LiveRamp reports Q2 revenue growth of 10.7% amid data collaboration expansion

LiveRamp Holdings Inc. announced its first-quarter fiscal 2026 financial results on August 6, 2025, reporting total revenues of $194.8 million. The quarter covered the three-month period from April 1, 2025 through June 30, 2025, as LiveRamp operates on a fiscal year ending March 31. This represented a 10.7% increase compared to $176.0 million in the corresponding period of the previous year.

According to the company's quarterly report filed with the Securities and Exchange Commission, subscription revenue constituted the largest portion at $148.4 million, marking a 10.1% year-over-year increase. Marketplace and Other revenue reached $46.4 million, representing a 12.8% growth from the prior year quarter.

The data collaboration platform provider maintained its gross margin at 70.1%, down slightly from 70.6% in the previous year. Cost of revenue increased to $58.3 million, representing a 12.7% rise primarily driven by cloud infrastructure costs and increased customer usage.

Operating expenses totaled $129.3 million, essentially flat compared to $129.5 million in the same quarter last year. The company achieved income from operations of $7.2 million, a significant improvement from the $5.2 million loss reported in the prior year period.

LiveRamp reported net earnings of $7.7 million, or $0.12 per diluted share, marking a substantial turnaround from the net loss of $7.5 million, or $0.11 per diluted share, recorded in the first quarter of fiscal 2025.

Financial metrics demonstrate platform stability

The company's Annualized Recurring Revenue reached $502 million, reflecting a 5% year-over-year growth rate. Subscription net retention stood at 104%, down from 105% in the previous year. According to the earnings presentation, LiveRamp serves 127 customers with annualized subscription revenue exceeding $1 million.

Remaining Performance Obligations totaled $690.4 million as of June 30, 2025, with $451.5 million expected to be recognized over the next twelve months. The company reported maintaining 835 direct customers worldwide and serving thousands of additional customers through reseller partnerships.

Cash and cash equivalents decreased to $363.6 million from $413.3 million at the end of the previous quarter. The company had no outstanding debt as of the quarter end.

Technology platform drives industry adoption

LiveRamp's data collaboration platform connects over 500 ecosystem partners, enabling secure data sharing between advertisers, publishers, and data providers. The platform processes customer data through pseudonymized identifiers called RampID, facilitating cross-platform marketing campaigns while maintaining privacy controls.

The company's Authenticated Traffic Solution addresses industry challenges related to third-party cookie deprecation. According to the quarterly filing, this technology associates device IDs and customer identifiers from premium publishers around RampID, providing marketers with consistent consumer views across digital channels.

LiveRamp's Data Marketplace generated $35 million in revenue during the quarter, representing a 9% year-over-year increase. The marketplace connects data sellers with buyers across hundreds of marketing platforms and publishers.

Operational developments and strategic initiatives

During the quarter ended June 30, 2025, LiveRamp repurchased 1.1 million shares of its common stock for $29.9 million under its share repurchase program. The board of directors had authorized up to $1.3 billion in total share repurchases through December 31, 2026, with $226.3 million remaining capacity at quarter end.

The company faced ongoing legal challenges, including a class action lawsuit filed in January 2025 in the United States District Court for the Northern District of California. The case alleges claims related to data privacy practices under various federal and state laws.

Research and development expenses decreased to $39.6 million from $44.1 million in the prior year, representing 20.3% of total revenues. Sales and marketing expenses declined to $51.9 million from $54.2 million year-over-year.

Tax legislation impacts future outlook

LiveRamp's financial results were affected by tax regulations requiring capitalization of research and development expenditures under Internal Revenue Code Section 174. The company maintained a full valuation allowance on net deferred tax assets except in certain foreign jurisdictions.

According to the quarterly filing, H.R. 1, "The One Big Beautiful Bill" Act, was signed into law on July 4, 2025. This legislation allows immediate expensing of domestic research and development costs, which could impact the company's future tax rates and cash flows, though it had no effect on the quarter ended June 30, 2025.

Market context and industry positioning

The advertising technology sector continues adapting to privacy-focused regulations and the deprecation of third-party cookies. LiveRamp has expressed enthusiasm about Google's PAIR initiative, which enables secure first-party data matching between advertisers and publishers.

Recent partnerships demonstrate the company's expanding market presence. LiveRamp launched Media Intelligence Tools in November 2024 to streamline cross-platform campaign analysis, and partnered with Mohegan in January 2025 to create the first casino media network.

The data collaboration platform market faces increasing scrutiny over data privacy practices and regulatory compliance. LiveRamp's technology enables organizations to leverage customer data while maintaining privacy controls through pseudonymization and secure data environments.

For the second quarter of fiscal 2026, LiveRamp projects revenue of approximately $197 million, representing 6% year-over-year growth. Full-year fiscal 2026 revenue guidance ranges from $798 million to $818 million, indicating 7% to 10% annual growth.

The company expects non-GAAP operating income of approximately $39 million for the second quarter and $178 million to $182 million for the full fiscal year. Stock-based compensation expenses are projected at $85 million for fiscal 2026, representing a 21% decrease from the previous year.

Timeline

• August 6, 2025: LiveRamp reports Q1 2026 financial results with $194.8 million revenue
• July 4, 2025: New tax legislation signed affecting R&D expense treatment
• June 30, 2025: Quarter ends with $363.6 million cash position
• January 2025: Casino media network partnership launched with Mohegan
• November 2024: Media Intelligence Tools launched for cross-platform analysis
• June 2024: Nielsen partnership announced for advanced audience measurement
• February 2024: Google PAIR initiative support confirmed

Key terminology explained

Data Collaboration Platform: LiveRamp's core technology infrastructure enables secure data sharing between different organizations while maintaining privacy controls. The platform acts as a neutral intermediary, allowing advertisers, publishers, and data providers to combine their datasets without directly exposing sensitive customer information. This approach addresses industry challenges around data silos and privacy regulations by creating standardized protocols for cross-organization data usage.

RampID: The pseudonymized identifier system that serves as the foundation of LiveRamp's data collaboration capabilities. RampID replaces personally identifiable information with encrypted tokens, enabling customer recognition across different platforms while protecting individual privacy. This technology allows marketers to track customer journeys and measure campaign effectiveness without relying on traditional tracking methods like third-party cookies.

Subscription Revenue: The primary revenue stream for LiveRamp, representing fees paid by clients for platform access and data collaboration services. This recurring revenue model provides predictable income streams and reflects long-term customer relationships. Subscription pricing typically scales based on data volume and connection points, allowing customers to expand usage as their data collaboration needs grow.

Third-Party Cookie Deprecation: The industry-wide elimination of tracking cookies used for cross-site user identification and advertising targeting. This technological shift, driven by privacy regulations and browser policies, fundamentally changes how digital advertising operates. LiveRamp's platform addresses this challenge by providing alternative identification methods that don't rely on traditional cookie-based tracking.

Marketplace Revenue: Income generated from LiveRamp's Data Marketplace, where data providers monetize their audience insights by connecting with advertisers and platforms. This revenue-sharing model creates additional income streams beyond subscription fees while expanding the platform's data ecosystem. The marketplace facilitates transactions between data sellers and buyers across hundreds of marketing platforms.

Authenticated Traffic Solution: LiveRamp's technology for publisher and supply-side platform integration that enables people-based addressability in cookieless environments. This solution helps publishers maintain advertising effectiveness while providing consumers with greater control over their data usage. The technology creates authenticated connections between publishers and advertisers without relying on third-party tracking mechanisms.

Annualized Recurring Revenue: A financial metric representing the total subscription revenue LiveRamp expects to receive from customers over a twelve-month period. This forward-looking indicator helps investors and analysts understand the company's revenue stability and growth trajectory. ARR calculations exclude variable or non-recurring revenue components, focusing on predictable subscription-based income.

Remaining Performance Obligations: The total contracted revenue that LiveRamp has not yet recognized in its financial statements but expects to deliver in future periods. This metric provides visibility into future revenue potential and indicates the strength of the company's sales pipeline. RPO includes both short-term obligations expected within twelve months and longer-term contractual commitments.

Privacy Controls: Technical and operational safeguards implemented throughout LiveRamp's platform to ensure data protection and regulatory compliance. These controls include encryption protocols, access restrictions, consent management systems, and audit capabilities. The company's approach to privacy enables data collaboration while meeting requirements under regulations like GDPR and CCPA.

Cross-Platform Measurement: The capability to track and analyze customer interactions across multiple digital channels and touchpoints using unified identification systems. This measurement approach provides comprehensive views of customer journeys that span different devices, platforms, and media types. LiveRamp's cross-platform measurement helps advertisers understand campaign effectiveness and optimize media spending across fragmented digital environments.

Summary

Who: LiveRamp Holdings Inc., a data collaboration technology company led by CEO Scott Howe, serving 835 direct customers including major brands and agencies.

What: Reported first-quarter fiscal 2026 financial results showing $194.8 million revenue (10.7% growth) and $7.7 million net earnings, marking a turnaround from prior year losses.

When: Results announced August 6, 2025, covering the quarter ended June 30, 2025, with forward guidance through fiscal 2026.

Where: San Francisco-based company with global operations across United States, Europe, and Asia-Pacific regions, serving international customer base.

Why: Growth driven by increased subscription revenue, data marketplace expansion, and platform adoption amid industry transition to privacy-focused advertising technologies and third-party cookie deprecation.