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Trade Desk, Inc. (TTD) Fundamental Analysis & AI Grade 2026

TTD Nasdaq Services-Computer Programming, Data Processing, Etc. NV CIK: 0001671933
Updated This Month • Analysis: May 9, 2026 • SEC Data: 2026-03-31
Combined AI Grade
A
65% Confidence
N/A
A
65% Conf
Pending
Analysis scheduled

📊 TTD Key Takeaways

Revenue: $688.9M
Net Margin: 5.8%
Free Cash Flow: $279.1M
Current Ratio: 1.68x
Debt/Equity: 0.00x
EPS: $0.08
AI Grade: A with 65% confidence
Trade Desk, Inc. (TTD) receives a A fundamental grade with 65% confidence from our AI analysis based on SEC 10-K filings. With revenue of $688.9M, net profit margin of 5.8%, and return on equity (ROE) of 1.6%, Trade Desk, Inc. demonstrates strong fundamentals in the Technology sector. Below is our complete TTD stock analysis for 2026.

Is Trade Desk, Inc. (TTD) a Good Investment?

Claude

Trade Desk demonstrates exceptional free cash flow generation (40.5% FCF margin) with a fortress balance sheet featuring zero debt and $878.4M in cash, indicating strong operational cash conversion despite modest accounting profitability. However, weak net margins (5.8%), concerning ROE/ROA metrics (1.6%/0.7%), and an anomalous revenue growth figure (4114.8% YoY) warrant caution and further investigation into data quality and earnings sustainability.

Trade Desk, Inc. Key Strengths (TTD)

Claude
  • + Exceptional free cash flow generation at 40.5% margin ($279.1M on $688.9M revenue) demonstrates robust operational efficiency
  • + Zero debt capital structure with strong liquidity (1.68x current ratio) and $878.4M cash position provides financial flexibility
  • + Operating cash flow of $391.8M significantly exceeds net income, indicating conservative accounting and non-cash charges rather than true operational weakness

TTD Stock Risks: Trade Desk, Inc. Investment Risks

Claude
  • ! Profitability metrics are weak with 5.8% net margin and 9.7% operating margin, concerning for a software/services company
  • ! Severely depressed returns on equity (1.6%) and assets (0.7%) despite strong cash generation suggests inefficient capital deployment or significant goodwill/intangible asset impairment risk
  • ! Anomalous 4114.8% YoY revenue growth and missing gross margin data suggest data quality issues or undisclosed acquisitions/restructuring requiring clarification

Key Metrics to Watch

Claude
  • * Gross profit margin and operating leverage as growth moderates from abnormal YoY comparisons
  • * Sustainability of 40.5% free cash flow margin and free cash flow conversion rate
  • * Return on equity and asset productivity improvement trajectory

Trade Desk, Inc. (TTD) Financial Metrics & Key Ratios

Revenue
$688.9M
Net Income
$40.0M
EPS (Diluted)
$0.08
Free Cash Flow
$279.1M
Total Assets
$5.7B
Cash Position
$878.4M

💡 AI Analyst Insight

The 40.5% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments.

TTD Profit Margin, ROE & Profitability Analysis

Gross Margin N/A
Operating Margin 9.7%
Net Margin 5.8%
ROE 1.6%
ROA 0.7%
FCF Margin 40.5%

TTD vs Technology Sector: How Trade Desk, Inc. Compares

How Trade Desk, Inc. compares to Technology sector averages

Net Margin
TTD 5.8%
vs
Sector Avg 18.0%
TTD Sector
ROE
TTD 1.6%
vs
Sector Avg 22.0%
TTD Sector
Current Ratio
TTD 1.7x
vs
Sector Avg 2.5x
TTD Sector
Debt/Equity
TTD 0.0x
vs
Sector Avg 0.5x
TTD Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

Is Trade Desk, Inc. Stock Overvalued? TTD Valuation Analysis 2026

Based on fundamental analysis, Trade Desk, Inc. has mixed fundamental signals relative to the Technology sector in 2026.

Return on Equity
1.6%
Sector avg: 22%
Net Profit Margin
5.8%
Sector avg: 18%
Revenue Growth
N/A
Year-over-year
Debt/Equity
0.00x
Sector avg: 0.5x

Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.

Trade Desk, Inc. Balance Sheet: TTD Debt, Cash & Liquidity

Current Ratio
1.68x
Quick Ratio
1.68x
Debt/Equity
0.00x
Debt/Assets
57.2%
Interest Coverage
43.00x
Long-term Debt
N/A

TTD Revenue & Earnings Growth: 5-Year Financial Trend

TTD 5-year financial data: Year 2021: Revenue $1.2B, Net Income $108.3M, EPS $0.23. Year 2022: Revenue $1.6B, Net Income $242.3M, EPS $0.49. Year 2023: Revenue $1.9B, Net Income $137.8M, EPS $0.28. Year 2024: Revenue $2.4B, Net Income $53.4M, EPS $0.11. Year 2025: Revenue $2.9B, Net Income $178.9M, EPS $0.36.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: Trade Desk, Inc.'s revenue has grown significantly by 142% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.36 reflects profitable operations.

TTD Revenue Growth, EPS Growth & YoY Performance

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
40.5%
Free cash flow / Revenue

TTD Quarterly Earnings & Performance

Quarterly financial performance data for Trade Desk, Inc. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q1 2026 $616.0M $40.0M $0.08
Q3 2025 $628.0M $31.7M $0.19
Q2 2025 $584.6M $31.7M $0.17
Q1 2025 $491.3M $31.7M $0.06
Q3 2024 $493.3M $9.3M $0.08
Q2 2024 $464.3M $9.3M $0.07
Q1 2024 $382.8M $9.3M $0.02
Q3 2023 $394.8M $9.3M $0.03

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

Trade Desk, Inc. Dividends, Buybacks & Capital Allocation

Operating Cash Flow
$391.8M
Cash generated from operations
Stock Buybacks
$163.5M
Shares repurchased (TTM)
Capital Expenditures
$112.7M
Investment in assets
Dividends
None
No dividend program

TTD SEC Filings: Latest 10-K & 10-Q Analysis

Access official SEC EDGAR filings for Trade Desk, Inc. (CIK: 0001671933)

📋 Recent SEC Filings

Date Form Document Action
Jun 1, 2026 8-K ttd-20260601.htm View →
May 29, 2026 8-K ttd-20260524.htm View →
May 27, 2026 4 xslF345X06/wk-form4_1779919279.xml View →
May 19, 2026 4 xslF345X06/wk-form4_1779224636.xml View →
May 19, 2026 4 xslF345X06/wk-form4_1779224544.xml View →

Frequently Asked Questions about TTD

What is the AI rating for TTD?

Trade Desk, Inc. (TTD) has an AI grade of A with 65% confidence, based on fundamental analysis of SEC EDGAR filings.

What are TTD's key strengths?

Claude: Exceptional free cash flow generation at 40.5% margin ($279.1M on $688.9M revenue) demonstrates robust operational efficiency. Zero debt capital structure with strong liquidity (1.68x current ratio) and $878.4M cash position provides financial flexibility.

What are the risks of investing in TTD?

Claude: Profitability metrics are weak with 5.8% net margin and 9.7% operating margin, concerning for a software/services company. Severely depressed returns on equity (1.6%) and assets (0.7%) despite strong cash generation suggests inefficient capital deployment or significant goodwill/intangible asset impairment risk.

What is TTD's revenue and growth?

Trade Desk, Inc. reported revenue of $688.9M.

Does TTD pay dividends?

Trade Desk, Inc. does not currently pay dividends.

Where can I find TTD SEC filings?

Official SEC filings for Trade Desk, Inc. (CIK: 0001671933) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is TTD's EPS?

Trade Desk, Inc. has a diluted EPS of $0.08.

How is the AI analysis conducted?

Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.

What is TTD's fundamental grade?

Based on our AI fundamental analysis in June 2026, Trade Desk, Inc. has a A grade with 65% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.

Is TTD stock overvalued or undervalued?

Valuation metrics for TTD: ROE of 1.6% (sector avg: 22%), net margin of 5.8% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.

What is TTD's AI grade for 2026?

Our dual AI analysis gives Trade Desk, Inc. a combined A grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.

What is TTD's free cash flow?

Trade Desk, Inc.'s operating cash flow is $391.8M, with capital expenditures of $112.7M. FCF margin is 40.5%.

How does TTD compare to other Technology stocks?

Vs Technology sector averages: Net margin 5.8% (avg: 18%), ROE 1.6% (avg: 22%), current ratio 1.68 (avg: 2.5).

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Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: May 9, 2026 | Data as of: 2026-03-31 | Powered by Claude AI