LiveRamp reported total revenue of $212 million for the quarter ended December 31, 2025, a 9% year‑over‑year increase that fell slightly below the higher analyst consensus estimate of $215.7 million but exceeded the lower estimate of $211.55 million. The growth was driven by subscription revenue of $158 million, up 9% YoY, and marketplace & other revenue of $54 million, up 8% YoY, reflecting strong demand for the company’s data‑marketplace platform and the expansion of AI‑enabled data products.
Non‑GAAP diluted earnings per share rose to $0.76, beating the consensus estimate of $0.70 by $0.06 (8.6%) and the lower estimate of $0.68 by $0.08 (11.8%). The earnings beat was largely attributable to disciplined cost management, pricing power in high‑margin AI and marketplace contracts, and a favorable mix shift toward subscription revenue, which carries higher margins than legacy products.
GAAP operating margin climbed to 19% and Non‑GAAP operating margin expanded to 29%, up from 11% and 23% YoY, respectively. The margin expansion reflects a higher mix of high‑margin AI and marketplace contracts, operational leverage as revenue scales, and effective cost control during the platform migration, offsetting the temporary compression from the ongoing modernization effort.
LiveRamp’s full‑year revenue guidance was set at $810 million to $814 million, slightly below the prior consensus of $827.6 million, indicating a cautious outlook for Q4. Management maintained its operating‑margin outlook of 22‑24% and reaffirmed confidence in achieving the Rule of 40 by FY2028. The conservative Q4 guidance signals management’s concern about near‑term demand headwinds, while the steady margin outlook underscores continued focus on profitability.
CEO Scott Howe highlighted record operating margin and progress on AI tools, noting that AI is a tailwind creating new nodes for the network and accelerating data volume growth. He also emphasized the deepening partnership with Publicis and the launch of new AI‑enabled marketplace offerings as key drivers of the quarter’s performance.
After the announcement, the market reacted with a 1.71% decline in aftermarket trading, reflecting investor focus on the conservative Q4 revenue outlook despite the strong Q3 profitability and margin expansion. The reaction underscores the market’s prioritization of top‑line growth acceleration over current profitability metrics.
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