The Trade Desk beats estimates as it reports 18% YoY Q3 revenue growth

The Trade Desk Inc. reported a solid third-quarter performance for 2025, surpassing Wall Street expectations with an 18% year-over-year revenue increase to $739 million. This figure exceeded the analyst consensus estimate of $719.55 million. The company posted adjusted earnings per share of $0.45, significantly higher than the projected $0.20. Despite the strong results, the company’s shares fell around 2% in after-hours trading.

The advertising technology firm reported an adjusted EBITDA of $317 million, accounting for 43% of its total revenue, up from 41% a year earlier. Net income rose to $116 million from $94 million in the same quarter last year, with the net income margin improving to 16% from 15%. Customer retention remained above 95%, a consistent figure the company has maintained for 11 consecutive years.

The company continued its aggressive stock repurchase strategy, using $310 million to buy back Class A shares during the quarter. After utilizing the remaining $60 million of its authorization in October, the board approved an additional $500 million for further repurchases. This expansion underscores confidence in the company’s long-term financial outlook.

New product innovations across its Kokai platform and the introduction of Audience Unlimited and OpenAds further strengthened The Trade Desk’s competitive position in the ad tech ecosystem. The firm also announced new partnerships and integrations with companies such as Koddi and Gopuff, expanding its presence in retail media and connected TV (CTV). Collaborations with DIRECTV, OSN, and DAZN enhanced its premium inventory offerings in global streaming and sports markets.

The Trade Desk also continued advancing its privacy-first identity framework, Unified ID 2.0 (UID2), with new integrations from IPG’s Axiom and Treasure Data’s customer data platform. The company highlighted its ongoing focus on transparency, data-driven decision-making, and AI-powered solutions to deliver measurable results for advertisers.

 Looking ahead, The Trade Desk expects at least $840 million in revenue for the fourth quarter, ahead of the $831 million consensus estimate, and projects adjusted EBITDA of approximately $375 million. With continued growth across CTV, retail media, and open internet channels, the company remains optimistic about capturing greater market share through innovation, data integration, and sustainable financial performance.