LiveRamp Holdings Inc. reported an expansion of its stock repurchase program that prompted a sharp premarket reaction from investors. Shares rose 8.4% in premarket trading on Thursday after the company disclosed a $200 million increase to its buyback authorization.
The board raised the total share repurchase authorization to $1.5 billion and extended the program's expiration date by one year, setting a new termination date of December 31, 2027. Following this adjustment, LiveRamp said it has approximately $337 million remaining available for repurchases through the end of 2027.
Management commentary
Chief Financial Officer Lauren Dillard characterized the current market price as materially undervaluing LiveRamp’s business and its role as AI adoption grows. Dillard highlighted that while recent market volatility reflects concerns about software being displaced by AI, LiveRamp views a contrasting effect: "AI is data-hungry, and LiveRamp operates the largest and most interoperable data network in our space," she said.
Management indicated plans to accelerate repurchases in the coming months, pointing to a strong balance sheet and consistent cash flow generation as enabling factors. The company also made clear that it retains flexibility to change or end the repurchase activity depending on market conditions and other variables, including share price and capital availability.
Market and strategic implications
The board-level authorization and the stated intent to speed up buybacks signal a use of capital intended to return value to shareholders while management assesses the company’s valuation relative to its strategic positioning in an AI-driven marketplace. The expansion and the accompanying comments from the CFO were the proximate catalysts for the premarket share price increase.
Investors should note the firm’s explicit reservation of the right to modify or terminate repurchases if conditions change, a constraint that preserves financial flexibility as market dynamics evolve.