AppLovin vs. The Trade Desk: Analyzing Diverging Revenue Trends for These Advertising Giants

Robert Izquierdo, The Motley Fool

Fri, September 11, 2026 at 9:11 PM GMT+3 4 min read

AppLovin: Sustaining Elevated Revenue Momentum

AppLovin (NASDAQ:APP) primarily generates revenue by providing specialized software tools that help worldwide mobile application developers and other advertisers actively market and efficiently monetize their various offerings.

It recently became the subject of multiple legal investigations regarding its corporate business practices, and it concurrently reported a 78% operating margin for the quarter ended June 30, 2026.

The Trade Desk: Navigating Slower Revenue Gains

The Trade Desk (NASDAQ:TTD) primarily generates revenue by offering a self-service cloud system that enables global advertising buyers to efficiently create and manage diverse digital marketing campaigns.

It recently announced a major organizational restructuring effort aimed at reorganizing its internal employee teams into much smaller groups, and it recorded a 14% operating margin for the quarter ended June 30, 2026.

Why Revenue Matters for Investors

Revenue helps everyday investors understand the total volume of incoming money a business generates from its core operations before accounting for any operating expenses, corporate taxes, or additional financial obligations that impact the bottom line. Closely tracking this top-line financial figure helps investors understand the total scale and top-line growth trajectory of a business.

Quarterly Revenue for AppLovin and The Trade Desk

Data source: Company filings. Data as of Sept. 11, 2026.

Foolish Take

AppLovin and The Trade Desk are two major players in the digital advertising industry. A look at their revenue trends can quickly tell investors where their businesses are headed. But first, it's important to note that the ad industry is seasonal, with advertisers typically spending the most in the fourth quarter to capture consumers during the key holiday shopping period.

The Trade Desk's sales trend demonstrates this clearly, as annual revenue peaks in Q4 before dropping in Q1 and repeating the cycle in the next year. AppLovin followed this in 2024, but that changed last year.

Suddenly, its Q1 revenue did not drop, instead demonstrating quarter-over-quarter sales growth in a streak that has extended through five quarters. The company expects this trend to continue, projecting Q3 revenue to reach about $2.1 billion. This sales growth pattern illustrates the ongoing customer demand AppLovin is experiencing, thanks to the strength of its AI-powered platform capabilities.

Meanwhile, The Trade Desk is showing a deceleration in both quarter-over-quarter and year-over-year sales growth. In fact, it forecasted third-quarter revenue to reach at least $650 million. That's a drop from the $739 million it achieved in Q3 of 2025 in a sign the company is now struggling to see any kind of increase, an indication that its business may be in trouble.

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Robert Izquierdo has positions in The Trade Desk. The Motley Fool has positions in and recommends The Trade Desk. The Motley Fool has a disclosure policy.

AppLovin vs. The Trade Desk: Analyzing Diverging Revenue Trends for These Advertising Giants was originally published by The Motley Fool