Rimini Street (NASDAQ:RMNI) Issues Earnings Results

Key Points

• Earnings miss and margin pressure: Rimini reported Q1 EPS of $0.01 vs. $0.08 expected, with gross margin down to 59.0% and adjusted EBITDA falling to 8.4% (from 15.1% last year), while the ongoing PeopleSoft support wind‑down through July 2028 is pressuring profitability.
• Demand is accelerating: Q1 revenue was $105.5M (+1.2% YoY; +5.2% ex‑PeopleSoft), ARR $400.8M, billings +19.9% (+22.9% ex‑PeopleSoft), RPO $643.6M (+16.4%), and the company closed 11 deals >$1M TCV and added 50 new logos, signaling larger, longer‑duration contracts and improved pipeline conversion.
• Healthy balance sheet and market context: Rimini finished the quarter with $132.2M cash, made a $10M voluntary debt prepayment (debt $58.4M) and a net cash position of $73.8M, providing optionality for buybacks/debt paydown or reinvestment; insiders have recently sold shares and analysts hold a consensus "Hold" with a $5.25 target.

Rimini Street (NASDAQ:RMNI - Get Free Report) issued its earnings results on Thursday. The company reported $0.01 earnings per share for the quarter, missing analysts' consensus estimates of $0.08 by ($0.07), Zacks reports. Rimini Street had a negative return on equity of 27.81% and a net margin of 8.80%.

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

• Q1 top-line and backlog growth: Revenue was $105.5M (+1.2% YoY; +5.2% ex‑PeopleSoft), ARR $400.8M, billings +19.9% (+22.9% ex‑PeopleSoft) and RPO rose to $643.6M (+16.4%), signaling accelerating demand.
• Stronger bookings and larger deals: Closed 11 transactions >$1M TCV totaling $33M (vs. 5/$5.6M LY), added 50 new logos, and reported longer‑duration contracts and better pipeline conversion, including more North American wins.
• Healthy balance sheet and debt reduction: Ended the quarter with $132.2M cash, made a $10M voluntary principal prepayment (debt $58.4M) and a net cash position of $73.8M, supporting optionality for buybacks, debt paydown, or reinvestment.
• Strategic shift into Agentic AI ERP and R&D: Company is investing in Rimini Agentic AI ERP and introduced an R&D line item (expected to exit the year ~1% of revenue); commercial contribution is modest today but management expects it to be a growth lever over time.
• Margin and profitability pressure and PeopleSoft wind‑down: Gross margin declined to 59.0% and adjusted EBITDA fell to 8.4% of revenue (vs. 15.1% LY) due to pulled‑forward investments and start‑up costs, while the PeopleSoft support wind‑down (completion by July 2028) continues to remove a prior revenue stream.

Rimini Street Stock Performance

Shares of NASDAQ RMNI traded up $0.02 during midday trading on Thursday, hitting $3.41. 513,667 shares of the stock traded hands, compared to its average volume of 300,395. The company has a market cap of $312.56 million, a PE ratio of 8.53 and a beta of 1.27. Rimini Street has a one year low of $2.87 and a one year high of $5.38. The business has a 50 day moving average price of $3.43 and a two-hundred day moving average price of $3.72.

Wall Street Analysts Forecast Growth

A number of equities research analysts have weighed in on RMNI shares. TD Cowen lowered their target price on Rimini Street from $4.25 to $4.00 and set a "hold" rating for the company in a report on Monday. Weiss Ratings reiterated a "hold (c)" rating on shares of Rimini Street in a report on Friday, March 27th. One investment analyst has rated the stock with a Buy rating and two have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the company has an average rating of "Hold" and a consensus price target of $5.25.

Insider Transactions at Rimini Street

In other news, CEO Seth A. Ravin sold 52,085 shares of the business's stock in a transaction that occurred on Wednesday, March 4th. The stock was sold at an average price of $3.64, for a total transaction of $189,589.40. Following the completion of the sale, the chief executive officer owned 722,564 shares in the company, valued at $2,630,132.96. The trade was a 6.72% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, EVP Kevin Maddock sold 7,209 shares of the business's stock in a transaction that occurred on Wednesday, March 4th. The shares were sold at an average price of $3.64, for a total value of $26,240.76. Following the sale, the executive vice president owned 184,217 shares of the company's stock, valued at approximately $670,549.88. This represents a 3.77% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 116,246 shares of company stock worth $424,248. Insiders own 41.20% of the company's stock.

Institutional Investors Weigh In On Rimini Street

Hedge funds and other institutional investors have recently modified their holdings of the company. Invesco Ltd. grew its holdings in Rimini Street by 37.2% during the fourth quarter. Invesco Ltd. now owns 22,105 shares of the company's stock worth $86,000 after buying an additional 5,998 shares in the last quarter. nVerses Capital LLC bought a new stake in Rimini Street during the fourth quarter worth $57,000. Oxford Asset Management LLP bought a new stake in Rimini Street during the fourth quarter worth $127,000. Millennium Management LLC grew its holdings in Rimini Street by 49.0% during the fourth quarter. Millennium Management LLC now owns 70,834 shares of the company's stock worth $275,000 after buying an additional 23,286 shares in the last quarter. Finally, AQR Capital Management LLC grew its holdings in Rimini Street by 95.2% during the fourth quarter. AQR Capital Management LLC now owns 69,980 shares of the company's stock worth $272,000 after buying an additional 34,123 shares in the last quarter. Institutional investors own 73.75% of the company's stock.

Rimini Street Company Profile

Rimini Street, Inc NASDAQ: RMNI is a provider of enterprise software support services, specializing in third-party maintenance for mission-critical applications from leading technology vendors. The company offers comprehensive support for ERP, CRM and database environments, with coverage for systems from providers such as Oracle and SAP. Through its proactive system monitoring, performance tuning, regulatory and tax update services, Rimini Street aims to extend the lifecycle of enterprise applications while delivering service levels comparable to or exceeding those of original software vendors.

Founded in 2005 by technology entrepreneur Seth Ravin, Rimini Street has grown from a startup into a publicly traded company following its initial public offering in March 2018.

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