TTD · 10-Q · 2026Q2 · Full report
Platform Operations Expense
Trade Desk, Inc. · 2026-08-06 · Importance 59 · Surprise 48 · In source text
Platform operations expense increased 22% year over year to $184.3 million in the second quarter of 2026 and increased 25% to $366.3 million for the first six months. Six-month growth included $31 million of additional hosting costs, $26 million of supplier-provided component costs, and $7 million of personnel costs. Hosting costs rose because of higher platform query and impression volumes using AI and machine learning, investments in new data centers, and increased technical-team usage. Supplier-component costs increased as evolving value-added services caused certain costs to be recorded in platform operations rather than as revenue reductions, while personnel costs increased with headcount growth.
Key facts
- For the full fiscal year 2026, beginning from April 1, 2026, we expect the change in useful lives to reduce depreciation expense in platform operations by approximately $14 million based on affected computing and networking equipment placed into service as of March 31, 2026. source
- Platform operations expense increased by $33 million, or 22%, for the three months ended June 30, 2026 compared with the three months ended June 30, 2025. source
- Platform operations expense increased by $72 million, or 25%, for the six months ended June 30, 2026 compared with the six months ended June 30, 2025. source
- Three months ended June 30, 2026 Platform operations expense: $184,333 (in thousands). source
- Six months ended June 30, 2026 Platform operations expense: $366,303 (in thousands). source
- Three months ended June 30, 2025 Platform operations expense: $150,980 (in thousands). source
- Six months ended June 30, 2025 Platform operations expense: $293,819 (in thousands). source
- Three months ended June 30, 2026 increase in platform operations included $18 million in costs from supplier-provided components of value-added services and data, $8 million in hosting costs and $3 million in personnel costs. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | negative | realized | -10.1% | Platform operations expense increased by $72 million, or 25%, for the six months ended June 30, 2026 compared with the six months ended… |
| operating_income | negative | realized | -4.6% | Platform operations expense increased by $33 million, or 22%, for the three months ended June 30, 2026 compared with the three months… |
| operating_income | positive | probable | +1.0% | For the full fiscal year 2026, beginning from April 1, 2026, we expect the change in useful lives to reduce depreciation expense in… |