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Rimini Street Inc (RMNI)
NASDAQ:RMNI
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Rimini Street
(NASDAQ:RMNI)
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Rating:54Neutral
Price Target:
$4.00
▼(-2.68% Downside)
Rimini Street's overall stock score reflects a challenging financial position with significant risks in revenue growth and equity. The technical analysis suggests neutral momentum, while the valuation indicates potential undervaluation. The earnings call and corporate events provide a mixed outlook, with both positive strategic developments and ongoing challenges.
Positive Factors
Strategic Partnerships
Strategic partnerships and government procurement access enhance Rimini Street's market reach and credibility, supporting long-term growth.
Record RPO Backlog
A growing RPO backlog indicates strong future revenue streams, reflecting robust demand for Rimini Street's services.
Innovation Focus
Focusing on innovation can drive product development and competitive advantage, positioning Rimini Street for future success.
Negative Factors
Revenue Decline
A decline in revenue suggests challenges in maintaining growth momentum, potentially impacting long-term financial stability.
Negative Equity Position
Negative equity indicates financial instability, limiting Rimini Street's ability to leverage debt for growth and investment.
Declining Free Cash Flow
Declining free cash flow constrains Rimini Street's ability to invest in growth opportunities and manage financial obligations.
Rimini Street (RMNI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$382.61M
Dividend YieldN/A
Average Volume (3M)359.96K
Price to Earnings (P/E)8.9
Beta (1Y)0.70
Revenue Growth-0.16%
EPS GrowthN/A
CountryUS
Employees2,000
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.07
Shares Outstanding91,752,000
10 Day Avg. Volume318,142
30 Day Avg. Volume359,957
Financial Highlights & Ratios
PEG Ratio0.03
Price to Book (P/B)-3.48
Price to Sales (P/S)0.56
P/FCF Ratio-5.72
Enterprise Value/Market Cap1.12
Enterprise Value/Revenue1.01
Enterprise Value/Gross Profit1.64
Enterprise Value/Ebitda5.42
Forecast
1Y Price Target
$5.88Price Target Upside43.07% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)0.32
Revenue Forecast (FY)$417.87M
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 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 Earnings Call Summary
Earnings Call Date:Oct 30, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 04, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook. While there were significant new client wins, strategic partnerships, and a resolution in the Oracle litigation, there were also noticeable declines in revenue, recurring revenue, and gross margins. The company continues to face challenges from the PeopleSoft wind down and increased operating expenses.Q3-2025 Updates
Positive Updates
New Client Sales and Increased Total Contract Value
Closed 17 new client sales transactions with a total contract value (TCV) of $63.1 million, compared to 19 new client sales for $48.7 million in the previous year.
Record RPO Backlog
Achieved a record remaining performance obligation (RPO) backlog of $611.2 million, up 6.4% year-over-year.
SAP Support Sales and VMware Contracts
Record third-quarter SAP support sales and surpassed 100 VMware support contracts.
Strategic Partnerships and Federal Opportunities
Entered a strategic partnership with American Digital and was added to the US GSA Multiple Award Schedule, enabling easier procurement by government agencies.
Settlement with Oracle
Completed a settlement agreement with Oracle, resolving the litigation and allowing focus on business operations.
Negative Updates
Revenue Decline
Revenue for the third quarter was $103.4 million, a year-over-year decrease of 1.2%.
Annualized Recurring Revenue Decrease
Annualized recurring revenue was $391 million, a year-over-year decrease of 2.6%.
Lower Gross Margin
Gross margin for the third quarter was 59.9%, down from 60.7% in the prior year.
PeopleSoft Wind Down Impact
PeopleSoft revenue was approximately 5% of total revenue, down from 8% the previous year, as part of the wind down agreement.
Increased Operating Expenses
Sales and marketing expenses rose to 36.7% of revenue from 34.2% the previous year, with G&A expenses also increasing.
Company Guidance
During the Rimini Street Q3 2025 earnings call, the company provided several key metrics and insights into its business performance and strategy. Rimini Street reported total revenue of $103.4 million for the third quarter, with a 1.2% year-over-year decrease, largely due to a planned wind-down of Oracle PeopleSoft services. Excluding PeopleSoft, revenue increased by 2.5%. The company achieved a record backlog of remaining performance obligations (RPO) at $611 million, a 6.4% increase year-over-year, highlighting growth in its core business. The quarter saw 17 new client transactions, each with a total contract value (TCV) exceeding $1 million, culminating in an aggregate TCV of $63.1 million, up from $48.7 million in the previous year. Sales to new clients and cross-sales spanned a range of products and geographies, with notable achievements in SAP support sales and the signing of over 100 VMware support contracts. Rimini Street also reported a year-over-year increase in adjusted billings of 6.7%, excluding PeopleSoft-related billings. The company ended the quarter with 82 quota-carrying sellers, compared to 73 in the prior year, and continued to expand its sales leadership in key international regions. Additionally, Rimini Street highlighted the impact of its settlement with Oracle, which will lead to the complete wind-down of PeopleSoft services by July 2028, as well as its strategic focus on leveraging its partnerships and innovative AI ERP solutions to drive future growth.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.45
Neutral
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.30
Negative
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.40
Negative
| 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 | 16.11M | 29.53M | 24.24M |
| 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 | 291.91M |
| Cash, Cash Equivalents and Short-Term Investments | 108.72M | 88.79M | 125.25M | 129.12M | 119.57M | 87.91M |
| Total Debt | 27.52M | 96.63M | 81.66M | 88.44M | 100.37M | 20.36M |
| Total Liabilities | 380.14M | 438.51M | 433.29M | 468.21M | 471.65M | 357.12M |
| Stockholders Equity | -27.28M | -69.44M | -39.50M | -77.17M | -80.39M | -65.21M |
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
Neutral
4.11
Price Trends
4.17
Negative
4.28
Negative
3.96
Positive
Market Momentum
0.01
Negative
54.20
Neutral
86.07
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RMNI, the sentiment is Neutral. The current price of 4.11 is above the 20-day moving average (MA) of 3.92, below the 50-day MA of 4.17, and above the 200-day MA of 3.96, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 54.20 is Neutral, neither overbought nor oversold. The STOCH value of 86.07 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $731.10M | 442.42 | 4.45% | ― | 22.97% | 49.49% | |
62 Neutral | $385.97M | ― | -25.48% | ― | -24.30% | -181.62% | |
62 Neutral | $369.83M | ― | -41.00% | ― | 6.33% | -66.34% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | $253.27M | ― | -20.20% | ― | -6.23% | 28.57% | |
54 Neutral | $382.61M | 8.95 | ― | ― | -0.16% | ― | |
51 Neutral | $417.13M | ― | -25.34% | ― | -7.43% | 61.36% |
* Technology Sector Average
RMNI
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Rimini Street Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Rimini Street Appoints New Chief Innovation Officer
Neutral
Nov 26, 2025
On November 24, 2025, Rimini Street, Inc. announced the transition of Mr. Vijay Kumar from Executive Vice President and Chief Operating Officer to Executive Vice President and Chief Innovation Officer. This change reflects the company’s strategic focus on innovation, potentially impacting its operational dynamics and market positioning.
Business Operations and StrategyFinancial Disclosures
Rimini Street Reports Q3 2025 Financial Results
Positive
Oct 30, 2025
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.
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.