Financial Analysis

14. COMMITMENTS AND CONTINGENCIES: Legal Matters On January 24, 2025, a purported class action styled Riganian et al v. LiveRamp Holdings, Inc. and LiveRamp, Inc. (Case No. 4:25-cv-824-JST) was filed in the United States District Court for the Northern District of California against the Company and LiveRamp, Inc., alleging claims based on the California Constitution, the common law protections against intrusion upon seclusion, the California Invasion of Privacy Act, the Federal Wiretap Act and unjust enrichment. The lawsuit seeks certification of classes of California and national consumers, unspecified monetary damages, costs and attorneys fees and other relief (including injunctive and declaratory relief). Discovery has begun, and it is anticipated that class certification issues will be determined in mid-2026. The Company intends to defend this matter vigorously, and, because it is still in its preliminary stages, we have not yet determined what effect this lawsuit will have, if any, on our financial position or results of operations. The Company is involved in various other claims and legal proceedings that arise in the ordinary course of business. Management routinely assesses the likelihood of adverse judgments or outcomes to these matters, as well as ranges of probable losses, to the extent losses are reasonably estimable. The Company records accruals for these matters to the extent that management concludes a loss is probable and the financial impact, should an advers …

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"In the following table, revenue is disaggregated by primary geographical market and major service offerings (dollars in thousands): For the nine months ended December 31, Primary Geographical Markets 2025 2024 United States $ 572,836 $ 526,469 Europe 28,368 25,334 Asia-Pacific (""APAC"") 4,115 3,898 Other 1,529 1,155 $ 606,848 $ 556,856 Major Offerings/Services Subscription $ 456,799 $ 423,667 Marketplace and Other 150,049 133,189 $ 606,848 $ 556,856"

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17. FAIR VALUE OF FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS: The Company measures certain financial assets at fair value. Fair value is determined based upon the exit price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants, as determined by either the principal market or the most advantageous market. Inputs used in the valuation techniques to derive fair values are classified based on a three-level hierarchy, as follows: Level 1 - Quoted prices in active markets for identical assets or liabilities. Level 2 - Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which all significant inputs are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 - Unobservable inputs to the valuation methodology that are significant to the measurement of fair value of assets or liabilities. The following table details the fair value measurements within the fair value hierarchy of the Company's financial assets and liabilities at December 31, 2025 and March 31, 2025 that are measured at fair value on a recurring basis (dollars in thousands): December 31, 2025 Cash and Cash Equivalents Short-Term Investments Other Current Assets Total …

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"15. INCOME TAX: On July 4, 2025, H.R. 1, also known as The One Big Beautiful Bill Act (the ""2025 Tax Act""), was signed into law in the U.S. The 2025 Tax Act includes provisions that allow for the immediate expensing of domestic research and development expenditures, immediate expensing of certain capital expenditures, and other changes to the U.S. taxation of profits derived from foreign operations. In determining the quarterly provision for income taxes, the Company applies its estimated annual effective tax rate (""AETR"") to its year-to-date ordinary income or loss and adjusts for discrete tax items in the period. The provision for income taxes was primarily driven by nondeductible stock-based compensation, capitalization of foreign research and development expenditures in accordance with Internal Revenue Code (""IRC"") Section 174, the 2025 Tax Act's transition rules regarding the deduction of unamortized domestic research and development expenditures under IRC Section 174A, and the valuation allowance. Realization of the Company's net deferred tax assets is dependent upon its generation of sufficient taxable income of the proper character in future years in appropriate tax jurisdictions to obtain benefit from the reversal of deductible temporary differences as well as net operating loss and tax credit carryforwards. As of December 31, 2025, the Company continues to maintain a full valuation allowance on its net deferred tax assets except in certain foreign jurisdictio …

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4. LEASES: Right-of-use assets and lease liabilities balances consist of the following (dollars in thousands): December 31, 2025 March 31, 2025 Right-of-use assets included in other assets, net $ 16,901 $ 19,341 Short-term lease liabilities included in other accrued expenses $ 9,366 $ 9,351 Long-term lease liabilities included in other liabilities $ 21,870 $ 26,939 Supplemental balance sheet information: Weighted average remaining lease term 3.8 years 4.5 years Weighted average discount rate 5.5 % 5.4 % The Company leases its office facilities under non-cancellable operating leases that expire at various dates through fiscal 2031. Certain leases contain provisions for property-related costs that are variable in nature for which the Company is responsible, including common area maintenance and other property operating services. These costs are calculated based on a variety of factors including property values, tax and utility rates, property service fees, and other factors. The components of lease cost, net for the nine months ended December 31, 2025 and 2024, respectively, were as follows (dollars in thousands): For the nine months ended December 31, 2025 2024 Operating lease costs $ 5,707 $ 6,065 Operating sublease income 1,528 802 Total leases costs, net $ 4,179 $ 5,263 The following table presents future minimum payments under all operating leases and subleases (including operating leases with a duration of one year or less and excluding ASC 840 leases related to restructu …

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Accounting Pronouncements Adopted During the Current Year Standard Description Date of Adoption Effect on Financial Statements or Other Significant Matters There were no material accounting pronouncements applicable to the Company. Recent Accounting Pronouncements Not Yet Adopted Standard Description Date of Adoption Effect on Financial Statements or Other Significant Matters Accounting Standard Update (ASU) 2023-09 Income Taxes (Topic 740): Improvements to Income Tax Disclosures ASU 2023-09 requires greater disaggregated information about a reporting entity's effective tax rate reconciliation as well as information on income tax paid. We will adopt the updated standard beginning with our fourth quarter ending March 31, 2026. While the adoption of ASU 2023-09 will not have an impact on our financial condition and results of operations, additional disclosures will be required in the notes to the consolidated financial statements. ASU 2024-03 Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses ASU 2024-03 requires more detailed information about the types of expenses included in certain expense captions presented on the consolidated statements of operations. Additionally, this amendment requires the disclosure of a qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated quantitatively and the disclosure of the total amount of …

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13. RESTRUCTURING, IMPAIRMENT AND OTHER CHARGES: Restructuring activities result in various costs, including asset write-offs, ROU asset group impairments, exit charges including severance, contract termination fees, and decommissioning and other costs. A reconciliation of the beginning and ending restructuring liabilities is shown below for the nine months ended December 31, 2025. The restructuring charges and adjustments are included in gains, losses and other items, net in the consolidated statements of operations. The reserve balances are included in accrued payroll and related expenses and other liabilities in the consolidated balance sheets (dollars in thousands). Employee-related reserves Lease accruals Total Balances at March 31, 2025 $ 3,529 $ 1,905 $ 5,434 Restructuring charges and adjustments 1,047 617 1,664 Payments (3,619) (1,434) (5,053) Balances at December 31, 2025 $ 957 $ 1,088 $ 2,045 Employee-related Restructuring Plans During the nine months ended December 31, 2025, the Company recorded a total of $1.0 million in employee-related restructuring charges and adjustments. The expense reflects $0.9 million of severance charges in the United States and $0.1 million of adjustments to the fiscal 2025 employee-related restructuring plans in the United States and Europe. Of the fiscal 2026 employee-related restructuring plans, $0.9 million remained accrued as of December 31, 2025 and is expected to be paid during fiscal 2026. During the twelve months ended March 31, …

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"3. REVENUE FROM CONTRACTS WITH CUSTOMERS: Disaggregation of Revenue In the following table, revenue is disaggregated by primary geographical market and major service offerings (dollars in thousands): For the nine months ended December 31, Primary Geographical Markets 2025 2024 United States $ 572,836 $ 526,469 Europe 28,368 25,334 Asia-Pacific (""APAC"") 4,115 3,898 Other 1,529 1,155 $ 606,848 $ 556,856 Major Offerings/Services Subscription $ 456,799 $ 423,667 Marketplace and Other 150,049 133,189 $ 606,848 $ 556,856 Transaction Price Allocated to the Remaining Performance Obligations We have performance obligations associated with fixed commitments in customer contracts for future services that have not yet been recognized in our consolidated financial statements. The amount of fixed revenue not yet recognized was $709.8 million as of December 31, 2025, of which $471.1 million will be recognized over the next twelve months. The Company expects to recognize revenue on substantially all of these remaining performance obligations by December 31, 2032."

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"16. SEGMENT AND GEOGRAPHIC INFORMATION: The Company has one primary business activity, its data collaboration platform. The Company generates revenue from subscription fees from clients accessing our platform and from transactional usage-based fees from arrangements with certain publishers and addressable TV providers, and professional services fees. The platform is used by customers globally in a similar manner across geographies, channels and verticals. The Companys chief operating decision maker (CODM), the Chief Executive Officer, manages the Companys business activities as a single operating and reportable segment at the consolidated level. Our CODM uses net income (loss), among other measures, for budgeting and resource allocation purposes on a consolidated basis. There are no differences in segmentation, the nature of significant expenses, the measure of segment assets or the basis of measurement of segment profit and loss, which is consolidated net income, as compared to the disclosures in the 2025 Annual Report. LiveRamps CODM regularly reviews significant segment expenses by the nature of the cost: cost of revenue, research and development, sales and marketing, general and administrative, and gains, losses and other items, net. This is consistent with the Companys presentation on its condensed consolidated statements of operations. Other significant segment expenses within income from operations include depreciation and amortization expenses and stock compensation …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing