Data collaboration platform LiveRamp (NYSE:RAMP) met Wall Street’s revenue expectations in Q2 CY2026, with sales up 9.8% year on year to $214 million. Its non-GAAP profit of $0.65 per share was 9.2% above analysts’ consensus estimates.
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LiveRamp (RAMP) Q2 CY2026 Highlights:
- Revenue: $214 million vs analyst estimates of $213.6 million (9.8% year-on-year growth, in line)
- Adjusted EPS: $0.65 vs analyst estimates of $0.60 (9.2% beat)
- Adjusted EBITDA: $51 million vs analyst estimates of $43.82 million (23.8% margin, 16.4% beat)
- Operating Margin: 9.4%, up from 3.7% in the same quarter last year
- Free Cash Flow Margin: 7.6%, down from 28.4% in the previous quarter
- Customers: 845
- Net Revenue Retention Rate: 103%, down from 108% in the previous quarter
- Annual Recurring Revenue: $539 million vs analyst estimates of $547.2 million (7.4% year-on-year growth, miss)
- Market Capitalization: $2.3 billion
Company Overview
Serving as the digital middleman in an increasingly privacy-conscious world, LiveRamp (NYSE:RAMP) provides technology that helps companies securely share and connect their customer data with trusted partners while maintaining privacy compliance.
Revenue Growth
A company’s long-term sales performance is one signal of its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Over the last five years, LiveRamp grew its sales at a 12.5% annual rate. Though this growth is acceptable on an absolute basis, we need to see more than just topline growth for the software sector, which can display significant earnings volatility. This means our bar for the sector is particularly high, reflecting the non-essential and hit-driven nature of the products and services offered. Additionally, five-year CAGR starts around Covid, when revenue was depressed then rebounded.
We at StockStory place the most emphasis on long-term growth, but within software, a half-decade historical view may miss recent innovations or disruptive industry trends. LiveRamp’s recent performance shows its demand has slowed as its annualized revenue growth of 10.5% over the last two years was below its five-year trend. We’re wary when companies in the sector see decelerations in revenue growth, as it could signal changing consumer tastes aided by low switching costs. 
This quarter, LiveRamp grew its revenue by 9.8% year on year, and its $214 million of revenue was in line with Wall Street’s estimates.
Looking ahead, sell-side analysts expect revenue to grow 9.5% over the next 12 months, similar to its two-year rate. This projection is underwhelming and indicates its newer products and services will not accelerate its top-line performance yet.
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Annual Recurring Revenue
While reported revenue for a software company can include low-margin items like implementation fees, annual recurring revenue (ARR) is a sum of the next 12 months of contracted revenue purely from software subscriptions, or the high-margin, predictable revenue streams that make SaaS businesses so valuable.
LiveRamp’s ARR came in at $539 million in Q2, and over the last four quarters, its growth was underwhelming as it averaged 7.4% year-on-year increases. This performance mirrored its total sales and suggests that increasing competition is causing challenges in securing longer-term commitments. 
Customer Retention
One of the best parts about the software-as-a-service business model (and a reason why they trade at high valuation multiples) is that customers typically spend more on a company’s products and services over time.
LiveRamp’s net revenue retention rate, a key performance metric measuring how much money existing customers from a year ago are spending today, was 103% in Q2. This means LiveRamp would’ve grown its revenue by 3% even if it didn’t win any new customers over the last 12 months.
LiveRamp has an adequate net retention rate, showing us that it generally keeps customers but lags behind the best SaaS businesses, which routinely post net retention rates of 120%+.
Key Takeaways from LiveRamp’s Q2 Results
We were impressed by how significantly LiveRamp blew past analysts’ adjusted operating income expectations this quarter. On the other hand, its net revenue retention fell and its annual recurring revenue fell slightly short of Wall Street’s estimates. Zooming out, we think this was a mixed quarter. The stock remained flat at $37.74 immediately following the results.
Is LiveRamp an attractive investment opportunity at the current price? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here (it’s free).