Cash Flow Statement
The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.
The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.
Trade Desk Inc., consolidated cash flow statement
US$ in thousands
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 company demonstrates a generally increasing trend in net income over the observed period, with significant growth from 2021 to 2024, peaking at US$393.076 million, before a slight increase to US$443.304 million in 2025. Operating cash flow also exhibits a consistent upward trajectory, nearly tripling from US$378.513 million in 2021 to US$992.721 million in 2025. However, investing and financing activities present more complex patterns.
- Operating Activities
- Net cash provided by operating activities increased steadily from 2021 to 2025. This growth is supported by increasing net income and substantial adjustments to reconcile net income, including significant stock-based compensation and changes in operating assets and liabilities. The adjustments to reconcile net income to net cash provided by operating activities are consistently positive and substantial, indicating non-cash items significantly contribute to the overall cash flow from operations. Accounts receivable consistently represents a significant cash outflow, though it moderates in later years. Changes in operating assets and liabilities are consistently negative, representing a net cash outflow.
- Investing Activities
- Investing activities are characterized by substantial purchases of investments, consistently exceeding sales and maturities of investments. Purchases of investments increase significantly over the period, reaching US$954.273 million in 2025. While maturities of investments are also substantial, they do not fully offset the purchases. Purchases of property and equipment, and capitalized software development costs, are consistently negative, representing cash outflows, with the outflow for property and equipment increasing substantially in 2025. A business acquisition occurred in 2021 and again in 2025, representing additional cash outflows.
- Financing Activities
- Financing activities demonstrate a volatile pattern. Initial years show positive cash flow, primarily from proceeds from stock options and employee stock purchase plans. However, beginning in 2023, significant repurchases of Class A common stock dominate the financing activities, resulting in substantial net cash outflows. These repurchases escalate dramatically in 2025, contributing to a large net cash outflow from financing. Taxes paid relating to net settlement of restricted stock are consistently negative, representing cash outflows.
- Cash Position
- The company experienced an increase in cash and cash equivalents from 2021 to 2024, peaking at US$1,369.463 million. However, 2025 saw a significant decrease in cash and cash equivalents, falling to US$658.175 million, primarily driven by the substantial cash outflow from financing activities related to stock repurchases and the increased investment purchases.
Overall, the company generates strong operating cash flow, but its investment and financing decisions significantly impact its overall cash position. The increasing reliance on stock repurchases in later years represents a notable shift in capital allocation strategy.
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