LiveRamp Holdings, Inc. (RAMP): BCG Matrix [Dec-2025 Updated]

You're looking for the hard truth on LiveRamp Holdings, Inc. (RAMP)'s portfolio health heading into the end of 2025. Honestly, the picture is sharp: the future is clearly in the Stars quadrant, driven by massive adoption of the privacy-centric Authenticated Traffic Solution (ATS) and Data Collaboration Platform (DCP) in this cookieless world. Still, we can't ignore the bedrock-the Cash Cows-which are the established US identity services providing that reliable, consistent free cash flow. But where should we place our bets next, and what legacy lines are just dragging us down? Dive in to see the full breakdown of their high-potential Question Marks and the Dogs that need immediate pruning.

Background of LiveRamp Holdings, Inc. (RAMP)

You're looking at LiveRamp Holdings, Inc. (RAMP), which you should know is a leading data collaboration technology company. Honestly, its core job is helping marketers and media owners deliver and measure marketing performance across all the places that matter. The platform is built on neutrality and interoperability, aiming to unite data across advertisers, platforms, publishers, and commerce media networks to unlock deeper insights.

Let's look at the numbers from the last full fiscal year, which ended March 31, 2025. LiveRamp Holdings reported total revenue of $746 million for fiscal year 2025, marking a 13% increase over the prior year. You'll see that the Subscription revenue was the main driver, hitting $569 million, which accounted for 76% of that total, growing 11%. The Marketplace & Other revenue segment showed faster growth at 21%, bringing in $177 million.

The operational efficiency improved, too; non-GAAP operating income for FY25 reached $136 million, up from $105 million the year before. Plus, the company's financial health looks solid, with net cash provided by operating activities jumping 46% year-over-year to $154 million. To show confidence, LiveRamp executed share repurchases totaling $101 million during fiscal 2025.

Looking into late 2025, the momentum continued, though growth rates moderated slightly, which is something to watch. For the quarter ending September 30, 2025 (Q2 FY26), total revenue was $199.83 million, representing 7.73% growth, bringing the trailing twelve months revenue to $778.79 million, up 10.13%. The most recent reported quarter (Q3 FY26, ending November 5th) saw revenue of $199.83 million, an 8.1% year-over-year increase, and the company posted an EPS of $0.55 for that period. As of December 2025, the market capitalization for LiveRamp Holdings was hovering around $1.89 Billion USD.

LiveRamp Holdings, Inc. (RAMP) - BCG Matrix: Stars

You're analyzing LiveRamp Holdings, Inc. (RAMP) as a Star because its core identity and data collaboration products operate in markets experiencing significant secular growth, primarily driven by the transition away from third-party cookies. Stars require heavy investment to maintain their high growth rate and market share, which is reflected in the company's financial structure and strategic focus.

Authenticated Traffic Solution (ATS) adoption is defintely accelerating in key international markets. This solution is central to LiveRamp Holdings, Inc.'s strategy for the post-cookie environment. For instance, in Canada alone, publishers joining the ecosystem brought the total number of publisher domains implementing ATS to over 21,000 as of January 2025. This adoption is vital because it allows marketers to target customers and measure outcomes without relying on device identifiers.

The Data Collaboration Platform (DCP) is gaining traction, especially with major retail and CPG clients. This platform, which enables secure data collaboration, is supported by the overall scale of the LiveRamp Data Collaboration Network, which comprised over 900 leading advertisers, data platforms, publishers, data providers, and commerce media networks as of the end of fiscal year 2025. The financial performance of the services supporting this network, categorized as Marketplace & Other revenue, grew by 21% in fiscal year 2025, indicating strong uptake of these collaborative services.

There is high growth in the privacy-centric identity space where LiveRamp Holdings, Inc. is a recognized leader. For the full fiscal year 2025 (ended March 31, 2025), the company delivered total revenue growth of 13%, hitting $746 million. Furthermore, the company was recognized as a Leader in the 2025 IDC MarketScape for Worldwide Data Clean Room Technology, validating its leadership position in this high-growth area.

LiveRamp Holdings, Inc. maintains a strong relative market share in the emerging cookieless identity segment, driving future revenue. This is evidenced by the company's ability to retain and grow its existing customer base, as shown by the Net Revenue Retention Rate of 105% reported in the third quarter of calendar year 2025. This suggests that existing customers are increasing their spend, a hallmark of a strong market position in a growing segment. The company has stated that more than 92% of consumer time online in the US is spent on sites and social platforms connected with LiveRamp via ATS or direct, cookieless integrations.

Here are some key metrics reflecting the high growth and scale associated with these Star products as of the latest available 2025 data:

The investment required to maintain this leadership is significant, though the strong cash flow generation suggests the company is funding this growth internally to a large degree. You can see the focus on platform enhancement and new functionality, like the Cross Media Intelligence measurement solution, as the necessary investment to keep these products as Stars.

The operational success is visible in the growth components:

• Subscription revenue for FY2025 was $569 million, an 11% increase.
• The number of direct subscription customers spending over $1 million grew by 11%, reaching a new high of 128.
• Non-GAAP operating margin expanded by 2 percentage points to 18% in FY2025.
• Net cash provided by operating activities rose 46% year-over-year to $154 million in FY2025.

If LiveRamp Holdings, Inc. sustains this success as the market matures and growth slows, these units are positioned to transition into Cash Cows.

LiveRamp Holdings, Inc. (RAMP) - BCG Matrix: Cash Cows

The Cash Cow quadrant for LiveRamp Holdings, Inc. is anchored by its Core Identity Resolution services, which provide the stable, recurring revenue base for the entire operation.

This segment is characterized by high market penetration within established US-based clients, translating directly into consistent financial performance, even as the overall market evolves. The subscription revenue stream is the clearest proxy for this established business unit.

For the full fiscal year 2025, Subscription revenue reached $569 million, which represented 76% of the total reported revenue of $746 million. This revenue base is supported by long-term contracts, evidenced by the fact that the number of direct subscription customers with annualized revenue exceeding $1 million grew by 11% to reach 128 customers in fiscal 2025.

The strength of this established business is its ability to generate significant cash flow with relatively lower investment needs compared to newer, high-growth areas. The Non-GAAP Gross Margin for fiscal 2025 stood at a robust 74%, indicating strong profitability on the core service delivery.

The cash generation power is clear when you look at the full fiscal year 2025 results. Net cash provided by operating activities surged by 46% year-over-year, reaching a record $154 million. This high cash conversion is further supported by an accrual ratio of -0.19 for the year to September 2025, suggesting earnings significantly understated free cash flow.

The low-growth characteristic for this mature segment is suggested by the recent sequential performance; for the second quarter of fiscal 2026 (ended September 30, 2025), Subscription revenue grew by 5% year-over-year, compared to the higher 18% growth seen in the Marketplace & Other revenue segment.

You should view these Cash Cows as the engine funding the company's strategic bets. Here are the key financial markers for the established business in FY2025:

The focus for management here is maintaining the competitive advantage and optimizing efficiency, not aggressive market expansion spending. Investments should target infrastructure that supports the existing client base and improves cash flow extraction.

The stability of this segment is built upon several foundational elements:

• Core identity infrastructure using omnichannel, deterministic technology.
• High relative share in the foundational data connectivity market.
• Consistent revenue from major advertisers and publishers.
• High cash generation relative to required maintenance investment.

For the second quarter of fiscal 2026, the Annual Recurring Revenue (ARR) stood at $516 million, showing the continued scale of the committed, recurring revenue base that defines this Cash Cow category.

Finance: draft 13-week cash view by Friday.

LiveRamp Holdings, Inc. (RAMP) - BCG Matrix: Dogs

Dogs are business units or products with a low market share in low-growth markets. For LiveRamp Holdings, Inc. (RAMP), this quadrant is likely represented by revenue streams that are not part of the core, high-growth subscription offerings like the ATS (Authenticated Traffic Solution) and DCP (Data Collaboration Platform).

The components categorized as Dogs align with older, non-strategic product lines and services tied to the sunsetting third-party cookie ecosystem. These areas are characterized by lower margins and a lack of scalability compared to the platform-based subscription model.

The financial data for the fiscal year ended March 31, 2025, shows a clear split in revenue contribution. The Marketplace & Other segment, which would house these lower-growth, less strategic offerings, accounted for a minority share of the total revenue.

For the fiscal year ended March 31, 2025, LiveRamp Holdings, Inc. (RAMP) reported total revenue of $746 million. The segment most likely containing the Dogs is Marketplace & Other revenue, which was $177 million, representing 24% of the total revenue for that fiscal year. This contrasts sharply with the Subscription revenue, which was $569 million, or 76% of the total, indicating the strategic pivot away from the lower-growth areas.

Looking at the most recent quarter, Q4 2025, the Marketplace & Other revenue was $44 million, showing a year-over-year increase of 14%. The core Subscription revenue for Q4 2025 was $145 million, up 9% year-over-year. The lower growth rate in the Marketplace & Other segment, despite an absolute increase, supports its classification as a lower-growth area relative to the core subscription business.

The characteristics of these Dog-like services include:

• Older, non-strategic product lines that have been deprioritized in favor of the ATS and DCP.
• Services tied to declining third-party cookie-based advertising models.
• Low-margin, custom integration projects that do not scale across the platform.
• Any legacy data storage or processing services facing intense competition from cloud providers.

Here is a comparison of the two primary revenue segments for the fiscal year ended March 31, 2025:

The non-GAAP operating margin for the full fiscal year 2025 was 18%, an expansion of 2 percentage points year-over-year, suggesting that while the Marketplace & Other segment may be low-margin, the overall company margin improvement is being driven by the higher-margin Subscription business.

For the fourth quarter ended March 31, 2025, the GAAP operating loss for LiveRamp Holdings, Inc. (RAMP) was $12 million, which was an expansion of 2 percentage points compared to the prior year period's loss.

LiveRamp Holdings, Inc. (RAMP) - BCG Matrix: Question Marks

You're looking at the parts of LiveRamp Holdings, Inc. that are burning cash now for a chance at massive future returns. These are the areas with high market potential but where LiveRamp Holdings, Inc. hasn't secured a dominant position yet. They demand heavy investment to move them into the Star quadrant, or they risk becoming Dogs.

New Geographic Expansions, such as into APAC or LATAM, where market share is still minimal but potential growth is high

International expansion represents a classic Question Mark. While the core U.S. market drives the bulk of the revenue, these newer regions are where the growth story needs to accelerate. For the quarter ended September 30, 2025, international revenue was only $11.1 million out of total revenue of $199.8 million for that quarter. This low absolute number, set against the backdrop of a total company revenue growth of 13% in Fiscal Year 2025, shows the minimal current share outside the U.S. The strategy here is to pour resources into building out the network and securing foundational clients in these high-potential territories, hoping to quickly scale that $11.1 million figure.

Emerging AI-driven data quality and activation tools that require significant R&D investment

The introduction of new AI capabilities, including agentic AI solutions, in October 2025 signals a major investment area. LiveRamp Holdings, Inc. is positioning itself as an AI enabler, feeding its network signals to autonomous agents. This requires significant upfront cash, which is reflected in the Research & Development (R&D) spend. For the quarter ended September 30, 2025, R&D expenses were $37.0 million. While this spend was down 15.8% year-over-year for that quarter, it still represents a substantial cash outlay dedicated to future-proofing the platform, a hallmark of a Question Mark investment.

Ventures into new verticals outside of core advertising and marketing, like healthcare data collaboration

The platform's success in serving 'healthcare innovators' suggests a deliberate push into verticals beyond traditional advertising and marketing. These new vertical solutions, often leveraging the platform's clean room technology, are nascent in terms of revenue contribution but are critical for long-term diversification. The growth in Marketplace & Other revenue, which hit $50 million in the quarter ended September 30, 2025 (an 18% year-over-year increase), likely captures some of this early monetization from new use cases, but the overall market share within these specific verticals remains low.

High-risk, high-reward product features that are still in beta testing with a small client base

The new AI-Powered Segmentation and AI-Powered Search features, announced in October 2025, are prime examples of high-risk, high-reward bets. These tools allow marketers to build segments using natural language prompts in minutes, a significant shift from older methods. The risk lies in adoption speed and whether these features translate into immediate, high-margin subscription revenue that justifies the development cost. The reward is capturing market leadership in the next generation of data activation. The company is focused on making its platform faster and easier to use to drive adoption of these new functions.

Here's a look at the financial context for these growth/investment areas as of the latest reported quarters in 2025:

The overall company is showing positive GAAP operating results, with GAAP income from operations at $21 million for the quarter ending September 30, 2025. However, the specific Question Mark investments are the ones consuming cash relative to their current market share. You need to watch the growth rate of the Marketplace & Other segment-that 18% growth in Q2 FY26 is the key indicator of whether these bets are gaining traction quickly enough to avoid becoming Dogs.