Stock Analysis on Net
Stock Analysis on Net

Trade Desk Inc. (NASDAQ:TTD)

Common-Size Income Statement 

Trade Desk Inc., common-size consolidated income statement

Microsoft Excel
12 months ended: Dec 31, 2025 Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021
Revenue 100.00 100.00 100.00 100.00 100.00
Platform operations -21.37 -19.31 -18.79 -17.82 -18.52
Gross profit 78.63% 80.69% 81.21% 82.18% 81.48%
Sales and marketing -22.25 -22.35 -23.02 -21.42 -20.84
Technology and development -18.13 -18.95 -21.16 -20.27 -18.90
General and administrative -17.90 -21.92 -26.73 -33.28 -31.31
Income from operations 20.35% 17.47% 10.30% 7.20% 10.43%
Interest expense -0.06 -0.06 -0.09 -0.25 -0.09
Interest income 2.43 3.29 3.61 1.06 0.00
Interest income (expense), net 2.37% 3.22% 3.52% 0.81% -0.09%
Foreign currency exchange gain (loss), net 0.02 0.05 -0.05 0.06 -0.15
Other income (expense), net 2.40% 3.28% 3.47% 0.87% -0.23%
Income before income taxes 22.74% 20.75% 13.77% 8.07% 10.20%
(Provision for) benefit from income taxes -7.44 -4.67 -4.58 -4.69 1.31
Net income 15.31% 16.08% 9.19% 3.38% 11.51%

Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).

The common-size income statement reveals significant shifts in profitability and expense management over the five-year period. Revenue is consistently represented as 100% across all years, allowing for a clear view of expense and income distributions. A notable trend is the increasing profitability observed from 2021 to 2025, despite fluctuations in expense allocations.

Gross Profit
Gross profit, initially at 81.48% of revenue in 2021, experienced a slight increase to 82.18% in 2022 before declining to 80.69% in 2024. It continued to decrease to 78.63% in 2025. This suggests potential pressures on cost of goods sold or pricing strategies in later years.
Operating Expenses
Significant changes are observed in the allocation of operating expenses. Sales and marketing expenses consistently represent a substantial portion of revenue, fluctuating between 20.84% and 23.02% before decreasing to 22.25% and 22.35% in 2024 and 2025 respectively. Technology and development expenses increased from 18.90% to 21.16% between 2021 and 2023, then decreased to 18.13% in 2025. The most dramatic shift is seen in general and administrative expenses, which decreased substantially from 31.31% in 2021 to 17.90% in 2025, indicating improved efficiency or cost control in this area.
Income from Operations
Income from operations demonstrates a clear upward trend. Starting at 10.43% of revenue in 2021, it dipped to 7.20% in 2022 before steadily increasing to 20.35% in 2025. This improvement is likely attributable to the combined effect of expense management, particularly the reduction in general and administrative costs, and revenue growth.
Non-Operating Items
Interest expense remained relatively stable as a percentage of revenue, while interest income increased significantly from negligible amounts in 2021 to 3.61% in 2023, before decreasing to 2.43% in 2025. Other income also showed a substantial increase, mirroring the trend in interest income. These non-operating income items contribute positively to overall profitability, particularly in 2023 and 2024.
Net Income
Net income as a percentage of revenue follows the trend of income from operations. It decreased significantly from 11.51% in 2021 to 3.38% in 2022, then increased steadily to 15.31% in 2025. This increase is partially offset by fluctuations in the provision for income taxes, which shifted from a benefit in 2022 and 2023 to a significant expense in 2025.

Overall, the analysis suggests a company undergoing a period of operational improvement and increasing profitability. While gross profit margins experienced some decline, effective management of operating expenses, particularly general and administrative costs, and the contribution of non-operating income sources drove substantial gains in income from operations and net income. The increasing tax expense in 2025 warrants further investigation.

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