Financial Data and Key Metrics Changes - The meeting confirmed a quorum with 59,497,175 shares present, representing 80.22% of the shares outstanding on the record date [4]. Business Line Data and Key Metrics Changes - No specific business line data or key metrics were discussed during the meeting. Market Data and Key Metrics Changes - No specific market data or key metrics were discussed during the meeting. Company Strategy and Development Direction and Industry Competition - The company proposed to increase the number of shares available for issuance under the equity compensation plan, which received over 75% affirmative votes [12]. - The nonbinding resolution to approve the compensation of named executive officers received over 97% affirmative votes, indicating strong shareholder support for management [14]. - The ratification of KPMG as the company's auditor for fiscal year 2026 received over 98% affirmative votes, reflecting confidence in the company's financial oversight [16]. Management's Comments on Operating Environment and Future Outlook - No specific comments from management regarding the operating environment or future outlook were provided during the meeting. Other Important Information - The meeting concluded with no questions submitted by shareholders, indicating a lack of immediate concerns or inquiries from the audience [21]. Q&A Session All Questions and Answers Question: Were there any questions submitted during the meeting? - No questions were submitted [21].

Core Insights - LiveRamp (RAMP) reported quarterly earnings of $0.44 per share, exceeding the Zacks Consensus Estimate of $0.43 per share, and up from $0.35 per share a year ago, representing an earnings surprise of +2.33% [1] - The company achieved revenues of $194.82 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.93% and increasing from $175.96 million year-over-year [2] - LiveRamp has outperformed consensus EPS estimates three times over the last four quarters and has topped consensus revenue estimates four times in the same period [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.59 on revenues of $198.98 million, and for the current fiscal year, it is $2.26 on revenues of $802.27 million [7] - The company's earnings outlook is crucial for investors, as it reflects current consensus expectations and any recent changes [4] Market Performance - LiveRamp shares have increased approximately 5.5% since the beginning of the year, while the S&P 500 has gained 7.1% [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating expectations of underperformance in the near future due to unfavorable estimate revisions prior to the earnings release [6] Industry Context - The Technology Services industry, to which LiveRamp belongs, is currently ranked in the top 41% of over 250 Zacks industries, suggesting that companies in the top half tend to outperform those in the bottom half by more than 2 to 1 [8]

Financial Data and Key Metrics Changes - Total revenue increased by 11% year-on-year, reaching $195 million, exceeding expectations by $4 million [27][28] - Non-GAAP operating income rose by 34%, amounting to $36 million, surpassing guidance by $3 million [27][34] - GAAP operating margin expanded by seven points to a record high of 10% [34] - Free cash flow outlook improved significantly due to recent tax legislation [27][34] Business Line Data and Key Metrics Changes - Subscription revenue grew by 10% to $148 million, with subscription usage revenue up approximately 40% [28][29] - Marketplace and other revenue increased by 13% to $46 million, with Data Marketplace accounting for 76% of this revenue [32] - Total RPO (contracted backlog) rose by 29% to $690 million, while current RPO increased by 14% to $451 million [29] Market Data and Key Metrics Changes - The selling environment was characterized as generally positive, with strong sales momentum and several million-dollar deals [30][31] - Average deal cycle decreased to nine months, with a higher conversion rate of pipeline into bookings [30] Company Strategy and Development Direction - The company is modernizing its pricing model to offer greater flexibility and align costs with usage, which is expected to enhance upsell opportunities and attract new clients [14][15] - Focus on AI's transformative potential in digital advertising, positioning the company as a critical partner for clients' AI ambitions [22][23] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing a robust new business pipeline and good sales momentum across several solutions [4][5] - The company anticipates continued growth in commerce media and CTV, with strong customer interest in its cleanroom strategy [11][12][23] Other Important Information - The company repurchased $30 million in stock during the first quarter, maintaining a strong balance sheet with approximately $370 million in cash and no debt [34] - The company expects to deploy a substantial portion of higher free cash flow towards share repurchases [39][42] Q&A Session Summary Question: Can you elaborate on the assumptions behind the revenue growth for Q2? - Management indicated that while Q1 exceeded expectations, they are conservatively guiding Q2 subscription usage growth to be flat year-on-year due to timing-related factors [46][47] Question: What gives confidence that the strength in Commerce Media Networks can continue? - Management highlighted strong customer engagement and the expansion of partnerships across various industries, indicating a growing network effect [51][55] Question: Can you provide balance on the momentum across Clean Room, CMI, and Commerce Media? - Management acknowledged some churn events impacting million-dollar customers but expressed confidence in a rebound due to strong sales momentum in Q2 [63][66] Question: How are pricing changes impacting new deals? - Management noted that the new pricing model is viewed favorably, reducing friction in the new business process and allowing for a more flexible entry point for clients [77][78] Question: What is LiveRamp's right to win in the rapidly changing AI environment? - Management emphasized that the company is not an AI company but an enabler, focusing on integrating proprietary data to enhance AI performance for clients [83][86]

Financial Data and Key Metrics Changes - Total revenue increased by 11% year-on-year, reaching $195 million, exceeding expectations by $4 million [27][28] - Non-GAAP operating income rose by 34%, amounting to $36 million, surpassing guidance by $3 million [27][33] - GAAP operating margin expanded by seven points to a record high of 10% [33] - Free cash flow outlook improved significantly due to recent tax legislation [27][39] Business Line Data and Key Metrics Changes - Subscription revenue grew by 10% to $148 million, with subscription usage revenue up approximately 40% [28][29] - Marketplace and other revenue increased by 13% to $46 million, with Data Marketplace accounting for 76% of this revenue [32] - Total contracted backlog (RPO) rose by 29% to $690 million, while current RPO increased by 14% to $451 million [29] Market Data and Key Metrics Changes - The selling environment was characterized as generally positive, with strong sales momentum and several million-dollar deals [30][31] - Average deal cycle decreased to nine months, with a higher conversion rate of pipeline into bookings [30] Company Strategy and Development Direction - The company is modernizing its pricing model to offer greater flexibility and align costs with usage, which is expected to enhance growth [13][15] - Focus on AI's transformative potential in digital advertising, positioning the company as a critical partner for clients' AI ambitions [20][22] - Continued investment in the data collaboration platform to support AI-driven advertising and enhance data connectivity [24][25] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing a robust new business pipeline and good sales momentum across several solutions [4][5] - The company anticipates continued growth in commerce media and CTV, driven by strong customer demand and successful integrations [12][52] - Increased confidence in achieving higher revenue growth in the latter half of the fiscal year [46] Other Important Information - The company repurchased $30 million in stock during the first quarter, with $226 million remaining under the current authorization [34] - The balance sheet remains strong with approximately $370 million in cash and short-term investments and zero debt [34] Q&A Session Summary Question: Can you elaborate on the assumptions behind the revenue growth for the second quarter? - Management noted that while Q1 outperformed expectations, they are conservatively guiding Q2 subscription usage growth to be flat year-on-year [45][46] Question: What gives confidence that the strength in Commerce Media Networks can continue? - Management highlighted the extensive customer networks and partnerships being developed, which are expected to fuel ongoing growth [48][52] Question: Can you provide balance on the momentum across Clean Room, CMI, and Commerce Media? - Management acknowledged some churn events impacting the million-dollar customer count but expressed confidence in a rebound due to strong sales momentum [61][63] Question: What is the leverage seen from offshoring and automation initiatives? - Management indicated that offshoring and smart cost management are driving low double-digit millions in cost savings, allowing for continued investment in growth areas [68][70] Question: How are pricing changes impacting new deals? - Management reported that the new pricing model is viewed favorably, reducing friction in the new business process and attracting new clients [75][78] Question: What is LiveRamp's right to win in the AI-driven marketing environment? - Management emphasized that the company is an enabler of AI, providing the necessary infrastructure for clients to leverage their proprietary data effectively [81][84]

FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 For the transition period from ----- to ----- Commission file number: 001-38669 LiveRamp Holdings, Inc. (Exact Name of Registrant as Specified in Its Charter) Delaware (State or Other Jurisd ...

Financial Performance - The company's Annual Recurring Revenue (ARR) reached $502 million, showing a year-over-year growth of 5%[9] - Subscription revenue accounted for 76% of the company's total revenue on a trailing twelve-month (TTM) basis[9] - The company's Non-GAAP gross margin was 73%, and the Non-GAAP operating margin was 19% on a TTM basis[9] - Free cash flow was $146 million, resulting in a free cash flow margin of 19% on a TTM basis[9] - Q1 FY26 revenue was $195 million, an 11% increase year-over-year[12] Revenue Breakdown - Subscription revenue in Q1 FY26 was $148 million, a 10% increase year-over-year[14] - Marketplace & Other revenue in Q1 FY26 was $46 million, a 13% increase year-over-year[14] - US revenue in Q1 FY26 was $184 million, an 11% increase year-over-year[14] - International revenue in Q1 FY26 was $11 million, a 9% increase year-over-year[14] Outlook - The company projects Q2 FY26 revenue to be approximately $197 million, representing a 6% year-over-year growth[25]

[Executive Summary](index=1&type=section&id=Executive%20Summary) LiveRamp reports strong Q1 FY26 financial performance, exceeding expectations with double-digit revenue growth and significant operating margin expansion [Q1 FY26 Financial Highlights](index=1&type=section&id=Q1%20FY26%20Financial%20Highlights) LiveRamp reported a strong start to fiscal 2026, with first-quarter results surpassing initial expectations, achieving double-digit revenue growth and substantial operating margin expansion alongside significant share repurchases Q1 FY26 Financial Performance (GAAP & Non-GAAP, in millions) | Metric | Q1 FY26 (GAAP) | YoY Change | Q1 FY26 (Non-GAAP) | YoY Change | | :-------------------------------- | :------------- | :--------- | :----------------- | :--------- | | Total Revenue | $195 | +11% | - | - | | Subscription Revenue | $148 | +10% | - | - | | Marketplace & Other Revenue | $46 | +13% | - | - | | Gross Profit | $137 | +10% | $141 | +9% | | Gross Margin | 70% | -1 pt | 72% | -1 pt | | Operating Income (Loss) | $7 | vs. ($5) | $36 | +34% | | Operating Margin | 4% | +7 pts | 18% | +3 pts | | Diluted EPS | $0.12 | - | $0.44 | - | | Net Cash Used by Operating Activities | $16 | vs. $9 | - | - | | Share Repurchases | $30 | - | - | - | [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Scott Howe expressed confidence in the company's performance, noting that Q1 FY26 results exceeded expectations due to strong revenue growth and operating margin expansion, highlighting good sales momentum across the Data Collaboration Network - Fiscal 2026 started strong, with Q1 results surpassing initial expectations, driven by **double-digit revenue growth** and **substantial operating margin expansion**[4](index=4&type=chunk) - The company is experiencing **good sales momentum** across its Data Collaboration Network, especially with the new Cross Media Intelligence measurement solution[4](index=4&type=chunk) - This performance provides confidence in the growth outlook for FY26 and beyond[4](index=4&type=chunk) [Detailed Financial Results (GAAP & Non-GAAP)](index=2&type=section&id=Detailed%20Financial%20Results%20%28GAAP%20%26%20Non-GAAP%29) This section provides a comprehensive overview of LiveRamp's GAAP and Non-GAAP financial results, including statements of operations, balance sheets, cash flows, and reconciliations [Summary of GAAP and Non-GAAP Results](index=2&type=section&id=Summary%20of%20GAAP%20and%20Non-GAAP%20Results) This section provides a comparative summary of LiveRamp's GAAP and Non-GAAP financial results for the first quarter of fiscal years 2026 and 2025, detailing key metrics such as revenue, gross profit, operating income, net earnings, and diluted earnings per share Q1 FY26 vs Q1 FY25 Financial Summary (GAAP & Non-GAAP, in millions) | Metric | Q1 FY26 GAAP | Q1 FY25 GAAP | Q1 FY26 Non-GAAP | Q1 FY25 Non-GAAP | | :-------------------------------- | :----------- | :----------- | :--------------- | :--------------- | | 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 | 0 pts | (1) pt | 1 pt | | Operating income (loss) | $7 | ($5) | $36 | $27 | | % Operating margin | 4 % | (3)% | 18 % | 15 % | | YoY change, pts | 7 pts | (4) pts | 3 pts | 2 pts | | 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 % (Diluted EPS Shares) | 0 % | 0 % | (3)% | 2 % | | Operating cash flow | ($16) | ($9) | - | - | | Free cash flow | - | - | ($16) | ($10) | [Consolidated Statements of Operations (GAAP)](index=7&type=section&id=Consolidated%20Statements%20of%20Operations%20%28GAAP%29) This chapter presents the detailed GAAP consolidated statements of operations for LiveRamp, offering a comprehensive view of revenues, cost of revenue, gross profit, operating expenses, and net earnings (loss) for Q1 FY26 and Q1 FY25, including quarter-to-quarter comparisons for FY2025 Consolidated Statements of Operations (GAAP, in thousands) | Metric | Q1 FY26 (2025) | Q1 FY25 (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 % | - | - | | 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 | Quarterly Consolidated Statements of Operations (GAAP, in thousands) | Metric | Q1 FY25 (6/30/2024) | Q2 FY25 (9/30/2024) | Q3 FY25 (12/31/2024) | Q4 FY25 (3/31/2025) | FY2025 Total | Q1 FY26 (6/30/2025) | Qtr-to-Qtr % Change (Q1 FY26 vs Q1 FY25) | | :------------------------------------ | :------------------ | :------------------ | :------------------- | :------------------ | :----------- | :------------------ | :--------------------------------------- | | Revenues | 175,961 | 185,483 | 195,412 | 188,724 | 745,580 | 194,822 | 10.7 % | | Cost of revenue | 51,749 | 51,234 | 54,998 | 57,929 | 215,910 | 58,319 | 12.7 % | | Gross profit | 124,212 | 134,249 | 140,414 | 130,795 | 529,670 | 136,503 | 9.9 % | | % Gross margin | 70.6 % | 72.4 % | 71.9 % | 69.3 % | 71.0 % | 70.1 % | - | | Income (loss) from operations | (5,248) | 7,487 | 14,673 | (11,508) | 5,404 | 7,221 | N/A | | % Margin | (3.0)% | 4.0 % | 7.5 % | (6.1)% | 0.7 % | 3.7 % | - | | Net earnings (loss) from continuing operations | (7,489) | 1,732 | 9,522 | (6,267) | (2,502) | 7,747 | N/A | | Basic earnings (loss) per share (Continuing Operations) | (0.11) | 0.03 | 0.15 | (0.10) | (0.04) | 0.12 | N/A | | Diluted earnings (loss) per share (Continuing Operations) | (0.11) | 0.03 | 0.14 | (0.10) | (0.04) | 0.12 | N/A | [Reconciliation of Non-GAAP Measures](index=8&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) This section provides detailed reconciliations of GAAP financial measures to their corresponding Non-GAAP counterparts, adjusting for items such as purchased intangible asset amortization, non-cash stock compensation, and restructuring charges to offer a clearer view of the company's underlying operational performance [Non-GAAP EPS Reconciliation](index=8&type=section&id=Non-GAAP%20EPS%20Reconciliation) This sub-section reconciles GAAP net earnings and diluted EPS to Non-GAAP figures by excluding specific non-cash and non-recurring items, providing an adjusted view of profitability for Q1 FY26 and Q1 FY25, as well as a quarter-to-quarter comparison for FY2025 and Q1 FY2026 Non-GAAP EPS Reconciliation (in thousands, except per share) | Metric | Q1 FY26 (2025) | Q1 FY25 (2024) | | :------------------------------------------ | :------------- | :------------- | | Net earnings (loss) (GAAP) | 7,747 | (7,489) | | Purchased intangible asset amortization | 2,750 | 3,846 | | Non-cash stock compensation | 25,410 | 27,985 | | Restructuring and merger charges | 423 | 206 | | Total excluded items | 28,583 | 32,037 | | Non-GAAP net earnings from continuing operations | 29,635 | 23,862 | | Non-GAAP diluted EPS from continuing operations | 0.44 | 0.35 | Quarterly Non-GAAP EPS Reconciliation (in thousands, except per share) | Metric | Q1 FY25 (6/30/2024) | Q2 FY25 (9/30/2024) | Q3 FY25 (12/31/2024) | Q4 FY25 (3/31/2025) | FY2025 Total | Q1 FY26 (6/30/2025) | | :------------------------------------------ | :------------------ | :------------------ | :------------------- | :------------------ | :----------- | :------------------ | | Net earnings (loss) from continuing operations (GAAP) | (7,489) | 1,732 | 9,522 | (6,267) | (2,502) | 7,747 | | Total excluded items from continuing operations | 32,037 | 33,213 | 30,595 | 34,542 | 130,387 | 28,583 | | Non-GAAP net earnings from continuing operations | 23,862 | 34,152 | 36,880 | 20,037 | 114,931 | 29,635 | | Non-GAAP diluted EPS from continuing operations | 0.35 | 0.51 | 0.55 | 0.30 | 1.70 | 0.44 | [Non-GAAP Operating Income Reconciliation](index=9&type=section&id=Non-GAAP%20Operating%20Income%20Reconciliation) This sub-section reconciles GAAP income (loss) from operations to Non-GAAP operating income by adding back purchased intangible asset amortization, non-cash stock compensation, and restructuring charges, providing a normalized view of operating profitability for Q1 FY26 and Q1 FY25 Non-GAAP Operating Income Reconciliation (in thousands) | Metric | Q1 FY26 (2025) | Q1 FY25 (2024) | | :------------------------------------ | :------------- | :------------- | | Income (loss) from operations (GAAP) | 7,221 | (5,248) | | Operating income (loss) margin (GAAP) | 3.7 % | (3.0)% | | Purchased intangible asset amortization | 2,750 | 3,846 | | Non-cash stock compensation | 25,410 | 27,985 | | Restructuring and merger charges | 423 | 206 | | Total excluded items | 28,583 | 32,037 | | Income from operations before excluded items (Non-GAAP) | 35,804 | 26,789 | | Non-GAAP operating income margin | 18.4 % | 15.2 % | [Adjusted EBITDA Reconciliation](index=10&type=section&id=Adjusted%20EBITDA%20Reconciliation) This sub-section reconciles GAAP net earnings from continuing operations to Adjusted EBITDA, a non-GAAP measure used to assess performance, by adding back income tax expense, other income, depreciation and amortization, non-cash stock compensation, and restructuring charges for Q1 FY26 and Q1 FY25 Adjusted EBITDA Reconciliation (in thousands) | Metric | Q1 FY26 (2025) | Q1 FY25 (2024) | | :------------------------------------ | :------------- | :------------- | | Net earnings (loss) from continuing operations (GAAP) | 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) | | Non-cash stock compensation | 25,410 | 27,985 | | Restructuring and merger charges | 423 | 206 | | Other adjustments | 25,833 | 28,191 | | Adjusted EBITDA | 36,443 | 27,497 | [Non-GAAP Expenses Reconciliation](index=17&type=section&id=Non-GAAP%20Expenses%20Reconciliation) This sub-section provides a detailed reconciliation of GAAP expenses (Cost of revenue, Research and development, Sales and marketing, General and administrative) to their Non-GAAP equivalents by excluding purchased intangible asset amortization, non-cash stock compensation, and restructuring charges across fiscal year 2025 and Q1 FY2026 Non-GAAP Expenses Reconciliation (in thousands) | Expense Category | Q1 FY25 (6/30/2024) | Q1 FY26 (6/30/2025) | | :------------------------------------ | :------------------ | :------------------ | | Cost of revenue (GAAP) | 51,749 | 58,319 | | Research and development (GAAP) | 44,118 | 39,608 | | Sales and marketing (GAAP) | 54,175 | 51,906 | | General and administrative (GAAP) | 30,961 | 37,345 | | Gains, losses and other items, net (GAAP) | 206 | 423 | | Total excluded items | 32,037 | 28,583 | | Cost of revenue (Non-GAAP) | 46,307 | 54,028 | | Research and development (Non-GAAP) | 33,913 | 31,276 | | Sales and marketing (Non-GAAP) | 47,082 | 45,892 | | General and administrative (Non-GAAP) | 21,870 | 27,822 | | Gross profit, excluding items (Non-GAAP) | $129,654 | $140,794 | | % Gross margin (Non-GAAP) | 73.7 % | 72.3 % | [Consolidated Balance Sheets](index=11&type=section&id=Consolidated%20Balance%20Sheets) This chapter presents LiveRamp's consolidated balance sheets as of June 30, 2025, and March 31, 2025, providing a snapshot of the company's assets, liabilities, and stockholders' equity, highlighting changes over the quarter Consolidated Balance Sheets (in thousands) | Metric | June 30, 2025 | March 31, 2025 | Variance | % Variance | | :------------------------------------ | :------------ | :------------- | :------- | :--------- | | **Assets** | | | | | | Cash and cash equivalents | 363,612 | 413,331 | (49,719) | (12.0)% | | Total current assets | 632,427 | 656,189 | (23,762) | (3.6)% | | Total Assets | 1,232,095 | 1,259,371 | (27,276) | (2.2)% | | **Liabilities and Stockholders' Equity** | | | | | | Total current liabilities | 222,384 | 247,518 | (25,134) | (10.2)% | | Total Stockholders' equity | 947,812 | 948,859 | (1,047) | (0.1)% | | Total Liabilities and Stockholders' Equity | 1,232,095 | 1,259,371 | (27,276) | (2.2)% | [Consolidated Statements of Cash Flows](index=12&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) This chapter details LiveRamp's consolidated statements of cash flows for the three months ended June 30, 2025, and 2024, categorizing cash movements into operating, investing, and financing activities, and showing the net change in cash and cash equivalents Consolidated Statements of Cash Flows (in thousands) | Cash Flow Activity | Q1 FY26 (2025) | Q1 FY25 (2024) | | :------------------------------------ | :------------- | :------------- | | Net cash used in operating activities | (15,821) | (9,328) | | Net cash used in investing activities | (917) | (593) | | Net cash used in financing activities | (34,797) | (16,465) | | Net cash used in continuing operations | (51,535) | (26,386) | | Net change in cash, cash equivalents and restricted cash | (50,314) | (26,457) | | Cash, cash equivalents and restricted cash at end of period | 363,612 | 313,014 | [Free Cash Flow Calculation](index=14&type=section&id=Free%20Cash%20Flow%20Calculation) This chapter presents the calculation of Free Cash Flow, a non-GAAP measure, by subtracting capital expenditures from net cash provided by (used in) operating activities, offering insights into the cash available for discretionary spending for Q1 FY26 and prior quarters Free Cash Flow (in thousands) | Metric | Q1 FY25 (6/30/2024) | Q2 FY25 (9/30/2024) | Q3 FY25 (12/31/2024) | Q4 FY25 (3/31/2025) | FY2025 Total | Q1 FY26 (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) | [Business Performance & Outlook](index=3&type=section&id=Business%20Performance%20%26%20Outlook) LiveRamp achieved key business milestones and provided financial guidance for Q2 and full-year FY26, projecting continued growth and profitability [Additional Business Highlights & Metrics](index=3&type=section&id=Additional%20Business%20Highlights%20%26%20Metrics) LiveRamp achieved significant business milestones in Q1 FY26, including industry recognition as a Leader in Data Clean Room Technology, strong ROI demonstrated by a Forrester study, and expanded partnerships, with key operational metrics showing growth in high-value customers and strong retention rates - Recognized as a Leader in the IDC Marketscape: Worldwide Data Clean Room Technology for Advertising and Marketing Use Cases, highlighting an extensive partner network (over **1,000 partners**), interoperable architecture, and native activation capabilities[8](index=8&type=chunk) - A Forrester Consulting study revealed a **313% ROI** and **$9.6 million in business benefits** over three years for a composite LiveRamp customer, with a payback period of less than **6 months**[8](index=8&type=chunk) - New and expanded partnerships include powering the clean room solution for Walgreens Advertising Group (WAG), partnering with REMAX for its new media network, and expanding the partnership with Western Union[8](index=8&type=chunk) Key Business Metrics | Metric | Q1 FY26 (June 30, 2025) | Q1 FY25 (Prior Year Period) | | :------------------------------------ | :---------------------- | :-------------------------- | | Customers with >$1M Annualized Subscription Revenue | 127 | 115 | | Direct Subscription Customers | 835 | 900 | | Subscription Net Retention | 104% | - | | Platform Net Retention | 105% | - | | Annualized Recurring Revenue (ARR) | $502 million | Up 5% YoY | | Current Remaining Performance Obligations (CRPO) | $451 million | Up 14% YoY | [Financial Outlook](index=4&type=section&id=Financial%20Outlook) LiveRamp provided its financial guidance for the upcoming second quarter of fiscal 2026 and the full fiscal year 2026, projecting continued revenue growth and operating income, with specific targets for both GAAP and Non-GAAP measures Q2 FY26 Guidance (Quarter ending September 30, 2025, in millions) | Metric | Expectation | | :---------------------- | :------------ | | Revenue | $197 (6% increase) | | GAAP Operating Income | Approximately $15 | | Non-GAAP Operating Income | Approximately $39 | FY26 Guidance (Year ending March 31, 2026, in millions) | Metric | Expectation | | :---------------------- | :-------------------------------- | | Revenue | Between $798 and $818 (7% to 10% increase) | | GAAP Operating Income | Between $81 and $85 | | Non-GAAP Operating Income | Between $178 and $182 | [Company Information & Legal Disclosures](index=4&type=section&id=Company%20Information%20%26%20Legal%20Disclosures) This section provides an overview of LiveRamp's business, outlines forward-looking statements and risk factors, and explains non-GAAP financial measures [About LiveRamp](index=4&type=section&id=About%20LiveRamp) LiveRamp is a leading data collaboration technology company that empowers marketers and media owners to enhance marketing performance, facilitating seamless data integration across various platforms to drive insights, consumer experiences, and measurable growth - LiveRamp is a leading data collaboration technology company, empowering marketers and media owners to deliver and measure marketing performance[11](index=11&type=chunk) - Its data collaboration network unites data across advertisers, platforms, publishers, data providers, and commerce media networks to unlock insights and drive growth[11](index=11&type=chunk) - Built on neutrality, interoperability, and global scale, LiveRamp helps maximize data value and accelerate innovation in an AI-driven, outcomes-focused world[12](index=12&type=chunk) [Forward-Looking Statements & Risk Factors](index=5&type=section&id=Forward-Looking%20Statements%20%26%20Risk%20Factors) This section serves as a legal disclaimer, identifying forward-looking statements within the press release and outlining various factors and uncertainties that could cause LiveRamp's actual results to differ materially from its projections - The press release contains forward-looking statements, including guidance for Q2 and full-year FY26, which are not guarantees of future performance[15](index=15&type=chunk)[16](index=16&type=chunk) - Factors that could cause actual results to differ include economic uncertainties (geopolitical, recession, inflation, interest rates), customer retention and upsell ability, reliance on data suppliers and partners, increased competition, rapidly changing technology, and integration challenges from acquisitions[17](index=17&type=chunk) - Additional risks involve maintaining company culture, attracting and retaining talent, global workforce strategy, international operations, data security breaches, unfavorable publicity, service interruptions, and changes in judicial, legislative, regulatory, and tax environments[17](index=17&type=chunk) [Explanation of Non-GAAP Measures (Appendix A)](index=22&type=section&id=Explanation%20of%20Non-GAAP%20Measures%20%28Appendix%20A%29) Appendix A provides a detailed explanation of LiveRamp's non-GAAP financial measures, outlining the specific adjustments made to GAAP results and the rationale for their use in understanding and evaluating the company's operational performance - Non-GAAP measures are used to supplement financial results by excluding certain acquisition-related expenses, non-cash stock compensation, and restructuring charges, providing a clearer view of past performance and future results[60](index=60&type=chunk) - Adjustments include purchased intangible asset amortization (non-cash expense from acquisitions), non-cash stock compensation (ongoing but non-cash expense not used to assess core profitability), and restructuring charges (non-recurring costs related to operational alignment)[61](index=61&type=chunk)[62](index=62&type=chunk)[63](index=63&type=chunk) - Key non-GAAP measures defined are Non-GAAP EPS, Non-GAAP Income from Operations, Non-GAAP Operating Income Margin, Non-GAAP Expenses, Adjusted EBITDA, and Free Cash Flow, each with specific adjustments and purposes for management and investor analysis[67](index=67&type=chunk)[68](index=68&type=chunk)[69](index=69&type=chunk)

Core Insights - LiveRamp reported a total revenue of $195 million for Q1 FY26, representing an 11% increase year-over-year [6][19] - Subscription revenue reached $148 million, up 10% from the previous year, while Marketplace & Other revenue increased by 13% to $46 million [6][19] - The company achieved a GAAP operating income of $7 million, compared to a loss of $5 million in the prior year, resulting in a GAAP operating margin of 4% [6][19] Financial Performance - Total revenue for Q1 FY26 was $195 million, an increase of 11% compared to $176 million in Q1 FY25 [6][25] - Subscription revenue was $148 million, reflecting a 10% increase from $135 million in the prior year [6][25] - Marketplace & Other revenue grew to $46 million, a 13% increase from $41 million [6][25] - GAAP gross profit was $137 million, up 10% from $124 million, with a gross margin of 70% [6][25] - Non-GAAP operating income was $36 million, a 34% increase from $27 million, with a non-GAAP operating margin of 18% [6][25] Shareholder Returns - The company repurchased approximately 1.1 million shares for a total of $30 million during the quarter [6][19] - GAAP diluted earnings per share were $0.12, compared to a loss of $0.11 in the prior year [6][19] Business Highlights - LiveRamp was recognized as a Leader in the IDC Marketscape for Data Clean Room Technology [11] - The company reported a 313% return on investment for customers over three years, with a payback period of less than six months [11] - LiveRamp ended the quarter with 127 customers whose annualized subscription revenue exceeds $1 million, up from 115 in the prior year [11]

Financial Results Announcement - LiveRamp will release its fiscal 2026 first quarter financial results on August 6, 2025, after market close [1] - A conference call to discuss the results is scheduled for the same day at 1:30 p.m. PT [1] Conference Call Access - The conference call can be accessed via telephone at (800) 715-9871 or (646) 307-1963, with the conference call ID being 5883383 [2] - A live webcast of the conference call will be available on the LiveRamp Investor Relations website [1][2] Company Overview - LiveRamp is a leading data collaboration technology company that empowers marketers and media owners to enhance marketing performance [3] - The company's data collaboration network integrates data across various stakeholders, providing insights and driving growth [3][4] - LiveRamp is recognized for its commitment to neutrality, interoperability, and global scale, helping organizations maximize data value and foster innovation [4]

Company Overview - LiveRamp Holdings is a San Francisco-based data-connectivity platform that is experiencing rising earnings expectations even in a volatile market [2] - The company has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a significant upward trend in analysts' earnings estimates [2] Earnings and Revenue Growth - The current year Zacks Consensus Estimate for LiveRamp has increased from $2.86 to $2.88, forecasting a 26% earnings growth for next year following a 34% growth this year [3] - Revenue growth is also strong, projected at 7.6% for this year and 11.3% for the next year [3] Industry Position - LiveRamp operates within the Technology Services industry, which ranks in the Top 21% of the Zacks Industry Rank [4] - The company's products, such as IdentityLink, Safe Haven, Privacy Manager, and Authenticated Traffic Solutions (ATS), are essential for marketers navigating privacy regulations and the decline of third-party cookies [4] Stock Performance - LiveRamp's stock has been on the rise since Q2 2024, correlating with increased earnings estimates [5] - Although the last quarter's earnings report met revenue expectations, it missed earnings by 3.23%, marking the first earnings miss since Q1 2023 [5]