LiveRamp delivered a solid start to FY2026 with QQ1 results that exceeded internal expectations on both revenue and profitability. Revenue was about $195 million, up in double digits year over year, accompanied by meaningful margin expansion. Non-GAAP operating income rose 34% to roughly $36 million, driving a non-GAAP operating margin near 18% for the quarter, while GAAP operating income also reached a quarterly high versus prior periods. Management highlighted robust early traction across the data collaboration network, led by Cross‑Media Intelligence, Commerce Media Networks and CTV, and indicated ongoing benefits from cost discipline and offshore/offshoring initiatives that supported the margin expansion. The company raised FY26 revenue guidance and free cash flow expectations, signaling confidence in a stronger back half of the year as new pricing and AI‑driven capabilities scale.
Looking ahead, LiveRamp’s growth is being underpinned by three strategic pillars: (1) a rapidly expanding data collaboration network with high ROI signals validated by external research, (2) a pricing pilot designed to simplify usage-based economics and improve deal velocity, and (3) an explicit AI narrative that positions LiveRamp as an AI activation enabler, not an AI platform competitor. While near‑term free cash flow was negative on a basis of typical seasonality and working capital movements, management expects FCF outperformance relative to the prior year due to tax legislation benefits and operating leverage from the back‑end migration. The combination of a strong top line, improving margins, a disciplined balance sheet (net cash position with no debt), and a clear AI‑driven growth trajectory supports a constructive long‑term investment thesis, albeit with sensitivity to ad market dynamics and customer churn events observed in selective large accounts.