8-K: Rimini Street Exceeds Q4 Guidance, Boosts AI Offerings

Rimini Street announced its fiscal fourth quarter and annual 2025 financial results, highlighting record Remaining Performance Obligations and the launch of new Agentic AI ERP solutions.

Summary

• Fourth quarter 2025 revenue was $109.8 million, a decrease of 3.9% year-over-year; excluding Oracle PeopleSoft support services, revenue decreased by 0.4%.
• Full year 2025 revenue was $421.5 million, a decrease of 1.7% year-over-year; excluding Oracle PeopleSoft support services, revenue increased by 1.0%.
• Remaining Performance Obligations (RPO) reached a record $652.9 million as of December 31, 2025, an increase of 11.1% from the prior year.
• Adjusted Calculated Billings for full year 2025 increased by 4.2% to $414.2 million.
• Adjusted Annualized Recurring Revenue (ARR) for the fourth quarter of 2025 increased by 3.1% to $395.8 million.
• Active Clients as of December 31, 2025, were 3,102, an increase of 0.7% year-over-year.
• Fourth quarter 2025 GAAP net income was $0.7 million, down from $6.7 million in the prior year.
• Full year 2025 GAAP net income was $37.1 million, a significant improvement from a net loss of $36.3 million in 2024.
• Cash and cash equivalents stood at $120.0 million at December 31, 2025, up from $88.8 million at December 31, 2024.
• The company repurchased approximately 1.9 million shares of Common Stock for $7.6 million during 2025.
• Rimini Street launched 20 new Rimini Agentic UX Solutions, Powered by ServiceNow, and unveiled its Agentic AI ERP vision.
• Resolved over 7,100 support cases and delivered more than 10,800 tax, legal, and regulatory updates across 32 countries, achieving an average client satisfaction score above 4.9 out of 5.0.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a moderately positive report. While Q4 revenue and profitability metrics saw year-over-year declines, the company exceeded its own guidance, achieved record RPO, significantly improved full-year GAAP net income, and is strategically investing in AI solutions, indicating a pivot towards future growth despite short-term headwinds from the PeopleSoft wind-down.

Positives

• Fourth quarter results exceeded the guidance range communicated at the Investor Day.
• Remaining Performance Obligations (RPO) reached a record $652.9 million, up 11.1% year-over-year, indicating strong future revenue visibility.
• Adjusted Calculated Billings for full year 2025 increased by 4.2%, demonstrating growth in core business.
• Adjusted Annualized Recurring Revenue (ARR) increased by 3.1% year-over-year, reflecting healthy recurring revenue streams.
• Ended fiscal year 2025 with a strong balance sheet and cash position of $120.0 million, a significant increase from $88.8 million in the prior year.
• Successfully launched next-generation Agentic AI ERP solutions and 20 new Rimini Agentic UX Solutions, positioning the company for future innovation.
• Expanded partnerships with key clients like Tidewater and Silicon Labs, and secured new adoption by Yp for Agentic AI initiatives.
• Achieved a high average client satisfaction score above 4.9 out of 5.0, reflecting strong service delivery.
• Full year 2025 GAAP net income of $37.1 million represents a substantial turnaround from a net loss of $36.3 million in 2024.
• Repurchased approximately 1.9 million shares for $7.6 million in 2025, signaling confidence in company valuation and returning value to shareholders.

Negatives

• Fourth quarter 2025 revenue decreased by 3.9% to $109.8 million compared to the same period last year.
• U.S. revenue for Q4 2025 decreased by 10.6% (4.3% excluding PeopleSoft support services).
• Gross margin declined to 60.4% in Q4 2025 from 63.7% in the prior year.
• Operating income significantly decreased to $5.0 million in Q4 2025 from $14.9 million in the prior year.
• Net income decreased to $0.7 million in Q4 2025 from $6.7 million in the prior year.
• Adjusted EBITDA for Q4 2025 decreased to $11.5 million from $20.0 million in the prior year.
• Full year 2025 Non-GAAP Operating Income decreased to $44.1 million from $47.7 million in 2024.
• Full year 2025 Non-GAAP Net Income decreased to $21.3 million from $43.6 million in 2024.
• Full year 2025 Adjusted EBITDA decreased to $49.8 million from $53.1 million in 2024.

Risks

• Ability to attract new clients or retain and/or sell additional products or services to existing clients.
• Ability to achieve and maintain an adequate rate of revenue growth.
• Cost of revenue, including changes in costs associated with growth efforts and managing costs to align with revenue expectations.
• Effects of increased intense competition in the industry.
• Ability to successfully educate the market regarding the advantages of their support and managed services for ERP software and to sell the Rimini Smart Path solutions portfolio, including Agentic AI ERP solutions.
• Intentions with respect to pricing model and expectations of client savings relative to use of other providers.
• Evolution of the ERP software management and support landscape facing clients and prospects.
• Effects of enterprise software vendors' efforts to sell upgrades or migrations to cloud-based versions of their enterprise software.
• Ability to scale operations quickly enough to meet clients' changing needs or decrease costs adequately in response to changing client demand.
• Risks arising from incorporating artificial intelligence (AI) technologies into products or services or any deficiencies associated with AI technologies.
• Ability to maintain, protect, and enhance their brand.
• The continuing impact of and ability to comply with the terms of the July 2025 settlement agreement with Oracle.
• Wind down of support services for Oracle PeopleSoft software products and the impact on future period revenue and costs.
• Loss of one or more members of the management team and ability to attract and retain additional qualified technical, sales, and marketing personnel.
• Ability to expand marketing and sales capabilities.
• Ability to avoid interruptions to, or degraded performance of, services and the impact on operations.
• Ability to defend against cybersecurity threats and to comply with data protection and privacy regulations.
• Expectations regarding new product offerings, innovation solutions, partnerships, and alliance programs.
• Ability to expand internationally and the risks associated with global operations.
• Impact of macro-economic trends, including inflation and changes in foreign exchange rates, as well as general financial, economic, regulatory, and political conditions.
• Ability to generate significant capital through operations or to raise additional capital necessary to fund and expand operations and invest in new services and products.
• Business plan and ability to effectively secure and manage growth and associated investments.
• Risks relating to retention rates, including ability to accurately predict retention rates.
• Ability to protect intellectual property.
• Ability to maintain an effective system of internal control over financial reporting.
• Changes in laws or regulations, including tax laws or unfavorable outcomes of tax positions.
• Tariff costs, including those imposed by the United States government and the potential for retaliatory trade measures.
• Ability to realize benefits from net operating losses.
• Any negative impact of environmental, social, and governance (ESG) matters on reputation or business.
• Credit facility's ongoing debt service obligations and financial and operational covenants on the business and related interest rate risk.
• Sufficiency of cash and cash equivalents to meet liquidity requirements.
• Volatility of stock price.
• The amount and timing of repurchases, if any, under the stock repurchase program.
• Ability to maintain good standing with the United States government and international governments and capture new contracts with governmental entities/agencies.
• The occurrence of catastrophic events that may disrupt the business or that of current and prospective clients.
• Future acquisitions of, or investments in, complementary companies, products, subscriptions, or technologies.

Future Outlook

The company is providing first quarter 2026 revenue guidance in the range of $101.5 million to $103.5 million. It is reiterating full year 2026 guidance for revenue growth in the 4% to 6% range with Adjusted EBITDA margins in the 12.5% to 15.5% range, as communicated at its Investor Day.

Management Comments

• Seth Ravin, president and CEO, stated: "Our fourth quarter results reflect solid execution and continued accelerating sales growth, adjusted for the Oracle PeopleSoft support and services wind down. We grew our core Rimini Support subscription billings and launched our next generation Agentic AI ERP solutions that can be easily and quickly deployed over the top of existing ERP Software without the cost or risk of unnecessary ERP Software upgrades, migrations or replatforming."
• Seth Ravin also commented: "ERP Software is peaking technically, and we will deliver new ERP capabilities and ERP Process execution faster, better and cheaper with more agility and speed to market leveraging Rimini Streets Agentic AI ERP solutions. Meanwhile, we will keep existing ERP Software and releases delivering value for many years to come at significant savings."
• Michael Perica, CFO, noted: "Our fourth quarter results exceeded the guidance range we communicated at our Investor Day and demonstrate continued positive momentum entering 2026. We invested in the development and launch of new AI-based solutions, streamlined global operations, achieved new RPO records in both the third and fourth quarters with increased year over year and sequential growth, increased our net cash year over year and ended fiscal year 2025 with a strong balance sheet and cash position. Capital allocation actions during the year included share repurchases and full repayment of the revolving line of credit."

Industry Context

StockSavvy.ai notes that Rimini Street is positioning itself at the forefront of the evolving ERP landscape by declaring traditional ERP software obsolete and introducing Agentic AI ERP solutions. This strategy directly addresses the market's increasing demand for AI-driven innovation, cost reduction, and agility, particularly as many organizations face high costs and support challenges with traditional vendors like Oracle and SAP. The company's focus on "over-the-top" solutions without requiring costly upgrades or migrations aligns with a broader industry trend towards composable ERP and leveraging existing infrastructure for innovation.

Comparison to Industry Standards

• A global survey mentioned in the filing found a strong shift toward multivendor composable ERP, with organizations using third-party support achieving above-average performance 83% of the time versus 27% with traditional SAP-led approaches, suggesting Rimini Street's model outperforms traditional vendor support.
• Another global survey indicated that Oracle Database customers are shifting strategies due to high costs and support challenges, with many turning to third-party support to reduce fees and improve responsiveness, directly supporting Rimini Street's value proposition against a major competitor.
• The company's average client satisfaction score above 4.9 out of 5.0 demonstrates a high level of service quality, potentially exceeding industry benchmarks for enterprise software support providers.

Stakeholder Impact

• Shareholders: Potential for increased value through share repurchases and strategic investments in AI, but also short-term revenue and profit pressure from the PeopleSoft wind-down.
• Clients: Benefit from new Agentic AI ERP solutions, improved productivity, reduced costs, and high client satisfaction scores.
• Employees: Involved in the development and launch of new AI-based solutions and global operations streamlining; reorganization costs mentioned in non-GAAP adjustments may indicate some workforce adjustments.

Next Steps

• Host a conference call and webcast on February 19, 2026, at 5:00 p.m. Eastern Time / 2:00 p.m. Pacific Time to discuss the fourth quarter and full year 2025 results and offer commentary on 2026.
• Continue to execute on the strategy of delivering new ERP capabilities and ERP Process execution faster, better, and cheaper with more agility and speed to market leveraging Rimini Street's Agentic AI ERP solutions.
• Continue the wind down of support services for Oracle PeopleSoft software products.

Key Dates

Recommendation

The company shows strategic foresight with its AI investments and achieved a significant turnaround in full-year GAAP net income. However, the Q4 year-over-year declines in revenue and profitability, even when adjusted for PeopleSoft, suggest ongoing challenges. The positive RPO growth and exceeding Q4 guidance are encouraging, but the stock is likely to remain in a "hold" position as investors await clearer signs of sustained revenue growth and margin expansion from the new AI initiatives.

Keywords

Rimini Street, RMNI, ERP support, Agentic AI, enterprise software, managed services, Oracle, SAP, VMware, financial results, Q4 2025, full year 2025, revenue, RPO, ARR, billings, IT services, corporate earnings