LiveRamp (RAMP): Data Collaboration Platform Turns Profitable as Revenue Growth and Earnings Leverage Accelerate
LiveRamp Holdings Inc. provides a data collaboration platform in the United States, Europe, Asia-Pacific, and other international markets, helping organizations unify customer and prospect data while preserving consumer privacy. Its software supports data collaboration, activation, measurement and analytics, identity, and data marketplace use cases for enterprise marketers, agencies, martech providers, publishers, and data providers across multiple industry verticals. For investors, LiveRamp now looks like a more mature software infrastructure name with scale and improving profitability, as fiscal 2026 revenue reached $812.9 million and net income rose to $146.0 million. Quarterly revenue increased 9.8% year over year and quarterly earnings grew 136.6%, showing operating leverage is starting to flow through. The balance sheet is net cash with $379.5 million of cash and $388.4 million of net working capital, which supports flexibility and reduces financial risk. At 15.5x trailing earnings and 2.33x enterprise value to revenue, the stock appears reasonably valued relative to its improved earnings profile and sits near its 52-week high.
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š” Key Insights / Thesis
š” Key Insights / Thesis
- ThesisLiveRamp has shifted into durable profitability with 2026 revenue of $812.9M, net income of $146.0M, and a 18.7% profit margin ā the business is now generating earnings rather than just revenue growth, which supports a more investable fundamental profile.
- FinancialsRevenue grew 9.8% YoY in the most recent quarter, while quarterly earnings growth was 136.6% YoY ā accelerating top-line growth paired with sharp earnings leverage suggests operating scale benefits are starting to show through.
- FinancialsTTM operating margin is 12.5%, gross profit is $589.3M on $832.1M revenue, and ROE is 16.1% ā these metrics indicate a software platform with healthy unit economics and improved capital efficiency.
- CapitalThe balance sheet is net cash with $379.5M cash and $349.98M net debt negative, plus $388.4M of net working capital ā strong liquidity provides flexibility for continued investment and reduces financial risk.
- ValuationShares trade at 15.5x trailing earnings and 2.33x EV/revenue, with the stock near its 52-week high of $38.23 versus a recent price of $37.66 ā valuation appears reasonable relative to the improved profitability, though not cheap on sales.
- CatalystAnalyst EPS estimates point to further growth from $2.245 this year to $2.73 next year, and the Wall Street target is $38.7 ā continued earnings expansion could support modest upside if execution holds.
- RiskShort interest has risen to 17.72% of float with a 6.25 short ratio, and the stockās beta is 1.269 ā elevated bearish positioning and above-market volatility increase downside sensitivity if growth or margin progress slows.