The Trade Desk, Inc. stock research
FY2025 Q3
The Trade Desk (TTD) Gross Margin — Quarter Ended Sep 30, 2025
Revenue and gross profit were higher sequentially and versus the same quarter last year, while cost of revenue also increased in both comparisons. Gross margin weakened slightly from the prior quarter and was lower compared to the same quarter a year ago.
Gross margin takeaway
Quarter ended Sep 30, 2025 · FY2025 Q3
Revenue and gross profit were higher sequentially and versus the same quarter last year, while cost of revenue also increased in both comparisons. Gross margin weakened slightly from the prior quarter and was lower compared to the same quarter a year ago.
- Gross margin decreased year-over-year despite higher gross profit, indicating that cost of revenue grew faster than revenue over that period. Sequentially, gross margin remained relatively stable as the changes in revenue and cost of revenue were proportionally similar.
- Compared to the prior quarter, revenue was higher and gross profit was higher, while gross margin showed a slight weakening. Compared to the same quarter last year, both revenue and gross profit were higher, but gross margin was lower, as cost of revenue increased at a faster pace.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
78.1%
Gross profit
$577.3M
Revenue
$739.4M
Cost of revenue
$162.2M
Quarter-over-quarter change
-0.2 pts
Year-over-year change
-2.4 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 |
|---|---|---|---|---|
| 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% |
| Sep 30, 2025 | $739.4M | $577.3M | $162.2M | 78.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2025
-0.2 pts
Year-over-year change
Sep 30, 2024
-2.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross margin decreased year-over-year despite higher gross profit, indicating that cost of revenue grew faster than revenue over that period. Sequentially, gross margin remained relatively stable as the changes in revenue and cost of revenue were proportionally similar.
Compared to the prior quarter, revenue was higher and gross profit was higher, while gross margin showed a slight weakening. Compared to the same quarter last year, both revenue and gross profit were higher, but gross margin was lower, as cost of revenue increased at a faster pace.
Monitor the trend in cost of revenue growth relative to revenue growth, as the gap has widened compared to the same quarter last year.