LiveRamp (RAMP) Q3 2026 earnings summary

Executive summary

• Q3 revenue grew 9% year-over-year to $212 million, with strong performance in both subscription and marketplace segments and annualized recurring revenue reaching $527 million, up 7% year-over-year.

• Record operating margin achieved, with GAAP operating income at $40 million (up 169%) and non-GAAP at $62 million (up 36%), and net earnings of $39.9 million ($0.62 per diluted share).

• Free cash flow for the quarter was $67 million, with a trailing twelve-month free cash flow margin of 21% and cash and short-term investments at $403 million; no debt.

• AI initiatives, expanded Data Marketplace, and strategic partnerships (including Publicis and Uber Advertising) drove growth and platform value.

• Share repurchases totaled $119 million fiscal year-to-date, with $39 million in Q3 and $137 million remaining under the current authorization.

Financial highlights

• GAAP gross profit was $153 million (72% margin), non-GAAP gross profit $156 million (74% margin), and operating income reached $40 million (GAAP) and $62 million (non-GAAP).

• Net earnings were $40 million (GAAP, up 256%) and $49 million (non-GAAP, up 32%), with EPS of $0.62 (GAAP, up 269%) and $0.76 (non-GAAP, up 37%).

• Free cash flow for the quarter was $67 million, with a record quarterly operating margin (non-GAAP: 29%, GAAP: 19%).

• Net new ARR was over $11 million, with ARR up 7% year-over-year.

• 140 customers with $1 million+ annualized subscription revenue, up from 125 last year.

Outlook and guidance

• FY26 revenue guidance raised to $810–$814 million (9% growth), with Q4 revenue expected between $203–$207 million.

• FY26 non-GAAP operating income expected at $180 million; GAAP operating income at $84 million.

• Q4 non-GAAP operating income guidance is $38 million; GAAP operating income $16 million.

• Gross margin for FY26 expected at 72%-73%, slightly down due to platform upgrades.

• Management anticipates a material decrease in cash tax payments for FY26 due to new tax law changes.