AI Innovation: Launched Agentic AI-powered Kokai and Deal Desk, improving deal performance and reducing costs by 30% via AI-driven decisioning and data optimization.
- International Expansion: International revenue outpaced North America growth, supported by partnerships with German SSPs and global retail data networks.
- Profitability & Efficiency: Maintained strong margins with headcount growth below revenue growth, and adjusted EBITDA projected at $195M in Q1 despite macroeconomic challenges in CPG and auto sectors.
Segment Performance
Connected TV (CTV) continued to be a key growth driver, representing about 50% of the company's business in Q4 and growing at a faster rate than the overall business. Audio also experienced significant growth, outpacing other channels in Q4. The company's international business continued to outpace growth in North America. Growth was strong in medical health, technology, and business and finance, while consumer packaged goods (CPG) and auto were the company's softest verticals in Q4.
Innovation and Investments
The Trade Desk is investing heavily in AI, with its AI-fueled buying platform, Kokai, being the most advanced in the open Internet. The company is also innovating in the data marketplace with Audience Unlimited, which is expected to change the usage and value of data for both buyers and sellers. According to Jeff Green, "our business model is more conducive to AI than our competitors, as we don't own inventory and have aligned our interest with buyers."
Valuation and Outlook
With a P/E Ratio of 25.93 and an EV/EBITDA of 16.61, The Trade Desk's valuation suggests that the market is pricing in significant growth expectations. Analysts estimate next year's revenue growth at 14.3%. The company's focus on AI, data, and decisioning is expected to drive results and help it win the lion's share of the market. The Trade Desk's guidance for Q1 2026 reflects a prudent approach, with expected revenue of at least $678 million, representing 10% year-over-year growth.
Competitive Landscape
The Trade Desk is well-positioned to compete with large companies like Amazon and Google, with its focus on objectivity, technology, and high-volume transaction ecosystem. The company's OpenPath initiative aims to create a more efficient supply chain, and its fee structure is designed to be competitive. The Trade Desk's strategy is to work with brands to create a better framework for measuring and rewarding performance, and its Joint Business Plans (JBPs) have become a key part of its strategy, accounting for over half of its business in 2025.