The Trade Desk shares plunged 15% in extended trading after the digital advertising platform forecast first-quarter revenue below Wall Street expectations. The company posted fourth-quarter adjusted EPS of $0.59, beating estimates of $0.34, with revenue rising to $847 million against consensus of $841.22 million.

For Q1 2026, The Trade Desk expects revenue of $678 million, below analysts' estimates of $688.4 million. Despite the near-term miss, the company reported $2.9 billion in revenue for 2025, citing continued profitability and cash flow amid macroeconomic uncertainty. CEO Jeff Green emphasized advertisers are prioritizing measurable outcomes over low-cost reach.

The company announced an additional share repurchase authorization, bringing total remaining capacity to $500 million of its Class A common stock. Green highlighted product updates across Kokai, retail data partnerships, and supply chain tools as focus areas for 2026. Investors are closely watching whether ad spending remains resilient as brands balance marketing budgets against broader economic uncertainty.