Summary
LiveRamp reported fiscal 2026 second quarter revenue of $199.8 million, up 7.7% from the prior-year quarter. Gross profit was $140.2 million, up 4.5%, but gross margin slipped to 70.2%, down 2.2 percentage points. Operating income rose to $21.4 million, up $13.9 million, and operating margin expanded to 10.7%, up 6.7 percentage points. Net income was $27.4 million, up $25.7 million, and diluted EPS was $0.42, up $0.39. For the first six months of fiscal 2026, revenue was $394.7 million, up 9.2%, and net income was $35.2 million, up 710.9% and swung to a profit. Diluted EPS for the six months was $0.53, up $0.62 and swung to a profit.
Cash generation held up in the quarter even as the year-to-date picture softened. Operating cash flow was $57.4 million in the quarter, up $1.8 million, while operating cash flow for the six months was $41.6 million, down 10.1%. Capital expenditures were $0.6 million in the quarter, up $0.35 million, and $0.9 million for the six months, up 98.1%. Deferred revenue was $49.8 million, up 37.6% from the prior-year quarter. Remaining performance obligations were $651.7 million, up 29.4%. The company repurchased 1.8 million shares for $50 million in the quarter. Fiscal year to date repurchases through September 30, 2025 totaled 2.9 million shares for $80 million.
The operating metrics show steady demand alongside some customer mix pressure. Annualized recurring revenue was $516 million, up 7% and up $14 million quarter over quarter. Current remaining performance obligations were $430 million, up 15%. Subscription net retention was 102% and platform net retention was 105%. LiveRamp ended the quarter with 834 direct subscription customers, compared with 885 a year earlier, while 132 customers had annualized subscription revenue above $1 million, compared with 125. Product news included three new AI tools for the data collaboration platform, an expansion of first-party data activation on Netflix into ten new geographic markets, Clean Room measurement of Meta campaigns for retail media networks, and recognition as a Leader in Data Collaboration in Snowflake's 2026 Modern Marketing Stack Report.
Guidance is framed for both the next quarter and the full fiscal year. For the third quarter of fiscal 2026, LiveRamp expects revenue of $209 million to $213 million, an increase of 7% to 9%, and non-GAAP operating income of $55 million to $57 million. For fiscal 2026, the company now expects revenue of $804 million to $818 million, an increase of 8% to 10%, and non-GAAP operating income of $178 million to $182 million. Management said demand for the Data Collaboration Network is strong across retail and commerce media networks, cross-media measurement, and AI-powered advertising and agentic orchestration.
The risk list stays familiar. LiveRamp points to economic uncertainty, tariffs and other trade restrictions, the possibility of a recession, inflationary pressure, and high interest rates as items that could affect the company, its customers, and its partners. It also cites reliance on partners and data suppliers that may withhold data, intense competition, rapid technology change, acquisition integration, and the need to attract and retain talent. Data security breaches, the decline of third-party cookies and tracking technology, and regulatory changes around information collection and use are additional concerns. General and administrative costs rose partly on professional services tied to litigation, including the class action lawsuit. The 10-Q notes that the 2025 Tax Act, signed on July 4, 2025, materially decreased the effective tax rate and is expected to materially decrease cash tax payments for fiscal 2026. Management also says it is reasonably possible that within the next 12 months sufficient positive evidence may emerge to support releasing a substantial portion of the valuation allowance, though the timing and amount require judgment. Management believes existing available cash will cover short-term and long-term needs, but liquidity could tighten if collections slow or capital markets turn volatile.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q2 FY2026 | Q1 FY2026 | QoQ | Q2 FY2025 | YoY |
|---|---|---|---|---|---|
| Revenue | $199.8M | $194.8M | +2.6% | $185.5M | +7.7% |
| Gross profit | $140.2M | $136.5M | +2.7% | $134.2M | +4.5% |
| Gross margin | 70.2% | 70.1% | +0.1 pp | 72.4% | -2.2 pp |
| Research & development | $37.0M | $39.6M | -6.7% | $43.9M | -15.8% |
| Sales & marketing | $48.7M | $51.9M | -6.2% | $51.1M | -4.7% |
| General & administrative | $33.2M | $37.3M | -11.2% | $31.4M | +5.7% |
| Total operating expenses | $118.8M | $129.3M | -8.1% | $126.8M | -6.3% |
| Operating income (loss) | $21.4M | $7.2M | +196.7% | $7.5M | +186.2% |
| Operating margin | 10.7% | 3.7% | +7.0 pp | 4.0% | +6.7 pp |
| Net income (loss) | $27.4M | $7.7M | +253.9% | $1.7M | +1483.1% |
| Net margin | 13.7% | 4.0% | +9.7 pp | 0.9% | +12.8 pp |
| Diluted EPS | $0.42 | $0.12 | +$0.30 | $0.03 | +$0.39 |
| Customers | 132 | 127 | +3.9% | 125 | +5.6% |
| Net retention rate | 102.0% | 104.0% | -2.0 pp | 107.0% | -5.0 pp |
Risks
Subscription net retention was 102% for the quarter ended September 30, 2025, down from 107% in the prior-year quarter, and ARR growth was 7%, decelerating from 13% in the prior-year comparison. The company attributes the decline to lower net upsell revenue and lower contribution from net growth in existing customer revenue.
Gross margin decreased to 70.2% from 72.4% for the quarter ended September 30, 2025, and decreased to 70.1% from 71.5% for the six months ended September 30, 2025. The compression was driven by higher cloud infrastructure costs from increased customer usage and platform migration costs.
General and administrative expenses increased in the quarter ended September 30, 2025, primarily due to professional services related to litigation costs, including those associated with the class action lawsuit, and fees in support of strategic corporate initiatives.
Management states that liquidity may change due to recent tariffs and trade restrictions, recession risk, military conflicts in Europe and the Middle East, cost increases, high interest rates, capital markets volatility, and inflationary pressures, which could impair customer collections and the ability to raise capital.
The 2025 Tax Act has multiple effective dates, and the company is still assessing its impact on the consolidated financial statements. The final impact may differ from current estimates based on further analysis, regulatory guidance, and legislative changes.
SaaS KPIs
All quarters →Non-GAAP Operating Margin
Platform Net Retention
Subscription Net Retention
Current Remaining Performance Obligations (CRPO)
Customers > $1M ARR
Direct Subscription Customers
Annualized Recurring Revenue (ARR)
Free Cash Flow
Remaining Performance Obligations (RPO)
Summary, forecast, risks and KPIs are extracted from LiveRamp Holdings, Inc.'s SEC filings for Q2 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.