Summary
LiveRamp opened fiscal 2026 with revenue of $194.8 million in the quarter ended June 30, 2025, up 10.7% from the prior-year quarter. GAAP gross profit rose 9.9% to $136.5 million. Gross margin was 70.1%, down 0.5 percentage points. GAAP operating income turned positive at $7.2 million, and operating margin was 3.7%, up 6.7 percentage points. Net income was $7.7 million, and diluted EPS was $0.12. Non-GAAP operating income was $36 million, up 34%, and non-GAAP diluted EPS was $0.44. Operating cash flow was negative $15.8 million, down 69.6%. Free cash flow was negative $16.2 million. Capital expenditures were $0.3 million, up 48.7%.
The quarter showed a mix of growth and pressure in forward-looking metrics. Annualized recurring revenue was $502 million, up 5%. Current remaining performance obligations were $451 million, up 14%. Remaining performance obligations were $690.4 million, up 28.9%. Deferred revenue was $51.8 million, up 34.9%. Subscription net retention was 104% and platform net retention was 105%. LiveRamp ended the quarter with 127 customers whose annualized subscription revenue exceeds $1 million, compared with 115 in the prior year period. Direct subscription customers totaled 835, down from 900. Management attributed the RPO and CRPO increases to several large, multi-year renewals, and tied the slower ARR growth to lower contribution from net growth in existing customer revenue.
The company also announced several business wins. LiveRamp was recognized as a Leader in the IDC MarketScape Worldwide Data Clean Room Technology for Advertising and Marketing Use Cases. A Forrester Consulting Total Economic Impact study found that a composite organization achieved a 313% return on investment and $9.6 million in business benefits over three years, with a payback period of less than 6 months. LiveRamp announced it is powering the clean room solution for Walgreens Advertising Group. It also partnered with REMAX and expanded its partnership with Western Union. These deals support the company's data collaboration network and its Cross Media Intelligence measurement solution.
The expense base was mixed. Research and development and sales and marketing spending declined, while general and administrative costs rose on professional services, litigation, and strategic initiative expenses. Gross margin compression reflected higher cloud infrastructure and services costs, partially offset by lower purchased intangible amortization. Operating margin still expanded because revenue growth outpaced total operating expenses. The company also flagged that a valuation allowance release is reasonably possible within the next 12 months, which could reduce income tax expense. The 2025 Tax Act was signed on July 4, 2025, and had no impact on the quarter ended June 30, 2025.
Guidance context points to continued growth. For the second quarter of fiscal 2026, LiveRamp expects higher revenue and positive GAAP operating income, along with non-GAAP operating income of approximately $39 million. For the full fiscal year 2026, non-GAAP operating income is guided to between $178 million and $182 million. Those non-GAAP figures exclude non-cash stock compensation, purchased intangible asset amortization, and restructuring and related charges.
Risks remain meaningful. LiveRamp depends on customer renewals and on adding new customers. It relies on partners and data suppliers, and a supplier could withdraw or withhold data. Competition and rapid technology change could pressure pricing and demand. The company faces integration risk from acquisitions, difficulty attracting and retaining talent, and the possibility of a significant data breach. Regulatory changes around data collection and use, tariffs and other trade restrictions, recession risk, inflation, and high interest rates could affect enterprise software budgets. The quarter also used cash in operations, and the company repurchased shares during the period.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q1 FY2026 | Q4 FY2025 | QoQ | Q1 FY2025 | YoY |
|---|---|---|---|---|---|
| Revenue | $194.8M | $188.7M | +3.2% | $176.0M | +10.7% |
| Gross profit | $136.5M | $130.8M | +4.4% | $124.2M | +9.9% |
| Gross margin | 70.1% | 69.3% | +0.8 pp | 70.6% | -0.5 pp |
| Research & development | $39.6M | $45.9M | -13.8% | $44.1M | -10.2% |
| Sales & marketing | $51.9M | $57.0M | -8.9% | $54.2M | -4.2% |
| General & administrative | $37.3M | $32.2M | +16.1% | $31.0M | +20.6% |
| Total operating expenses | $129.3M | $142.3M | -9.2% | $129.5M | -0.1% |
| Operating income (loss) | $7.2M | -$11.5M | +162.7% | -$5.2M | +237.6% |
| Operating margin | 3.7% | -6.1% | +9.8 pp | -3.0% | +6.7 pp |
| Net income (loss) | $7.7M | -$6.3M | +223.6% | -$7.5M | +203.4% |
| Net margin | 4.0% | -3.3% | +7.3 pp | -4.3% | +8.2 pp |
| Diluted EPS | $0.12 | -$0.09 | +$0.21 | -$0.11 | +$0.23 |
| Customers | 127 | 128 | -0.8% | 115 | +10.4% |
| Net retention rate | 104.0% | — | — | 105.0% | -1.0 pp |
Risks
General and administrative expenses increased 20.6% for the three months ended June 30, 2025, primarily due to professional services expenses that increased $5.4 million largely related to litigation costs associated with the class action lawsuit and fees in support of strategic corporate initiatives.
Subscription net retention was 104% at June 30, 2025 compared to 105% at June 30, 2024, a decrease of 1%, and ARR growth of 5% decelerated primarily due to lower contribution from net growth in existing customer revenue.
Gross margin decreased to 70.1% from 70.6% for the three months ended June 30, 2025, partly because cloud infrastructure costs increased $6.8 million driven by increased customer usage and platform migration costs.
Net cash used in operating activities was $15.8 million for the three months ended June 30, 2025 compared to $9.3 million in the prior year period, and DSO was 103 days at June 30, 2025 compared to 89 days at March 31, 2025, negatively impacted by approximately nine days from increased Data Marketplace gross accounts receivable.
The MD&A states that tariffs and other trade restrictions, risk of recession, military conflicts in Europe and the Middle East, cost increases, high interest rates, capital markets volatility and general inflationary pressures could impair customer collections, ability to raise capital, and liquidity, potentially forcing the company to curtail operations.
The company says it is reasonably possible that within the next 12 months sufficient positive evidence may become available to release a substantial portion of its valuation allowance, and it is evaluating the 2025 Tax Act's impact on its future effective tax rate, tax liabilities, and cash taxes.
SaaS KPIs
All quarters →Non-GAAP Operating Margin
Platform Net Retention
Subscription Net Retention
Current Remaining Performance Obligations (CRPO)
Direct Subscription Customers
Annualized Recurring Revenue (ARR)
Free Cash Flow
Remaining Performance Obligations (RPO)
Non-GAAP Operating Income
Summary, forecast, risks and KPIs are extracted from LiveRamp Holdings, Inc.'s SEC filings for Q1 FY2026 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 2, 2026.