Q2 2026 Trade Desk Inc Earnings Call Transcript
Key Points
- Revenue under joint business plans (JBPs) grew at a rate 6 times higher than overall revenue, with 217 JBPs signed in Q2, up 38% year over year.
- The majority of the top 100 accounts are growing double digits year over year, and smaller advertisers outside the top 500 are growing over 50% year to date.
- EMEA and APAC regions each grew almost 30% year to date, with China growing over 100% and CTV growing over 50% in both regions.
- The new measurement framework, Audience Unlimited, and the Zuma platform upgrade are expected to enhance decisioning and drive long-term growth, with early results showing over 25% improvements in efficiency.
- The company maintains a strong balance sheet with $1.5 billion in cash and continues to generate positive free cash flow, enabling strategic investments and share repurchases.
- Revenue growth in Q2 was below expectations at only 3% year over year, and Q3 guidance implies a significant sequential decline to at least $650 million.
- Macroeconomic pressures, including tariffs and oil prices, are negatively impacting key verticals like CPG and autos, which represent about 25% of the business.
- Some advertisers are shifting to cheaper, low-decisioning methods like programmatic guaranteed, which undermines the value proposition of the platform.
- Operating expenses increased 12% year over year (excluding stock-based compensation), driven by platform operations and cloud transition costs, pressuring margins.
- The company acknowledged execution issues and is in a transition period with new leadership, which may take time to yield results and stabilize growth.
Greetings. Welcome to The Trade Desk Inc. second-quarter 2026 earnings conference call. (Operator Instructions) Please note this conference is being recorded.
I will now turn the conference over to your host, Chris Toth. You may begin.
Thank you, operator. Hello, and good afternoon to everyone. Welcome to The Trade Desk second-quarter 2026 earnings conference call. On the call today are CEO and Co-Founder, Jeff Green; and our new Chief Financial Officer, Nate Olmstead. A copy of our earnings press release is available on our website in the Investor Relations section at thetradedesk.com.
Please note that aside from historical information, today's discussion and our responses during the Q&A may include forward-looking statements. These statements are subject to risks and uncertainties and reflect our views and assumptions as of the date such statements are made. Actual results may vary significantly and we expressly disclaim any obligation to update the forward-looking statements made today.
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
