Rimini Street, Inc. (RMNI) Earnings

Management highlights

First quarter results reflect continued growth and accelerating momentum. Closed 11 new client transactions with over $1 million in TCV and totaling $33 million during the quarter, compared to five transactions totaling $5.6 million during the same period last year. Added 50 new logos. Continue to make additional strategic investments in next generation Reminiagentic AI ERP solutions. Rimini Street can help organizations lower total operating costs and improve competitive advantage. Clients have already realized over $10 billion in operational savings.

Guidance

The company is providing second quarter, 2026, revenue guidance to be in the range of $106 million to $108 million, and reiterating the four-year 2026 guidance provided at our Investor Day in December 2025 of revenue growth in the 4% to 6% range and adjusted EBITDA margins in the 12.5% to 15.5% range, combined to achieve Rule of 20.

Segment performance

Revenue for the first quarter was $105.5 million, a year-over-year increase of 1.2%. Excluding support services for PeopleSoft products, revenue increased by 5.2% year-over-year. Annualized recurring revenue was $400.8 million for the first quarter, a year-over-year increase of 1.2%. Billings for the first quarter were 95.3 million, an increase of 19.9% year-over-year. When excluding billings associated with support services for PeopleSoft products, the year-over-year increase was 22.9%. Remaining performance obligations, RPO, was $643.6 million as of March 31, 2026, compared to $553.1 million for the prior year first quarter, an increase of 16.4%. When excluding RPO relating to support services for PeopleSoft products, the year-end balance increased 18.2%. Gross margin was 59.0% of revenue for the first quarter compared to 61.0% of revenue for the prior year first quarter. On a non-GAAP basis, gross margin was 59.5% of revenue for the first quarter compared to 61.5% of revenue for the prior year first quarter. Adjusted EBITDA was $8.9 million for the first quarter, or 8.4% of revenue, compared to the prior year's first quarter of $15.7 million, or 15.1% of revenue.

Risks & headwinds

Today's discussion will include forward-looking statements about our operations that reflect our current outlook. These forward-looking statements are subject to risks and uncertainties that may cause results to differ materially from statements made today. We encourage you to review our most recent SEC filing, including our form 10-Q filed today for discussion of risks that may affect our future results or stock price.

Analyst Q&A

• Q: You talked about stronger bookings trends that have started since the second half of 25. Can you provide any quantifiable context, maybe year-over-year comparisons, either booking totals you can provide or a book-to-bill? And then lastly, maybe from a qualitative standpoint, discuss domestic versus international?

  A: As we said, starting mid-last year, we started to see an uptick, and we've shown it, of course, in the billings and bookings numbers. The team will be happy to get you those at a later date. But I think we're seeing continued growing demands. We're seeing continued growing pipelines. And those are now converting, as you're seeing, into larger contracts. We're seeing longer-term contracts. Just look at the number of deals with the TCV over 1 million. Even in North America, where we had zero of those deals in Q1 of last year, 60% of those deals were in North America this year. So we're seeing all different indicators of continued growing demand, and our ability to execute continues to get better and better.

• Q: You mentioned in your prepared remarks and just now as well about the longer duration. I think traditionally you've had one-year contracts, correct me if I'm wrong, whereas the renewable for every year. What's happening now? What are you seeing in terms of duration? Or maybe dig a little deeper into what you're describing as longer duration.

  A: I think our average contract length before used to be something short of three years, about 2.5, 2.6 years for a new contract. And we're seeing longer term contracts being signed and I think the indication of that is we're watching customers think about a much longer term for this next phase of technology transition. And they're looking at their existing systems, they're looking at the amount of change that's coming their way or being pushed their way realizing a lot of it isn't going to generate the kind of return on investment or the competitive advantage they need and they're looking to us for longer term solutions and i think that's what you're seeing play out in the contracts

• Q: Last quarter you highlighted 26 customers that were that were testing your agentic ai solutions maybe you can update us on that number Share what feedback you're getting from them and timelines to production. And then lastly, how would you want to be measured over the next 18 months on your progress of that new solution? Is it improving organic growth rates? Are you going to discuss the revenue contribution? Just how should investors think about that?

  A: I think how they should think about it is exactly based on the guidance. It's about growth. The fact that we're returning to growth against the headwinds of the PeopleSoft wind down is certainly a nice indicator. And I think the fact that we would return to growth with a mid single digit this year, as we said, a rule of 20 is what we're aiming for between a top line and a bottom line. Wanted to give ourselves a little range and flexibility between the top line and bottom line. And then look to us to get to that rule of 40 that we want to get to, which of course requires us to see a double digit growth on the top line and a double digit return on the bottom. So I think those are very, very key. The other part is obviously we have investors who want to see shareholder return. We believe that we sit on surplus cash. We believe that that should be returned to shareholders in one way or another. whether that's through stock buybacks, whether that's through paying down debt, but increasing shareholder value is a key component. So I think those are the measures that we're looking at in terms of growing the business. Now, when it comes to the world of agentic AI and agentic AI ERP, there's two things you need to remember. There's one, there's the fact that we create a path and we create a vision. that customers can follow that doesn't require any future return to the vendor. That's very, very key. That is a big change from prior years where customers often thought of us as more of a temporary detour for some number of years and then a return to the vendor to get their next level of innovation. That's no longer the case. And that's why你're watching us win bigger and bigger contracts because customers are liking what we put on the table as a path and a strategy that does not lead them back to the software vendor in a future year. And that is changing the game dramatically for us on the ground