Rimini Street (RMNI) AI Stock Analysis

• Market Cap: $353.25M
• Dividend Yield: N/A
• Average Volume (3M): 316.21K
• Price to Earnings (P/E): 8.4
• Beta (1Y): 0.74
• Revenue Growth: -0.16%
• EPS Growth: N/A
• Country: US
• Employees: 2,000
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.07
• Shares Outstanding: 91,752,000
• 10 Day Avg. Volume: 387,192
• 30 Day Avg. Volume: 316,214
• PEG Ratio: 0.03
• Price to Book (P/B): -3.48
• Price to Sales (P/S): 0.56
• P/FCF Ratio: -5.72
• Enterprise Value/Market Cap: 1.21
• Enterprise Value/Revenue: 1.01
• Enterprise Value/Gross Profit: 1.64
• Enterprise Value/Ebitda: 5.42
• 1Y Price Target: $6.13
• Price Target Upside: 59.22% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 0.28
• Revenue Forecast (FY): $422.15M

• Rating: 43 Neutral
• Price Target: $4.00 ▲(3.90% Upside)

Rimini Street's overall stock score is primarily impacted by its financial performance challenges, including declining revenue growth and negative equity. The technical analysis indicates bearish momentum, and the valuation metrics are unattractive due to a negative P/E ratio. The earnings call provided some positive developments, such as new client wins and strategic partnerships, but these are overshadowed by revenue declines and increased expenses.

Positive Factors

Strategic Partnerships

Strategic partnerships and inclusion in the GSA schedule enhance market reach and facilitate government procurement, supporting long-term growth.

Record RPO Backlog

A growing RPO backlog indicates strong future revenue potential and customer commitment, supporting sustained business operations.

New Client Sales

New client acquisitions with significant TCV reflect effective sales strategies and potential for revenue growth, enhancing market position.

Negative Factors

Revenue Decline

A decline in revenue suggests challenges in maintaining growth momentum, potentially impacting long-term financial stability.

Increased Operating Expenses

Rising operating expenses can pressure margins and profitability, necessitating improved cost management for sustainable growth.

PeopleSoft Wind Down Impact

The wind-down of PeopleSoft services reduces revenue streams, requiring strategic adjustments to offset the impact on overall growth.

Rimini Street Business Overview & Revenue Model

Company Description

Rimini 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 Money

Rimini Street generates revenue primarily through its subscription-based service model, where clients pay annual fees for support services. The company offers various tiers of support, with pricing that is typically lower than vendor-provided support services, allowing clients to save on maintenance costs. Key revenue streams include ongoing support contracts, which are renewed annually, and additional consulting or custom development services requested by clients. Significant partnerships with technology and consulting firms help enhance its service offerings and expand its client base, further contributing to its earnings. The company also benefits from a growing market trend towards third-party support, as businesses seek cost-effective alternatives to traditional vendor maintenance agreements.

Rimini Street Financial Statement Overview

Summary

Rimini Street faces several financial challenges. While profitability margins have improved, the significant decline in revenue growth and negative equity position are major concerns. The cash flow situation is strained, with declining free cash flow and limited cash generation from operations, indicating potential risks in financial stability and growth prospects.

Income Statement

Rimini Street's income statement shows a mixed performance. The TTM data indicates a decline in revenue growth rate by 29.1%, which is concerning. However, the company has improved its profitability margins with a gross profit margin of 61.3% and a net profit margin of 10.1% in TTM, compared to negative margins in the previous year. The EBIT and EBITDA margins have also improved significantly, indicating better operational efficiency. Despite these improvements, the negative revenue growth is a significant drawback.

Balance Sheet

The balance sheet reveals a challenging financial position for Rimini Street. The company has a negative stockholders' equity, resulting in a negative debt-to-equity ratio, which indicates financial instability. The return on equity is also negative, reflecting poor returns for shareholders. The equity ratio is not calculable due to negative equity, highlighting potential risks in financial leverage and solvency.

Cash Flow

The cash flow statement shows a concerning trend with a significant decline in free cash flow growth by 96.5% in TTM. The operating cash flow to net income ratio is low at 1.08%, indicating limited cash generation from operations relative to net income. The free cash flow to net income ratio is negative, suggesting cash flow challenges. Despite these issues, the company has managed to generate positive operating cash flow, albeit at a reduced level.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	425.96M	428.75M	431.50M	409.66M	374.43M	326.78M
Gross Profit	261.04M	261.02M	268.98M	257.28M	237.97M	200.57M
EBITDA	79.07M	-22.18M	50.42M	10.58M	23.39M	18.05M
Net Income	43.03M	-36.27M	26.06M	-2.48M	75.22M	11.59M
Balance Sheet
Total Assets	352.86M	369.06M	393.80M	391.04M	391.26M	279.94M
Cash, Cash Equivalents and Short-Term Investments	108.72M	88.79M	125.25M	129.12M	119.57M	87.58M
Total Debt	27.52M	96.63M	81.66M	88.11M	100.06M	19.93M
Total Liabilities	380.14M	438.51M	433.29M	468.21M	471.65M	480.87M
Stockholders Equity	-27.28M	-69.44M	-39.50M	-77.17M	-80.39M	-200.94M
Cash Flow
Free Cash Flow	-1.57M	-42.23M	5.25M	30.57M	64.84M	40.62M
Operating Cash Flow	2.98M	-38.85M	12.47M	34.90M	66.94M	42.10M
Investing Cash Flow	-4.54M	6.45M	3.08M	-24.45M	-2.11M	-1.48M
Financing Cash Flow	-7.84M	14.02M	-6.89M	-13.57M	-26.57M	6.38M

Rimini Street Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.85
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 3.85 is below the 20-day moving average (MA) of 4.20, below the 50-day MA of 4.44, and below the 200-day MA of 3.88, indicating a bearish trend. The MACD of -0.16 indicates Positive momentum. The RSI at 36.58 is Neutral, neither overbought nor oversold. The STOCH value of 47.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RMNI.

Rimini Street Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DSP	64 Neutral	$646.19M	392.05	4.45%	―	22.97%	49.49%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ONTF	54 Neutral	$236.78M	―	-20.20%	―	-6.23%	28.57%
SMRT	53 Neutral	$274.34M	―	-25.48%	―	-24.30%	-181.62%
LAW	53 Neutral	$369.83M	―	-41.00%	―	6.33%	-66.34%
BMBL	44 Neutral	$405.86M	―	-25.34%	―	-7.43%	61.36%
RMNI	43 Neutral	$353.25M	8.38	―	―	-0.16%	―

Rimini Street Corporate Events

Rimini Street’s Cybersecurity Challenges: Navigating Risks and Compliance in a Digital Era

Rimini Street faces significant business risks due to its reliance on key information technology systems, including those with AI and third-party services, to handle sensitive client data. The company is vulnerable to cybersecurity threats, which are increasing in frequency and sophistication, potentially leading to reputational damage, financial liabilities, and operational inefficiencies. Despite efforts to mitigate these risks through security measures, insurance, and employee training, the evolving nature of cyber threats and the dependency on third-party providers pose ongoing challenges. Additionally, compliance with data security laws and potential liabilities from security breaches could adversely affect Rimini Street’s financial condition and business operations.

Rimini Street’s Earnings Call: Mixed Outcomes and Strategic Moves

Rimini Street’s Latest Earnings Call: A Mixed Bag of Achievements and Challenges

Rimini Street Reports Improved Earnings Amid Revenue Dip

Rimini Street, Inc. is a global provider of end-to-end enterprise software support, products, and services, offering a comprehensive portfolio of solutions for enterprise application, database, and technology software platforms.

Rimini Street Reports Q3 2025 Financial Results

Rimini Street announced its fiscal third quarter 2025 financial results, highlighting a slight decrease in total revenue to $103.4 million, primarily due to the wind down of support services for Oracle’s PeopleSoft software products. Despite this, the company saw growth in international revenue and an increase in active clients. The company also achieved a record Remaining Performance Obligations (RPO) of $611.2 million and reported a net income of $2.8 million, a significant turnaround from a net loss in the previous year. Rimini Street expanded its client base and partnerships, including a strategic partnership with American Digital and being added to the U.S. General Services Administration (GSA) Multiple Award Schedule, enhancing its market positioning.

The most recent analyst rating on (RMNI) stock is a Hold with a $6.00 price target. To see the full list of analyst forecasts on Rimini Street stock, see the RMNI Stock Forecast page.