Rimini Street Stock Earnings Reports

Rimini Street reported Q1 FY2026 results showing returning top-line growth and continued momentum driven by higher billings, ARR expansion and growing remaining performance obligations (RPO). Key financials: revenue $105.5M (+1.2% YoY; +5.2% YoY ex-PeopleSoft wind-down), billings $95.3M (+19.9% YoY; +22.9% ex-PeopleSoft), ARR $400.8M (+1.2% YoY), gross margin ~59% (impacted by pulled-forward investments and some front-loaded projects), adjusted EBITDA $8.9M (8.4% of revenue), cash $132.2M and net cash position $73.8M after $10M voluntary debt paydown (total debt $58.4M). RPO increased to $643.6M (+16.4% YoY; +18.2% ex-PeopleSoft). The company continues winding down PeopleSoft support (now ~3% of revenue vs ~7% prior year) per the Oracle settlement, and sees that headwind diminishing. Management emphasized strategic investments in Agentic AI ERP and the Rimini Smart Path (AI-driven UX/automation layer deployed over existing ERP) as a competitive differentiator that is already helping win larger, longer-duration contracts and new logos. They are investing in sales (now >80 sellers), a new U.S. federal push, private equity coverage, and product R&D (new R&D line item expected to exit year around ~1% of revenue). Guidance: Q2 revenue $106M–$108M; full-year 2026 reiterated: revenue growth 4%–6% and adjusted EBITDA margin 12.5%–15.5% (targeting Rule of 20). Management expects retention to improve toward >90% TTM over coming quarters and will remain disciplined on guidance despite near-term pull-forward investments.