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

Rimini Street (NASDAQ:RMNI) posted its quarterly earnings results on Thursday. The company reported $0.03 earnings per share for the quarter, missing analysts’ consensus estimates of $0.07 by ($0.04), FiscalAI reports. The firm had revenue of $108.02 million for the quarter, compared to analyst estimates 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%

Shares of NASDAQ:RMNI traded down $0.03 during mid-day trading on Thursday, hitting $4.91. 435,846 shares of the company traded hands, compared to its average volume of 300,356. The stock has a 50-day moving average price of $4.32 and a two-hundred day moving average price of $3.77. Rimini Street has a 12-month low of $2.87 and a 12-month high of $5.06. The stock has a market cap of $454.47 million, a P/E ratio of 13.27 and a beta of 1.28.

Insider Buying and Selling

In other Rimini Street news, CEO Seth A. Ravin sold 57,097 shares of Rimini Street stock in a transaction on Wednesday, May 6th. The shares were sold at an average price of $3.94, for a total transaction of $224,962.18. Following the transaction, the chief executive officer directly owned 882,900 shares of the company’s stock, valued at $3,478,626. The trade was a 6.07% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 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 company’s stock in a transaction on Wednesday, May 6th. The stock was sold at an average price of $3.94, for a total transaction of $29,490.90. Following the completion of the sale, the chief marketing officer owned 498,119 shares of the company’s stock, valued at approximately $1,962,588.86. The trade was a 1.48% decrease in their position. 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. Over the last quarter, insiders sold 157,045 shares of company stock valued at $621,832. 42.00% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Two Sigma Investments LP grew its position in Rimini Street by 23.5% in the 3rd quarter. Two Sigma Investments LP now owns 265,266 shares of the company’s stock worth $1,241,000 after purchasing an additional 50,504 shares in the last quarter. Jacobs Levy Equity Management Inc. lifted its position in shares of Rimini Street by 10.7% during the 4th quarter. Jacobs Levy Equity Management Inc. now owns 298,678 shares of the company’s stock worth $1,159,000 after buying an additional 28,972 shares in the last quarter. Marshall Wace LLP bought a new position in shares of Rimini Street during the 2nd quarter worth approximately $1,134,000. Dimensional Fund Advisors LP boosted its stake in shares of Rimini Street by 362.4% in the 4th quarter. Dimensional Fund Advisors LP now owns 210,726 shares of the company’s stock worth $818,000 after buying an additional 165,155 shares during the last quarter. Finally, XTX Topco Ltd purchased a new position in shares of Rimini Street in the 3rd quarter worth approximately $593,000. 73.75% of the stock is currently owned by hedge funds and other institutional investors.

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.

Wall Street Analyst Weigh In

A number of brokerages have commented on RMNI. TD Cowen raised their price objective on Rimini Street from $4.50 to $5.00 and gave the company a “hold” rating in a research note on Tuesday. Alliance Global Partners reiterated a “buy” rating on shares of Rimini Street in a report on Friday, May 1st. Weiss Ratings downgraded shares of Rimini Street from a “hold (c+)” rating to a “hold (c)” rating in a research report on Tuesday, July 7th. Finally, Zacks Research raised shares of Rimini Street from a “strong sell” rating to a “hold” rating in a research note on Monday, July 6th. One research analyst has rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat.com, Rimini Street has a consensus rating of “Hold” and a consensus price target of $5.00.

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.