LiveRamp 2025 Q4 Earnings Misses Targets as Net Income Declines 16.6%

LiveRamp Holdings Inc. (NYSE: RAMP) reported its fiscal 2025 Q4 earnings on May 21st, 2025. While the company achieved a 9.8% increase in revenue to $188.72 million, it fell short of internal targets and faced challenges with a net loss of $6.27 million, a 16.6% decline from the previous year. Despite strong subscription growth, the company missed expectations and provided guidance in line with previous projections, reflecting ongoing uncertainty in the macroeconomic environment.

Revenue

LiveRamp's total revenue grew by 9.8% year-over-year to $188.72 million in Q4, driven by a 13% rise in Subscription revenue and a 21% increase in Marketplace & Other revenue.

Earnings/Net Income

LiveRamp reported a loss of $0.10 per share in Q4 2025, widening from $0.08 per share in Q4 2024. The EPS results indicate continued financial challenges for the company.

Price Action

The stock price of LiveRamp edged down 1.47% during the latest trading day, falling 5.65% over the past week, despite a 14.01% jump month-to-date.

Post-Earnings Price Action Review

The strategy of purchasing LiveRamp shares after its revenue drop and holding for 30 days resulted in a 6.00% return, underperforming the benchmark with a -38.88% excess loss. A Sharpe ratio of 0.04 reflects poor risk-adjusted returns, and the maximum drawdown of -50.62% underscores high volatility. This highlights the strategy's risk level, posing challenges for investors to endure market fluctuations.

CEO Commentary

Scott Howe, CEO, emphasized strong Q4 performance with double-digit revenue growth, driven by a 13% increase in Subscription revenue and a 21% surge in Marketplace & Other. He expressed optimism for FY'26, focusing on enhancing their data collaboration network and launching Cross-Media Intelligence, aiming for the Rule of 40 by FY'28 amidst macro uncertainties.

Guidance

LiveRamp anticipates FY'26 revenue between $787 million and $817 million, reflecting 6% to 10% growth. Non-GAAP operating income is projected between $178 million and $182 million, with gross margins expected to normalize in the mid-70s by fiscal year's second half.

Additional News

LiveRamp announced a strategic workforce restructuring, affecting about 5% of its employees, with associated restructuring charges totaling $7.2 million. The company remains focused on building a stronger, more profitable organization by streamlining business processes. Additionally, LiveRamp has been recognized as a leader in the IDC MarketScape for its data clean room technology for advertising and marketing use cases, highlighting its extensive partner network and interoperable architecture. Furthermore, LiveRamp and REMAX Media Network announced a new clean room integration to improve targeting and campaign performance for advertisers across the REMAX digital ecosystem.