The Trade Desk, Inc. stock research
FY2025 Q2
The Trade Desk (TTD) Gross Margin — Quarter Ended Jun 30, 2025
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin improved sequentially but weakened relative to the year-ago period, as cost of revenue grew at a different pace than revenue.
Gross margin takeaway
Quarter ended Jun 30, 2025 · FY2025 Q2
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin improved sequentially but weakened relative to the year-ago period, as cost of revenue grew at a different pace than revenue.
- Gross margin rose from the prior quarter, supported by revenue growth that outpaced the increase in cost of revenue. Compared to a year ago, the margin declined because cost of revenue grew more relative to revenue.
- Sequentially, gross margin improved from the previous quarter. Year over year, gross margin weakened compared to the same quarter one year earlier.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
78.2%
Gross profit
$543.1M
Revenue
$694.0M
Cost of revenue
$151.0M
Quarter-over-quarter change
+1.4 pts
Year-over-year change
-2.9 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Sep 30, 2024 | $628.0M | $505.4M | $122.7M | 80.5% |
| Dec 31, 2024 | $741.0M | $605.7M | $135.3M | 81.7% |
| Mar 31, 2025 | $616.0M | $473.2M | $142.8M | 76.8% |
| Jun 30, 2025 | $694.0M | $543.1M | $151.0M | 78.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2025
+1.4 pts
Year-over-year change
Jun 30, 2024
-2.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross margin rose from the prior quarter, supported by revenue growth that outpaced the increase in cost of revenue. Compared to a year ago, the margin declined because cost of revenue grew more relative to revenue.
Sequentially, gross margin improved from the previous quarter. Year over year, gross margin weakened compared to the same quarter one year earlier.
Monitor the trend in cost of revenue relative to revenue, as shifts in this relationship directly affect gross margin.