The Trade Desk reported third-quarter revenue of $736 million on November 9, 2026, surpassing analyst expectations despite a 0.5 percent annual decline, according to The Globe and Mail.
The results beat a consensus estimate of roughly $651 million. While the revenue figure represented a slight dip from $739 million a year earlier, the company’s shares surged in extended trading following the announcement, The Motley Fool reported. Some reports indicated the stock jumped as much as 26% in after-hours trading, though much of that gain eventually faded.
One-time partner revenue masks underlying decline
Chief Financial Officer Nate Olmstead noted that the 0.5 percent revenue slip would have been a 3.5 percent decline without a specific business arrangement. PPC Land reported that Olmstead told analysts the results included a benefit of approximately 3 percentage points from a strategic partner that the company does not expect to recur.
Importantly, even excluding that one-time benefit, the underlying business still performed meaningfully better than we anticipated entering the quarter,
said Olmstead. Jason Helfstein of Oppenheimer calculated that if the one-off partner and political spending were removed, demand actually fell by about 8% during the third quarter.
The company also saw demand strength in medical health and political election business. Political advertising accounted for a mid-single-digit percentage of the quarter’s revenue, Olmstead said. He noted that political spending should be slightly higher in the fourth quarter, though he observed that this quarter was a midterm rather than a presidential election year.
EBITDA and earnings exceed outlook despite headcount reduction
Adjusted EBITDA reached $266 million, which exceeded the outlook the company provided in August. Adjusted diluted earnings per share were $0.33, surpassing the $0.25 consensus.
The company is currently managing the effects of a 15 percent headcount reduction implemented in early September. CEO Jeff Green previously told staff that the company would operate using smaller pods and smaller scrums, but with greater focus.
Net income for the quarter was $38 million, down from $116 million in the previous year. This decrease included a $44.3 million restructuring charge and an unusually high tax rate of approximately 64%.
Management projects lower fourth-quarter revenue and EBITDA floors
Management provided a fourth-quarter revenue floor of at least $755 million and an adjusted EBITDA floor of at least $280 million. This guidance follows a period where the company’s growth has slowed; for comparison, the fourth quarter of the previous year brought in $847 million.
Despite beating estimates, Olmstead cautioned that the company does not expect the usual seasonal step-up from the third to the fourth quarter. He cited a challenging market and pressure on some large advertisers as contributing factors. He also noted that the company is not expecting the normal seasonal lift typically seen in the transition from Q3 to Q4.
CEO and Co-Founder Jeff Green addressed the company’s growth trajectory during the call, stating: While these results are above what we expected for this quarter, this level of growth is, of course, well below the level of growth that we expect from ourselves in the future.
He added that the company’s growth remains below what he believes the ecosystem requires from them.
Company pivots toward agentic AI and new leadership
The company is pivoting toward agentic AI and new product innovation. Co-founder Dave Pickles is returning to the company to lead a newly formed CTO council. Green described Pickles as the architect of the platform and a key driver of the company’s revenue.
This technical evolution includes the recent release of an update to the core Kokai platform that added agentic AI capabilities, improved forecasting, and simplified measurement tools. The company is also working toward implementing open measurement this quarter, which Green expects will act as a growth tailwind in the coming years.
| Metric | Q3 2026 Reported | Q4 2026 Guidance |
|---|---|---|
| Revenue | $736 million | At least $755 million |
| Adjusted EBITDA | $266 million | At least $280 million |
As the company enters the final quarter of the year, Green noted that the firm is looking more at merger and acquisition prospects than it has historically. While the company has previously focused on small acquisitions like Adbrain in 2017 and Sincera last year, Green stated that while they are more open to M&A now, their standards for such deals remain higher than ever.
Earlier coverage: AMD Beats Earnings Estimates as Data Center Revenue Grows 97%