Breaking Down LiveRamp Holdings, Inc. (RAMP) Financial Health: Key Insights for Investors

You're looking at LiveRamp Holdings, Inc. (RAMP) and wondering if the data collaboration story is translating to real bottom-line strength, and honestly, the numbers for fiscal year 2025 (FY25) and the latest quarter are defintely a mixed bag we need to unpack. The company closed out FY25 with total revenue of $746 million, driven by $569 million in Subscription revenue, which is solid, but the real question is how they manage profitability and growth in a tough ad-tech environment. Here's the quick math: they delivered $136 million in Non-GAAP Operating Income for FY25, an 18% margin, which shows operating discipline, but the recent Q2 2026 results-reporting $199.8 million in revenue and $27.4 million in net income-tell a story of short-term gross margin pressure from their infrastructure migration. We need to focus on how they execute on the full-year revenue guidance of $804 million to $818 million and leverage their $369.4 million in cash to capitalize on the clear opportunities in commerce media and AI integration.

Revenue Analysis

You want to know if LiveRamp Holdings, Inc. (RAMP) is still a growth story, and the short answer is yes, but the growth drivers are starting to shift. For fiscal year 2025 (FY2025), which ended March 31, 2025, LiveRamp delivered total revenue of $746 million, marking a strong 13% year-over-year increase. That's solid performance, especially given the macro uncertainties we've seen in the advertising technology space.

The company's revenue streams are clearly split into two primary segments: Subscription and Marketplace & Other. Subscription revenue is your reliable, recurring backbone, while Marketplace & Other provides the higher-velocity upside. It's a classic software-as-a-service (SaaS) model with a transactional component bolted on. You need to watch both, because the growth rates tell a more interesting story than the raw numbers alone.

Here's the quick math on how the revenue broke down for the full fiscal year 2025:

Subscription Revenue, which comes from the core data collaboration platform, remains the dominant financial pillar, contributing 76% of the total $746 million in revenue. Still, the 11% growth in this segment for FY2025 signals a healthy, sticky customer base. This stability is defintely what you want to see in a platform business.

The real acceleration is happening in the Marketplace & Other segment, which surged by 21% year-over-year to hit $177 million. This segment includes the transactional revenue from data usage and media marketplace activities, and its faster growth rate suggests that customers are increasing their usage and adoption of LiveRamp's broader network capabilities, not just the foundational subscription. Also, the number of direct subscription customers spending over $1 million grew by 11%, reaching 128 customers, which shows successful upselling to the largest accounts. A deeper dive into the company's financial health is available in this analysis: Breaking Down LiveRamp Holdings, Inc. (RAMP) Financial Health: Key Insights for Investors.

The significant change we're tracking is the outperformance of the Marketplace segment. It's growing nearly twice as fast as the core subscription business, which means LiveRamp is successfully monetizing the network effect of its platform (the Data Collaboration Network). This trend is further supported by the launch of new capabilities like Cross-Media Intelligence, designed to enhance media measurement, which should continue to fuel growth in transactional revenue. You're seeing a shift from a purely subscription-driven model to a hybrid model where usage-based fees are becoming a more substantial growth engine.

Profitability Metrics

You're looking for a clear read on LiveRamp Holdings, Inc. (RAMP) profitability, and the core takeaway is this: the company maintains a high-quality gross margin typical of a software-as-a-service (SaaS) model, but the real story is the dramatic leverage in its operating profitability. In the fiscal year 2025, LiveRamp reported a GAAP Gross Margin of 71%, but its Non-GAAP Operating Margin expanded significantly to 18%, signaling a strong move toward operational maturity.

Here's the quick math on the gross level: For the fiscal year ending March 31, 2025, LiveRamp generated a GAAP Gross Profit of $530 million on total revenue of $746 million. That 71% GAAP Gross Margin, while solid, actually compressed by two percentage points year-over-year. This compression is a near-term risk, defintely tied to the infrastructure migration challenges the company is managing, but the Non-GAAP Gross Margin of 74% shows the underlying business economics remain strong. They're spending more now to be faster later.

• Gross Margin: 71% (GAAP FY2025)
• Operational Efficiency: Cost management is improving.
• Near-Term Risk: Infrastructure migration is pressuring margins.

When we move down the income statement, the difference between the Generally Accepted Accounting Principles (GAAP) and Non-GAAP figures is where you see the company's true operational efficiency. The GAAP Operating Margin for FY2025 was a very narrow 1%, translating to only $5 million in GAAP Operating Income. This is primarily due to non-cash charges like stock-based compensation and amortization of purchased intangible assets.

But strip those out, and the Non-GAAP Operating Income was a robust $136 million, resulting in an 18% Non-GAAP Operating Margin-an expansion of two percentage points year-over-year. This shows that the core business, before accounting for non-cash expenses, is generating substantial cash flow. The net result, however, was a GAAP diluted loss per share of just $0.01 for the full year. Analysts, however, are betting on this operational strength, with consensus views pointing to a net profit margin climbing to 4.9% as the company scales. The operating leverage is real.

To put LiveRamp's profitability into context, we need to compare it to the AdTech and Data-as-a-Service industry averages. While LiveRamp's 71% GAAP Gross Margin is excellent, it trails some peers like Pinterest, which reported a gross profit margin closer to 79.99% in the second quarter of 2025. Still, LiveRamp's focus on enterprise data collaboration places it in a high-margin niche. The trend is what matters most here: the Non-GAAP Operating Margin is projected to expand further to 22-23% in the current fiscal year, which is a clear sign that management is successfully controlling operating expenses as revenue grows.

Here is a snapshot of the key profitability metrics for LiveRamp Holdings, Inc. (RAMP) for the fiscal year 2025, which you can use as a baseline when diving deeper into Breaking Down LiveRamp Holdings, Inc. (RAMP) Financial Health: Key Insights for Investors.

Debt vs. Equity Structure

You want to know how LiveRamp Holdings, Inc. (RAMP) funds its growth, and the quick answer is: almost entirely through equity and cash flow, not debt. Their balance sheet is one of the cleanest in the industry, signaling a strong preference for financial self-reliance and minimal leverage risk.

As of the third quarter of fiscal year 2025 (Q3 FY25), LiveRamp Holdings, Inc. (RAMP) maintains a remarkably low-leveraged structure. Their total common equity stood at approximately $957.7 million. With a total liabilities figure of around $295.5 million, the majority of their obligations are operational (like accounts payable and deferred revenue), not interest-bearing debt. Honestly, this is a very safe position.

Overview of Debt Levels and Leverage

The company's debt levels are negligible, which is a major green flag for financial health. The most telling figure is the debt-to-equity (D/E) ratio, which measures how much of a company's financing comes from debt versus shareholders' equity. LiveRamp Holdings, Inc. (RAMP)'s D/E ratio was near zero, reported at just 0.04 as of Q2 2025.

Here's the quick math: A ratio of 0.04 means for every dollar of shareholder equity, the company uses only four cents of debt to finance its assets. This is defintely a conservative approach. For a high-growth software and data company, which LiveRamp Holdings, Inc. (RAMP) is, this low leverage is a deliberate strategic choice.

To put LiveRamp Holdings, Inc. (RAMP)'s financial structure in perspective, consider the industry benchmark:

• LiveRamp Holdings, Inc. (RAMP) D/E Ratio (Q2 2025): 0.04
• Typical Software/Data Industry D/E Ratio: Often ranges between 0.20 and 0.50.

The company is essentially debt-free in the traditional sense, which drastically reduces its financial risk during economic downturns or periods of rising interest rates. This low leverage reflects a robust net cash position, with cash and equivalents around $376.8 million in Q3 2025.

Financing Strategy: Equity Over Debt

LiveRamp Holdings, Inc. (RAMP)'s financing strategy clearly favors equity funding and organic cash generation over debt. The absence of significant debt issuances or refinancing activity in 2024 and 2025 is a direct result of this low-leverage model. Instead of borrowing, the company is actively returning capital to shareholders, a classic sign of a mature, cash-generating business.

Their focus is on managing the equity side of the balance sheet, not the debt side. This is a company that buys back its own stock.

The primary use of capital outside of operations in FY25 has been equity-focused:

• Fiscal Year 2025 Share Repurchases: Totaled approximately $101 million.
• Remaining Share Repurchase Authorization: Approximately $256 million as of March 31, 2025.

This share repurchase activity is a form of equity funding management. It reduces the number of outstanding shares, which can boost earnings per share (EPS) and signal management's confidence in the stock's value. The table below summarizes the core components of their capital structure:

This conservative structure means LiveRamp Holdings, Inc. (RAMP) is well-insulated from interest rate volatility and has significant capacity to take on debt if a major strategic acquisition or capital expenditure opportunity arises. For a deeper dive into the company's overall performance, you should read Breaking Down LiveRamp Holdings, Inc. (RAMP) Financial Health: Key Insights for Investors.

Liquidity and Solvency

You want to know if LiveRamp Holdings, Inc. (RAMP) has the cash on hand to cover its short-term bills, and the answer is a resounding yes. The company's liquidity position is exceptionally strong, backed by a significant cash reserve and minimal debt, which gives them a lot of financial flexibility for near-term operations and strategic investments.

A quick look at the balance sheet, using the latest available metrics from the second quarter of fiscal year 2026 (Q2 FY2026), shows LiveRamp Holdings, Inc. is in excellent shape. It's a clean balance sheet, honestly.

• Current Ratio: The ratio sits at a healthy 2.84 as of Q2 FY2026. This means the company has $2.84 in current assets for every dollar of current liabilities. For a software-as-a-service (SaaS) company, this is a very comfortable buffer.
• Quick Ratio (Acid-Test Ratio): This ratio, which excludes less-liquid inventory, is also robust at approximately 2.55. This high number is a clear sign that even without selling any inventory, LiveRamp Holdings, Inc. can easily meet its immediate obligations.
• Cash Ratio: The most conservative measure, the Cash Ratio, was reported at 1.67 in the same period, confirming a very strong cash position relative to short-term liabilities.

Here's the quick math on their short-term health:

Working Capital and Cash Flow Trends

LiveRamp Holdings, Inc.'s working capital trends have been favorable, though management expects some normalization. The strong free cash flow (FCF) in the 2025 fiscal year (FY2025) was partly driven by positive working capital movements in the fourth quarter. For investors, the key takeaway is the company's ability to generate cash from its core operations, which is the defintely the most vital sign of financial health.

The cash flow statement for the fiscal year ending March 31, 2025, tells a compelling story of improved operational efficiency:

• Operating Cash Flow: Net cash provided by operating activities was a strong $154 million in FY2025, which represents a significant 46% increase year-over-year.
• Investing Cash Flow: This is generally a minor use of cash, as is typical for a software company with low capital expenditure (CapEx).
• Financing Cash Flow: The company deployed capital in FY2025, repurchasing approximately 3.8 million shares for $101 million, signaling management's confidence and commitment to returning value to shareholders.

Looking ahead, the company maintains a strong balance sheet with $377 million in cash and short-term investments and, crucially, holds zero gross debt. This is a massive strength. They anticipate generating approximately $160 million in free cash flow for the current fiscal year (FY2026), which is a solid foundation for continued growth and share buybacks. The Debt-to-Equity Ratio is a minimal 0.04, further underscoring the low financial risk. For a deep dive into the broader strategic picture, check out the full post at Breaking Down LiveRamp Holdings, Inc. (RAMP) Financial Health: Key Insights for Investors.

Valuation Analysis

You want to know if LiveRamp Holdings, Inc. (RAMP) is overvalued or undervalued, and the short answer is: it trades at a premium on earnings but looks significantly undervalued based on its future cash flow potential. The market is skeptical, but the discounted cash flow (DCF) model suggests a strong upside.

As of mid-November 2025, LiveRamp's stock price sits around $28.74, well below the analyst consensus target and its calculated intrinsic value. The stock has traded in a 52-week range between a low of $22.82 and a high of $36.08, so it's currently sitting in the lower half of that range. This is a classic case where relative valuation (comparing ratios) and intrinsic valuation (DCF) tell two different stories.

Here's the quick math on the key valuation multiples for LiveRamp Holdings, Inc. (RAMP) as of the trailing twelve months (TTM) ending late 2025:

• Price-to-Earnings (P/E) Ratio: At approximately 48.23x, the P/E ratio is high, sitting materially above the Technology sector average of roughly 31.43x. This premium suggests investors are pricing in high future earnings growth, or the stock is relatively expensive compared to its current earnings.
• Price-to-Book (P/B) Ratio: The ratio is a modest 1.86. This is a good sign; it means the stock is trading for less than twice its book value per share, which is not an excessive premium for a growth-focused software company.
• Enterprise Value-to-EBITDA (EV/EBITDA): The multiple is around 23.60x. This is also considered high, especially when the industry median is closer to 13.1x. The high EV/EBITDA reflects a premium on the company's operating performance before non-cash charges and financing costs.

What this estimate hides is the company's shift toward profitability, with net profit margins jumping to 4.9% from 0.2% last year. That margin expansion is what's driving the positive DCF view, but the market is defintely waiting for consistency.

Analyst Consensus and Intrinsic Value

The Wall Street consensus is a pragmatic 'Hold' rating, which reflects the mixed signals from the valuation ratios. One analyst has a 'Sell' rating, four have a 'Hold,' and three have a 'Buy' rating. The average 12-month price target is approximately $40.83. This target implies a significant upside of over 40% from the current price, indicating that analysts believe the stock is undervalued relative to its future potential.

To be fair, the intrinsic valuation is even more bullish. Our DCF model suggests a fair value estimate of around $49.36. This means LiveRamp Holdings, Inc. is trading at a discount of over 40% to its estimated intrinsic value. The market's skepticism is likely rooted in concerns about revenue concentration and the need to meet ambitious earnings targets, but the recent acceleration in profitability is a strong counter-argument.

Dividend Policy and Shareholder Return

LiveRamp Holdings, Inc. is not a dividend stock. The company does not currently pay a dividend, so both the dividend yield and payout ratio are 0.00%. Instead of returning capital via dividends, the company is focused on reinvesting its earnings back into the business for growth initiatives, plus it has engaged in share repurchases, totaling $80 million fiscal year-to-date. This reinvestment strategy is typical for a growth-oriented technology company still in the process of scaling its platform and expanding its profit margins.

For a deeper dive into the company's strategic position and financial health beyond just the multiples, you should check out the full analysis: Breaking Down LiveRamp Holdings, Inc. (RAMP) Financial Health: Key Insights for Investors.

Next Step: Review the Q2 FY26 earnings call transcript to better understand management's confidence in achieving the revenue and margin forecasts that underpin the high DCF valuation.

Risk Factors

You need to look past LiveRamp Holdings, Inc. (RAMP)'s strong top-line growth-total revenue hit $746 million in fiscal year 2025 (FY25)-and understand the two main risk categories: the external, existential threat of data privacy rules, and the internal, operational risk of customer concentration. Honestly, the biggest near-term challenge is managing the transition while these external forces reshape the entire ad-tech landscape.

External and Regulatory Headwinds

The core business of LiveRamp Holdings, Inc. (RAMP), which is identity resolution and data connectivity, is directly exposed to a rapidly shifting regulatory environment. Since there is no single US federal privacy law, a patchwork of state-level regulations, like the California Consumer Privacy Act (CCPA), creates a continuous compliance burden that can restrict how clients use data on the platform.

Also, the decline of third-party cookies and tracking technology is a massive industry shift. If major web browsers or platforms accelerate their phase-out, it could limit the utility of LiveRamp's core identity graph, RampID, for some clients. The company is mitigating this by pushing its privacy-centric solutions, like its data clean rooms and the new Cross-Media Intelligence product, which are designed to work in a world without third-party identifiers.

• Regulatory risk: State-level privacy laws increase compliance costs.
• Technology risk: Browser changes could restrict data usage for clients.
• Mitigation: Strategic pivot to Cross-Media Intelligence and clean room technology.

Operational and Financial Concentration

The most material risk, highlighted in recent analyst reports, is the company's reliance on a small number of large clients for a significant portion of its revenue. This revenue concentration makes LiveRamp Holdings, Inc. (RAMP) vulnerable to sudden revenue impacts if a major customer decides to churn or downsell. For example, losing just one or two of the 128 direct subscription customers spending over $1 million annually could immediately hit the subscription revenue, which was $569 million in FY25.

Another operational challenge is the ongoing infrastructure migration. This is a necessary upgrade, but it has created short-term gross margin pressure. The GAAP gross margin for FY25 compressed by 2 percentage points to 71%. Management expects margins, which were around 72% recently due to this migration, to recover to the mid-70% range by the fourth fiscal quarter, but that recovery is a key operational milestone we need to watch. Here's the quick math: if costs rise from inflation-especially in hosting and sales-and the migration delays persist, that margin recovery gets much harder to achieve.

Mitigation and Strategic Offense

LiveRamp Holdings, Inc. (RAMP) isn't just sitting still; they are actively working to mitigate these risks through strategic offense. To address the customer concentration risk, they are rolling out a new usage-based pricing model, which is designed to capture more value from existing clients and attract mid-market growth. This is a smart move because it helps diversify revenue away from a few fixed-fee contracts.

Financially, the company has a strong foundation to weather near-term operational bumps. Net cash provided by operating activities surged 46% to a record $154 million in FY25, providing a significant cushion for investment in their new products and infrastructure completion. Plus, the company is defintely committed to shareholder value, repurchasing $101 million in stock during FY25. You can read more about the company's performance in Breaking Down LiveRamp Holdings, Inc. (RAMP) Financial Health: Key Insights for Investors.

Next Step: Monitor the Q3/Q4 fiscal year 2026 earnings reports for updates on the infrastructure migration completion and the gross margin recovery trajectory.

Growth Opportunities

You're looking for a clear map of where LiveRamp Holdings, Inc. (RAMP) goes next, and the answer is simple: they are pivoting hard into a privacy-first, AI-enabled future, which is driving significant financial leverage. The company's fiscal year 2025 performance confirms this shift, showing a strong lift in both revenue and cash flow, despite broader macroeconomic headwinds.

Here's the quick math on their recent results: LiveRamp reported total revenue of $746 million for fiscal year 2025, a 13% year-over-year increase. More importantly, their non-GAAP operating income hit $136 million, which translated to a significant non-GAAP operating margin expansion to 18%. That's a defintely strong signal of operational discipline and a successful shift toward higher-margin subscription services.

FY 2025 Financial Snapshot and Projections

The core of LiveRamp's model is subscription revenue, which is the predictable, sticky part of the business. This segment grew 11% to $569 million and accounted for 76% of total revenue. But the high-growth story is in their Marketplace & Other segment, which surged 21% to $177 million. This shows that clients are not just subscribing, they are actively transacting data through the platform.

The management team is also focused on shareholder value, which is a key signal for long-term investors. They repurchased approximately 3.8 million shares for $101 million during the fiscal year, backed by a record operating cash flow that jumped 46% to $154 million. That's a lot of cash flow to deploy.

Product Innovation and Strategic Growth Drivers

The future growth isn't just about more customers; it's about deeper integration into their workflows. LiveRamp is strategically positioned to capitalize on the shift away from third-party cookies and the explosion of Connected TV (CTV) and retail media. They are making their platform indispensable by solving the industry's biggest problems: identity and measurement.

The company's growth is fueled by a few key product innovations and market expansions:

• Cross-Media Intelligence: This new solution provides unified, de-duplicated reporting across screens and platforms, helping marketers measure and optimize campaigns with precision.
• AI-Driven Capabilities: They've introduced agentic orchestration tools and AI-assisted search in the Data Marketplace, which allows autonomous AI agents to access identity resolution and segmentation tools. This positions them as a critical partner for AI advertising.
• Commerce Media Networks: LiveRamp is enhancing the value of ad inventory on retail media networks (RMNs) by enabling clean room collaboration and superior measurement for brand partners.
• New Verticals: While marketing is the killer app, the company is actively expanding into new, high-value verticals like healthcare, fraud and risk, and the public sector, which significantly expands their total addressable market (TAM).

Plus, their new usage-based pricing model, currently in pilot, is designed to attract new clients and accelerate commercial momentum by offering greater flexibility.

Competitive Moat: Neutrality and Identity

LiveRamp's competitive advantage, or its strategic moat, is built on its neutral position and its core identity resolution technology, RampID. In a fragmented ad tech landscape, they act as the trusted, interoperable middle layer.

The company's data collaboration network boasts over 900 leading advertisers, data platforms, and publishers, including a major partnership with Netflix Ads to activate first-party data segments via RampID across their premium CTV inventory. This scale and neutrality are hard to replicate. You can learn more about their core philosophy here: Mission Statement, Vision, & Core Values of LiveRamp Holdings, Inc. (RAMP).

Their focus on privacy-preserving data collaboration-using RampID, a durable, people-based identifier-is a powerful differentiator as global privacy regulations tighten. It future-proofs their clients' marketing strategies, which is a massive value proposition. This is a game of trust, and LiveRamp is winning it.