Rimini Street (NASDAQ:RMNI) Releases Quarterly Earnings Results, Misses Expectations By $0.04 EPS

Key Points

• Rimini Street missed earnings expectations, reporting $0.03 EPS versus the $0.07 consensus estimate, despite quarterly revenue of approximately $108 million to $111.1 million exceeding forecasts and rising 6.7% year over year.
• Management reiterated its FY2026 outlook for 4%–6% revenue growth and 12.5%–15.5% adjusted EBITDA margins, but billings declined 8.8% year over year and profitability weakened as the company invested in sales capacity, AI offerings and infrastructure.
• Rimini Street launched Rimini Govern for AI and continued strengthening its balance sheet by prepaying $10 million of debt, ending the quarter with $123.4 million in cash and $48.4 million in outstanding debt.

Rimini Street (NASDAQ:RMNI - Get Free Report) issued its quarterly earnings data on Thursday. The company reported $0.03 earnings per share for the quarter, missing the consensus estimate of $0.07 by ($0.04), FiscalAI reports. The business had revenue of $108.02 million during the quarter, compared to the consensus estimate of $106.77 million. Rimini Street had a negative return on equity of 24.30% and a net margin of 8.30%.

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

• Revenue increased 6.7% year over year to $111.1 million, while adjusted revenue excluding PeopleSoft grew 10% and annualized recurring revenue rose 8.1% to $401.1 million. Management cited improving growth metrics for the fourth consecutive quarter.
• New-business momentum continued, with 14 deals exceeding $1 million in total contract value worth $30 million and 58 new logos added in Q2. Management also reported double-digit year-over-year new-bookings growth, a 30% pipeline close rate, and improving net client additions.
• The company reiterated its FY2026 outlook for 4%–6% revenue growth and 12.5%–15.5% adjusted EBITDA margins, but Q2 billings fell 8.8% year over year due partly to renewal timing. Adjusted EBITDA margin declined to 9.5% as Rimini invested in sales capacity, AI offerings, and related infrastructure.
• Rimini launched Rimini Govern for AI, expanding its Agentic AI ERP portfolio with governance, security, monitoring, and compliance services. Management said several ServiceNow-related AI deployments have already entered production, with some customers expanding into additional projects.
• The company prepaid $10 million of debt, reducing outstanding debt to $48.4 million, while ending the quarter with $123.4 million in cash. Year-to-date operating cash flow was $22.9 million, representing 118% cash-flow conversion and supporting continued balance-sheet flexibility.

Rimini Street Trading Down 0.6%

RMNI stock traded down $0.03 during midday trading on Thursday, hitting $4.91. The stock had a trading volume of 435,846 shares, compared to its average volume of 300,356. The firm has a market cap of $454.47 million, a P/E ratio of 13.27 and a beta of 1.28. The business has a fifty day moving average price of $4.32 and a two-hundred day moving average price of $3.77. Rimini Street has a 1-year low of $2.87 and a 1-year high of $5.06.

Trending Headlines about Rimini Street

Here are the key news stories impacting Rimini Street this week:

• Positive Sentiment: Revenue exceeded expectations. Second-quarter revenue was reported at approximately $108 million to $111.1 million, up 6.7% year over year and above consensus estimates. Gross profit also increased 7.7% to $67.7 million, suggesting continued demand for Rimini Support. Rimini Street Announces Fiscal Second Quarter 2026 Financial and Operating Results
• Positive Sentiment: Revenue guidance was near analyst expectations. Rimini Street forecast third-quarter revenue of $110 million-$112 million, versus consensus of $110.5 million, and full-year revenue of $438.4 million-$446.8 million, compared with consensus of $440.9 million. This indicates management is maintaining its growth outlook. Rimini Street earnings and guidance
• Positive Sentiment: New AI governance offering expands its growth opportunity. The launch of Rimini Govern for AI provides enterprise customers with governance, security, controls and performance monitoring for AI-agent workflows, potentially strengthening Rimini Street’s strategic positioning beyond traditional software support. Rimini Street Launches Rimini Govern for AI
• Neutral Sentiment: Customer retention remains a supporting datapoint. Autobacs Seven said it has achieved 10 years of system stability and self-funded innovation with Rimini Street, although the announcement is unlikely to materially affect near-term financial results. Autobacs Seven customer announcement
• Negative Sentiment: Profitability deteriorated sharply. Operating profit fell 84.5% to $6.4 million, net income declined 92.1% to $2.4 million, and diluted EPS was reported at $0.03 in one earnings account—below the $0.07 consensus estimate. Operating cash flow was negative $1.6 million, adding to concerns about earnings quality and cost control.
• Negative Sentiment: Insider selling may weigh on sentiment. Company insiders reported no purchases and 20 open-market sales over the past six months, including sales by the CEO and CFO. This is not necessarily a fundamental signal, but it may increase caution after the stock’s recent advance.

Analyst Ratings Changes

RMNI has been the topic of several recent research reports. Alliance Global Partners reaffirmed a "buy" rating on shares of Rimini Street in a report on Friday, May 1st. Weiss Ratings cut Rimini Street from a "hold (c+)" rating to a "hold (c)" rating in a research note on Tuesday, July 7th. Zacks Research upgraded Rimini Street from a "strong sell" rating to a "hold" rating in a research report on Monday, July 6th. Finally, TD Cowen lifted their price objective on Rimini Street from $4.50 to $5.00 and gave the stock a "hold" rating in a research note on Tuesday. One research analyst has rated the stock with a Buy rating and three have given a Hold rating to the company's stock. Based on data from MarketBeat, the company presently has an average rating of "Hold" and an average price target of $5.00.

Insiders Place Their Bets

In other news, EVP Kevin Maddock sold 7,485 shares of Rimini Street stock in a transaction dated Wednesday, May 6th. The stock was sold at an average price of $3.94, for a total value of $29,490.90. Following the completion of the transaction, the executive vice president directly owned 213,534 shares of the company's stock, valued at approximately $841,323.96. This trade represents a 3.39% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CMO David W. Rowe sold 7,485 shares of the business's stock in a transaction dated Wednesday, May 6th. The shares were sold at an average price of $3.94, for a total value of $29,490.90. Following the completion of the transaction, the chief marketing officer directly owned 498,119 shares in the company, valued at $1,962,588.86. This represents a 1.48% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last 90 days, insiders have sold 157,045 shares of company stock valued at $621,832. 42.00% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Rimini Street

A number of institutional investors and hedge funds have recently modified their holdings of the business. Samjo Management LLC increased its stake in shares of Rimini Street by 149.0% in the 4th quarter. Samjo Management LLC now owns 1,207,750 shares of the company's stock valued at $4,686,000 after acquiring an additional 722,750 shares in the last quarter. Mink Brook Asset Management LLC boosted its stake in Rimini Street by 73.4% during the fourth quarter. Mink Brook Asset Management LLC now owns 1,299,741 shares of the company's stock worth $5,043,000 after acquiring an additional 550,167 shares in the last quarter. Manatuck Hill Partners LLC boosted its stake in Rimini Street by 401.4% during the third quarter. Manatuck Hill Partners LLC now owns 604,640 shares of the company's stock worth $2,830,000 after acquiring an additional 484,040 shares in the last quarter. Marshall Wace LLP acquired a new stake in Rimini Street in the second quarter worth $1,134,000. Finally, Dimensional Fund Advisors LP grew its holdings in Rimini Street by 362.4% in the fourth quarter. Dimensional Fund Advisors LP now owns 210,726 shares of the company's stock worth $818,000 after purchasing an additional 165,155 shares during the period. 73.75% of the stock is currently owned by institutional investors.

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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