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The Trade Desk

TTD
75
Software - Services · Technology
Also trades as: 0LF5.L
Exchange
NASDAQ
Winston Score
75
Winston is happy
A high-quality business with solid fundamentals.
Data as of Aug 23, 2026 · filings through Jun 30, 2026
How the score breaks down
Quality
Strong
Growth
Good
Cash Flow
Exceptional
Stability
Exceptional
Valuation
Strong

Winston Score History

The full picture

The Trade Desk is a technology company that helps advertisers buy digital ads automatically using software. Its platform lets brands and ad agencies purchase ads across websites, streaming TV, podcasts, and mobile apps — all in one place. It is one of the largest independent demand-side advertising platforms in the world, meaning it works for the buyers of ads rather than the sellers.

The company makes money by charging a percentage fee on the ad spending that flows through its platform. It operates mainly in the United States but has a growing international presence across Europe and Asia. Its competitive edge comes from being independent — unlike Google or Amazon, it does not own media properties, so advertisers trust it to spend their budgets without bias. The key growth driver is the ongoing shift of TV advertising budgets from traditional broadcast to connected TV streaming, but the main risk is increasing competition from large tech platforms that control both the ad tools and the media inventory.

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Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+3.0% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

-22.2% YoY

YoY Growth Rate

Earnings declining

Insider Activity

11.1%ownership

Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$1.1B cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Growth context

The Trade Desk is growing revenue at 3% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale
Gross Margin
100.0%
Premium pricing power — 100.0% gross margin
Profit after running costs
Operating Margin
14.2%
Healthy — 14.2% operating margin
Return on the money invested
ROCE
19.5%
Strong — 19.5% return on capital

ROIC between 15% and 25%. Every dollar invested in the business earns 15 to 25 cents back per year.

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Growth

Sales growth
Sales YoY
+11.6%
Steady sales growth (+11.6% YoY)
Profit growth
EPS YoY
+1.2%
Flat earnings

Single-digit earnings growth — steady but not exciting.

How steady the profit is
EPS Consistency
6/8 quarters
Earnings grew in most of the last 8 quarters

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Cash Flow

Profit that turns into cash
Cash Conversion
362%
Turns 362% of profit into real cash
Spare cash per sale
FCF Margin
38.1%
Converts sales into free cash efficiently (38.1%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

What it owes vs what it owns
Debt / Equity
0.17
Conservative — low debt load (0.17)
Covers its interest
Interest Cover
804.27x
Comfortably covers interest (804.3x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit
P/E Ratio (TTM)
15.7x
no trend
Fair value — P/E 15.7

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

Cheaper or dearer next year
P/E vs Forward
+3.4
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (15.7 → 12.3)

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Dividends

Not applicable for this business.
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