Trade Desk $TTD drops 27% as Q2 revenue misses at $715M

The Trade Desk $TTD dropped about 27% after reporting Q2 2026 revenue of $715 million and setting Q3 revenue guidance at at least $650 million. In its earnings release, the company said revenue rose only 3% year over year, a sharp slowdown for a business that had been priced for much faster digital-ad growth.

The profit mix did not rescue the stock. GAAP net income was $64 million, or $0.14 per diluted share. Adjusted EBITDA fell to $241 million from $271 million a year earlier, and adjusted EBITDA margin narrowed to 34% from 39%. Non-GAAP net income was $158 million, down from $203 million in the prior-year quarter.

The guide was the larger market issue. A Q3 revenue floor of $650 million compared poorly with buy-side expectations for a reacceleration, while the company guided Q3 adjusted EBITDA to about $160 million. For a platform tied to open-web advertising demand, the combination of 3% revenue growth and lower adjusted EBITDA reset expectations for second-half operating leverage.

Management said connected TV, audio, and international markets remain strategic priorities, but the near-term numbers put execution back at the center of the story. The next checks are Q3 revenue against the $650 million floor, adjusted EBITDA against the $160 million guide, and whether spending from large advertisers stabilizes before year-end.

Not investment advice. Verify all figures with primary sources before acting.