Rimini Street reported a net income of $0.7 million for the fourth quarter of fiscal 2025, a sharp turnaround from the $724,000 figure reported in the prior year’s quarter. For the full year, the company posted a net income of $37.1 million, reversing the $36.3 million loss it recorded in 2024. Revenue for the quarter reached $109.8 million, beating the consensus estimate of $105.69 million, while the GAAP earnings‑per‑share of $0.01 fell short of the $0.09 estimate, and the adjusted EPS of $0.07 also missed the $0.09 target.
The revenue beat was driven by strong demand in Rimini’s core support services and the early adoption of its Agentic AI ERP solutions, which have begun generating new subscription revenue. The company’s wind‑down of Oracle PeopleSoft support, however, offset some growth, contributing to a modest overall revenue decline relative to the prior quarter. Gross margin contracted to 60.4% from 63.7% in Q4 2024, and adjusted EBITDA margin fell to 10.4% from 17.5% the previous year, reflecting higher operating costs and the investment required to launch the AI platform.
Management emphasized that the quarter’s results reflect solid execution and continued accelerating sales growth, adjusted for the Oracle PeopleSoft support and services wind‑down. "Our fourth quarter results reflect solid execution and continued accelerating sales growth, adjusted for the Oracle PeopleSoft support and services wind down," said President and CEO Seth Ravin. The company also highlighted that its RPO reached a record $652.9 million, up 11.1% year‑over‑year, underscoring a strong backlog of future revenue.
Looking ahead, Rimini Street guided for first‑quarter 2026 revenue of $101.5 million to $103.5 million, a range below the consensus estimate of $104.9 million, indicating a cautious outlook for the near term. For the full year, the company reaffirmed a 4%‑6% revenue growth outlook and an adjusted EBITDA margin target of 12.5%‑15.5%. The guidance reflects management’s confidence in maintaining profitability while continuing to invest in AI capabilities and expanding its partnership with ServiceNow.
The company’s cash position strengthened to $120 million at year‑end, up from $88.8 million in 2024, providing a solid liquidity base to support its AI strategy and ongoing cost‑optimization initiatives. "These solutions are already in production and are helping clients achieve significant operational gains, including 50% to 60% faster approvals, 70% to 80% reduction in order cycle times, improved audit readiness and greater than 95% data accuracy," added Seth Ravin. The firm also noted that it closed 19 new client transactions over $1 million in total contract value, totaling $58.1 million, compared to 22 transactions totaling $51.9 million last year, and added 73 new logos, including household global and regional brand wins. The company’s focus on AI‑driven innovation and its record RPO position position it well for future growth, despite short‑term headwinds such as margin compression and the PeopleSoft wind‑down.
The earnings release demonstrates Rimini Street’s return to profitability, a record backlog, and a strategic pivot toward AI‑enabled services, while also highlighting the challenges of cost inflation and the ongoing wind‑down of legacy support contracts. These factors collectively shape the company’s near‑term outlook and long‑term trajectory.
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