We feel for The Trade Desk.
The independent DSP reported strong Q4 earnings, posting $847 million in revenue — up 14% year over year. That beat expectations, which had the company coming in at around $842. For the full year, TTD generated $2.9 billion in revenue, up 19%.
Still, the stock dropped following softer Q1 guidance, particularly in CPG and auto. As the company noted on its earnings call: “Among verticals that represent at least 1% of our business in Q4… CPG and to a lesser extent Auto were our softest verticals, and those trends have continued into Q1.”
To put that guidance in context: Q1 2025 revenue came in at $616 million, up 25% year over year. For Q1 2026, the company is guiding to at least $678 million, which is roughly 10% year-over-year growth. In other words, growth is still expected, of course, but at a slower pace.
Why This Matters:
This was an important earnings call for Jeff Green’s DSP. Stock reaction aside, the company delivered a beat and showed it continues to make a lot of money. With recent CFO changes and stories about competitive and customer pressure, a robust performance was key. And, outside of the softer guidance, the numbers held up.
One notable moment came when Green addressed agencies in response to a Wells Fargo analyst who asked about Adweek’s OpenPath story. He said:
“The thing that I really want to emphasize is that at a moment where many agencies are focused on principle-based buying, and I think not doing as good of a job of representing their clients as they could… the need for OpenPath is great.”
That direction is pretty clear: TTD is leaning further into working directly with brands, and comments like this reinforce that strategy. If the company can point to other players in the ecosystem as conflicted — whether agencies or SSPs — it stands to benefit by positioning itself as the more transparent, non-conflicted alternative.
Speaking of conflicts, Green also added: “I’m not surprised at all that OpenPath ruffles feathers and bothers people. I’m not surprised that some people would like to turn it off if they find ways to get paid in unique ways.”
Experts React:
X was pretty active about the earnings call. Here are some of the best posts:
Our Take:
The general verdict: a good report — but the market is rarely satisfied (duh).
TTD will likely continue to face pressure as growth naturally moderates, driven in part by its scale and the broader market environment (DSP competition is very real). The narrative feels pretty set for now, unless something dramatic shakes things up.
