Rimini Street (NASDAQ:RMNI) executives used the company’s fourth-quarter and full-year fiscal 2025 earnings call to highlight what they described as improving sales momentum, record remaining performance obligations (RPO), and the rollout of new “Agentic AI ERP” offerings that management believes can modernize customers’ existing enterprise resource planning environments without costly upgrades or migrations.
Management points to improving sales momentum and large deal activity
Chief Executive Officer Seth Ravin said the company’s fourth-quarter results reflected “solid execution and continued accelerating sales growth,” adjusted for the ongoing wind down of Oracle PeopleSoft support and services. Ravin said core Rimini Support subscription billings grew and the company launched its “next-generation Agentic AI ERP solutions.”
- 19 new client transactions over $1 million in total contract value (TCV), totaling $58.1 million, compared with 22 transactions totaling $51.9 million in the prior-year period.
- 73 new logos, which he said included “household, global, and regional brand wins.”
Ravin said bookings, pipeline, and RPO strengthened throughout the second half of 2025, which he said supported the company’s confidence in returning to growth in 2026.
Agentic AI ERP and ServiceNow partnership take center stage
A significant portion of the call focused on the company’s “Rimini Smart Path” strategy and the introduction of “Agentic AI ERP” solutions. Ravin argued that traditional ERP software has “peaked” technically, and positioned Rimini Street’s approach as delivering new capabilities “faster, better, and cheaper” by deploying an AI layer over existing ERP systems.
Ravin said Rimini Street’s model aims to reduce operating costs for existing ERP software landscapes “by up to 90%,” enabling customers to redirect savings toward modernization initiatives. He also cited the company’s internal use of proprietary AI applications, including reported “reductions of more than 23% in case resolution time.”
During the quarter, the company announced its first 20 “Rimini Agentic UX solutions,” developed through a partnership with ServiceNow. Ravin said the solutions are designed to deliver agentic AI capabilities over existing Oracle, SAP, and other ERP systems without requiring upgrades or migrations. He said the solutions are already in production and helping clients achieve operational gains including 50% to 60% faster approvals, 70% to 80% reductions in order cycle times, improved audit readiness, and greater than 95% data accuracy. As one example, Ravin referenced Melita Group and said it reported streamlining SKU master data creation using Rimini’s AI-assisted workflows.
In response to analyst questions about adoption, Ravin characterized customer interest as high but said enterprises need time to digest the architectural shift and the pace of change across AI platforms. He suggested broader momentum could build later in 2026, particularly in the back half of the year, as installations expand and reference customers increase.
Financial results: revenue down, billings modestly higher, margins pressured
Chief Financial Officer Michael Perica reported fourth-quarter revenue of $109.8 million and full-year 2025 revenue of $421.5 million, representing year-over-year declines of 3.9% and 1.7%, respectively. Excluding support services for PeopleSoft products, revenue decreased 0.4% in the quarter and increased 1% for the full year.
Perica also noted one-time items affecting comparability: fourth-quarter 2025 included a one-time $2.1 million revenue recognition, while fourth-quarter 2024 included a one-time revenue recognition of $5.4 million. Excluding the items referenced, Perica said fourth-quarter revenue grew 2.6% year over year.
Other metrics discussed on the call included:
- Annualized recurring revenue (ARR) of $411.4 million in the fourth quarter, down 0.8% year over year.
- Revenue retention rate for service subscriptions of approximately 88%; subscription revenue is about 96% of total revenue, and approximately 86% of subscription revenue was non-cancellable for at least 12 months.
- Fourth-quarter billings of $171.3 million, relatively flat year over year; full-year billings of $427.9 million, up 1.2% (and up 4.2% excluding PeopleSoft-related billings).
- Gross margin of 60.4% for both the quarter and full year, down from 63.7% in the prior-year quarter and 60.9% for full-year 2024.
Operating expenses included reorganization charges tied to optimization costs of $2.6 million in the quarter and $4.5 million for the year. Sales and marketing expense rose as a percentage of revenue to 37.7% in the quarter and 36% for the year, compared with 32.8% and 34.9%, respectively, in the comparable periods. Ravin told analysts the company increased spending to support product launches and expand its sales force, while reiterating a longer-term target of mid-30% sales and marketing expense as a percentage of revenue at larger scale.
Net income attributable to shareholders was $724,000, or $0.01 per diluted share, in the fourth quarter, compared with $0.07 per diluted share in the prior-year quarter. Full-year 2025 net income was $0.39 per diluted share, compared with a net loss of $0.40 per diluted share in 2024. On a non-GAAP basis, fourth-quarter net income was $6.0 million, or $0.06 per diluted share, and full-year 2025 non-GAAP net income was $0.23 per diluted share.
Adjusted EBITDA was $11.5 million in the quarter (10.4% of revenue), down from $20.0 million (17.5% of revenue) a year earlier. Full-year adjusted EBITDA was $49.8 million (11.8% of revenue), compared with $53.1 million (12.4% of revenue) in 2024.
Balance sheet strengthened; RPO reaches record; PeopleSoft wind down continues
Perica said the company ended 2025 with $120.0 million in cash, up from $88.8 million a year earlier, and described the balance sheet as stronger. He said deferred revenue was $288.0 million at year-end, up from $281.0 million in 2024.
RPO totaled $653.0 million as of December 31, 2025, up from $588.0 million at the end of 2024, an increase of about 11%. Excluding PeopleSoft-related RPO, Perica said the year-end balance increased 12%, which he attributed to new bookings growth and longer-duration commitments. In Q&A, Perica said the company viewed the RPO growth as supportive of its 2026 expectations, while cautioning that “two quarters doesn’t make a long-term trend.”
Perica also provided an update on the PeopleSoft support wind down, which is required to be completed no later than July 31, 2028 under the settlement agreement with Oracle. PeopleSoft support revenue was 4% of fourth-quarter revenue and 5% of full-year revenue, down from 8% when the wind down began in the second half of 2024.
Guidance: Q1 revenue range, full-year growth and margin targets reiterated
For the first quarter of 2026, the company guided revenue to a range of $101.5 million to $103.5 million. Perica reiterated full-year 2026 guidance, first communicated at the company’s Investor Day, calling for revenue growth of 4% to 6% and adjusted EBITDA margins of 12.5% to 15.5%.
In the question-and-answer session, management acknowledged that PeopleSoft run-off impacts the GAAP revenue comparisons, and said it expects an acceleration through the remainder of 2026 supported by growing TCV, improved close rates, expanded offerings, and sales execution. Ravin said the company’s close rates in the fourth quarter rose to “over 30% of pipeline.”
On capital allocation, Ravin and Perica said the company continues to evaluate share repurchases alongside other uses of cash, noting constraints around buybacks and disclosing that the company paid down $5 million of term debt earlier in February.
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.
