Rimini Street, Inc. (NASDAQ: RMNI) reported first‑quarter 2026 revenue of $105.5 million, a 1.2% year‑over‑year increase, and a net income of $1.4 million, translating to earnings per share of $0.01. The company’s core Rimini Support business continued to drive growth, while its newly launched Agentic AI ERP solutions added incremental professional‑services revenue.
Revenue rose modestly, driven by a 5.2% increase when the company excludes its PeopleSoft support wind‑down. The 1.2% YoY growth is lower than the 1.7% figure originally reported, reflecting the impact of the PeopleSoft transition. The company’s gross margin contracted to 59.0% from 61.0% in Q1 2025, a compression attributed to “pulled‑forward investments” and higher start‑up costs for new AI engagements, as well as the ongoing wind‑down of PeopleSoft support.
Net income fell to $1.4 million from $3.4 million in Q1 2025, and GAAP diluted EPS dropped to $0.01 from $0.04. The earnings miss—$0.02 below analyst expectations of $0.03—was driven by the margin contraction and the lower mix of high‑margin AI services versus the lower‑margin legacy support. Management noted that the company is investing heavily in AI and innovation offerings to drive future growth, which is currently weighing on short‑term profitability.
The company reiterated its full‑year 2026 revenue guidance of 4‑6% growth and adjusted EBITDA margin guidance of 12.5‑15.5%. It also provided Q2 2026 revenue guidance of $106 million to $108 million, indicating confidence in maintaining a steady growth trajectory while managing the PeopleSoft wind‑down. Management emphasized that the removal of the Oracle litigation burden has accelerated partner engagement and improved win rates, supporting the guidance.
Market reaction was mixed: while the revenue beat was positive, the EPS miss and margin compression tempered investor enthusiasm. Analysts highlighted the company’s strong billings growth of 19.9% YoY and the strategic pivot to Agentic AI ERP solutions as long‑term opportunities, but noted that short‑term profitability remains under pressure due to the heavy investment in AI and the PeopleSoft wind‑down.
Management commentary underscored the company’s focus on profitable growth, disciplined cost management, and a strong balance sheet. President and CEO Seth Ravin said the company’s “core Rimini Support™ business continues to grow as organizations turn to the proven Rimini Smart Path™ to execute their global ERP and operational transaction processes faster, better and cheaper.” CFO Michael Perica added that the company is “making additional strategic investments in new AI and innovation offerings to drive growth and further streamline global operations.”
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