TTD posted Q1 revenue of $688M, up 11.7% YoY and ahead of estimates by 1.5%.

Growth is slowing.

Free cash flow margin expanded to 40.1%, up 2.4 points YoY, which remains the cleanest part of the report. Adjusted EBITDA margin was 29.9%, and non-GAAP operating margin was 25.5%. Both declined YoY, but still reflect a model with strong underlying earnings power.

CTV and video are still the core engine, representing a low-50s percentage of spend. International revenue reached 18% of total revenue, with EMEA and APAC contributing well. Retail data, measurement, and AI-driven campaign optimization are becoming more important parts of the platform story.

Q2 revenue guidance of $750M implies only 8.1% YoY growth and missed estimates by 2.6%. EPS also missed by 12.5%, while non-GAAP gross margin, EBITDA margin, operating margin, and net margin all moved lower YoY.

Customer retention stayed at 95%, which is strong in absolute terms, but no longer gives the market much room to ignore slower growth.

Sales and marketing rose to 21.1% of revenue, up 1 point YoY. R&D and G&A were mostly stable as a percentage of revenue. SBC was 16% of revenue, up 2.6 points QoQ, although buybacks helped bring basic shares down 4.1% YoY and diluted shares down 3.6%.

TTD still has premium margins, strong FCF, high retention, and a strategic position in CTV, retail media, measurement, and the open internet.

But revenue growth continues to slow, and the Q2 guidance was frankly weak.

The market now needs proof that AI, retail data, and international expansion can reaccelerate growth while protecting margins. Q2 guidance raised doubts about competitiveness.