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LiveRamp Holdings, Inc. (RAMP)·Q2 2026 Earnings Summary

Executive Summary

  • Q2 FY26 revenue was $200.0M, up 8% YoY, beating both guidance and consensus; non-GAAP diluted EPS was $0.55, above consensus, while GAAP diluted EPS was $0.42 . Q2 revenue consensus was $197.3M* and EPS consensus was $0.484*, implying a top- and bottom-line beat [GetEstimates].
  • Adjusted EBITDA was $45.3M; however, consensus EBITDA was $40.0M* vs reported EBITDA of $24.8M (GAAP), implying a miss on the EBITDA measure tracked by consensus [GetEstimates].
  • FY26 revenue guidance raised to $804–$818M (from $798–$818M), GAAP operating income raised to $83–$87M (from $81–$85M), non-GAAP operating income reiterated at $178–$182M, with gross margin now ~72% (lower than prior mid-70s expectation) .
  • Leading indicators improved: ARR rose $14M QoQ to $516M (largest organic increase in seven quarters), CRPO rose 15% YoY to $430M, and million-dollar-plus customers increased to 132; management highlighted AI, CTV, and usage-based pricing as catalysts .

What Went Well and What Went Wrong

What Went Well

  • Revenue and operating income exceeded guidance; CEO: “Second quarter revenue and operating income exceeded our guidance…largest like-for-like ARR increase sequentially in the last seven quarters” .
  • Non-GAAP operating income grew 10% to $45M with margin >22%; GAAP operating margin expanded by 7 pts to 11% on lower stock comp; CFO called out record GAAP operating margin and stronger-than-expected bottom line .
  • Data Marketplace accelerated (~+5 pts sequentially) and Marketplace & Other revenue grew 18% YoY to $50M, driven by CTV integrations; plus new AI tools and Netflix geographic expansion signal product momentum .

What Went Wrong

  • Gross margin compressed 3 pts YoY to 72% non-GAAP, with migration-related cloud hosting costs; full-year gross margin now ~72% (below prior mid-70s plan as dual-platform run-rate persists longer) .
  • EBITDA (GAAP) of $24.8M missed consensus ($40.0M*), despite strong adjusted EBITDA of $45.3M, highlighting differences between reported EBITDA and adjusted metrics tracked by investors [GetEstimates].
  • Direct subscription customer count declined YoY to 834 (from 885), though management indicated stabilization and improved new logo activity (pricing pilot, dedicated team) .

Financial Results

MetricQ4 FY25Q1 FY26Q2 FY26
Total Revenue ($USD Millions)$188.7 $194.8 $199.8
GAAP Diluted EPS ($)($0.10) $0.12 $0.42
Non-GAAP Diluted EPS ($)$0.30 $0.44 $0.55
GAAP Gross Margin (%)69.3% 70% 70.2%
Non-GAAP Operating Income ($USD Millions)$23 $36 $45
Non-GAAP Operating Margin (%)12.2% 18.4% 22.4%

Segment breakdown (revenue):

SegmentQ1 FY26Q2 FY26
Subscription Revenue ($USD Millions)$148 $150
Marketplace & Other Revenue ($USD Millions)$46 $50

Key KPIs:

KPIQ4 FY25Q1 FY26Q2 FY26
ARR ($USD Millions)$504 $502 $516
Total RPO ($USD Millions)$471 $690 $652
CRPO ($USD Millions)$471 $451 $430
$1M+ Subscription Customers (count)128 127 132
Direct Subscription Customers (count)840 835 834
Subscription Net Retention (%)104% 104% 102%

Consensus vs Actual/Guidance:

MetricQ2 FY26 Consensus*Q2 FY26 ActualQ3 FY26 Consensus*Q3 FY26 Guidance
Revenue ($USD Millions)$197.3*$199.8 $211.6*$209–$213
Primary EPS ($)$0.484*$0.55 (non-GAAP) $0.675*n/a (margin ~27%)
EBITDA ($USD Millions)$40.0*$24.8 (GAAP) $56.4*n/a

Values retrieved from S&P Global for consensus estimates (marked with *).

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue ($USD Millions)FY26$798–$818 $804–$818 Raised low-end; midpoint +$3M
GAAP Operating Income ($USD Millions)FY26$81–$85 $83–$87 Raised
Non-GAAP Operating Income ($USD Millions)FY26$178–$182 $178–$182 Maintained
Gross Margin (%)FY26Mid-70s expected H2 ~72% (dual platform longer) Lowered
Revenue ($USD Millions)Q3 FY26—$209–$213 New
GAAP Operating Income ($USD Millions)Q3 FY26—$33–$35 New
Non-GAAP Operating Income ($USD Millions)Q3 FY26—$55–$57 New
Operating Margin (%)Q3 FY26—~27% New

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 FY25 and Q1 FY26)Current Period (Q2 FY26)Trend
AI/Technology InitiativesIntroduced Cross-Media Intelligence; platform modernization; highlighted economics/ROI studies Debuted agentic orchestration and AI-powered segmentation/search; expanded AI partner integrations Strengthening product narrative
Usage-Based Pricing ModelPilot launched with ~40 customers; benefits for land/expand; no FY26 upside baked in yet Pilot expanded; positive feedback; still no FY26 upside baked into guide Positive early traction; revenue impact deferred
Gross Margin & Platform MigrationExpected H2 rebound to mid-70s Rebaseline to ~72% as dual platform run-rate persists; migration completes Q4 Near-term headwind vs prior plan
CTV & Publisher IntegrationsNetflix integration scaling; linear-to-CTV shift supporting Clean Room use cases Netflix expansion to 10 international markets; CTV integrations drove Data Marketplace acceleration Expanding footprint; revenue tailwind
Commerce/Retail Media NetworksWAG clean room; new verticals (airlines, payments, real estate) Meta attribution insights for RMNs; broader commerce media focus (Uber, PayPal, GM, United) Broadened TAM; stronger demand signals
Capital AllocationFY25 buybacks $101M; strong OCF Q2 buybacks $50M; YTD $80M; balance sheet strong, zero debt Continued buybacks; offset dilution
Macro & Guide ConservatismQ2 guide conservative on usage; overall macro uncertainty Back-half range reflects variable rev conservatism; macro assumed stable at midpoint Consistent stance

Management Commentary

  • CEO: “Second quarter revenue and operating income exceeded our guidance…We are seeing strong demand for our Data Collaboration Network…AI-powered advertising and agentic orchestration. This gives us confidence in our forward growth.” .
  • CFO: “Gross margin ~72% versus prior mid-70s expectation…we reiterate non-GAAP operating income of $178–$182M; operating margin expanding four points to 22%” .
  • CEO on pricing: “Usage-based pricing tokens fungible across the platform…early feedback overwhelmingly positive; expanding the pilot” .
  • CFO on capital allocation: “Free cash flow on track…deploy a substantial portion toward share repurchases; more than offset dilution” .

Q&A Highlights

  • ARR drivers: Strength in Clean Room cross-sell, CTV measurement, commerce media, plus improved churn vs Q1; dedicated new-logo team and pricing pilot broaden ICP .
  • Open web exposure and AI impact: Low exposure to open web; upside in AI from first/second-party signals powering models; partnerships with leading platforms (Meta, Roku, Netflix, etc.) .
  • Guidance conservatism: Variable revenue (usage, Data Marketplace) drives back-half range; midpoint assumes stable macro; low-end assumes deterioration .
  • Pricing pilot & revenue timing: No FY26 upside baked in; benefit expected over several quarters post broader rollout next year .
  • Investments & customer count: Stepped-up platform/AI/pricing investments but >30% FY26 operating income growth; direct subscription customers stabilizing with improved new-logo activity .

Estimates Context

  • Q2 FY26: Revenue beat ($199.8M vs $197.3M*), non-GAAP EPS beat ($0.55 vs $0.484*), EBITDA (GAAP) missed ($24.8M vs $40.0M*) [GetEstimates].
  • Q3 FY26: Revenue consensus $211.6M*, EPS consensus $0.675*; company guides $209–$213M revenue and ~27% operating margin, implying inline-to-slightly conservative top-line stance vs consensus [GetEstimates].
  • Estimate breadth: Q2 EPS had 5 estimates; Q3 EPS has 6; revenue estimates are based on 6 inputs for Q2 and Q3* [GetEstimates].
    Values retrieved from S&P Global (consensus data marked with *).

Key Takeaways for Investors

  • Narrative is improving: sequential ARR inflection (+$14M) and $1M+ customer growth suggest accelerating subscription trajectory into the renewal-heavy H2 .
  • Watch margin normalization: gross margin now ~72% due to dual-platform costs; migration completes Q4, but cost optimization is lagging prior plan—monitor path back toward mid-70s .
  • Product catalysts: AI agentic orchestration, AI segmentation/search, and Netflix international expansion underpin Marketplace & Data Marketplace growth and broader TAM .
  • Pricing pilot is a FY27+ driver: strong early feedback but no FY26 upside assumed—look for land/expand metrics and upsell examples at broader rollout .
  • Capital allocation remains supportive: robust FCF conversion and active buybacks ($50M in Q2; $80M YTD) help offset dilution and can support per-share growth .
  • Near-term trading lens: Q3 revenue guide $209–$213M sits around consensus; beats on EPS and revenue vs Q2 consensus are positive, but EBITDA miss (GAAP) and lower gross margin trajectory could temper multiple expansion until migration benefits manifest [GetEstimates] .
  • Medium-term thesis: If ARR momentum persists and pricing/AI initiatives scale, LiveRamp’s target to reach Rule of 40 by FY28 looks credible (Rule of ~31 this year: ~9% growth, ~22% margin) .