Rimini Street (RMNI) AI Stock Analysis

• Market Cap: $420.03M
• Dividend Yield: N/A
• Average Volume (3M): 247.65K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.11
• Revenue Growth: -0.52%
• EPS Growth: -119.92%
• Country: US
• Employees: 2,000
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): >-0.01
• Shares Outstanding: 92,518,000
• 10 Day Avg. Volume: 238,177
• 30 Day Avg. Volume: 247,648
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.85
• Enterprise Value/Revenue: 0.83
• Enterprise Value/Gross Profit: 1.36
• Enterprise Value/Ebitda: 15.70
• 1Y Price Target: $6.17
• Price Target Upside: 35.90% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 44 Neutral
• Price Target: $4.50 ▼(-0.88% Downside)

Rimini Street's overall stock score is primarily impacted by its weak financial performance, characterized by negative equity and cash flow challenges. The technical analysis suggests a neutral trend, while the valuation is unattractive due to a negative P/E ratio. Positive aspects from the earnings call, such as the Oracle settlement and improved gross margins, are overshadowed by ongoing financial and operational challenges.

Positive Factors

Strategic Partnerships

These partnerships expand Rimini Street's reach and service offerings, potentially driving long-term growth and enhancing competitive positioning.

Gross Margin Improvement

Improved gross margins indicate effective cost control, which can enhance profitability and financial stability over the long term.

Oracle Settlement

The settlement resolves long-standing litigation, providing financial relief and allowing management to focus on strategic initiatives.

Negative Factors

Declining Revenue

A decline in revenue suggests potential challenges in market demand or competitive pressures, impacting long-term growth prospects.

Negative Cash Flow

Negative cash flow strains the company's ability to invest in growth opportunities and meet financial obligations, risking long-term sustainability.

Negative Equity

Negative equity indicates more liabilities than assets, posing a risk to financial health and limiting the company's ability to secure financing.

Rimini Street Business Overview & Revenue Model

Company Description

Rimini Street, Inc. is a global provider of enterprise software support services, specializing in providing third-party support for Oracle and SAP software products. Founded in 2005 and headquartered in Las Vegas, Nevada, the company offers a range of services, including software support, maintenance, and related consulting services, focusing on delivering cost-effective and flexible alternatives to traditional vendor support. Rimini Street's core products include support for enterprise software applications, database management systems, and various industry-related solutions.

How the Company Makes Money

Rimini 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 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.

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.

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.

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

• Technical Analysis Sentiment: Positive
• Last Price: 4.54
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 4.54 is below the 20-day moving average (MA) of 4.55, above the 50-day MA of 4.47, and above the 200-day MA of 3.78, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 51.54 is Neutral, neither overbought nor oversold. The STOCH value of 70.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RMNI.

Rimini Street Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
DSP	59 Neutral	$576.00M	272.32	5.20%	―	30.92%	―
SMRT	58 Neutral	$280.23M	―	-25.48%	―	-28.45%	-224.48%
ONTF	55 Neutral	$239.45M	―	-22.60%	―	-6.88%	15.83%
LAW	55 Neutral	$440.84M	―	-36.64%	―	4.05%	-100.64%
BMBL	46 Neutral	$611.58M	―	-75.71%	―	-5.06%	-2318.18%
RMNI	44 Neutral	$420.03M	―	―	―	-0.52%	-119.92%

Rimini Street Corporate Events

Rimini Street Faces Financial Uncertainty Amid Oracle PeopleSoft Service Wind Down

Rimini Street faces significant business risks due to its settlement agreement with Oracle, which mandates a Wind Down of services for Oracle PeopleSoft products by July 2028. The company has announced this decision, which affects approximately 6% of its revenue, but the financial implications remain uncertain. Potential challenges include unpredictable revenue reductions, possible client contract disputes, and litigation risks, all of which could materially impact Rimini Street’s financial condition. The company also faces the challenge of managing costs associated with the Wind Down, while ensuring sufficient liquidity to cover these expenses.

Rimini Street’s Earnings Call: Mixed Sentiments and Strategic Shifts

Rimini Street’s recent earnings call presented a mixed sentiment, highlighting both positive strides and challenges. The company showcased strong sales momentum, successful litigation settlements, and new partnerships, yet faced reductions in recurring revenue and billings, alongside macro-economic challenges impacting their operations.

Rimini Street Reports Positive Q2 2025 Financial Results

Rimini Street, Inc., a global provider of enterprise software support and innovation solutions, is recognized as a leading third-party support provider for Oracle, SAP, and VMware software. The company offers a comprehensive portfolio of solutions to optimize enterprise applications and technology software for various organizations worldwide.

Rimini Street Reports Strong Q2 2025 Financial Results

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.

The most recent analyst rating on (RMNI) stock is a Buy with a $6.50 price target. To see the full list of analyst forecasts on Rimini Street stock, see the RMNI Stock Forecast page.