Rimini Street (NASDAQ:RMNI – Get Free Report) issued its quarterly earnings results on Thursday. The company reported $0.12 earnings per share for the quarter, topping the consensus estimate of $0.09 by $0.03, reports. Rimini Street had a net margin of 1.69% and a negative return on equity of 53.91%. The company had revenue of $109.34 million during the quarter, compared to analysts’ expectations of $110.82 million.
Here are the key takeaways from Rimini Street’s conference call:
- Revenue and profitability improved: Q3 revenue rose 8.3% year over year to $112.1 million, adjusted revenue excluding PeopleSoft grew 10.7%, and adjusted EBITDA increased to $15.1 million, or 13.5% of revenue, from 9.6% a year ago.
- Demand indicators strengthened: Calculated billings increased 21% year over year to $80.5 million, adjusted ARR grew 9.8% to $410.4 million, and RPO rose 6.8% to $652.9 million. Management cited 17 contracts exceeding $1 million in total contract value, totaling $43.7 million.
- Outlook and capital allocation remain supportive: The company reiterated its fiscal 2026 Rule of 20 guidance and expects Q4 revenue of $117 million to $119 million. It also repurchased $5 million of stock and prepaid $5 million of debt during the quarter, with management indicating a near-term bias toward additional share repurchases.
- AI offerings are still in an early adoption phase: Rimini Street launched Rimini Govern for AI and continues developing its agentic AI suite, but management said customers are still determining where and how to deploy AI, suggesting meaningful revenue contributions may take time.
- Indirect-channel leverage remains underdeveloped: Although partner-generated sales reached millions of dollars during the quarter, the company is not yet near its goal of having 40% of pipeline come from indirect channels and expects the effort to require several more quarters.
Rimini Street Stock Performance
RMNI traded down $0.04 during trading on Thursday, reaching $3.99. 495,213 shares of the stock were exchanged, compared to its average volume of 316,412. The stock has a market cap of $372.51 million, a P/E ratio of 28.75 and a beta of 1.31. Rimini Street has a twelve month low of $2.87 and a twelve month high of $5.68. The stock’s 50 day moving average price is $4.48 and its two-hundred day moving average price is $4.03.
Wall Street Analysts Forecast Growth
Several brokerages have issued reports on RMNI. Roth Capital reiterated a “buy” rating and issued a $6.50 price target on shares of Rimini Street in a research note on Thursday, July 30th. Wall Street Zen upgraded shares of Rimini Street from a “hold” rating to a “buy” rating in a research note on Saturday, August 1st. Craig Hallum restated a “buy” rating and issued a $8.00 price objective on shares of Rimini Street in a report on Friday, July 31st. Zacks Research raised Rimini Street from a “strong sell” rating to a “hold” rating in a research report on Monday, July 6th. Finally, Weiss Ratings reiterated a “hold (c)” rating on shares of Rimini Street in a report on Friday, October 2nd. Three analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat.com, Rimini Street presently has an average rating of “Moderate Buy” and a consensus target price of $6.33.
Check Out Our Latest Research Report on RMNI
Insider Buying and Selling
In other news, CEO Seth Ravin sold 89,639 shares of Rimini Street stock in a transaction dated Friday, September 4th. The shares were sold at an average price of $5.02, for a total value of $449,987.78. Following the completion of the transaction, the chief executive officer owned 10,168,602 shares of the company’s stock, valued at $51,046,382.04. This trade represents a 0.87% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Insiders have sold a total of 327,591 shares of company stock valued at $1,677,747 in the last ninety days. Company insiders own 42.00% of the company’s stock.
Rimini Street Company Profile
Rimini Street, Inc provides enterprise software support, products and services for organizations using business applications and database systems. The company is best known for third-party support for software from Oracle, SAP and other enterprise technology providers, helping customers maintain existing systems while reducing the need for frequent upgrades.
Its offerings include application management, database support, interoperability services, security services, managed services and professional services.
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