Rimini Street NASDAQ: RMNI reported fiscal first-quarter 2026 results showing a return to top-line growth and a sharp increase in billings, as management pointed to improving demand trends, larger deal sizes, and early momentum from its next-generation “agentic AI” initiatives.
Management highlights stronger demand and larger deals
CEO and President Seth Ravin said the quarter reflected “continued growth and accelerating momentum,” with customers using Rimini Support and the company’s “Rimini Smart Path” to run ERP and operational transaction processes “faster, better, and cheaper.” Ravin also emphasized continued strategic investment in “Rimini Agentic AI ERP solutions” designed to be deployed over existing ERP software without upgrades or migrations.
During the quarter, Ravin said Rimini Street closed 11 new client transactions with more than $1 million in total contract value (TCV), totaling $33 million, compared with five such transactions totaling $5.6 million in the year-ago period. The company also added 50 new logos.
On the call, Ravin attributed part of the improving deal profile to customers signing longer commitments. In response to questions about contract duration, Ravin said the company’s average new contract length previously was “about 2.5, 2.6 years,” and that the company is “seeing longer term contracts being signed” as customers reassess the ROI of vendor-driven upgrades and migrations.
Ravin also provided geographic color on larger deals, noting that in Q1 2026, “60% of those deals were in North America,” while the company had “zero of those deals” in North America in the first quarter of last year.
Q1 financial results: modest revenue growth, sharp billings increase
EVP and CFO Michael Perica said first-quarter results showed “solid execution and continued sign of momentum,” citing remaining performance obligations (RPO) and billings growth, as well as the company’s return to growth “despite the headwinds” from the wind-down of Oracle PeopleSoft support and services.
- Revenue: $105.5 million, up 1.2% year-over-year. Perica said that excluding PeopleSoft support services, revenue increased 5.2% year-over-year. Foreign exchange negatively impacted revenue by 0.5%.
- Annualized recurring revenue (ARR): $400.8 million, up 1.2% year-over-year.
- Billings: $95.3 million, up 19.9% year-over-year; excluding PeopleSoft-related billings, up 22.9% year-over-year.
- Gross margin: 59.0% versus 61.0% a year ago; on a non-GAAP basis, 59.5% versus 61.5%.
- Net income attributable to shareholders: $1.4 million, or $0.01 per diluted share, versus $0.04 per diluted share in the year-ago quarter.
- Non-GAAP net income: $4.0 million, or $0.04 per diluted share, versus $0.10 per diluted share a year ago.
- Adjusted EBITDA: $8.9 million, or 8.4% of revenue, versus $15.7 million, or 15.1% of revenue, in the year-ago quarter. Perica noted adjusted EBITDA now excludes unrealized FX translation adjustments.
Perica said gross margin was pressured by “investments pulled forward in the year to take advantage of market opportunities” and by “select non-subscription engagements that had large front-loaded start-up costs.”
On expenses, Perica reported reorganization charges of $407,000 tied to optimization costs. The company also separately disclosed research and development spending of $571,000, which Perica said reflected “ongoing and increasing” R&D for both historical offerings and “burgeoning Agentic AI ERP and UX solutions.”
Sales and marketing expense rose to 36.6% of revenue from 32.9% a year ago (35.8% non-GAAP versus 32.0% a year ago), which Perica again tied to pulled-forward investments. General and administrative expense was 16.9% of revenue, roughly flat with the prior-year period.
Cash, debt paydown, and RPO growth
Perica said strong operating cash flow and liquidity allowed the company to make $10 million of voluntary principal prepayments, reducing debt to $58.4 million. He added that Rimini Street ended the quarter with a cash balance of $132.2 million and a net cash position of $73.8 million.
Deferred revenue at March 31, 2026 was $277.3 million, up from $256.4 million in the prior-year quarter. RPO increased to $643.6 million from $553.1 million, up 16.4% year-over-year. Excluding PeopleSoft-related RPO, Perica said the balance increased 18.2%, which he said reflected momentum from “new bookings growth and longer duration commitments.”
PeopleSoft wind-down continues to shrink as a revenue headwind
Perica reiterated that the company’s July 2025 settlement agreement with Oracle requires Rimini Street to complete its previously announced wind-down of support and services for Oracle’s PeopleSoft software no later than July 31, 2028.
He said revenue from PeopleSoft support services was 3% of revenue in Q1 2026, compared with about 7% in the year-ago quarter, and down from 8% when the wind-down began in the second half of 2024.
AI initiatives: modest direct revenue today, broader sales impact cited
Ravin described the company’s “Rimini Agentic UX” as an “AI-driven experience and automation layer” aimed at turning ERP systems from systems of record into “autonomous” systems of action. He also said the company is strengthening indirect channels and closed “accretive” partner-assisted transactions it “do not believe we would have otherwise closed without partners.”
Asked about monetization, Ravin said revenue from the agentic AI ERP solutions is “not what we’d call a material amount yet.” However, he argued that the larger impact is already showing up in sales momentum because the company can now present a modernization roadmap that “does not lead them back to the software vendor in a future year.” Ravin said this has brought some customers “back to the table” who previously did not proceed.
On customer retention, Perica reported a service subscription revenue retention rate of 88%, and noted approximately 81% of subscription revenue is non-cancelable for at least 12 months. Ravin said the 88% figure is a trailing twelve-month metric and that the company “beat our internal numbers on the retention number” in the quarter. He said the company’s goal is to return retention to “over a 90% number,” and that management expects improvement to begin showing up “starting in the next quarter or so.”
Regarding investment levels, Ravin said the company plans to keep investing in the agentic AI area, and Perica added that R&D is expected to “creep up throughout the year” and “exit the year about 1% or so,” while remaining within existing guidance.
For outlook, Perica said Rimini Street expects second-quarter 2026 revenue of $106 million to $108 million and reiterated full-year 2026 guidance from its December 2025 investor day for revenue growth of 4% to 6% and adjusted EBITDA margins of 12.5% to 15.5%, which he said is “combined to achieve rule of twenty.” Ravin said management wants “another quarter under the belt” before considering any change to guidance.
About Rimini Street NASDAQ: RMNI
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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