How did LiveRamp's revenue and expenses trend in Q3 2025?

LiveRamp demonstrated robust financial performance in Q3 2025, with revenue growth slightly surpassing expectations and notable improvements in gross margin and operating income. 1. **Revenue Trend**: LiveRamp's total revenue for Q3 2025 was $195 million, reflecting a 12% increase year-over-year. This marked the fourth consecutive quarter of double-digit growth, underscoring the company's sustained momentum and market expansion. 2. **Gross Profit and Margin**: The company's gross margin improved to a record quarterly high of 23%, up from 21% in the previous year, indicating enhanced operational efficiency and cost management. Gross profit amounted to $146 million, an 10% increase from the same period last year. |code|Ticker|Name|Date|R&D Expenses|Gross Profit|Total Revenue|market_code| |---|---|---|---|---|---|---|---| |RAMP|RAMP.N|LiveRamp|2024 Q4|4.5161E7|1.2413E8|1.71852E8|169| |RAMP|RAMP.N|LiveRamp|2025 Q1|4.4118E7|1.24212E8|1.75961E8|169| |RAMP|RAMP.N|LiveRamp|2025 Q2|4.3889E7|1.34249E8|1.85483E8|169| |RAMP|RAMP.N|LiveRamp|2025 Q3|4.2735E7|1.40414E8|1.95412E8|169| 3. **Operating Income and Margin**: LiveRamp's operating income reached $45 million, marking a 24% increase from Q3 2024. The operating margin expanded by over two points, reaching 23%, which is a significant improvement from the previous year's 21%. 4. **Expenses**: While specific expense figures for R&D and SG&A are not available, the company's overall performance indicates effective cost management. The focus on cost discipline, offshoring savings, and high drop-down rates on incremental revenue is expected to further improve margins in the coming years. 5. **Free Cash Flow**: LiveRamp generated $91 million in free cash flow year-to-date, representing a 20% increase from the previous year. This robust cash flow positions the company well for potential share repurchases and strategic investments. In summary, LiveRamp's Q3 2025 financials show strong revenue growth, enhanced profitability, and improved operational efficiency, with the company well-positioned for future investments and shareholder returns.