LiveRamp Holdings, Inc. is a data collaboration platform that empowers marketers and media owners to deliver and measure marketing performance across various channels. The company reported its financial results for the fourth quarter and fiscal year 2025, indicating a stable condition with notable growth in revenue and profits.

For the fourth quarter of fiscal 2025, LiveRamp generated total revenue of $189 million, which is a 10% increase compared to the same period last year. Subscription revenue reached $145 million, reflecting a 9% year-over-year growth, while marketplace and other revenue increased by 14% to $44 million. The GAAP gross margin was reported at 69%, a decline of 3 percentage points year-over-year. Non-GAAP gross profit amounted to $136 million, also down 3 percentage points, resulting in a non-GAAP gross margin of 72%.

Operating income for the fourth quarter was $23 million, marking a 44% increase from $16 million year-over-year. This led to a non-GAAP operating margin growth of 3 percentage points to 12%. LiveRamp’s net cash provided by operating activities during the quarter was $63 million, up from $28 million in the previous year, while free cash flow reached a record $62 million, more than doubling year-over-year.

For the full fiscal year 2025, total revenue rose to $746 million, up 13% compared to the previous year. Subscription revenue grew to $569 million, representing an 11% increase and accounting for 76% of the total revenue. Marketplace and other revenue saw an even stronger performance, surging by 21% to $177 million. The company’s operating income for the fiscal year was reported at $5 million, down from $11 million, but the non-GAAP operating income rose to $136 million from $105 million, reflecting an 18% operating margin, a 2 percentage point expansion from the prior year.

LiveRamp’s annualized recurring revenue (ARR) increased to $504 million, an 8% growth year-over-year. Additionally, the current remaining performance obligations (RPO) grew by 14% to $471 million, indicative of solid contract renewals and customer retention efforts.

Looking ahead, the company provided guidance for fiscal year 2026, projecting total revenue between $787 million and $817 million, which represents a growth rate of 6% to 10%. The guidance reflects potential challenges arising from macroeconomic conditions, particularly affecting its variable revenue streams. For the first quarter of fiscal 2026, LiveRamp expects revenue of approximately $191 million, with non-GAAP operating income estimated at $33 million and an operating margin of 17%, a 2 percentage point increase from the previous year.

LiveRamp’s balance sheet remains strong, concluding the fiscal year with $421 million in cash and short-term investments, equating to over $6 per diluted share, and no debt, underscoring the company’s solid financial standing. Overall, LiveRamp has maintained a steady growth trajectory with increased revenue and operating income, supported by a strong customer base and effective management strategies.