Revenue up 11% year-over-year Record-High Operating Margin for Q1 Share Repurchases totaled $30 million
SAN FRANCISCO, Aug. 06, 2025 (GLOBE NEWSWIRE) — LiveRamp(R) (NYSE: RAMP), a leading data collaboration platform, today announced its financial results for the quarter ended June 30, 2025.
Q1 Financial Highlights Unless otherwise indicated, all comparisons are to the prior year period.
Total revenue was $195 million, up 11%.
Subscription revenue was $148 million, up 10%.
Marketplace & Other revenue was $46 million, up 13%.
GAAP gross profit was $137 million, up 10%. GAAP gross margin of 70% compressed by 1 percentage point. Non-GAAP gross profit was $141 million, up 9%. Non-GAAP gross margin of 72% compressed by 1 percentage point.
GAAP operating income was $7 million compared to a loss of $5 million. GAAP operating margin of 4% expanded by 7 percentage points. Non-GAAP operating income was $36 million, up 34%. Non-GAAP operating margin of 18% expanded by 3 percentage points.
GAAP and non-GAAP diluted earnings per share was $0.12 and $0.44, respectively.
Net cash used by operating activities was $16 million compared to $9 million.
Share repurchases totaled approximately 1.1 million shares for $30 million.
A reconciliation between GAAP and non-GAAP results is provided in the schedules in this press release.
Commenting on the results, CEO Scott Howe said: “Fiscal 2026 is off to a strong start, with first quarter results surpassing our initial expectations, driven by double-digit revenue growth and substantial operating margin expansion. We're seeing good sales momentum across our Data Collaboration Network, and particularly with our new Cross Media Intelligence measurement solution. This gives us confidence in our growth outlook for FY26 and beyond.”
GAAP and Non-GAAP Results
The following table summarizes the Company's financial results for the quarters ended June 30, 2025 and June 30, 2024 ($ in millions, except per share amounts):
GAAP
Non-GAAP
Q1 FY26
Q1 FY25
Q1 FY26
Q1 FY25
Subscription revenue
$
148
$
135
YoY change %
10
%
11
%
Marketplace & Other revenue
$
46
$
41
YoY change %
13
%
28
%
Total revenue
$
195
$
176
YoY change %
11
%
14
%
Gross profit
$
137
$
124
$
141
$
130
% Gross margin
70
%
71
%
72
%
74
%
YoY change, pts
(1)pt
0pts
(1)pt
1pt
Operating income (loss)
$
7
$
(5
)
$
36
$
27
% Operating margin
4
%
(3
)
%
18
%
15
%
YoY change, pts
7pts
(4)pts
3pts
2pts
Net earnings (loss)
$
8
$
(7
)
$
30
$
24
Diluted earnings (loss) per share
$
0.12
$
(0.11
)
$
0.44
$
0.35
Shares to calculate diluted EPS
66.7
66.6
66.7
68.5
YoY change %
0
%
0
%
(3
)
%
2
%
Operating cash flow
$
(16
)
$
(9
)
Free cash flow
$
(16
)
$
(10
)
Totals and year-over-year changes may not reconcile due to rounding.
A detailed discussion of our non-GAAP financial measures and a reconciliation between GAAP and non-GAAP results is provided in the schedules to this press release.
Additional Business Highlights & Metrics
We were recognized as a Leader in the IDC Marketscape: Worldwide Data Clean Room Technology for Advertising and Marketing Use Cases. The IDC Marketscape identified several differentiating strengths, including our extensive partner network of over 1,000 partners, an interoperable architecture that integrates with all major cloud platforms and native activation that allows ad campaigns to be executed directly from the clean room (additional information).
We published the findings of a commissioned Total Economic Impact (TEI) study conducted by Forrester Consulting. The study revealed that a composite organization representative of interviewed LiveRamp customers 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 (additional information).
We announced that we are powering the clean room solution for Walgreens Advertising Group (WAG), the retail media division of Walgreens. The partnership enables WAG to increase access to its first-party data, scale audience insights and offer more transparency and control to advertisers. Brands are able to enhance media measurement across all platforms in the digital ecosystem and improve ROI with faster time-to-value (additional information).
We announced that we partnered with REMAX, a leading franchisor of real estate brokerage services, to power its new media network that will connect advertisers with REMAX's homebuyer consumer audience (additional information).
We announced an expansion of our partnership with Western Union that will connect its media network audiences to LiveRamp's data collaboration network (additional information).
LiveRamp ended the quarter with 127 customers whose annualized subscription revenue exceeds $1 million, compared to 115 in the prior year period.
LiveRamp ended the quarter with 835 direct subscription customers, compared to 900 in the prior year period.
Subscription net retention was 104% and platform net retention was 105%.
Annualized recurring revenue (ARR), which is the last month of the quarter fixed subscription revenue annualized, was $502 million, up 5% compared to the prior year period.
Current remaining performance obligations (CRPO), which is contracted and committed revenue expected to be recognized over the next 12 months, was $451 million, up 14% compared to the prior year period.
Financial Outlook
LiveRamp's non-GAAP operating income guidance excludes the impact of non-cash stock compensation, purchased intangible asset amortization, and restructuring and related charges.
For the second quarter of fiscal 2026, LiveRamp expects to report:
Revenue of $197 million, an increase of 6%
GAAP operating income of approximately $15 million
Non-GAAP operating income of approximately $39 million
For fiscal 2026, LiveRamp expects to report:
Revenue of between $798 million and $818 million, an increase of between 7% and 10%
GAAP operating income of between $81 million and $85 million
Non-GAAP operating income of between $178 million and $182 million
Conference Call
LiveRamp will hold a conference call today at 1:30 p.m. PT (4:30 p.m. ET) to further discuss this information. Interested parties are invited to listen to a webcast of the conference, which can be accessed on LiveRamp's investor site. A slide presentation will be referenced during the call and is available here.
About LiveRamp
LiveRamp is a leading data collaboration technology company, empowering marketers and media owners to deliver and measure marketing performance everywhere it matters. LiveRamp's data collaboration network seamlessly unites data across advertisers, platforms, publishers, data providers, and commerce media networks–unlocking deep insights, delivering transformational consumer experiences, and driving measurable growth.
Built on a foundation of strict neutrality, interoperability, and global scale, LiveRamp enables organizations to maximize the value of their data while accelerating innovation. Trusted by many of the world's leading brands, retailers, financial services providers, and healthcare innovators, LiveRamp is helping shape the future of responsible data collaboration in an AI-driven, outcomes-focused world where advertisers reach intended audiences and consumers receive more relevant advertising messages.
LiveRamp is headquartered in San Francisco, California, with offices worldwide. Learn more at LiveRamp.com.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended (the “PSLRA”). Forward-looking statements are often identified by words or phrases such as “anticipate,” “estimate,” “plan,” “expect,” “believe,” “intend,” “foresee,” or the negative of these terms or other similar variations thereof, but the absence of these words does not mean that a statement is not forward-looking. These statements, which are not statements of historical fact, include, but are not limited to, the Company's guidance regarding results of operations for the second quarter and full year of fiscal 2026 and other similar estimates, assumptions, forecasts, projections and expectations regarding market position, product development, growth opportunities, economic conditions and other future events and trends.
These forward-looking statements are not guarantees of future performance and are subject to a number of factors and uncertainties that could cause the Company's actual results and experiences to differ materially from the anticipated results and expectations expressed in the forward-looking statements.
Among the factors that may cause actual results and expectations to differ from anticipated results and expectations expressed in forward-looking statements are economic uncertainties that could impact us or our suppliers, customers and partners, including, geopolitical circumstances, including risk related to tariffs and other trade restrictions, the possibility of a recession, general inflationary pressure and high interest rates; the ability and willingness of our customers to renew their agreements with us upon their expiration; our ability to add new customers and upsell within our subscription business; our reliance upon partners, including data suppliers, who may withdraw or withhold data from us; increased competition and rapidly changing technology that could impact our products and services; the risk that we fail to realize the potential benefits of or have difficulty integrating acquired businesses; and our inability to attract, motivate and retain talent. Additional risks include maintaining our culture and our ability to innovate and evolve while operating in a hybrid work environment, with some employees working remotely at least some of the time within a rapidly changing industry, while also avoiding disruption from reductions in our current workforce as well as disruptions resulting from acquisition, divestiture and other activities affecting our workforce. Our global workforce strategy could possibly encounter difficulty and not be as beneficial as planned. Our international operations are also subject to risks, including the performance of third parties as well as impacts from war and civil unrest, that may harm the Company's business. The risk of a significant breach of the confidentiality of the information or the security of our or our customers', suppliers', or other partners' data and/or computer systems, or the risk that our current insurance coverage may not be adequate for such a breach, that an insurer might deny coverage for a claim or that such insurance will continue to be available to us on commercially reasonable terms, or at all, could be detrimental to our business, reputation and results of operations. Other business risks include unfavorable publicity and negative public perception about our industry; interruptions or delays in service from data center or cloud hosting vendors we rely upon; and our dependence on the continued availability of third-party data hosting and transmission services. Our clients' ability to use data on our platform could be restricted if the industry's use of third-party cookies and tracking technology declines due to technology platform changes, regulation or increased user controls. Continued changes in the judicial, legislative, regulatory, accounting, cultural and consumer environments affecting our business, including but not limited to litigation, investigations, legislation, regulations and customs at the state, federal and international levels relating to information collection and use represents a risk, as well as changes in tax laws and regulations that are applied to our customers which could cause enterprise software budget tightening. In addition, third parties may claim that we are infringing their intellectual property or may infringe our intellectual property which could result in competitive injury and / or the incurrence of significant costs and draining of our resources.
For a discussion of these and other risks and uncertainties that could affect LiveRamp's business, reputation, results of operation, financial condition and stock price, please refer to LiveRamp's filings with the U.S. Securities and Exchange Commission, including in the “Risk Factors” and “Management's Discussion and Analysis of Financial Condition and Results of Operations” sections of LiveRamp's most recently filed Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and subsequent filings.
The financial information set forth in this press release reflects estimates based on information available at this time.
LiveRamp assumes no obligation and does not currently intend to update these forward-looking statements.
To automatically receive LiveRamp financial news by email, please visit www.LiveRamp.com and subscribe to email alerts.
For more information, contact: LiveRamp Investor Relations Investor.Relations@LiveRamp.com
LiveRamp(R) and RampID(TM) and all other LiveRamp marks contained herein are trademarks or service marks of LiveRamp, Inc. All other marks are the property of their respective owners.
LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Dollars in thousands, except per share amounts)
For the three months ended June 30,
$
%
2025
2024
Variance
Variance
Revenues
194,822
175,961
18,861
10.7
%
Cost of revenue
58,319
51,749
6,570
12.7
%
Gross profit
136,503
124,212
12,291
9.9
%
% Gross margin
70.1
%
70.6
%
Operating expenses
Research and development
39,608
44,118
(4,510
)
(10.2
)
%
Sales and marketing
51,906
54,175
(2,269
)
(4.2
)
%
General and administrative
37,345
30,961
6,384
20.6
%
Gains, losses and other items, net
423
206
217
105.3
%
Total operating expenses
129,282
129,460
(178
)
(0.1
)
%
Income (loss) from operations
7,221
(5,248
)
12,469
N/A
% Margin
3.7
%
(3.0
)
%
Total other income, net
3,709
4,444
(735
)
(16.5
)
%
Income (loss) from continuing operations before income taxes
10,930
(804
)
11,734
N/A
Income tax expense
3,183
6,685
(3,502
)
(52.4
)
%
Net earnings (loss)
7,747
(7,489
)
15,236
N/A
Basic earnings (loss) per share
0.12
(0.11
)
0.23
N/A
Diluted earnings (loss) per share
0.12
(0.11
)
0.23
N/A
Basic weighted average shares
65,448
66,621
Diluted weighted average shares
66,731
66,621
Some totals may not sum due to rounding.
LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP EPS (1)
(Unaudited)
(Dollars in thousands, except per share amounts)
For the three months ended June 30,
2025
2024
Income (loss) from continuing operations before income taxes
10,930
(804
)
Income tax expense
3,183
6,685
Net earnings (loss)
7,747
(7,489
)
Basic earnings (loss) per share
0.12
(0.11
)
Diluted earnings (loss) per share
0.12
(0.11
)
Excluded items:
Purchased intangible asset amortization (cost of revenue)
2,750
3,846
Non-cash stock compensation (cost of revenue and operating expenses)
25,410
27,985
Restructuring and merger charges (gains, losses, and other)
423
206
Total excluded items from continuing operations
28,583
32,037
Income from continuing operations before income taxes and excluding items
39,513
31,233
Income tax expense (2)
9,878
7,371
Non-GAAP net earnings from continuing operations
29,635
23,862
Non-GAAP earnings per share from continuing operations
Basic
0.45
0.36
Diluted
0.44
0.35
Basic weighted average shares
65,448
66,621
Diluted weighted average shares
66,731
68,463
(1) This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. For a detailed explanation of the adjustments made to comparable GAAP measures, the reasons why management uses these measures and the material limitations on the usefulness of these measures, please see Appendix A.
(2) Non-GAAP income taxes were calculated by applying the estimated annual effective tax rate to year-to-date pretax income or loss. The differences between our GAAP and non-GAAP effective tax rates were primarily due to the net tax effects of the excluded items, coupled with the valuation allowance and smaller pre-tax income for GAAP purposes.
LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP INCOME FROM OPERATIONS (1)
(Unaudited)
(Dollars in thousands)
For the three months ended June 30,
2025
2024
Income (loss) from operations
7,221
(5,248
)
Operating income (loss) margin
3.7
%
(3.0
)
%
Excluded items:
Purchased intangible asset amortization (cost of revenue)
2,750
3,846
Non-cash stock compensation (cost of revenue and operating expenses)
25,410
27,985
Restructuring and merger charges (gains, losses, and other)
423
206
Total excluded items
28,583
32,037
Income from operations before excluded items
35,804
26,789
Non-GAAP operating income margin
18.4
%
15.2
%
(1) This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. For a detailed explanation of the adjustments made to comparable GAAP measures, the reasons why management uses these measures and the material limitations on the usefulness of these measures, please see Appendix A.
LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES
RECONCILIATION OF ADJUSTED EBITDA (1)
(Unaudited)
(Dollars in thousands)
For the three months ended June 30,
2025
2024
Net earnings (loss) from continuing operations
7,747
(7,489
)
Income tax expense
3,183
6,685
Total other income, net
(3,709
)
(4,444
)
Income (loss) from operations
7,221
(5,248
)
Depreciation and amortization
3,389
4,554
EBITDA
10,610
(694
)
Other adjustments:
Non-cash stock compensation (cost of revenue and operating expenses)
25,410
27,985
Restructuring and merger charges (gains, losses, and other)
423
206
Other adjustments
25,833
28,191
Adjusted EBITDA
36,443
27,497
(1) This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. For a detailed explanation of the adjustments made to comparable GAAP measures, the reasons why management uses these measures, the usefulness of these measures and the material limitations on the usefulness of these measures, please see Appendix A.
LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
June 30
March 31
$
%
2025
2025
Variance
Variance
Assets
Current assets:
Cash and cash equivalents
363,612
413,331
(49,719
)
(12.0
)
%
Restricted cash
—
595
(595
)
(100.0
)
%
Short-term investments
7,500
7,500
—
—
%
Trade accounts receivable, net
219,804
186,169
33,635
18.1
%
Refundable income taxes, net
6,125
9,708
(3,583
)
(36.9
)
%
Other current assets
35,386
38,886
(3,500
)
(9.0
)
%
Total current assets
632,427
656,189
(23,762
)
(3.6
)
%
Property and equipment
23,836
23,813
23
0.1
%
Less – accumulated depreciation and amortization
17,784
17,629
155
0.9
%
Property and equipment, net
6,052
6,184
(132
)
(2.1
)
%
Intangible assets, net
17,417
20,167
(2,750
)
(13.6
)
%
Goodwill
502,175
501,756
419
0.1
%
Deferred commissions, net
43,782
44,452
(670
)
(1.5
)
%
Other assets, net
30,242
30,623
(381
)
(1.2
)
%
1,232,095
1,259,371
(27,276
)
(2.2
)
%
Liabilities and Stockholders' Equity
Current liabilities:
Trade accounts payable
107,766
112,271
(4,505
)
(4.0
)
%
Accrued payroll and related expenses
23,390
50,776
(27,386
)
(53.9
)
%
Other accrued expenses
39,389
38,586
803
2.1
%
Deferred revenue
51,839
45,885
5,954
13.0
%
Total current liabilities
222,384
247,518
(25,134
)
(10.2
)
%
Other liabilities
61,899
62,994
(1,095
)
(1.7
)
%
Stockholders' equity:
Preferred stock
—
—
—
n/a
Common stock
16,078
15,918
160
1.0
%
Additional paid-in capital
2,075,275
2,045,316
29,959
1.5
%
Retained earnings
1,321,105
1,313,358
7,747
0.6
%
Accumulated other comprehensive income
6,099
4,295
1,804
42.0
%
Treasury stock, at cost
(2,470,745
)
(2,430,028
)
(40,717
)
1.7
%
Total stockholders' equity
947,812
948,859
(1,047
)
(0.1
)
%
1,232,095
1,259,371
(27,276
)
(2.2
)
%
LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Dollars in thousands)
For the three months ended June 30,
2025
2024
Cash flows from operating activities:
Net earnings (loss)
7,747
(7,489
)
Non-cash operating activities:
Depreciation and amortization
3,389
4,554
Loss on disposal or impairment of assets
119
5
Lease-related impairment and restructuring charges
274
(36
)
Gain on sale of strategic investments
(14
)
—
Gain on marketable equity securities
(141
)
—
Provision for doubtful accounts
1,256
550
Deferred income taxes
112
28
Non-cash stock compensation expense
25,410
27,985
Changes in operating assets and liabilities:
Accounts receivable, net
(34,265
)
(16,582
)
Deferred commissions
670
2,741
Other assets
5,284
3,667
Accounts payable and other liabilities
(35,861
)
(39,046
)
Income taxes
4,482
6,792
Deferred revenue
5,717
7,503
Net cash used in operating activities
(15,821
)
(9,328
)
Cash flows from investing activities:
Capital expenditures
(336
)
(226
)
Cash paid in acquisitions, net of cash received
(595
)
—
Purchases of investments
—
(1,967
)
Proceeds from sales of investments
—
2,000
Proceeds from sale of strategic investment
14
—
Purchases of strategic investments
—
(400
)
Net cash used in investing activities
(917
)
(593
)
Cash flows from financing activities:
Proceeds related to the issuance of common stock under stock and employee benefit plans
5,920
6,167
Shares repurchased for tax withholdings upon vesting of stock-based awards
(10,845
)
(6,847
)
Acquisition of treasury stock
(29,872
)
(15,785
)
Net cash used in financing activities
(34,797
)
(16,465
)
Net cash used in continuing operations
(51,535
)
(26,386
)
Effect of exchange rate changes on cash
1,221
(71
)
Net change in cash, cash equivalents and restricted cash
(50,314
)
(26,457
)
Cash, cash equivalents and restricted cash at beginning of period
413,926
339,471
Cash, cash equivalents and restricted cash at end of period
363,612
313,014
Supplemental cash flow information:
Cash received for income taxes, net
(1,414
)
(131
)
Cash paid for operating lease liabilities
2,474
2,338
Operating lease assets obtained in exchange for operating lease liabilities
576
850
Operating lease assets, and related lease liabilities, relinquished in lease terminations
—
(555
)
Purchases of property, plant and equipment remaining unpaid at period end
189
109
LIVERAMP HOLDINGS, INC AND SUBSIDIARIES
CALCULATION OF FREE CASH FLOW (1)
(Unaudited)
(Dollars in thousands)
6/30/2024
9/30/2024
12/31/2024
3/31/2025
FY2025
6/30/2025
Net cash provided by (used in) operating activities
$
(9,328
)
$
55,596
$
45,117
$
62,580
$
153,965
$
(15,821
)
Less:
Capital expenditures
(226
)
(241
)
(282
)
(293
)
(1,042
)
(336
)
Free Cash Flow
$
(9,554
)
$
55,355
$
44,835
$
62,287
$
152,923
$
(16,157
)
(1) This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. For a detailed explanation of the adjustments made to comparable GAAP measures, the reasons why management uses these measures and the material limitations on the usefulness of these measures, please see Appendix A.
LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Dollars in thousands, except per share amounts)
Qtr-to-Qtr
FY2025
FY2026
FY2026 to FY2025
6/30/2024
9/30/2024
12/31/2024
3/31/2025
FY2025
6/30/2025
%
$
Revenues
175,961
185,483
195,412
188,724
745,580
194,822
10.7
%
18,861
Cost of revenue
51,749
51,234
54,998
57,929
215,910
58,319
12.7
%
6,570
Gross profit
124,212
134,249
140,414
130,795
529,670
136,503
9.9
%
12,291
% Gross margin
70.6
%
72.4
%
71.9
%
69.3
%
71.0
%
70.1
%
Operating expenses
Research and development
44,118
43,889
42,735
45,926
176,668
39,608
(10.2
)
%
(4,510
)
Sales and marketing
54,175
51,107
50,863
56,961
213,106
51,906
(4.2
)
%
(2,269
)
General and administrative
30,961
31,369
31,994
32,175
126,499
37,345
20.6
%
6,384
Gains, losses and other items, net
206
397
149
7,241
7,993
423
105.3
%
217
Total operating expenses
129,460
126,762
125,741
142,303
524,266
129,282
(0.1
)
%
(178
)
Income (loss) from operations
(5,248
)
7,487
14,673
(11,508
)
5,404
7,221
N/A
12,469
% Margin
(3.0
)
%
4.0
%
7.5
%
(6.1
)
%
0.7
%
3.7
%
Total other income, net
4,444
4,197
4,033
4,762
17,436
3,709
(16.5
)
%
(735
)
Income (loss) from continuing operations before income taxes
(804
)
11,684
18,706
(6,746
)
22,840
10,930
N/A
11,734
Income tax expense (benefit)
6,685
9,952
9,184
(479
)
25,342
3,183
(52.4
)
%
(3,502
)
Net earnings (loss) from continuing operations
(7,489
)
1,732
9,522
(6,267
)
(2,502
)
7,747
N/A
15,236
Earnings from discontinued operations, net of tax
—
—
1,688
—
1,688
—
—
%
—
Net earnings (loss)
$
(7,489
)
$
1,732
$
11,210
$
(6,267
)
$
(814
)
$
7,747
N/A
15,236
Basic earnings (loss) per share:
Continuing Operations
(0.11
)
0.03
0.15
(0.10
)
(0.04
)
0.12
N/A
0.23
Discontinued Operations
0.00
0.00
0.03
0.00
0.03
0.00
—
%
—
Basic earnings (loss) per share
(0.11
)
0.03
0.17
(0.10
)
(0.01
)
0.12
N/A
0.23
Diluted earnings (loss) per share:
Continuing Operations
(0.11
)
0.03
0.14
(0.10
)
(0.04
)
0.12
N/A
0.23
Discontinued Operations
0.00
0.00
0.03
0.00
0.03
0.00
—
%
—
Diluted earnings (loss) per share
(0.11
)
0.03
0.17
(0.10
)
(0.01
)
0.12
N/A
0.23
Basic weighted average shares
66,621
66,294
65,631
65,957
66,126
65,448
Diluted weighted average shares
66,621
67,309
66,743
65,957
66,126
66,731
Some earnings (loss) per share amounts may not add due to rounding.
LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP EXPENSES (1)
(Unaudited)
(Dollars in thousands)
FY2025
FY2026
6/30/2024
9/30/2024
12/31/2024
3/31/2025
FY2025
6/30/2025
Expenses:
Cost of revenue
$
51,749
$
51,234
$
54,998
$
57,929
$
215,910
58,319
Research and development
44,118
43,889
42,735
45,926
176,668
39,608
Sales and marketing
54,175
51,107
50,863
56,961
213,106
51,906
General and administrative
30,961
31,369
31,994
32,175
126,499
37,345
Gains, losses and other items, net
206
397
149
7,241
7,993
423
Gross profit, continuing operations:
124,212
134,249
140,414
130,795
529,670
136,503
% Gross margin
70.6
%
72.4
%
71.9
%
69.3
%
71.0
%
70.1
%
Excluded items:
Purchased intangible asset amortization (cost of revenue)
3,846
3,748
3,686
3,135
14,415
2,750
Non-cash stock compensation (cost of revenue)
1,596
1,499
1,455
1,615
6,165
1,541
Non-cash stock compensation (research and development)
10,205
10,920
10,085
10,494
41,704
8,332
Non-cash stock compensation (sales and marketing)
7,093
7,383
7,278
5,716
27,470
6,014
Non-cash stock compensation (general and administrative)
9,091
9,266
7,942
6,341
32,640
9,523
Restructuring charges (gains, losses, and other)
206
397
149
7,241
7,993
423
Total excluded items
32,037
33,213
30,595
34,542
130,387
28,583
Expenses, excluding items:
Cost of revenue
46,307
45,987
49,857
53,179
195,330
54,028
Research and development
33,913
32,969
32,650
35,432
134,964
31,276
Sales and marketing
47,082
43,724
43,585
51,245
185,636
45,892
General and administrative
21,870
22,103
24,052
25,834
93,859
27,822
Gross profit, excluding items:
$
129,654
$
139,496
$
145,555
$
135,545
$
550,250
140,794
% Gross margin
73.7
%
75.2
%
74.5
%
71.8
%
73.8
%
72.3
%
(1) This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. For a detailed explanation of the adjustments made to comparable GAAP measures, the reasons why management uses these measures, the usefulness of these measures and the material limitations on the usefulness of these measures, please see Appendix A.
LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP EPS (1)
(Unaudited)
(Dollars in thousands, except per share amounts)
FY2025
FY2026
6/30/2024
9/30/2024
12/31/2024
3/31/2025
FY2025
6/30/2025
Income (loss) from continuing operations before income taxes
(804
)
11,684
18,706
(6,746
)
22,840
10,930
Income tax expense (benefit)
6,685
9,952
9,184
(479
)
25,342
3,183
Net earnings (loss) from continuing operations
(7,489
)
1,732
9,522
(6,267
)
(2,502
)
7,747
Earnings from discontinued operations, net of tax
—
—
1,688
—
1,688
—
Net earnings (loss)
(7,489
)
1,732
11,210
(6,267
)
(814
)
7,747
Earnings (loss) per share:
Basic
(0.11
)
0.03
0.17
(0.10
)
(0.01
)
0.12
Diluted
(0.11
)
0.03
0.17
(0.10
)
(0.01
)
0.12
Excluded items:
Purchased intangible asset amortization (cost of revenue)
3,846
3,748
3,686
3,135
14,415
2,750
Non-cash stock compensation (cost of revenue and operating expenses)
27,985
29,068
26,760
24,166
107,979
25,410
Restructuring and merger charges (gains, losses, and other)
206
397
149
7,241
7,993
423
Total excluded items from continuing operations
32,037
33,213
30,595
34,542
130,387
28,583
Income from continuing operations before income taxes and excluding items
31,233
44,897
49,301
27,796
153,227
39,513
Income tax expense
7,371
10,745
12,421
7,759
38,296
9,878
Non-GAAP net earnings from continuing operations
23,862
34,152
36,880
20,037
114,931
29,635
Non-GAAP earnings per share from continuing operations
Basic
0.36
0.52
0.56
0.30
1.74
0.45
Diluted
0.35
0.51
0.55
0.30
1.70
0.44
Basic weighted average shares
66,621
66,294
65,631
65,957
66,126
65,448
Diluted weighted average shares
68,463
67,309
66,743
67,479
67,499
66,731
Some totals may not add due to rounding
(1) This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. For a detailed explanation of the adjustments made to comparable GAAP measures, the reasons why management uses these measures and the material limitations on the usefulness of these measures, please see Appendix A.
LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP OPERATING INCOME GUIDANCE (1)
(Unaudited)
(Dollars in thousands)
For the
For the
quarter ending
year ending
September 30, 2025
March 31, 2026
Low
High
GAAP income from operations
$
15,000
$
81,000
$
85,000
Excluded items:
Purchased intangible asset amortization
3,000
11,000
11,000
Non-cash stock compensation
21,000
85,000
85,000
Restructuring costs
—
1,000
1,000
Total excluded items
24,000
97,000
97,000
Non-GAAP income from operations
$
39,000
$
178,000
$
182,000
(1) This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our condensed consolidated financial statements prepared in accordance with GAAP. For a detailed explanation of the adjustments made to comparable GAAP measures, the reasons why management uses these measures, the usefulness of these measures and the material limitations on the usefulness of these measures, please see Appendix A.
APPENDIX A
LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES
Q1 FISCAL 2026 FINANCIAL RESULTS
EXPLANATION OF NON-GAAP MEASURES AND OTHER KEY METRICS
To supplement our financial results, we use non-GAAP measures which exclude certain acquisition related expenses, non-cash stock compensation and restructuring charges. We believe these measures are helpful in understanding our past performance and our future results. Our non-GAAP financial measures and schedules are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our consolidated GAAP financial statements. Our management regularly uses these non-GAAP financial measures internally to understand, manage and evaluate our business and to make operating decisions. These measures are among the primary factors management uses in planning for and forecasting future periods. Compensation of our executives is also based in part on the performance of our business based on these non-GAAP measures.
Our non-GAAP financial measures, including non-GAAP earnings (loss) per share, non-GAAP income (loss) from operations, non-GAAP operating income (loss) margin, non-GAAP expenses and adjusted EBITDA reflect adjustments based on the following items, as well as the related income tax effects when applicable:
Purchased intangible asset amortization: We incur amortization of purchased intangibles in connection with our acquisitions. Purchased intangibles include (i) developed technology, (ii) customer and publisher relationships, and (iii) trade names. We expect to amortize for accounting purposes the fair value of the purchased intangibles based on the pattern in which the economic benefits of the intangible assets will be consumed as revenue is generated. Although the intangible assets generate revenue for us, we exclude this item because this expense is non-cash in nature and because we believe the non-GAAP financial measures excluding this item provide meaningful supplemental information regarding our operational performance.
Non-cash stock compensation: Non-cash stock compensation consists of charges for employee restricted stock units, performance shares and stock options in accordance with current GAAP related to stock-based compensation including expense associated with stock-based compensation related to unvested options assumed in connection with our acquisitions. As we apply stock-based compensation standards, we believe that it is useful to investors to understand the impact of the application of these standards to our operational performance. Although stock-based compensation expense is calculated in accordance with current GAAP and constitutes an ongoing and recurring expense, such expense is excluded from non-GAAP results because it is not an expense that typically requires or will require cash settlement by us and because such expense is not used by us to assess the core profitability of our business operations.
Restructuring charges: During the past several years, we have initiated certain restructuring activities in order to align our costs in connection with both our operating plans and our business strategies based on then-current economic conditions. As a result, we recognized costs related to termination benefits for employees whose positions were eliminated, lease and other contract termination charges, and asset impairments. These items, as well as third party expenses associated with business acquisitions in the prior years, reported as gains, losses, and other items, net, are excluded from non-GAAP results because such amounts are not used by us to assess the core profitability of our business operations.
Transformation costs: In previous years, we incurred significant expenses to separate the financial statements of our operating segments, with particular focus on segment-level balance sheets, and to evaluate portfolio priorities. Our criteria for excluding transformation expenses from our non-GAAP measures is as follows: 1) projects are discrete in nature; 2) excluded expenses consist only of third-party consulting fees that we would not incur otherwise; and 3) we do not exclude employee related expenses or other costs associated with the ongoing operations of our business. We substantially completed those projects during the third quarter of fiscal year 2018. Beginning in the fourth quarter of fiscal 2018, and through most of fiscal 2019, we incurred transaction support expenses and system separation costs related to the Company's announced evaluation of strategic options for its Marketing Solutions (AMS) business. In the first and second quarters of fiscal 2021 in response to the potential COVID-19 pandemic impact on our business and again during fiscal 2023 in response to macroeconomic conditions, we incurred significant costs associated with the assessment of strategic and operating plans, including our long-term location strategy, and assistance in implementing the restructuring activities as a result of this assessment. Our criteria for excluding these costs are the same. We believe excluding these items from our non-GAAP financial measures is useful for investors and provides meaningful supplemental information.
Our non-GAAP financial schedules are:
Non-GAAP EPS, Non-GAAP Income from Operations, and Non-GAAP expenses: Our Non-GAAP earnings per share, Non-GAAP income from operations, Non-GAAP operating income margin, and Non-GAAP expenses reflect adjustments as described above, as well as the related tax effects where applicable.
Adjusted EBITDA: Adjusted EBITDA is defined as net income from continuing operations before income taxes, other income and expenses, depreciation and amortization, and including adjustments as described above. We use Adjusted EBITDA to measure our performance from period to period both at the consolidated level as well as within our operating segments and to compare our results to those of our competitors. We believe that the inclusion of Adjusted EBITDA provides useful supplementary information to and facilitates analysis by investors in evaluating the Company's performance and trends. The presentation of Adjusted EBITDA is not meant to be considered in isolation or as an alternative to net earnings as an indicator of our performance.
Free Cash Flow: To supplement our statement of cash flows, we use a non-GAAP measure of cash flow to analyze cash flows generated from operations. Free cash flow is defined as operating cash flow less capital expenditures. Management believes that this measure of cash flow is meaningful since it represents the amount of money available from continuing operations for the Company's discretionary spending. The presentation of non-GAAP free cash flow is not meant to be considered in isolation or as an alternative to cash flows from operating activities as a measure of liquidity.
