The Trade Desk Reports Strong Q2 2025 Growth, Driven by AI-Powered Kokai Platform and CTV Expansion

The Trade Desk Reports Strong Q2 2025 Performance

The Trade Desk (NASDAQ: TTD), a leading programmatic advertising company, has announced its second-quarter financial results for fiscal year 2025, showcasing robust growth and technological advancements 1

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. The company reported a 19% year-over-year revenue increase, outpacing the broader digital advertising market 1

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AI-Driven Innovation: Kokai Platform

At the heart of The Trade Desk's success is Kokai, their most significant platform upgrade to date. Powered by advanced AI technology, Kokai has demonstrated remarkable improvements in advertising performance:

• Samsung achieved a 43% improvement in reaching target audiences for an omnichannel campaign in Europe 1

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• Cash Rewards saw a 73% improvement in cost per acquisition for campaigns in Asia 1

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• Overall, campaigns running on Kokai have shown more than a 20-point improvement across key KPIs 1

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Notably, clients who have transitioned the majority of their spend to Kokai are increasing their overall spend on The Trade Desk by more than 20% faster than those who have not 1

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CTV: The Fastest-Growing Channel

Connected TV (CTV) continues to be The Trade Desk's fastest-growing channel, with no signs of slowing down 1

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. The company has deepened relationships with major partners such as Disney, NBCU, Walmart, Roku, LG, and Netflix around the growing programmatic opportunity in CTV 1

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. CTV-led video accounted for a high-40s percentage share of overall business in Q2 2025 2

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Financial Highlights and Guidance

• Q2 2025 revenue grew about 19% compared to Q2 2024 1

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• Adjusted net income was $203 million, or $0.per diluted share 2

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• Free cash flow was $117 million 2

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• Cash, cash equivalents, and short-term investments totaled $1.billion at the end of Q2 2

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• Q3 2025 revenue guidance of at least $717 million, up 14% year-over-year 2

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Strategic Partnerships and Market Position

The Trade Desk is experiencing unprecedented success with its Joint Business Plans (JBPs):

• The number of live JBPs is at an all-time high 1

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• Spend under JBPs significantly outpaces the rest of the business 1

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• Nearly 100 JBPs are in progress, many in late stages of development 1

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Challenges and Market Dynamics

Despite overall growth, The Trade Desk faced some challenges:

• Tariffs and related policies have impacted major brands in sectors such as automotive and consumer packaged goods, potentially affecting ad spend in the near term 2

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• Home and garden (8% of revenue) and style and fashion (4% of revenue) verticals underperformed during Q2 2025 2

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Looking Ahead: AI and Innovation

The Trade Desk is positioning itself for future growth through continued innovation:

• DealDesk, leveraging AI for reshaping deals between advertisers and publishers, is in beta with Disney among the first adopters 2

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• The company joined the S&P 500 during the quarter, marking a significant milestone 2

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• New leadership appointments, including Alex Hayel as incoming CFO and Omar Tawakil joining the board, aim to strengthen operational discipline and accelerate product innovation 2

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As The Trade Desk continues to innovate and expand its AI-driven solutions, it remains well-positioned to capitalize on the shifting landscape of digital advertising, particularly in the rapidly growing CTV sector.