Rimini Street Inc (NASDAQ:RMNI), a global provider of third-party enterprise software support and services, reported its fiscal fourth quarter and full-year 2025 results after the market close on Wednesday. The company delivered a mixed financial performance, with quarterly revenue slightly exceeding analyst expectations but profitability metrics coming in below prior-year levels. The market's immediate reaction was decisively positive, with shares rising sharply in after-hours trading.
Quarterly Results vs. Estimates
For the critical fourth quarter ending December 31, 2025, Rimini Street posted revenue of $109.8 million. This figure represents a 3.9% decline compared to the $114.2 million reported in the same quarter last year. However, when measured against Wall Street's expectations, the company delivered a modest beat.
- Reported Revenue: $109.8 million
- Analyst Estimate: Approximately $107.6 million
- Verdict: Revenue exceeded expectations by roughly 2%.
On the bottom line, the company's performance was more nuanced. Rimini Street reported a GAAP net income of $0.7 million, or $0.01 per share. The more closely watched non-GAAP earnings per share (EPS) came in at $0.07. This fell short of the consensus estimate.
- Reported Non-GAAP EPS: $0.07
- Analyst Estimate: $0.078
- Verdict: EPS missed the consensus target.
Market Reaction and Price Action
The market appeared to focus on the revenue beat and forward-looking commentary, overlooking the earnings miss. Following the earnings release, RMNI shares surged approximately 9.4% in after-hours trading. This positive move represents a significant reversal from recent trends, as the stock had been under pressure in the preceding weeks.
- Last Month Performance: -19.3%
- Last Two Weeks Performance: -8.9%
- After-Hours Reaction (Feb 19): +9.4%
The sharp after-hours gain suggests investors were encouraged by elements within the report, potentially viewing the quarterly execution as a step in the right direction after a period of decline.
Key Highlights from the Earnings Report
Beyond the headline numbers, management emphasized strategic execution and a transition towards new growth initiatives. The financial results were significantly impacted by the ongoing wind-down of support services for Oracle's PeopleSoft software, a process initiated following a legal settlement. Excluding this wind-down, the company's core business showed modest growth.
Financial and Operational Snapshot:
- Full-Year 2025 Revenue: $421.5 million, a 1.7% decrease year-over-year. Excluding PeopleSoft, revenue increased 1.0%.
- Annualized Recurring Revenue (ARR): $411.4 million, down 0.8%. Adjusted for PeopleSoft, ARR increased 3.1% to $395.8 million.
- Remaining Performance Obligations (RPO): A record $652.9 million, up 11.1% year-over-year, indicating a strong future revenue backlog.
- Active Clients: 3,102, a slight increase of 0.7%.
- Cash Position: Strengthened to $120.0 million, up from $88.8 million at the end of 2024.
Strategic Pivot to AI: A central theme of the report was the company's aggressive push into "Agentic AI ERP" solutions. CEO Seth Ravin declared traditional ERP software "obsolete" and introduced Rimini Street's vision for AI-driven innovation layers that can be deployed over existing ERP systems without costly upgrades. The quarter saw the launch of 20 new "Rimini Agentic UX" solutions and several client expansions tied to this new platform, including partnerships with Ypê, Tidewater, and Silicon Labs.
Forward Guidance and Analyst Estimates
Looking ahead, Rimini Street provided guidance for the first quarter of 2026 and reiterated its full-year outlook initially communicated at its Investor Day in December.
- Q1 2026 Revenue Guidance: $101.5 million to $103.5 million.
- Analyst Consensus for Q1 2026 Revenue: Approximately $107.1 million.
- Full-Year 2026 Guidance: Revenue growth in the range of 4% to 6%, with Adjusted EBITDA margins between 12.5% and 15.5%.
- Analyst Consensus for FY 2026 Revenue: Approximately $443.1 million, which would represent growth near the high end of the company's guided range.
The company's Q1 guidance is notably below current analyst expectations, which may have tempered the initial after-hours enthusiasm. The full-year outlook appears broadly in line with the Street's projections, assuming the company can achieve the higher end of its growth range.
Conclusion
Rimini Street's Q4 2025 results paint a picture of a company in transition. While navigating the headwind from the PeopleSoft wind-down, it managed to exceed revenue expectations and build a record backlog. The market's positive after-hours reaction likely reflects relief at the revenue beat and optimism surrounding the company's strategic bet on AI-driven services as its next growth engine. However, the lower-than-expected Q1 guidance and an earnings miss introduce notes of caution, highlighting the ongoing execution challenge of managing the legacy business decline while investing in and scaling new AI offerings.
For a detailed look at historical earnings, future estimates, and analyst projections for Rimini Street, you can review the data here.
Disclaimer: This article is for informational purposes only and does not constitute investment advice, nor does it recommend the purchase or sale of any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
