Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Trade Desk Inc., profitability ratios (quarterly data)
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
The financial performance over the analyzed period is characterized by a notable transition from initial instability to a period of significant margin expansion, followed by a recent trend of contraction in both gross and net profitability. While operational efficiency improved substantially between 2022 and 2025, there is a visible divergence between the declining gross margin and the recovered operating metrics.
- Gross Profit Margin
- A consistent downward trend is observed starting from March 2024. After maintaining stability above 81% for several quarters, the margin declined steadily, reaching 76.87% by June 2026. This represents a gradual erosion of the core profitability of services over the latter half of the period.
- Operating and Net Profit Margins
- Both metrics experienced a significant trough in September 2022, with the operating margin falling to -0.80% and the net margin to -0.66%. Following this period, a sustained recovery occurred. The operating profit margin grew aggressively, peaking at 20.35% in December 2025 before a slight moderation to 19.61% in June 2026. Net profit margins followed a similar trajectory, though they peaked earlier at 16.08% in December 2024 and showed a more pronounced decline to 13.61% by the end of the period.
- Return on Equity (ROE)
- ROE mirrored the net profit trend, recovering from a low of -0.51% in September 2022 to a peak of 17.84% in December 2025. The subsequent decline to 15.81% by June 2026 suggests a reduction in the efficiency of generating profits from shareholders' equity toward the end of the analyzed timeframe.
- Return on Assets (ROA)
- ROA demonstrated a steady upward trajectory following the September 2022 low of -0.25%. Growth remained consistent through 2024 and 2025, reaching a peak of 7.54% in March 2026. A marginal decrease to 7.06% was noted in the final quarter, indicating a stabilization of asset utilization efficiency.
In summary, the organization successfully scaled its operating efficiency to reach peak performance in late 2025. However, the concurrent decline in gross profit margins and the recent softening of net profit and equity returns suggest emerging pressures on the cost of goods sold or pricing strategies that may impact long-term profitability.
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Return on Sales
Return on Investment
Gross Profit Margin
Trade Desk Inc., gross profit margin calculation (quarterly data)
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||
| Gross profit | 530,724) | 506,887) | 683,697) | 577,279) | 543,059) | 473,182) | 605,745) | 505,360) | 474,091) | 387,623) | 505,102) | 399,884) | 377,600) | 297,936) | 411,118) | 324,649) | 309,472) | 251,433) | ||||||
| Revenue | 715,057) | 688,857) | 846,791) | 739,433) | 694,039) | 616,021) | 741,012) | 628,016) | 584,550) | 491,253) | 605,797) | 493,266) | 464,254) | 382,803) | 490,737) | 394,773) | 376,962) | 315,323) | ||||||
| Profitability Ratio | ||||||||||||||||||||||||
| Gross profit margin1 | 76.87% | 77.83% | 78.63% | 78.81% | 79.41% | 80.11% | 80.69% | 81.06% | 81.23% | 81.29% | 81.21% | 81.18% | 81.46% | 81.64% | 82.18% | 81.90% | 81.88% | 81.82% | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Gross Profit Margin, Competitors2 | ||||||||||||||||||||||||
| Alphabet Inc. | 60.90% | 60.37% | 59.65% | 59.17% | 58.94% | 58.59% | 58.20% | 57.84% | 57.35% | 57.12% | 56.63% | 55.88% | 55.44% | 55.30% | 55.38% | 56.10% | 56.74% | 56.93% | ||||||
| Comcast Corp. | 69.39% | 70.13% | 71.75% | 71.88% | 70.82% | 70.36% | 70.08% | 69.73% | 70.53% | 70.00% | 69.76% | 69.96% | 69.65% | 69.49% | 68.53% | 68.41% | 67.34% | 66.64% | ||||||
| Meta Platforms Inc. | 81.75% | 81.94% | 82.00% | 82.00% | 81.95% | 81.75% | 81.67% | 81.43% | 81.40% | 81.44% | 80.76% | 79.05% | 78.34% | 78.40% | 78.35% | 80.31% | 80.47% | 80.34% | ||||||
| Netflix Inc. | 49.12% | 49.03% | 48.49% | 48.09% | 48.49% | 46.92% | 46.06% | 45.25% | 43.84% | 43.06% | 41.54% | 39.49% | 38.77% | 38.30% | 39.37% | 39.62% | 40.63% | 41.62% | ||||||
| Walt Disney Co. | 37.16% | 37.28% | 37.76% | 37.61% | 37.10% | 36.74% | 35.75% | 35.36% | 35.03% | 34.33% | 33.41% | 32.77% | 33.04% | 33.40% | 34.24% | 34.43% | 33.79% | 34.34% | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q2 2026 Calculation
Gross profit margin = 100
× (Gross profitQ2 2026
+ Gross profitQ1 2026
+ Gross profitQ4 2025
+ Gross profitQ3 2025)
÷ (RevenueQ2 2026
+ RevenueQ1 2026
+ RevenueQ4 2025
+ RevenueQ3 2025)
= 100 × (530,724 + 506,887 + 683,697 + 577,279)
÷ (715,057 + 688,857 + 846,791 + 739,433)
= 76.87%
2 Click competitor name to see calculations.
Analysis of the financial performance from March 2022 through June 2026 reveals a consistent expansion in absolute revenue and gross profit, accompanied by a progressive contraction in the gross profit margin. While the company has successfully scaled its top-line growth, the efficiency of cost management relative to revenue has declined over the observed period.
- Revenue and Gross Profit Trajectory
- A strong upward growth trend is observed in both revenue and gross profit. Revenue increased from 315.3 million US dollars in March 2022 to 715.1 million US dollars by June 2026. This growth is characterized by significant seasonality, with peak performance consistently occurring in the fourth quarter of each year, followed by a contraction in the first quarter. Despite these cyclical fluctuations, each successive year has achieved higher peak and trough values, indicating a steady expansion of the business scale.
- Gross Profit Margin Trends
- The gross profit margin exhibited three distinct phases during the analyzed period. Initially, from March 2022 to December 2022, the margin remained stable and peaked at 82.18%. A second phase, spanning 2023 through 2024, saw a gradual decline where the margin fluctuated between 81.64% and 80.69%. The final phase, beginning in early 2025 and continuing through June 2026, shows an accelerated downward trend, with the margin falling from 80.11% to 76.87%.
- Operational Efficiency Analysis
- An inverse relationship is evident between absolute profit growth and margin percentage. Although gross profit grew from 251.4 million US dollars in March 2022 to 530.7 million US dollars in June 2026, the cost of goods sold grew at a faster rate than revenue. This divergence suggests that the costs associated with generating revenue have increased proportionally more than the revenue itself, leading to the observed 4.95 percentage point compression in gross margin from its peak in December 2022.
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Operating Profit Margin
Trade Desk Inc., operating profit margin calculation (quarterly data)
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||
| Income (loss) from operations | 101,577) | 66,647) | 256,873) | 161,219) | 116,777) | 54,452) | 195,309) | 108,481) | 94,720) | 28,657) | 144,438) | 37,677) | 41,673) | (23,308) | 100,160) | 28,804) | 1,743) | (17,053) | ||||||
| Revenue | 715,057) | 688,857) | 846,791) | 739,433) | 694,039) | 616,021) | 741,012) | 628,016) | 584,550) | 491,253) | 605,797) | 493,266) | 464,254) | 382,803) | 490,737) | 394,773) | 376,962) | 315,323) | ||||||
| Profitability Ratio | ||||||||||||||||||||||||
| Operating profit margin1 | 19.61% | 20.26% | 20.35% | 18.91% | 17.73% | 17.63% | 17.47% | 16.29% | 14.05% | 12.29% | 10.30% | 8.53% | 8.50% | 6.53% | 7.20% | -0.80% | 2.86% | 7.74% | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Operating Profit Margin, Competitors2 | ||||||||||||||||||||||||
| Alphabet Inc. | 33.11% | 32.69% | 32.03% | 32.19% | 32.68% | 32.67% | 32.11% | 30.93% | 29.83% | 29.03% | 27.42% | 26.51% | 25.75% | 25.35% | 26.46% | 27.85% | 29.65% | 30.47% | ||||||
| Comcast Corp. | 14.66% | 15.29% | 16.71% | 17.98% | 18.12% | 18.73% | 18.83% | 18.52% | 19.32% | 19.25% | 19.18% | 19.33% | 11.99% | 11.75% | 11.56% | 11.82% | 18.25% | 17.76% | ||||||
| Meta Platforms Inc. | 38.08% | 41.21% | 41.44% | 43.23% | 44.02% | 42.92% | 42.18% | 39.94% | 39.25% | 37.38% | 34.66% | 28.96% | 23.80% | 23.56% | 24.82% | 29.74% | 33.41% | 36.68% | ||||||
| Netflix Inc. | 29.68% | 29.72% | 29.49% | 29.14% | 29.51% | 27.71% | 26.71% | 25.65% | 23.82% | 22.54% | 20.62% | 18.35% | 17.51% | 16.85% | 17.82% | 18.16% | 19.13% | 20.41% | ||||||
| Walt Disney Co. | 13.47% | 13.53% | 13.78% | 12.69% | 12.64% | 10.07% | 9.11% | 9.08% | 5.40% | 6.87% | 5.74% | 5.22% | 8.02% | 7.42% | 7.90% | 8.01% | 7.08% | 6.93% | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q2 2026 Calculation
Operating profit margin = 100
× (Income (loss) from operationsQ2 2026
+ Income (loss) from operationsQ1 2026
+ Income (loss) from operationsQ4 2025
+ Income (loss) from operationsQ3 2025)
÷ (RevenueQ2 2026
+ RevenueQ1 2026
+ RevenueQ4 2025
+ RevenueQ3 2025)
= 100 × (101,577 + 66,647 + 256,873 + 161,219)
÷ (715,057 + 688,857 + 846,791 + 739,433)
= 19.61%
2 Click competitor name to see calculations.
The operating profit margin exhibits a trajectory characterized by initial instability followed by a prolonged period of steady expansion and eventual stabilization. Between early 2022 and mid-2026, the margin transitioned from a volatile low to a sustained peak exceeding 20%.
- Early Phase Volatility
- A period of significant fluctuation is noted throughout 2022. The margin decreased from 7.74% in March 2022 to a trough of -0.80% by September 2022. This downturn was followed by a recovery to 7.20% by the end of the calendar year.
- Sustained Margin Expansion
- From March 2023 through December 2025, a consistent upward trend in profitability is observed. Starting at 6.53%, the operating profit margin climbed steadily, surpassing 10% in late 2023 and 15% in mid-2024. This growth culminated in a peak of 20.35% in December 2025, indicating a strong improvement in operational efficiency and cost management over this timeframe.
- Recent Stabilization and Slight Contraction
- Following the peak in December 2025, the margin remained relatively stable but showed a slight downward adjustment in the first half of 2026, concluding at 19.61% in June 2026.
- Operational Leverage and Revenue Correlation
- The expansion of the operating profit margin coincides with a general increase in revenue, which rose from 315,323 thousand dollars in March 2022 to 715,057 thousand dollars by June 2026. The concurrent rise in both revenue and margin percentages suggests the realization of operating leverage, where income from operations grows at a faster rate than revenue growth.
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Net Profit Margin
Trade Desk Inc., net profit margin calculation (quarterly data)
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||
| Net income (loss) | 64,394) | 39,997) | 186,950) | 115,547) | 90,129) | 50,678) | 182,229) | 94,158) | 85,029) | 31,660) | 97,323) | 39,352) | 32,939) | 9,326) | 71,187) | 15,869) | (19,073) | (14,598) | ||||||
| Revenue | 715,057) | 688,857) | 846,791) | 739,433) | 694,039) | 616,021) | 741,012) | 628,016) | 584,550) | 491,253) | 605,797) | 493,266) | 464,254) | 382,803) | 490,737) | 394,773) | 376,962) | 315,323) | ||||||
| Profitability Ratio | ||||||||||||||||||||||||
| Net profit margin1 | 13.61% | 14.57% | 15.31% | 15.72% | 15.57% | 16.04% | 16.08% | 13.34% | 11.65% | 9.80% | 9.19% | 8.35% | 7.46% | 4.70% | 3.38% | -0.66% | 2.43% | 7.78% | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Net Profit Margin, Competitors2 | ||||||||||||||||||||||||
| Alphabet Inc. | 54.77% | 37.92% | 32.81% | 32.23% | 31.12% | 30.86% | 28.60% | 27.74% | 26.70% | 25.90% | 24.01% | 22.46% | 21.05% | 20.58% | 21.20% | 23.75% | 25.89% | 27.57% | ||||||
| Comcast Corp. | 8.97% | 15.00% | 16.17% | 18.33% | 18.44% | 12.71% | 13.09% | 11.92% | 12.46% | 12.64% | 12.66% | 12.53% | 5.40% | 4.71% | 4.42% | 4.46% | 11.54% | 11.96% | ||||||
| Meta Platforms Inc. | 29.84% | 32.84% | 30.08% | 30.89% | 39.99% | 39.11% | 37.91% | 35.55% | 34.34% | 32.06% | 28.98% | 23.42% | 18.71% | 18.27% | 19.90% | 24.41% | 28.16% | 31.20% | ||||||
| Netflix Inc. | 28.22% | 28.52% | 24.30% | 24.05% | 24.58% | 23.07% | 22.34% | 20.70% | 19.54% | 18.42% | 16.04% | 13.82% | 13.22% | 13.16% | 14.21% | 16.03% | 16.42% | 16.47% | ||||||
| Walt Disney Co. | 11.54% | 12.80% | 13.14% | 12.22% | 9.47% | 6.07% | 5.44% | 5.31% | 1.90% | 3.36% | 2.65% | 2.56% | 4.74% | 3.93% | 3.80% | 3.87% | 3.46% | 4.22% | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q2 2026 Calculation
Net profit margin = 100
× (Net income (loss)Q2 2026
+ Net income (loss)Q1 2026
+ Net income (loss)Q4 2025
+ Net income (loss)Q3 2025)
÷ (RevenueQ2 2026
+ RevenueQ1 2026
+ RevenueQ4 2025
+ RevenueQ3 2025)
= 100 × (64,394 + 39,997 + 186,950 + 115,547)
÷ (715,057 + 688,857 + 846,791 + 739,433)
= 13.61%
2 Click competitor name to see calculations.
The net profit margin exhibits a trajectory characterized by initial volatility, a period of sustained expansion, and a subsequent gradual decline. After reaching a negative trough in the third quarter of 2022, the margin entered a consistent upward trend that lasted for over two years, reflecting a significant improvement in the conversion of revenue into bottom-line profit.
- Margin Expansion Trend
- From December 2022 to December 2024, the net profit margin grew steadily from 3.38% to a peak of 16.08%. This sustained increase indicates a period of enhanced operational efficiency and scalable growth, where net income grew at a faster rate than total revenue.
- Profitability Peak and Compression
- Following the peak in late 2024, a trend of gradual margin compression is observed. The net profit margin declined from 16.08% in December 2024 to 13.61% by June 2026. This downward movement suggests an increase in operating costs or a shift in the expense structure relative to revenue generation during this period.
- Revenue and Net Income Seasonality
- A recurring quarterly pattern is evident in both revenue and net income, with significant spikes occurring every December. These fourth-quarter surges consistently drove higher absolute profit figures, although the relative margin began to stabilize and eventually retract in the final six quarters of the analyzed period.
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Return on Equity (ROE)
Trade Desk Inc., ROE calculation (quarterly data)
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||
| Net income (loss) | 64,394) | 39,997) | 186,950) | 115,547) | 90,129) | 50,678) | 182,229) | 94,158) | 85,029) | 31,660) | 97,323) | 39,352) | 32,939) | 9,326) | 71,187) | 15,869) | (19,073) | (14,598) | ||||||
| Stockholders’ equity | 2,574,352) | 2,453,486) | 2,484,391) | 2,600,786) | 2,695,833) | 2,716,684) | 2,949,145) | 2,625,750) | 2,405,406) | 2,166,555) | 2,164,219) | 2,155,526) | 2,071,410) | 1,940,807) | 2,115,339) | 1,914,288) | 1,779,831) | 1,649,103) | ||||||
| Profitability Ratio | ||||||||||||||||||||||||
| ROE1 | 15.81% | 17.63% | 17.84% | 16.86% | 15.48% | 15.17% | 13.33% | 11.74% | 10.53% | 9.29% | 8.27% | 7.09% | 6.24% | 3.98% | 2.52% | -0.51% | 1.90% | 6.10% | ||||||
| Benchmarks | ||||||||||||||||||||||||
| ROE, Competitors2 | ||||||||||||||||||||||||
| Alphabet Inc. | 38.13% | 33.46% | 31.83% | 32.12% | 31.85% | 32.15% | 30.80% | 30.01% | 29.15% | 28.14% | 26.04% | 24.43% | 22.82% | 22.46% | 23.41% | 26.41% | 28.20% | 29.35% | ||||||
| Comcast Corp. | 12.48% | 21.29% | 20.64% | 23.29% | 23.65% | 18.13% | 18.92% | 17.11% | 18.14% | 18.67% | 18.61% | 18.34% | 7.74% | 6.86% | 6.63% | 6.73% | 15.35% | 15.18% | ||||||
| Meta Platforms Inc. | 26.07% | 28.97% | 27.83% | 30.16% | 36.66% | 36.01% | 34.14% | 33.76% | 32.81% | 30.60% | 25.53% | 20.81% | 16.82% | 17.18% | 18.45% | 23.23% | 26.74% | 30.30% | ||||||
| Netflix Inc. | 45.27% | 42.97% | 41.26% | 40.19% | 41.07% | 38.58% | 35.21% | 34.25% | 32.08% | 30.12% | 26.27% | 20.47% | 18.60% | 19.24% | 21.62% | 24.57% | 26.71% | 28.54% | ||||||
| Walt Disney Co. | 10.32% | 11.29% | 11.29% | 10.58% | 8.54% | 5.51% | 4.94% | 4.75% | 1.71% | 2.96% | 2.37% | 2.31% | 4.21% | 3.45% | 3.31% | 3.40% | 2.92% | 3.43% | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q2 2026 Calculation
ROE = 100
× (Net income (loss)Q2 2026
+ Net income (loss)Q1 2026
+ Net income (loss)Q4 2025
+ Net income (loss)Q3 2025)
÷ Stockholders’ equity
= 100 × (64,394 + 39,997 + 186,950 + 115,547)
÷ 2,574,352 = 15.81%
2 Click competitor name to see calculations.
Analysis of the profitability metrics reveals a significant transition from initial volatility to sustained growth in equity returns over the observed period.
- Net Income Trajectory
- Initial net losses in early 2022 were reversed by September 2022, marking a pivot toward consistent profitability. A recurring seasonal peak is evident in the fourth quarter of each year, with net income reaching its highest quarterly peaks in December 2024 and December 2025, at 182.2 million and 186.9 million, respectively.
- Stockholders' Equity Evolution
- Equity experienced a steady ascent from 1.6 billion in March 2022 to a peak of approximately 2.9 billion in December 2024. Subsequent quarters showed a gradual contraction and stabilization between 2.4 billion and 2.6 billion, which contributed to the amplification of equity returns.
- Return on Equity (ROE) Trends
- The ROE exhibited notable volatility during 2022, including a dip to -0.51% in September. Following this period, a consistent upward trend emerged from March 2023, where the ratio rose from 3.98% to a peak of 17.84% by December 2025. A slight moderation is observed in the first half of 2026, with the ratio adjusting to 15.81% by June 30, 2026.
The overall trend indicates that the acceleration of net income has outpaced the growth of stockholders' equity, resulting in a substantial improvement in the efficiency of capital utilization and a strengthened profitability profile.
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Return on Assets (ROA)
Trade Desk Inc., ROA calculation (quarterly data)
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||
| Net income (loss) | 64,394) | 39,997) | 186,950) | 115,547) | 90,129) | 50,678) | 182,229) | 94,158) | 85,029) | 31,660) | 97,323) | 39,352) | 32,939) | 9,326) | 71,187) | 15,869) | (19,073) | (14,598) | ||||||
| Total assets | 5,764,446) | 5,734,384) | 6,153,220) | 5,940,401) | 5,957,809) | 5,705,441) | 6,111,951) | 5,505,325) | 5,159,922) | 4,663,797) | 4,888,687) | 4,520,432) | 4,346,968) | 3,999,638) | 4,380,679) | 3,923,954) | 3,672,746) | 3,432,721) | ||||||
| Profitability Ratio | ||||||||||||||||||||||||
| ROA1 | 7.06% | 7.54% | 7.20% | 7.38% | 7.00% | 7.22% | 6.43% | 5.60% | 4.91% | 4.32% | 3.66% | 3.38% | 2.97% | 1.93% | 1.22% | -0.25% | 0.92% | 2.93% | ||||||
| Benchmarks | ||||||||||||||||||||||||
| ROA, Competitors2 | ||||||||||||||||||||||||
| Alphabet Inc. | 26.49% | 22.76% | 22.20% | 23.16% | 23.02% | 23.35% | 22.24% | 21.91% | 21.13% | 20.23% | 18.34% | 16.82% | 15.91% | 15.86% | 16.42% | 18.70% | 20.28% | 20.87% | ||||||
| Comcast Corp. | 4.35% | 7.23% | 7.34% | 8.28% | 8.36% | 5.87% | 6.08% | 5.44% | 5.75% | 5.85% | 5.81% | 5.80% | 2.48% | 2.18% | 2.09% | 2.12% | 5.26% | 5.25% | ||||||
| Meta Platforms Inc. | 15.13% | 17.86% | 16.52% | 19.26% | 24.26% | 23.78% | 22.59% | 21.66% | 22.34% | 20.53% | 17.03% | 13.75% | 10.91% | 11.62% | 12.49% | 16.12% | 19.81% | 22.74% | ||||||
| Netflix Inc. | 23.35% | 21.92% | 19.75% | 18.99% | 19.30% | 17.80% | 16.24% | 14.88% | 14.45% | 13.18% | 11.10% | 9.14% | 8.36% | 8.49% | 9.24% | 10.61% | 10.99% | 11.05% | ||||||
| Walt Disney Co. | 5.47% | 6.06% | 6.28% | 5.88% | 4.55% | 2.85% | 2.53% | 2.41% | 0.87% | 1.51% | 1.15% | 1.11% | 2.01% | 1.64% | 1.54% | 1.54% | 1.31% | 1.52% | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q2 2026 Calculation
ROA = 100
× (Net income (loss)Q2 2026
+ Net income (loss)Q1 2026
+ Net income (loss)Q4 2025
+ Net income (loss)Q3 2025)
÷ Total assets
= 100 × (64,394 + 39,997 + 186,950 + 115,547)
÷ 5,764,446 = 7.06%
2 Click competitor name to see calculations.
The financial trajectory from early 2022 through mid-2026 demonstrates a transition from initial net losses to sustained profitability, characterized by a consistent improvement in asset utilization efficiency.
- Net Income Trends
- A recovery phase is evident starting in late 2022, following net losses in the first two quarters of that year. A recurring seasonal pattern is observed, with significant earnings peaks consistently occurring in the fourth quarter of each fiscal year. Net income grew from a low of negative 19.1 million US dollars in June 2022 to a peak of 186.9 million US dollars by December 2025.
- Asset Base Expansion
- Total assets exhibited a general upward trend, expanding from approximately 3.43 billion US dollars in March 2022 to 5.76 billion US dollars by June 2026. While the growth was largely steady, periodic contractions in the first quarter of successive years suggest cyclical adjustments in the asset base.
- Return on Assets (ROA) Analysis
- The ROA experienced significant volatility in 2022, dipping to a negative 0.25% in September before beginning a sustained upward climb. From March 2023 onward, the ratio improved steadily, rising from 1.93% to a peak of 7.54% in March 2026. This trend indicates that net income growth outpaced the expansion of the asset base, reflecting enhanced operational efficiency and a higher capacity to generate earnings from invested assets.
The overall progression suggests a strengthening financial position, where the scalability of the business model is evidenced by the simultaneous increase in total assets and the percentage of return on those assets.
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