Rimini Street (NASDAQ:RMNI) Announces Earnings Results, Misses Estimates By $0.07 EPS

Rimini Street (NASDAQ:RMNI) released its earnings results on Thursday. The company reported $0.01 earnings per share for the quarter, missing the consensus estimate of $0.08 by ($0.07), Zacks reports. Rimini Street had a net margin of 8.80% and a negative return on equity of 27.81%. The company had revenue of $105.47 million for the quarter, compared to analysts’ expectations of $102.71 million.

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 Up 16.8%

NASDAQ:RMNI traded up $0.57 on Friday, reaching $3.98. 1,463,722 shares of the company’s stock traded hands, compared to its average volume of 353,064. The stock has a 50-day simple moving average of $3.43 and a 200-day simple moving average of $3.72. Rimini Street has a 12 month low of $2.87 and a 12 month high of $5.38. The firm has a market cap of $365.17 million, a PE ratio of 9.94 and a beta of 1.27.

Insiders Place Their Bets

In related news, CFO Michael L. Perica sold 24,879 shares of the stock in a transaction dated Wednesday, March 4th. The stock was sold at an average price of $3.64, for a total transaction of $90,559.56. Following the completion of the sale, the chief financial officer owned 117,655 shares in the company, valued at approximately $428,264.20. This trade represents a 17.45% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CMO David W. Rowe sold 7,209 shares of Rimini Street 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 chief marketing officer directly owned 464,444 shares in the company, valued at $1,690,576.16. This trade represents a 1.53% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 116,246 shares of company stock worth $424,248. 41.20% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Rimini Street

Several hedge funds have recently modified their holdings of RMNI. Invesco Ltd. grew its stake in Rimini Street by 37.2% during the fourth quarter. Invesco Ltd. now owns 22,105 shares of the company’s stock valued at $86,000 after acquiring an additional 5,998 shares in the last quarter. nVerses Capital LLC purchased a new stake in Rimini Street in the 4th quarter worth $57,000. Oxford Asset Management LLP purchased a new stake in Rimini Street in the 4th quarter worth $127,000. Millennium Management LLC boosted its holdings in shares of Rimini Street by 49.0% during the 4th quarter. Millennium Management LLC now owns 70,834 shares of the company’s stock valued at $275,000 after purchasing an additional 23,286 shares during the last quarter. Finally, AQR Capital Management LLC grew its position in shares of Rimini Street by 95.2% during the fourth quarter. AQR Capital Management LLC now owns 69,980 shares of the company’s stock valued at $272,000 after purchasing an additional 34,123 shares in the last quarter. Hedge funds and other institutional investors own 73.75% of the company’s stock.

Wall Street Analysts Forecast Growth

Several research firms have recently commented on RMNI. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Rimini Street in a research note on Friday, March 27th. TD Cowen reduced their target price on shares of Rimini Street from $4.25 to $4.00 and set a “hold” rating for the company in a report on Monday. Finally, Alliance Global Partners restated a “buy” rating on shares of Rimini Street in a research note on Friday. Two analysts have rated the stock with a Buy rating and two have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $5.25.

About Rimini Street

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.