"There's been a narrative that our margin or take rate must compress because other platforms offer lower upfront prices for non-decisioned, non-data-driven buying. But TTD has maintained a take rate of more than 20% even as CTV (a category with generally lower take rates for tech intermediaries) grows as a share of spend."
"The auto and CPG verticals account for about one-fourth of The Trade Desk's total ad spend. Excluding that segment, TTD's business grew by an extra 5% at least, indicating that macro headwinds in specific sectors are disproportionately impacting overall growth rates."
"TTD's revenue grew 14% year over year to $847 million, though CEO Jeff Green noted that the growth rate was 19% excluding the political ad budgets from Q4 2024. Its profit from the quarter was $187 million, which ticked up by $5 million from Q4 2024."
The Trade Desk reported Q4 and full-year 2025 earnings showing 14% year-over-year revenue growth to $847 million, with adjusted growth of 19% excluding 2024 political ad budgets. Profit reached $187 million. However, investors reacted negatively, with shares dropping 10% overnight due to slowing growth momentum. The company forecasts only 10% growth for Q1 2026, continuing a concerning downward trend from 26% growth in 2024 and 18% in 2025. Weakness in automotive and CPG/grocery sectors, representing approximately one-fourth of total ad spend, drove the headwinds. The company maintained a healthy 21.6% take rate on $13.4 billion gross platform spend, demonstrating pricing power despite industry pressures.
#programmatic-advertising #dsp-performance #growth-deceleration #take-rate-economics #vertical-market-weakness
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