RIMINI STREET INC (NASDAQ:RMNI) Reports Mixed Q3 2025 Results, Returns to GAAP Profitability But Misses Revenue Estimates

Rimini Street Inc (NASDAQ:RMNI) reported its fiscal third-quarter 2025 financial results, delivering a performance that notably diverged from analyst expectations on the top line while achieving profitability. The market's immediate reaction appeared muted, with the stock showing minimal after-hours movement, suggesting investors are weighing the mixed outcomes.

Earnings and Revenue Versus Estimates

The company's performance against Wall Street forecasts presents a nuanced picture. While Rimini Street returned to profitability on a GAAP basis, its revenue fell short of expectations.

• Revenue: The company reported revenue of $103.4 million for the quarter, which represents a slight decrease of 1.2% compared to the same period last year. This figure came in below the analyst consensus estimate of approximately $106.1 million.
• Earnings Per Share (EPS): On a GAAP basis, both basic and diluted EPS were $0.03, a significant improvement from a loss of $(0.47) per share in the prior year. The non-GAAP EPS, which excludes certain one-time items, was $0.08. This also fell short of the analyst estimate for non-GAAP EPS of $0.0874.

The discrepancy between the return to GAAP profitability and the miss on revenue and non-GAAP EPS estimates helps explain the stock's subdued after-market reaction, as investors digest the conflicting signals of improved bottom-line discipline against softer-than-expected sales.

Operational and Financial Highlights

Beyond the headline earnings figures, the quarter contained several key data points that illustrate the company's current trajectory.

• Client and Recurring Revenue Metrics: Active Clients increased by 1.9% to 3,155. Annualized Recurring Revenue (ARR) was $391.0 million, though it decreased by 2.6% year-over-year. Excluding the wind-down of support for Oracle's PeopleSoft products, however, ARR showed a 1.0% increase.
• Profitability and Cash Flow: The company reported an operating income of $4.4 million, a substantial recovery from an operating loss of $49.6 million in Q3 2024, which was heavily impacted by litigation costs. Adjusted EBITDA was $10.1 million, down from $13.7 million a year ago. The company held $108.7 million in cash and cash equivalents and repaid the remaining $10 million balance on its revolving line of credit.
• Future Obligations: A positive indicator for future revenue is the record Remaining Performance Obligations (RPO), which grew 6.4% to $611.2 million.

Strategic Developments and Outlook

The press release highlighted several strategic wins and partnerships, including new or expanded agreements with organizations like KBS, Idemitsu Kosan, and Suntory. The company also announced it surpassed 100 VMware support contracts and was added to the U.S. General Services Administration (GSA) Multiple Award Schedule, potentially opening up new public sector opportunities.

Notably, the company did not provide specific financial guidance for the coming quarters in this release. Instead, it announced plans to outline its market opportunity, strategy, and financial goals at an Analyst and Investor Day scheduled for December 3, 2025. This leaves investors to rely on existing analyst estimates, which project Q4 2025 revenue of approximately $112.0 million. The lack of immediate forward guidance may be a factor in the market's cautious response, as it creates uncertainty about the near-term growth path.

Conclusion

Rimini Street's third-quarter results paint a picture of a company in transition, successfully navigating back to GAAP profitability but facing headwinds in revenue growth. The market's muted reaction reflects this duality, balancing the positive cash flow and debt reduction against the top-line miss. All eyes will now be on the upcoming Investor Day for the management's vision to reinvigorate growth and meet future expectations.

For a more detailed look at historical earnings and analyst estimates, you can review the data here.

Disclaimer: This article is for informational purposes only and does not constitute investment advice, financial analysis, or a recommendation to buy or sell any security. The information presented is based on publicly available sources and should not be relied upon as the sole basis for an investment decision.