LiveRamp Reports 7.7% Revenue Growth to $199.8 Million in Q2 Fiscal 2026

LiveRamp Holdings, Inc. reported a notable increase in financial performance for the second quarter of fiscal 2026, with revenues reaching $199.8 million, a 7.7% increase from $185.5 million in the same period last year. The company’s net earnings surged to $27.4 million, or $0.42 per diluted share, compared to $1.7 million, or $0.03 per diluted share, in the prior year. For the first half of the fiscal year, total revenues amounted to $394.7 million, reflecting a 9.2% increase from $361.4 million in the previous year. The growth was attributed to both subscription and marketplace revenue streams, with subscription revenue increasing by 4.7% and marketplace revenue by 18%.

In terms of operational efficiency, LiveRamp's gross profit for the quarter was $140.2 million, resulting in a gross margin of 70.2%, down from 72.4% a year earlier. The increase in cost of revenue, which rose by 16.3% to $59.6 million, was primarily driven by higher cloud infrastructure costs due to increased customer usage. Operating expenses decreased by 6.3% to $118.8 million, contributing to a significant rise in income from operations to $21.4 million, compared to $7.5 million in the same quarter last year.

LiveRamp's customer base has expanded, with 834 direct customers as of September 30, 2025, up from 800 a year prior. The company also reported a subscription net retention rate of 102%, indicating a slight decline from 107% in the previous year, primarily due to lower upsell revenue. Annualized recurring revenue (ARR) grew by 7% to $516 million, driven by new customer acquisitions, although the growth rate has slowed compared to previous periods.

Strategically, LiveRamp has continued to invest in its data collaboration platform, which serves as a hub for businesses to share and manage consumer data securely. The company has also been active in its stock repurchase program, buying back 2.9 million shares for $79.6 million during the first half of the fiscal year, with a total of 44.4 million shares repurchased since the program's inception. Looking ahead, LiveRamp anticipates continued growth in its subscription and marketplace revenues, supported by its expanding customer base and ongoing investments in technology and infrastructure. However, the company remains cautious about potential market challenges, including economic conditions and regulatory changes affecting data privacy and usage.