LiveRamp (RAMP) Q3 2025 earnings summary

Executive summary

• Q3 FY25 revenue grew 12.4% year-over-year to $195.4 million, marking the fourth consecutive quarter of double-digit growth, with strong recurring revenue and a scaled network of 865 direct clients and 500+ ecosystem partners.

• Subscription revenue rose 10% to $146 million, representing 75% of total revenue, while Marketplace and Other revenue increased 20% to $50 million.

• Non-GAAP operating income was $45 million (up 24%), with a record non-GAAP operating margin of 23%; GAAP operating income was $15 million, flat year-over-year.

• Net cash from operating activities was $45 million, up from $16.6 million in the prior year quarter, and free cash flow for the quarter was $44.8 million.

• The company repurchased $10 million in stock in Q3, $76 million year-to-date, with $282 million remaining under authorization.

Financial highlights

• Subscription revenue reached $146 million, up 10%, and Data Marketplace revenue grew 18% to $39 million; U.S. revenue increased 13.4% while international revenue declined 3.3%.

• Non-GAAP gross margin was 74% (down 1pt year-over-year); GAAP gross margin was 72% (down 2pts year-over-year).

• GAAP net income was $11.2 million ($0.17 per diluted share), down from $14 million ($0.21 per share) in the prior year quarter; non-GAAP net income was $37 million ($0.55 per share), up 14%.

• Operating expenses rose 10.6% to $125.7 million, mainly due to higher stock-based compensation.

• Free cash flow year-to-date was $91 million, up 20% year-over-year.

Outlook and guidance

• FY25 revenue guidance raised to $741–$743 million, up 12–13% year-over-year; Q4 revenue expected between $184–$186 million.

• FY25 non-GAAP operating income expected at $135 million (18% margin); GAAP operating income at $10 million.

• Q4 non-GAAP operating income projected at $22 million (12% margin); Q4 GAAP operating loss projected at $8 million.

• Gross margin for FY25 expected at the low end of 74%-75% due to short-term investments.

• On track to deliver 20%-25% operating margin in FY26.