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

Rimini Street (NASDAQ:RMNI) posted its earnings results on Thursday. The company reported $0.03 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.07 by ($0.04), FiscalAI reports. The business had revenue of $108.02 million for the quarter, compared to analysts’ expectations of $106.77 million. Rimini Street had a net margin of 8.30% and a negative return on equity of 24.30%.

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 traded down $0.03 during trading on Thursday, reaching $4.91. The stock had a trading volume of 435,846 shares, compared to its average volume of 300,356. The stock’s 50 day moving average is $4.32 and its two-hundred day moving average is $3.77. The company has a market capitalization of $454.47 million, a price-to-earnings ratio of 13.27 and a beta of 1.28. Rimini Street has a one year low of $2.87 and a one year high of $5.06.

Insider Transactions at Rimini Street

In related news, EVP Kevin Maddock sold 7,485 shares of the 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 executive vice president directly owned 213,534 shares in the company, valued at $841,323.96. This trade represents a 3.39% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Michael L. Perica sold 51,246 shares of Rimini Street stock in a transaction dated Friday, May 1st. The shares were sold at an average price of $4.00, for a total transaction of $204,984.00. Following the transaction, the chief financial officer directly owned 116,505 shares of the company’s stock, valued at approximately $466,020. This trade represents a 30.55% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 157,045 shares of company stock worth $621,832. Corporate insiders own 42.00% of the company’s stock.

Institutional Investors Weigh In On Rimini Street

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Invesco Ltd. lifted its holdings in shares of 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 purchasing an additional 5,998 shares during the last quarter. nVerses Capital LLC purchased a new stake in shares of Rimini Street in the 4th quarter worth approximately $57,000. Oxford Asset Management LLP bought a new position in Rimini Street during the 4th quarter valued at approximately $127,000. Millennium Management LLC increased its position in 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 buying an additional 23,286 shares in the last quarter. Finally, AQR Capital Management LLC raised its stake in 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 buying an additional 34,123 shares during the last quarter. Hedge funds and other institutional investors own 73.75% of the company’s stock.

Key Headlines Impacting 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 Upgrades and Downgrades

Several analysts recently weighed in on the stock. Weiss Ratings cut shares of Rimini Street from a “hold (c+)” rating to a “hold (c)” rating in a report on Tuesday, July 7th. Zacks Research raised shares of Rimini Street from a “strong sell” rating to a “hold” rating in a research report on Monday, July 6th. Alliance Global Partners reaffirmed a “buy” rating on shares of Rimini Street in a research note on Friday, May 1st. Finally, TD Cowen boosted their price target on shares of Rimini Street from $4.50 to $5.00 and gave the company a “hold” rating in a research report on Tuesday. One analyst has rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. According to MarketBeat.com, Rimini Street presently has an average rating of “Hold” and an average target price 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.