The Trade Desk, Inc. (TTD)

FairStock Score: 60/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach The Trade Desk as a digital-advertising software business that helps agencies and advertisers manage campaigns across connected TV, display, audio and other channels. The filed record shows real growth: fiscal year 2023 revenue was $1.9B, net income $178.9M and diluted EPS $0.36; fiscal year 2024 revenue was $2.4B, net income $393.1M and diluted EPS $0.78; fiscal year 2025 revenue was $2.9B, net income $443.3M and diluted EPS $0.90. FairStock's Lynch category is STALWART, based on 12.8% annual profit growth and 28.2% annual revenue growth over five years. The moat case rests on switching costs and network effects in ad buying, but it must be re-earned with execution. The latest filed quarter is less comfortable: in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $715.1M, net income $64.4M and diluted EPS $0.14, versus fiscal Q2 2025, the quarter ended 2025-06-30, revenue $694.0M, net income $90.1M and diluted EPS $0.18. Revenue grew only modestly while profit fell. At the 2026-10-26 close of $12.77, FairStock calculates P/E 15.20, P/B 2.33, EV/EBITDA 7.47, FCF yield 14.1%, Graham Number $10.18 and negative margin of safety of 27.70%. Low debt with D/E 0.17, an 8/9 Piotroski F-score and $848.6M trailing free cash flow are real positives; Altman Z 1.58 and ROCE 6.25% counsel caution. The stock is not expensive on earnings or cash flow but offers no Graham-style asset cushion, so the key question is whether the profit decline is cyclical or structural.

In plain English: The Trade Desk provides software that helps advertisers plan and buy digital ads across television, streaming, mobile, and other screens. The business still produces plenty of cash and carries little debt, but its latest reported quarter showed only slight sales growth and a drop in profit. At $12.77, the shares look fair at best: cheap relative to cash generation, but not clearly cheap against the company's reported asset value or recent profit trend.

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Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer