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The Trade Desk (TTD) experienced a significant decline of 39.8% in its stock price following the release of its second-quarter 2025 earnings on August 7. The company reported revenues of $694 million, a year-over-year increase of 19%, surpassing the consensus estimate by 1.4% and its own expectation of at least $682 million. Adjusted EBITDA stood at $271 million, while adjusted EPS was 41 cents, slightly missing estimates but up from 39 cents in the previous year.
The company anticipates revenues of at least $717 million for Q3 2025, representing 14% year-over-year growth, driven by increased digital spending in connected TV (CTV). CTV remains a key revenue driver, alongside retail media, with over 70% client adoption of The Trade Desk’s Kokai platform. However, the ad tech sector faces challenges from macroeconomic uncertainty and fierce competition from industry giants like Alphabet and Amazon.
In the last quarter, total operating costs rose 17.8% year-over-year to $577.3 million, raising concerns about profitability. Analysts have maintained their earnings estimates for the current quarter, reflecting cautious market sentiment around TTD’s heavy reliance on CTV and ongoing competition.
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