- LiveRamp delivered solid Q2 FY2026 results with total revenue of $199.8-200.0 million, up 8% year over year, and ARR increasing by $14 million quarter over quarter to a fresh high, underscoring durable demand for its data collaboration platform across Commerce Media, CTV, and cross-media measurement. Net new ARR of $14 million represented the strongest organic quarterly gain in seven quarters, signaling an improving upturn in the growth trajectory.
- The company’s operating performance improved meaningfully: non-GAAP operating income rose about 10% year over year, GAAP operating income more than doubled, and gross margin held at 72% as LiveRamp progresses with platform modernization and offshore cost efficiencies. Free cash flow in Q2 was $57 million, with opportunistic share repurchases of $50 million, contributing to a strong balance sheet with $369-377 million in cash and essentially no debt (net cash position).
- Management communications emphasize three growth pillars: AI-enabled product enhancements (including an AI-powered audience segment builder and AI Agentic orchestration), a new usage-based pricing model designed to unlock incremental revenue and better align data costs with subscription revenue, and progress toward the Rule of 40 target by FY28. The company also highlighted strategic customer wins (e.g., a major auto manufacturer and a leading social platform) and expanded Netflix connectivity in 10 new international markets, illustrating expanded network reach.
- Looking ahead, LiveRamp raised FY26 revenue guidance to $804-818 million (8-10% growth) and provided Q3 guidance of $209-213 million in revenue with non-GAAP operating income of $55-57 million (approx. 27% operating margin). The company reiterated its commitment to a Rule of 40 trajectory, with mid- to long-term revenue growth supported by its data collaboration network, AI initiatives, and cost discipline. Investors should monitor ARR development, churn, the uptake and monetization of the pricing pilot, platform upgrade progress (H2 migration and back-end stabilization), and AI-related revenue upside.