LiveRamp Holdings, Inc.

Q3 total revenue was $212 million, up 9% year over year, and subscription revenue was $158 million, also up 9%. Gross margin was 74%, operating income was $62 million, up 36%, and operating margin was 29%, up six points year over year. Free cash flow was a record $67 million. ARR increased $11 million quarter over quarter and 7% year over year; total customers rose by 15 and million-dollar-plus customers increased by eight to 140. For FY26, revenue is now expected to be $810 million-$814 million, gross margin 72%-73%, non-GAAP operating income about $180 million, and operating margin 22%; Q4 revenue is guided to $203 million-$207 million, non-GAAP operating income about $38 million, and operating margin about 18%.

Scott Howe emphasized that the business remains durable, predictable and scalable, highlighting 11 straight quarters of revenue and operating income above guidance. He framed AI as a benefit to LiveRamp because the company provides trusted data infrastructure that helps AI work across partners, clouds and platforms, and he said the company is actively partnering broadly rather than trying to predict the winners. He also stressed the strategic shift toward usage-based pricing and said the company is targeting Rule of 40 by FY28, with FY26 expected to be Rule of 31.

Lauren Dillard said Q3 topped expectations on both the top and bottom line, with revenue $1 million above the midpoint of guidance and non-GAAP operating income $6 million above the midpoint. She noted gross margin of 74% benefited from timing of customer migrations to the upgraded back-end platform, while operating expenses were $95 million, down 6% year over year. She also pointed to record free cash flow of $67 million, $39 million of share repurchases in the quarter, $119 million repurchased year to date, $403 million of cash and short-term investments, and zero debt. For the full year, she said free cash flow is expected to be up slightly and that buybacks will continue to be a substantial use of cash.

Analysts focused on Publicis, AI, commerce media, CTV, and the new pricing model. Management said the Publicis deal reflects readiness to work with reseller partners using a more modular, usage-based model, and that the company is economically neutral whether a customer uses LiveRamp directly or indirectly. On AI, Scott said the company is not seeing demand disruption; Lauren added that conversion rates and deal cycle length were stable and average deal size and rep productivity were up double digits. On the pricing pilot, Scott said the focus has been new logos first, with existing customers to be introduced at renewal, and Lauren said investors should expect more color on incremental revenue at the May call.