NEW YORK, August 9, 2026, 18:32 EDT — U.S. equity markets remain closed for the weekend, with normal trading set to restart at 9:30 a.m. ET on Monday.
The Trade Desk, Inc. NASDAQ:TTD ended Friday at $13.80, slipping 21.9% after issuing a third-quarter revenue outlook that missed projections. The stock recorded the sharpest loss on the S&P 500.
The forecast indicates a more significant adjustment than what the decline in share price reflects. With the revenue floor provided, the projection indicates an adjusted EBITDA margin of 24.6%, which is roughly 9.4 percentage points under the margin reported in Q2.
Second-quarter revenue increased by 3% to $715 million. GAAP net income dropped to $64 million, and adjusted EBITDA fell to $241 million.
| Q2 measure | 2026 | 2025 | Change |
|---|---|---|---|
| Revenue | $715 million | $694 million | Up 3% |
| GAAP net income | $64 million | $90 million | Down 28.9% |
| GAAP net margin | 9% | 13% | Decrease of 4 percentage points |
| Adjusted EBITDA | $241 million | $271 million | Fell by 11.1% |
| Adjusted EBITDA margin | 34% | 39% | Drop of 5 percentage points |
| Non-GAAP diluted EPS | $0.34 | $0.41 | Decrease of 17.1% |
The company also fell short of the minimum targets set by management. Prior guidance projected no less than $750 million in revenue and approximately $260 million in adjusted EBITDA, resulting in gaps of $35 million and $19 million, respectively.
The Q3 sequential reset is more pronounced, with the revenue baseline now 9.1% lower than the actual revenue reported in Q2, and the EBITDA outlook reduced by 33.6%.
| Guidance bridge | Q2 2026 actual | Q3 2026 outlook | Sequential implication |
|---|---|---|---|
| Revenue | $715 million | No less than $650 million | Minimum is down 9.1% |
| Adjusted EBITDA | $241 million | Roughly $160 million | Falls by 33.6% |
| Adjusted EBITDA margin | 34.0% | Near 24.6% at the revenue floor | Down about 9.4 percentage points |
Trading on Friday totaled 133.34 million shares, exceeding the 17.83 million average by 7.48 times. The stock hit a fresh 52-week low at $12.83 and ended the session up $0.97.
| Friday market measure | Value |
|---|---|
| The Trade Desk closing price | $13.80 |
| The Trade Desk one-day change | -21.90% |
| Session range | $12.83-$14.57 |
| Shares traded | 133.34 million |
| Usual volume | 17.83 million |
| Volume ratio | 7.48× |
| S&P 500 move on day | +0.62% |
| Nasdaq Composite session change | +1.30% |
The Trade Desk lagged the S&P 500 by 22.52 percentage points on Friday. The disparity stood out, as the S&P 500 rose 3.58% during the week and finished at an all-time high.
Wall Street’s adjustment persisted following the release. According to Google Finance, there are 27 current ratings: three Buy, 19 Hold, and five Sell, with an average price target of $14.89.
| Analyst | Firm | Action | Recommendation | Target | Versus $13.80 close |
|---|---|---|---|---|---|
| Ronald Josey | Citi | Cut | Sell | $11 | -20.3% |
| Matthew Swanson | RBC Capital | Cut | Hold | $15 | +8.7% |
| Shyam Patil | Susquehanna | Cut | Hold | $14 | +1.4% |
| Laura Martin | Needham | Reiterated | Buy | $19 | +37.7% |
| Mark Zgutowicz | Benchmark | Reiterated | Buy | $20 | +44.9% |
Chief Executive Jeff Green stated the quarter “did not meet the standard we set for ourselves.” Customer retention remained above 95%, with investor focus now turning to spending, pricing, and execution. The Trade Desk
The balance sheet offers some flexibility. As of June 30, cash stood at $1.123 billion, with short-term investments at $362 million. The company also had $269 million left on its share repurchase authorization.
Operating leverage continues to represent a key risk. Should revenue hold at around $650 million and margins remain roughly 25%, earnings may shrink further despite customer retention rates above 95%.
Two key valuation indicators are scheduled in the coming week. July’s consumer price data is set for release on Wednesday, August 12, with producer price figures to be published on Thursday, both at 8:30 a.m. ET.
July retail sales data is due on Friday, August 14, at 8:30 a.m. ET, providing an updated look at consumer demand ahead of advertisers planning late-quarter budgets.
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