The Trade Desk: Strong Earnings Met With Investor Skepticism

The Trade Desk delivered what appeared to be a stellar third-quarter 2025 earnings report, only to see its stock decline by more than seven percent. This market reaction occurred despite the advertising technology platform surpassing revenue expectations and posting impressive profitability metrics, highlighting a disconnect between corporate performance and investor sentiment.

For Q3 2025, The Trade Desk reported revenue of $739 million, exceeding analyst forecasts by nearly three percent and representing an 18 percent year-over-year increase. Profitability was equally robust, with adjusted EBITDA reaching $317 million—a figure that came in 14 percent above expectations. The company’s operational efficiency was further demonstrated by an EBITDA margin of 43 percent, improving from 41 percent in the same period last year.

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