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Rimini Street Inc (RMNI)
NASDAQ:RMNI
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Rimini Street
(NASDAQ:RMNI)
Rating:45Neutral
Price Target:
$4.00
▼(-11.11% Downside)
Positive Factors
Financial Position
The adjustment in the net debt level from $54m to -$4m indicates a healthier financial position for Rimini Street.
Legal Rulings
Recent court rulings are a net win and likely to result in more favorable end-market dynamics.
Partnerships
The new partnership between Rimini Street and NOW is exciting and has potential for future growth.
Negative Factors
Business Decision Impact
RMNI finalizing its decision to end its PeopleSoft support business comes at the expense of ~$30m in annual revenues.
Growth Profile
The wind-down of the PeopleSoft business is viewed as a headwind to RMNI's medium-term growth profile.
Revenue Growth
Revenue growth was only 1%, slightly below the analyst's estimate, and billings declined, breaking four quarters of positive growth.
Rimini Street (RMNI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$406.15M
Dividend YieldN/A
Average Volume (3M)360.14K
Price to Earnings (P/E)―
Beta (1Y)1.08
Revenue Growth-0.52%
EPS Growth-119.92%
CountryUS
Employees2,000
SectorTechnology
Sector Strength84
IndustrySoftware - Application
Share Statistics
EPS (TTM)>-0.01
Shares Outstanding92,518,000
10 Day Avg. Volume276,901
30 Day Avg. Volume360,139
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.88
Enterprise Value/Revenue0.83
Enterprise Value/Gross Profit1.36
Enterprise Value/Ebitda15.70
Forecast
1Y Price Target
$6.50Price Target Upside44.44% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
Rimini Street Business Overview & Revenue Model
Company DescriptionRimini Street, Inc. provides enterprise software products, services, and support for various industries. The company offers software support services for Oracle and SAP enterprise software products. It sells its solutions primarily through direct sales organizations in North America, Latin America, Europe, Africa, the Middle East, Asia, and the Asia-Pacific. Rimini Street, Inc. was incorporated in 2005 and is headquartered in Las Vegas, Nevada.
How the Company Makes MoneyRimini Street generates revenue primarily through its subscription-based support services for Oracle and SAP software. The company charges its clients annual fees for these services, which can be significantly lower than traditional vendor support costs. Key revenue streams include ongoing maintenance and support contracts, as well as consulting services that help businesses optimize their software investments. Additionally, Rimini Street benefits from long-term client relationships and high customer retention rates, which contribute to its stable revenue growth. The company also engages in strategic partnerships and alliances with technology providers, enhancing its service offerings and broadening its market reach.
Rimini Street Earnings Call Summary
Earnings Call Date:Jul 31, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Mar 04, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted the successful resolution of long-standing litigation with Oracle, improved gross margins, and strategic partnerships, which are positive indicators for future growth. However, the winding down of PeopleSoft-related revenue, flat deferred revenue, and a decrease in annualized recurring revenue and cash flow indicate some challenges that the company needs to address.Q2-2025 Updates
Positive Updates
Settlement with Oracle
Rimini Street entered into a confidential settlement agreement with Oracle, resolving the Rimini II case. Rimini Street received $37.9 million from Oracle as part of the settlement.
Strong Revenue and Renewals
Revenue for Q2 2025 was $104.1 million, a year-over-year increase of 1%. The company also experienced a strong ARR subscription renewals quarter.
Gross Margin Improvement
Non-GAAP gross margin improved to 60.8% from 59.5% in the previous year.
Partnerships and Alliances
Rimini Street announced partnerships with Apsen Farma, Merlin Cyber, and Dayforce, expanding its reach and service offerings.
Positive Impact of ServiceNow Partnership
Rimini Street's collaboration with ServiceNow led to significant process automation and cost savings for clients like Apsen Farma.
Adjusted EBITDA Improvement
Adjusted EBITDA was $13 million for Q2 2025 or 12.4% of revenue, compared to 8.5% in the previous year.
Negative Updates
PeopleSoft Revenue Decline
PeopleSoft revenue, which is being wound down as part of the Oracle settlement, was 6% of Q2 2025 revenue compared to 8% in the prior year.
Flat Deferred Revenue
Deferred revenue for Q2 2025 was $262.9 million, nearly unchanged from the prior year.
Decrease in Annualized Recurring Revenue
Annualized recurring revenue was $394.1 million, a year-over-year decrease of 1.3%.
Cash Flow Decrease
Operating cash flow decreased by $17.8 million in Q2 2025 compared to an increase of $6.2 million in the prior year.
Company Guidance
During the Rimini Street Q2 2025 earnings call, the company provided several key metrics and insights into its current performance and future outlook. Revenue for the second quarter was reported at $104.1 million, showing a year-over-year increase of 1%, with U.S. clients contributing 47% and international clients 53% of the total revenue. Excluding PeopleSoft, revenue grew by 3.6% compared to the previous year. The annualized recurring revenue was noted at $394.1 million, reflecting a slight decrease of 1.3% year-over-year. The revenue retention rate for service subscriptions was 90%, with 83% of subscription revenue being non-cancelable for at least 12 months. Billings for the quarter were $110.6 million, down 0.9% year-over-year, but adjusted billings, excluding PeopleSoft, increased by 3.9%. The gross margin for the quarter was reported at 60.4%, with non-GAAP gross margin at 60.8%, both showing improvements from the previous year. The company also highlighted that it received approximately $37.9 million from Oracle as part of a litigation settlement, which contributed to a net income of $30.3 million for the quarter. Adjusted EBITDA was $13 million, or 12.4% of revenue, up from 8.5% in the prior year. The company plans to reinitiate guidance in the fourth quarter at an Analyst Day event, indicating a focus on enhancing shareholder value, top-line growth, and bottom-line improvement.Rimini Street Financial Statement Overview
Summary
Rimini Street's financial performance is hindered by declining revenues, negative net profit margins, and a weak balance sheet with negative equity. Operating cash flows are negative, indicating financial strain and sustainability concerns despite reasonable gross margins.Income Statement
Rimini Street's TTM (Trailing-Twelve-Months) gross profit margin stands at 61.47%, indicating decent cost control. However, the net profit margin shows a loss of -0.66%, reflecting ongoing profitability challenges. Revenue has shown a slight decline from 2024 to the TTM period, and both EBIT and EBITDA margins are low, highlighting operational inefficiencies.48
Neutral
Balance Sheet
The company has a negative stockholders' equity, which is concerning and indicates more liabilities than assets. The debt-to-equity ratio is not applicable due to negative equity, but the equity ratio is also negative. These factors point to a weak financial structure and high leverage risk.35
Negative
Cash Flow
The operating cash flow is negative, which raises sustainability concerns. Free cash flow growth is negative, and ratios to net income are unfavorable due to net losses. Cash flow management appears strained, impacting financial flexibility.40
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 427.20M | 428.75M | 431.50M | 409.66M | 374.43M | 326.78M |
| Gross Profit | 262.64M | 261.02M | 268.98M | 257.28M | 237.97M | 200.57M |
| EBITDA | 22.67M | -22.18M | 50.42M | 10.58M | 23.39M | 18.05M |
| Net Income | -2.83M | -36.27M | 26.06M | -2.48M | 75.22M | 11.59M |
Balance Sheet | ||||||
| Total Assets | 397.50M | 369.06M | 393.80M | 391.04M | 391.26M | 279.94M |
| Cash, Cash Equivalents and Short-Term Investments | 101.28M | 88.79M | 125.25M | 129.12M | 119.57M | 87.58M |
| Total Debt | 103.70M | 96.63M | 81.66M | 88.11M | 100.06M | 19.93M |
| Total Liabilities | 426.53M | 438.51M | 433.29M | 468.21M | 471.65M | 480.87M |
| Stockholders Equity | -29.04M | -69.44M | -39.50M | -77.17M | -80.39M | -200.94M |
Cash Flow | ||||||
| Free Cash Flow | -44.27M | -42.23M | 5.25M | 30.57M | 64.84M | 40.62M |
| Operating Cash Flow | -40.26M | -38.85M | 12.47M | 34.90M | 66.94M | 42.10M |
| Investing Cash Flow | -4.01M | 6.45M | 3.08M | -24.45M | -2.11M | -1.48M |
| Financing Cash Flow | 5.88M | 14.02M | -6.89M | -13.57M | -26.57M | 6.38M |
Rimini Street Technical Analysis
Positive
4.50
Price Trends
4.34
Positive
3.82
Positive
3.39
Positive
Market Momentum
0.03
Negative
61.46
Neutral
82.79
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RMNI, the sentiment is Positive. The current price of 4.5 is above the 20-day moving average (MA) of 4.17, above the 50-day MA of 4.34, and above the 200-day MA of 3.39, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 61.46 is Neutral, neither overbought nor oversold. The STOCH value of 82.79 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RMNI.
Rimini Street Risk Analysis
Rimini Street disclosed 47 risk factors in its most recent earnings report. Rimini Street reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Rimini Street Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Neutral | $2.03B | 17.35 | 23.74% | ― | 6.08% | 153.79% | |
66 Neutral | $1.19B | ― | -6.68% | ― | 11.36% | 46.67% | |
63 Neutral | $912.35M | 50.49 | -209.49% | ― | 6.79% | -593.75% | |
63 Neutral | $1.48B | ― | -5.41% | ― | 5.96% | 50.29% | |
61 Neutral | $35.52B | 8.84 | -11.06% | 1.87% | 8.55% | -8.14% | |
60 Neutral | $1.14B | 182.58 | -0.50% | ― | 22.16% | -107.92% | |
45 Neutral | $406.15M | ― | 43.74% | ― | -0.52% | -119.92% |
* Technology Sector Average
Performance Comparison
RMNI
Rimini Street
4.50
2.67
145.90%
JAMF
Jamf Holding
9.18
-8.34
-47.60%
OPFI
OppFi
10.46
6.19
144.96%
SEMR
SEMrush Holdings
7.72
-5.60
-42.04%
CXM
Sprinklr
7.81
0.34
4.55%
MLNK
MeridianLink
19.94
-4.04
-16.85%
Rimini Street Corporate Events
Executive/Board ChangesLegal ProceedingsBusiness Operations and StrategyFinancial Disclosures
Rimini Street Reports Strong Q2 2025 Financial Results
Positive
Jul 31, 2025
Rimini Street announced its fiscal second quarter 2025 financial results, highlighting a gross margin increase to 60.4% and adjusted EBITDA rising to $13.0 million from the previous year. The company reported a revenue of $104.1 million, a slight increase from the prior year, with international revenue growth offsetting a decline in U.S. revenue. The company also resolved a legal matter with Oracle, receiving a partial reimbursement of attorney fees, and repaid a portion of its credit line. Operationally, Rimini Street expanded its client base and partnerships, including new agreements with OSG Corporation and the University of Melbourne, and announced executive appointments to strengthen its leadership team.
Legal Proceedings
Rimini Street and Oracle Reach Settlement Agreement
Neutral
Jul 9, 2025
On July 7, 2025, Rimini Street, Inc. and Oracle Corporation reached a confidential settlement agreement to resolve their ongoing legal disputes, specifically the Rimini II case. This settlement includes financial terms where Oracle will remit approximately $37.8 million back to Rimini, and both parties agree to a litigation standstill during the wind-down period of Rimini’s PeopleSoft services, which is expected to conclude by July 31, 2028. The settlement aims to provide a comprehensive resolution to the legal issues between the two companies, maintaining the existing injunctions while allowing Rimini to continue its operations under defined conditions.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.