Cookie Demise Builds Long-Term Tailwind

LiveRamp delivered a stronger-than-expected Q4 to close out fiscal 2025, with revenue growing 10% year-over-year to $189 million, topping internal targets. Subscription revenue rose 9% to $145 million, while Marketplace & Other revenue climbed 14% to $44 million. The company’s non-GAAP EPS of $0.30 came in well above the Street’s $0.28 consensus, marking an 18.8% beat.

Margins were a mixed bag: gross margin compressed 3 points YoY to 69% GAAP (72% non-GAAP), but operating income improved. Non-GAAP operating income jumped to $23 million, a 3-point improvement in margin to 12%. Most notably, free cash flow hit $62 million for the quarter — up from $26 million last year — helping full-year free cash flow hit $153 million, a 51% YoY increase.

Management’s commentary emphasized execution in a complex adtech landscape and cited momentum in its Cross-Media Intelligence platform. Subscription net retention of 104% and ARR of $504 million (+8%) suggest steady product stickiness, even as total direct customers declined modestly.

Guidance for FY26 includes 6%–10% revenue growth ($787M–$817M) and non-GAAP operating income between $85M and $89M. The Q1 outlook sees $191M in revenue (+9% YoY) and $6M in non-GAAP operating income — modest but stable expansion ahead.

RAMP has delivered four consecutive EPS beats, but none of them triggered a breakout. That’s because investors are still waiting to see whether revenue growth can accelerate and margins can expand consistently.

Strong EPS isn’t enough — investors want to see improving revenue per client and clear proof that product adoption is moving faster than operating expenses. If this quarter delivers on both, RAMP may finally break out of its trading range.

LiveRamp heads into earnings with one of the more neutral setups across the group. Short interest is modest — under 3% — and there’s little directional skew in options markets. That suggests investors are cautiously constructive but not aggressively positioned in either direction.

Analyst sentiment remains favorable, with a majority rating the stock Buy or Outperform. However, the muted trading volume and lack of sharp momentum indicate that many are waiting for tangible operating leverage before piling in. Price targets are clustered between $30 and $40, with little recent revision activity.

This sets up a clean reaction window. If RAMP delivers a strong top-line number with margin gains or client growth, it could break out. But without a catalyst, the stock may remain rangebound.

LiveRamp’s last call was upbeat, with management describing the environment as “ideal” for its privacy-safe identity products. CEO Scott Howe highlighted growing demand from retail media networks and CPG brands and reiterated the company’s long-term goal to become the connective layer for secure data collaboration.

Despite that confidence, the company remained vague on key metrics. There was no update on Safe Haven client count, attach rates, or revenue per client — data that analysts have repeatedly asked for. Operating margins were improving, but stock-based compensation remained elevated and there were questions about why revenue growth wasn’t more robust given the tailwinds.

Analysts are watching for more precise execution signals this time around. The story sounds great — but guidance and client-level metrics need to match it.

What to watch this quarter:

• New client adoption figures or growth in platform usage

• Attach rates or monetization updates for Safe Haven

• Updated commentary on revenue concentration and churn

• Margin expansion commentary paired with cost control strategy

LiveRamp continues to talk about its role in enabling privacy-safe data collaboration, but earnings show a company still navigating from story to scale. Revenue growth last quarter was under 8% — despite big narrative tailwinds around cookie deprecation and clean-room adoption.

The company has touted new integrations with retail media networks and cloud partners, but hasn’t provided revenue attribution to these partnerships. Margin expansion remains uneven, with SBC weighing on GAAP results even as adjusted earnings beat.

This quarter, investors want confirmation that clean room products like Safe Haven are contributing meaningfully to bookings and that RAMP is monetizing its role as the connective tissue in identity workflows.

Watch for:

• Revenue per client and net retention trends

• Safe Haven attach rates and adoption commentary

• Gross and operating margin progression

• SBC and adjusted EBITDA guidance