Susquehanna has reaffirmed a Positive rating on LiveRamp Holdings Inc. (NYSE: RAMP) and maintained a $50.00 price target following the company’s fiscal third quarter performance. The target implies a substantial upside from the stock’s then-prevailing price of $22.42, and InvestingPro data cited in the analyst note indicates the shares are trading below their Fair Value assessment.
For the fiscal third quarter, LiveRamp reported revenue of $212 million, a 9% increase year over year. That result was roughly in line with consensus and came in 1% above Susquehanna’s internal estimate. LiveRamp attributed outcomes to strong execution and continued sales momentum during the period.
On a trailing-twelve-month basis, the company’s revenue has risen 9.18%, bringing total revenue to $795.57 million. Subscription revenue, a core component of LiveRamp’s business, reached $158 million and grew 9% year over year. That subscription figure beat both Susquehanna’s estimate and consensus expectations by 2%.
Marketplace revenue was $54 million, up 8% year over year but falling short of forecasts - 4% below Susquehanna’s estimate and 6% below consensus. InvestingPro data also highlights LiveRamp’s gross profit margin at 70.4% for the period.
Profitability metrics were a particular bright spot. Reported EBITDA for the quarter was $62 million, beating Susquehanna’s estimate by 9% and consensus by 11%. LiveRamp’s non-GAAP EBIT reached the same $62 million level, topping both Susquehanna and consensus projections by 10%.
Looking at the trailing-twelve-month figures, LiveRamp posted EBITDA of $78.54 million and an enterprise-value-to-EBITDA multiple of 13.03. Management added 15 direct subscription clients sequentially, exceeding Susquehanna’s expectation that direct client count would be flat. Company commentary described the selling environment as stable, with average deal cycles and pipeline conversion rates holding steady quarter to quarter.
InvestingPro also flagged the company’s capital-return activity, noting management has been aggressively buying back shares. The firm generated a strong free cash flow yield of 12% for the period, according to InvestingPro’s assessment. Additional research and tips for investors are available through InvestingPro’s more detailed reports.
In related financial detail, LiveRamp’s third-quarter fiscal 2026 earnings per share came in at $0.76, above the forecasted $0.68 and representing an EPS surprise of 11.76%. Revenue of $212 million narrowly exceeded the expected $211.55 million. Despite these upside surprises on the numbers, the stock traded lower in aftermarket activity following the announcement, a reaction that contrasts with the quarter’s generally positive metrics.
The combination of modest outperformance on revenue, a stronger-than-expected profitability profile, sequential client additions and high free cash flow yield underpin Susquehanna’s continued Positive rating and $50.00 target. At the same time, the shortfall in marketplace revenue and the immediate aftermarket price reaction illustrate areas investors and analysts are watching closely.
Analyst note: Susquehanna’s reiterated stance rests on the quarter’s execution and cash generation, balanced against pockets of revenue softness and market pricing that currently place the stock below InvestingPro’s Fair Value assessment.