Rimini Street (NASDAQ:RMNI) Posts Earnings Results, Beats Expectations By $0.03 EPS

Key Points

• Rimini Street beat earnings expectations: Quarterly EPS was $0.12 versus the $0.09 consensus, while revenue reached approximately $109.3 million, slightly below estimates. Conference-call figures showed revenue up 8.3% year over year and adjusted EBITDA improving to $15.1 million.
• Demand and guidance strengthened: Calculated billings rose 21% to $80.5 million, adjusted ARR increased 9.8% to $410.4 million, and management reiterated fiscal 2026 Rule of 20 guidance while forecasting fourth-quarter revenue of $117 million to $119 million.
• Growth opportunities remain balanced by execution risks: Rimini Street is prioritizing share repurchases and developing AI offerings, but AI adoption is still early and indirect-channel sales remain below the company’s long-term target. Analysts maintain a “Moderate Buy” consensus with an average price target of $6.33.

Rimini Street (NASDAQ:RMNI - Get Free Report) posted its quarterly earnings data on Thursday. The company reported $0.12 EPS for the quarter, beating analysts' consensus estimates of $0.09 by $0.03, reports. Rimini Street had a negative return on equity of 53.91% and a net margin of 1.69%. The business had revenue of $109.34 million during the quarter, compared to analysts' expectations of $110.82 million.

Here are the key takeaways from Rimini Street's conference call:

• Revenue and profitability improved: Q3 revenue rose 8.3% year over year to $112.1 million, adjusted revenue excluding PeopleSoft grew 10.7%, and adjusted EBITDA increased to $15.1 million, or 13.5% of revenue, from 9.6% a year ago.
• Demand indicators strengthened: Calculated billings increased 21% year over year to $80.5 million, adjusted ARR grew 9.8% to $410.4 million, and RPO rose 6.8% to $652.9 million. Management cited 17 contracts exceeding $1 million in total contract value, totaling $43.7 million.
• Outlook and capital allocation remain supportive: The company reiterated its fiscal 2026 Rule of 20 guidance and expects Q4 revenue of $117 million to $119 million. It also repurchased $5 million of stock and prepaid $5 million of debt during the quarter, with management indicating a near-term bias toward additional share repurchases.
• AI offerings are still in an early adoption phase: Rimini Street launched Rimini Govern for AI and continues developing its agentic AI suite, but management said customers are still determining where and how to deploy AI, suggesting meaningful revenue contributions may take time.
• Indirect-channel leverage remains underdeveloped: Although partner-generated sales reached millions of dollars during the quarter, the company is not yet near its goal of having 40% of pipeline come from indirect channels and expects the effort to require several more quarters.

Rimini Street Stock Performance

Shares of NASDAQ:RMNI traded down $0.04 during midday trading on Thursday, hitting $3.99. The company's stock had a trading volume of 495,211 shares, compared to its average volume of 397,111. The business's 50 day simple moving average is $4.50 and its 200 day simple moving average is $4.03. The company has a market cap of $372.51 million, a P/E ratio of 49.88 and a beta of 1.31. Rimini Street has a 12-month low of $2.87 and a 12-month high of $5.68.

Insiders Place Their Bets

In related news, CEO Seth Ravin sold 191,702 shares of the company's stock in a transaction dated Wednesday, September 2nd. The shares were sold at an average price of $5.18, for a total transaction of $993,016.36. Following the completion of the sale, the chief executive officer owned 10,299,607 shares of the company's stock, valued at approximately $53,351,964.26. This represents a 1.83% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders have sold 327,591 shares of company stock worth $1,677,747 in the last quarter. Insiders own 42.00% of the company's stock.

Analysts Set New Price Targets

A number of equities research analysts recently issued reports on the stock. Wall Street Zen raised shares of Rimini Street from a "hold" rating to a "buy" rating in a research note on Saturday, August 1st. Craig Hallum restated a "buy" rating and set a $8.00 price objective on shares of Rimini Street in a research report on Friday, July 31st. Roth Capital reaffirmed a "buy" rating and set a $6.50 price objective on shares of Rimini Street in a report on Thursday, July 30th. Weiss Ratings reiterated a "hold (c)" rating on shares of Rimini Street in a research report on Friday, October 2nd. Finally, Zacks Research upgraded shares of Rimini Street from a "strong sell" rating to a "hold" rating in a research report on Monday, July 6th. Three analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $6.33.

About Rimini Street

Rimini Street, Inc provides enterprise software support, products and services for organizations using business applications and database systems. The company is best known for third-party support for software from Oracle, SAP and other enterprise technology providers, helping customers maintain existing systems while reducing the need for frequent upgrades.

Its offerings include application management, database support, interoperability services, security services, managed services and professional services.

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