RAMP

ANALYST NOTE: LiveRamp Holdings, Inc. (RAMP) Date: June 20, 2026

1. Structural Readiness

Conservative Entry: $37.77 Current Price: $37.74 Extension: -0.1% vs. conservative entry Breakout Level: $37.77 (Conservative Entry)

Classification: CONFIRMED-ACTIVE

2. Thesis Layer

Thesis Classification: Tactical / Setup-Led Macro Thesis Status: None As of June 20, 2026, there is no named secular macro thesis attached to this specific setup. This is a Tactical, setup-led name. The conviction must be derived strictly from the quality of the structural setup (the Coil formation) and the underlying business fundamentals as reported in the most recent filings. No external macro narratives or secular themes should be invented to support the trade; the trade is justified by the alignment of the price structure with the company's operational inflection points.

3. Business Overview

Company Description: LiveRamp Holdings, Inc. is a leading data collaboration technology company. Its core function is empowering marketers and media owners to deliver and measure marketing performance across various channels. The company operates a network that unites data across advertisers, platforms, publishers, and commerce media networks.

Business Model & Revenue Streams: The company generates revenue through a diversified mix of fees:

• Subscription Fees: Recurring revenue from clients accessing the platform.
• Data Marketplace Fees: Revenue-sharing fees from data transactions.
• Transactional Fees: Usage-based fees from arrangements with publishers and addressable TV providers.
• Professional Services: Fees for implementation and consulting.

Key Operational Metrics (as of Feb 2026 / FY2026):

• Customer Base: The company reported 846 direct subscription customers at the end of fiscal year 2026.
• Enterprise Penetration: As of March 31, 2026, 133 customers had subscription contracts exceeding $1 million in annual revenue.
• Network Scale: The platform activates data across an ecosystem of more than 500 partners and processes more than 4 trillion data records daily.
• Backlog Visibility: Total RPO (contracted backlog) was $710 million (up 23% YoY), with current RPO at $471 million (up 9% YoY). Fixed revenue not yet recognized stood at $709.8 million as of December 31, 2025, with $471.1 million scheduled for recognition in the next twelve months.
• Growth Trajectory: Management reported ARR increased 7% year-over-year (up $11 million QoQ), driven by commerce media, CTV, and cross-platform measurement use cases.

4. Archetype and Conviction Analysis

Archetype: Margin Inflector LiveRamp fits the Margin Inflector archetype. The company is transitioning from a growth-at-all-costs phase to a disciplined profitability phase, evidenced by management's explicit targets to achieve a "Rule of 40" by Fiscal Year 2028.

Fundamental Drivers:

• Pricing Power & Efficiency: Management has pivoted to usage-based pricing, which aligns revenue with customer value and supports higher margins.
• Cost Discipline: R&D expenses decreased to $148.1 million in the twelve months ended March 31, 2026, down from $176.7 million in the prior year, while maintaining spending levels relative to revenue.
• Profitability Targets: Management has set a target for a non-GAAP operating margin of 25% to 30% by FY28, alongside revenue growth of 10% to 15%.
• AI Integration: The company has enhanced its architecture to allow AI applications and agents to securely access its network, positioning it as critical infrastructure for AI-driven marketing.

Conviction Stack:

• Thesis Strength: Moderate (Tactical, no macro tailwind).
• Evidence Quality: High. The evidence base is robust, citing specific financial metrics (RPO, ARR, customer counts) and clear management guidance on margins and growth.
• Structural Quality: High. The setup features a high ATR at breakout (4.1%), indicating strong structural quality and volatility compression potential.
• Rerating Potential: Moderate to High. The combination of a pivot to usage-based pricing, AI tailwinds, and a clear path to the Rule of 40 provides a fundamental basis for multiple expansion if the company executes on its margin targets.

5. Invalidation, Strengthening, and Gaps

Invalidation Triggers:

• Fundamental: A significant miss on the FY28 margin targets or a contraction in the $1M+ customer count (currently 133) would weaken the Margin Inflector thesis.
• M&A Risk: The merger expected to close by the end of 2026 (per May 2026 filing) faces regulatory risk; failure to close or significant delays could disrupt the strategic roadmap.

Strengthening Factors:

• RPO Growth: Continued growth in the $710M RPO backlog would validate the usage-based pricing pivot.
• AI Adoption: Evidence of increased adoption of the AI-enhanced architecture by the 133 enterprise customers would confirm the "AI tailwind" narrative.
• Margin Expansion: Any interim report showing progress toward the 25-30% non-GAAP operating margin target would strengthen the inflector thesis.

Evidence Gaps:

• Merger Specifics: While the merger is expected to close by end of 2026, specific details on the *terms* of the merger, the *identity* of the counterparty, or the *synergy* numbers are not detailed in the provided evidence block.
• Cash Flow: While the 2025 Tax Act is noted to decrease cash tax payments, specific free cash flow generation figures for FY2026 are not explicitly detailed in the provided snippets, though the tax benefit is a positive structural implication.
• Competitive Landscape: No specific data on competitor market share or pricing pressure is provided in the evidence.

PRIVATE ANALYST CALL

Judgment: Buy Confidence: medium Key risks: Merger closing conditions and regulatory approval delays; Sub-threshold current ATR (1.2%) indicating potential lack of immediate momentum; Execution risk on the pivot to usage-based pricing. Sizing hint: Standard position size for a confirmed active setup; reduce size if current ATR remains sub-threshold for an extended period. Expected path: Management expects to maintain R&D spending as a percentage of revenue while driving margin expansion; the company aims to achieve Rule of 40 by FY28. Expected horizon: 12 to 18 months to realize the margin inflection targets.