Rimini Street (NASDAQ:RMNI) reported second-quarter revenue growth and reiterated its full-year outlook, citing demand for its core support offerings, expansion of its enterprise software services portfolio and progress in selling AI-focused solutions.
Revenue for the quarter ended June 30 was $111.1 million, up 6.7% from a year earlier. Excluding PeopleSoft products, which the company is winding down, adjusted revenue grew 10% year over year, Chief Financial Officer Michael Perica said. Annualized recurring revenue excluding PeopleSoft rose 8.1% to $401.1 million.
Margins, Cash and Billings
Adjusted EBITDA was $10.5 million, representing 9.5% of revenue, down from $14 million, or 13.4% of revenue, in the second quarter of 2025. Gross margin improved to 60.9%, compared with 60.4% a year earlier and 59% in the first quarter. Non-GAAP gross margin was 61.3%.
Sales and marketing expense rose to 38.5% of revenue from 36.5% a year earlier, reflecting investments in the go-to-market effort for expanded and new service offerings. Perica said the company is investing in AI-driven offerings while streamlining global operations for scale and efficiency.
Second-quarter billings declined 8.8% year over year to $100.9 million. Excluding PeopleSoft-related support billings, billings declined 8%. Perica attributed the quarterly decline in part to timing differences related to customer renewals, noting that first-half billings increased 3.2%, or 4.7% excluding PeopleSoft products.
The company ended the quarter with $123.4 million in cash, up from $101.3 million a year earlier, and reduced outstanding debt to $48.4 million after prepaying $10 million during the quarter. Year-to-date operating cash flow was $22.9 million, representing 118% cash-flow conversion, according to the company.
Deferred revenue rose to $267.1 million from $262.9 million a year ago. Remaining performance obligations increased 8% to $636.9 million, while adjusted RPO excluding PeopleSoft support increased 8.8%.
Bookings and Customer Metrics
Chief Executive Officer Seth Ravin said Rimini Street closed 14 new customer transactions with total contract value exceeding $1 million during the quarter, totaling $30 million, and added 58 new logos. In the first half, the company closed 25 transactions above $1 million in TCV totaling $62.9 million and added 108 new logos.
The revenue retention rate for service subscriptions was 90%. Subscriptions represented 93% of total revenue, with approximately 84% of subscription revenue non-cancellable for at least 12 months.
Ravin said the company’s pipeline had grown by double digits year over year and that its pipeline close rate was approximately 30%. He also said partnerships and alliances assisted in closing a meaningful number of quarterly sales transactions, although he did not quantify the contribution.
On sales hiring, Ravin said the company is increasing its total seller count while adjusting the skills it seeks in sales representatives as its offerings increasingly involve AI and technology discussions. The company has also added sales support and AI support capabilities, he said.
Ravin said the company’s Americas organization has adopted a split model in which “hunters” focus on new-logo acquisition and “farmers” manage existing accounts, cross-selling and renewals. He said the approach has produced significant growth in new-logo acquisition in North America.
AI Offerings and Partner Strategy
The company announced the immediate availability of Rimini Govern for AI, a governance-as-a-service offering intended to provide oversight, control, visibility and measurement for AI agent activity. Ravin said the offering joins Rimini Agentic UX, an AI-driven experience and automation layer, and Rimini AgentWorks, a service for designing, testing and deploying AI agents and workflows.
Ravin said organizations are using savings from switching to Rimini Street maintenance and avoiding ERP upgrades or migrations to fund AI deployments within existing IT budgets. He said the company is also using AI internally in sales, finance and pipeline management, including tools that help sales representatives gather prospect information and assess close rates.
While he did not quantify potential savings, Ravin said he expects AI use to produce a “meaningful reduction in total operating cost and more leverage” over coming years.
Regarding its ServiceNow relationship, Ravin said several clients testing the company’s Agentic AI ERP solution have moved into production and that some are pursuing additional projects. He said Rimini Street and ServiceNow share more than 1,000 customers, creating opportunities to expand their respective footprints.
Outlook and PeopleSoft Wind-Down
For the third quarter, Rimini Street expects revenue of $110 million to $112 million. The company reiterated its full-year 2026 forecast for revenue growth of 4% to 6% and adjusted EBITDA margin of 12.5% to 15.5%, which it said is consistent with its goal of achieving a Rule of 20 result for the year.
PeopleSoft support revenue represented 3% of total revenue in the quarter, down from 6% a year earlier and 8% when the transition began in 2024. The company said it remains on track to complete the PeopleSoft support-services wind-down by July 2028.
About Rimini Street (NASDAQ:RMNI)
Rimini Street, Inc (NASDAQ: RMNI) is a provider of enterprise software support services, specializing in third-party maintenance for mission-critical applications from leading technology vendors. The company offers comprehensive support for ERP, CRM and database environments, with coverage for systems from providers such as Oracle and SAP. Through its proactive system monitoring, performance tuning, regulatory and tax update services, Rimini Street aims to extend the lifecycle of enterprise applications while delivering service levels comparable to or exceeding those of original software vendors.
Founded in 2005 by technology entrepreneur Seth Ravin, Rimini Street has grown from a startup into a publicly traded company following its initial public offering in March 2018.
