The Trade Desk, Inc. stock research
FY2025 Q4
The Trade Desk (TTD) Gross Margin — Quarter Ended Dec 31, 2025
Revenue, gross profit, and cost of revenue all moved higher compared with the prior quarter. Gross margin improved, reflecting gross profit growth that outpaced the increase in cost of revenue. Compared with the same quarter one year ago, revenue and gross profit were higher, cost of revenue was also higher, and gross margin weakened.
Gross margin takeaway
Quarter ended Dec 31, 2025 · FY2025 Q4
Revenue, gross profit, and cost of revenue all moved higher compared with the prior quarter. Gross margin improved, reflecting gross profit growth that outpaced the increase in cost of revenue. Compared with the same quarter one year ago, revenue and gross profit were higher, cost of revenue was also higher, and gross margin weakened.
- In the current quarter, gross profit grew at a faster pace than cost of revenue when measured against the preceding quarter, which was the primary observable factor behind gross margin improvement.
- Gross margin in the current quarter is higher than the immediately preceding quarter but lower than the same quarter one year ago. Revenue and gross profit are higher in both comparisons, while cost of revenue is higher in both comparisons as well.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
80.7%
Gross profit
$683.7M
Revenue
$846.8M
Cost of revenue
$163.1M
Quarter-over-quarter change
+2.7 pts
Year-over-year change
-1.0 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 |
|---|---|---|---|---|
| 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% |
| Dec 31, 2025 | $846.8M | $683.7M | $163.1M | 80.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2025
+2.7 pts
Year-over-year change
Dec 31, 2024
-1.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
In the current quarter, gross profit grew at a faster pace than cost of revenue when measured against the preceding quarter, which was the primary observable factor behind gross margin improvement.
Gross margin in the current quarter is higher than the immediately preceding quarter but lower than the same quarter one year ago. Revenue and gross profit are higher in both comparisons, while cost of revenue is higher in both comparisons as well.
Monitor the trajectory of cost of revenue relative to revenue, as cost of revenue increased in the current quarter from both the prior quarter and the year-ago quarter while gross margin declined from the year-ago level.