8-K: Rimini Street Unveils Agentic AI ERP Vision for Growth

Rimini Street, Inc. presents its strategic vision for Agentic AI ERP, aiming to transform enterprise software support and drive profitable growth through innovation and cost savings.

Summary

• Rimini Street is a global provider of end-to-end enterprise software support, products, and services, founded in 2005 and publicly traded on Nasdaq (RMNI).
• As of September 30, 2025, the company has over 2,000 employees, serves more than 6,300 clients (including over 200 Fortune 500/Global 100 companies), and operates in 21 countries, supporting clients in over 160 countries.
• The company maintains an average client satisfaction score of 4.9 out of 5.0 and a gross margin exceeding 60%.
• Rimini Street identifies eight key market dynamics, including rapid global changes, AI's impact, IT budget constraints (91% 'run the enterprise' vs. 9% 'transform & innovate'), and the limitations of traditional ERP software, as drivers for its 'Act II' market opportunity (2026-2030).
• The company aims to help enterprises cut labor costs by up to 40% and achieve up to 90% savings on ERP and other enterprise software support by extending the useful life of existing software assets and leveraging savings for Agentic AI ERP.
• The 'Rimini Smart Path' methodology involves three steps: Support (replacing vendor support), Optimize (managing existing software for efficiency), and Innovate (achieving Agentic AI ERP with Rimini Agentic UX).
• Rimini Street provides mission-critical support 24/7/365, utilizing a global team, patented AI solutions, and an integrated ITSM platform (ServiceNow).
• The market opportunity for Agentic AI ERP modernization is significant, particularly for the estimated 100,000+ on-premise ERP systems expected to remain in production for decades.
• The company claims leadership in Agentic AI ERP due to its 'leapfrog' strategy, real-life pilot experience, large addressable market, rapid time-to-value (weeks vs. months/years), deep ERP process domain expertise, self-funding Smart Path, strong support experience, and vendor-agnostic approach.
• Rimini Street is expanding its Total Addressable Market (TAM) beyond $15 billion for SAP and Oracle support to a $352 billion Support and Optimize TAM, with additional accretive Innovate TAM, by covering more software products (e.g., VMware) and expanding services at existing clients.
• Marketing efforts leverage AI for efficiency, scale, and buyer journey enablement, resulting in year-over-year increases of +82% in active website users, +52% in NAMER marketing pipeline created, +256% in website engaged sessions, +83% in website chats initiated, and +25% in global marketing pipeline created.
• The sales strategy focuses on 'land, expand, and retain' with a transformed global revenue team, new leadership, a strong sales commit culture, and investment in channel and alliance partnerships.
• New sales growth levers for 2026 include dedicated US Federal sales and channel teams, an expanded global partner ecosystem, and targeted Private Equity outreach.
• Customer success initiatives aim to increase cross-sell rates by 15-25% and share of wallet by 5-10%, utilizing a customer-centric operating model and AI-powered account strategies.
• A case study with Hyundai Autoever demonstrated tens of millions of dollars in savings by switching to Rimini Street, which were reinvested in digital innovation.
• Revenue retention management employs AI predictive risk models to protect and extend Annual Recurring Revenue (ARR).
• The Solution Engineering Group provides pre-sales technical expertise, customized proposals, and develops AI-enabled roadmaps aligned with client business goals.
• Industry-specific solutions for Manufacturing and Financial Services highlight cost reduction, innovation acceleration, and system modernization benefits.

Sentiment

Score: 7

Explanation: The filing presents a strong strategic vision for future growth, particularly with Agentic AI ERP, and highlights significant market opportunities and client satisfaction. However, recent growth metrics are modest, and the ongoing PeopleSoft wind-down presents a known headwind. The financial outlook is positive but measured, indicating a focus on profitable, consistent growth rather than aggressive acceleration.

Positives

• Strong client satisfaction with an average case rating of 4.9 out of 5.0.
• High gross margin consistently above 60%, indicating efficient operations.
• Significant market opportunity with the 'Act II' strategy (2026-2030) focused on Agentic AI ERP, addressing a large and underserved segment.
• Potential for clients to achieve substantial cost savings, including up to 40% reduction in labor costs and up to 90% savings on software support.
• The 'Rimini Smart Path' offers a clear, self-funded innovation model, allowing clients to reinvest savings into AI and digital transformation.
• Proprietary and patented AI solutions with 6 years of production success, positioning the company as a leader in Agentic AI ERP.
• Expanded Total Addressable Market (TAM) to $352 billion for Support and Optimize, with additional accretive Innovate TAM, by broadening software coverage and deepening client relationships.
• Positive marketing momentum demonstrated by significant year-over-year increases in website engagement (+82% active users, +256% engaged sessions) and pipeline creation (+52% NAMER, +25% global).
• Transformed global revenue team and new sales growth levers for 2026, including dedicated US Federal sales, expanded channel alliances, and targeted Private Equity outreach.
• Customer-centric operating model driving cross-sell and retention, enhanced by AI-powered client intelligence and strategic advisor roles for Customer Success Managers.
• Proven success with client case studies, such as Hyundai Autoever realizing tens of millions in savings.
• Commitment to operational excellence and expanding margins through automation and scale, with a future target gross margin in the mid-60s range.
• A Net Operating Loss (NOL) balance of approximately $150 million for domestic tax returns provides a future tax shield.

Negatives

• Recent growth challenges indicate a need for a more compelling and solution-based sales approach going forward.
• The 5-year Revenue CAGR of 9%, Billings CAGR of 5%, and ARR CAGR of 7% (as of Q3'25 TTM) suggest a deceleration in growth compared to earlier periods.
• Q3 year-over-year revenue growth of 2.5%, billings growth of 6.7%, and ARR growth of 1.0% (excluding PeopleSoft wind-down impact) are relatively modest.
• The ongoing PeopleSoft service wind-down, expected to complete by July 31, 2028, will continue to impact future period revenue and costs.
• A high percentage of GenAI deployment efforts (70-95%) failing to meet desired ROI in the broader market could pose challenges for client adoption of Rimini Street's Agentic AI ERP solutions.
• The current revenue mix shows 13% from lower-margin 'other value-add services,' with a future target of 25-35% in this category, potentially impacting overall gross margin if not managed with automation.
• The company is unable to use transaction tax credits, contributing to a higher than acceptable effective tax rate.

Risks

• Litigation, agreements, and Court orders involving Oracle, and the associated costs of defending pending or new litigation.
• The impact of the wind down of support services for Oracle's PeopleSoft software products on future period revenue and costs incurred related to these efforts.
• Changes in the business environment, including macro-economic trends, geopolitical tensions, foreign exchange rates, and general financial, economic, regulatory, and political conditions.
• The evolution of the enterprise software management and support landscape and the company's ability to attract and retain clients and further penetrate its client base.
• Significant competition in the software support services industry and intentions with respect to the company's pricing model.
• Customer adoption of the expanded portfolio of products and services and new product offerings.
• The company's ability to grow revenue and accurately forecast revenue, along with the results of any efforts to manage costs to align with revenue expectations and expansion of offerings.
• The expected impact of reductions in the workforce during the last and current fiscal year and associated reorganization costs.
• Variability of timing in the sales cycle and risks relating to retention rates.
• The loss of one or more members of the management team and the ability to attract and retain additional qualified personnel.
• The company's business plan and ability to grow in the future and its ability to achieve and maintain profitability.
• The volatility of the company's stock price and the need and ability to raise equity or debt financing on favorable terms.
• Risks associated with global operations, including the ability to prevent unauthorized access to information technology systems and other cybersecurity threats.
• Any deficiencies associated with artificial intelligence (AI) technologies used by the company or its third-party vendors and service providers or incorporated into service offerings.
• The ability to protect the confidential information of employees and clients and to comply with privacy regulations.
• The ability to maintain an effective system of internal control over financial reporting and to maintain, protect, and enhance the brand and intellectual property.
• Changes in laws and regulations, including changes in tax laws or unfavorable outcomes of tax positions taken, and tariff costs.
• A failure by the company to establish adequate tax reserves.
• The ability to realize benefits from net operating losses.
• Any negative impact of environmental, social, and governance matters on the company's reputation or business.
• The ability to maintain good standing with the United States government and international governments, capture new contracts with governmental entities, and maintain status as an approved United States government contractor.
• The credit facility's ongoing debt service obligations and financial and operational covenants on the business and related interest rate risk.
• The sufficiency of cash and cash equivalents to meet liquidity requirements.
• The amount and timing of repurchases, if any, under the stock repurchase program and the ability to enhance stockholder value through such program.
• Uncertainty as to the long-term value of Rimini Street's equity securities.
• Catastrophic events that disrupt the business or that of clients.

Future Outlook

Rimini Street provides Q4 2025 guidance with revenues projected between $104 million and $106 million, and Adjusted EBITDA expected to be in the range of $10.0 million to $13.0 million. For fiscal year 2026, the company anticipates mid-single-digit revenue growth, gross margin in the low 60% range, Sales & Marketing expenses in the mid-30s%, General & Administrative expenses in the mid-teens %, and Adjusted EBITDA in the mid-teens % of revenues, with approximately 90% operating cash flow conversion. The long-term target financial model at scale aims for a 10%-15% CAGR revenue growth, mid-60s gross margin, ~30% Sales & Marketing, ~10% G&A, and 20%-25% Adjusted EBITDA margin, indicating a clear path to achieving the Rule of 40 with a bias towards the bottom line.

Management Comments

• The world is changing rapidly, with 'deglobalization, trade, tariffs, labor costs and labor shortages and AI is changing everything'.
• Boards are demanding 'Cloud, AI, Digital Transformation' while simultaneously seeking to cut IT Budgets to improve profits.
• Forrester Research, Inc. Senior Analyst Akshara Naik Lopez stated that 'Legacy or on-premises customers using Rimini Street can now add a complex layer of AI and automation innovation over these existing systems without having the need to undergo costly and complex upgrades and painstakingly expensive transformation programs. Customers need not wait several years to complete upgrades to access AI innovations offered by software vendors.'
• Bill McDermott, CEO & Chairman of ServiceNow, Inc., posed the question: 'What do you want to be best known for? Upgrading an existing ERP or bringing in technology that delivers immediate value, net new innovations and a user experience that is unmatched?'
• A client noted: 'Our first year working together demonstrated the quality of Rimini Street support. Any database-related issues we raise are resolved faster and more effectively than with Oracle, so we had absolutely no reservations in extending the original contract to a multi-year agreement.'
• The Commercial Manager of RSA Insurance commented: 'We wanted to reduce our SAP TCO, especially given that we had no short-to-medium-term plans to upgrade to the latest version or indeed to an S/4HANA upgrade. The significant savings we’ve achieved with independent support has contributed to improved profitability, which in turn contributes to our ability to invest in new applications for the future and wider business initiatives. Rimini Street has been a game-changer for us.'
• An IT department manager from The Iyo Bank stated: 'We were impressed by the cost benefits of Rimini Street’s third-party support, which will allow us to continue to maximize our database system for many years to come with no required upgrades, and as a result, we expect a much higher return on our database software investment.'
• The CIO of LWART remarked: 'The adoption of Rimini Street’s solutions has allowed us to optimize the maintenance of SAP and VMware environments, ensuring a more sustainable operation.'

Industry Context

The filing positions Rimini Street as a key player addressing critical industry challenges: the high cost and low ROI of traditional ERP upgrades, the increasing demand for digital transformation and AI innovation amidst tight IT budgets, and the high failure rate of GenAI deployments. Rimini Street's 'Agentic AI ERP' strategy aims to disrupt the traditional enterprise software market by offering a 'leapfrog' approach, enabling companies to innovate with AI over existing systems without costly and disruptive migrations. This strategy directly contrasts with major ERP vendors (like SAP and Oracle) that typically push expensive and mandatory upgrades. The company's focus on third-party support and managed services aligns with a broader industry trend of enterprises seeking to optimize IT spend, extend the useful life of proven software assets, and reallocate resources to higher-value innovation. The emphasis on AI-driven efficiency and automation reflects the pervasive industry-wide push for intelligent enterprise operations and improved business agility.

Comparison to Industry Standards

• Gartner's 'IT Key Metrics Data 2025' indicates that enterprises typically spend 91% of their IT budget on running the enterprise and only 9% on transformation and innovation; Rimini Street's 'Smart Path' aims to shift this to 60% for running and 40% for transforming/innovating.
• MIT reports that 95% of GenAI pilots fail to show measurable results, and other sources cite 70-95% of GenAI deployment efforts failing to meet desired ROI; Rimini Street aims to overcome these challenges with its Agentic AI ERP approach, promising immediate ROI in weeks.
• Forrester Research, Inc. Senior Analyst Akshara Naik Lopez highlights that Rimini Street, in conjunction with ServiceNow, allows customers to integrate AI and automation over existing systems without the need for costly and complex upgrades, differentiating from traditional software vendors.
• Bill McDermott, CEO & Chairman of ServiceNow, Inc. (and former SAP SE CEO), implicitly supports Rimini Street's value proposition by questioning the strategic benefit of ERP upgrades versus delivering immediate value and unmatched user experience.
• Rimini Street claims to offer up to 90% total savings on ERP and other software support costs, directly comparing its value proposition to that of traditional software vendors.
• The company reports an industry-leading average case client satisfaction score of 4.9 out of 5.0, indicating superior service delivery compared to typical industry benchmarks.

Legal Proceedings

• Litigation, agreements, and Court orders involving Oracle are mentioned as a risk factor.
• Adverse developments in and costs associated with defending pending litigation or any new litigation are mentioned as a risk factor.

Stakeholder Impact

• Shareholders: Potential for long-term value creation through profitable growth, increased free cash flow, and share repurchases. Risks include stock price volatility and uncertainty of long-term equity value.
• Employees: Workforce reductions are mentioned as a risk factor, but there is also an emphasis on attracting and retaining qualified personnel and requiring Agentic AI ERP certification for all employees.
• Customers: Benefits from significant cost savings (up to 90% on support), extended software lifespan, access to AI innovation without disruptive upgrades, improved operational performance, and enhanced security.
• Suppliers/Partners: Expansion of the global partner ecosystem and channel alliances indicates increased opportunities for partners.
• Creditors: The credit facility's ongoing debt service obligations and financial/operational covenants are mentioned as a risk.

Next Steps

• Continue to execute the 'Rimini Smart Path' strategy, focusing on Support, Optimize, and Innovate pillars.
• Expand the client base and work to lower churn rates.
• Optimize the product/service mix to maintain and grow overall Average Selling Prices (ASPs) and gross margin.
• Increase Remaining Performance Obligations (RPO) through multi-year, non-cancellable contracts.
• Rationalize Selling, General & Administrative (SG&A) costs and leverage operational efficiencies.
• Allocate resources strategically to deliver bottom-line leverage and improve profitability.
• Improve cash flow and capital return to shareholders.
• Lower the cost of borrowing and optimize the tax structure to achieve an effective tax rate (ETR) less than 25%.
• Build dedicated US Federal sales and channel teams in 2026.
• Expand and mature the global partner ecosystem in 2026, launching joint go-to-market campaigns.
• Execute targeted Private Equity outreach and engagement in 2026.
• Continue the global rollout of the MEDDPICC deal qualification methodology to enhance sales predictability.
• Ensure all employees are certified in Agentic AI ERP to articulate differentiated value.
• Invest further in AI tools and utilization metrics to drive margin improvements.
• Continue share repurchases, subject to market conditions and material non-public information (MNPI), to offset dilution from stock-based compensation.

Key Dates

Recommendation

Rimini Street presents a compelling long-term vision with its Agentic AI ERP strategy and a strong market position in third-party support, offering significant cost savings and innovation opportunities for clients. The company demonstrates operational excellence with high gross margins and a clear path to improved profitability. However, recent growth rates have been modest, and the ongoing PeopleSoft wind-down is a known headwind. While the future outlook is positive, the 'mid-single-digit' revenue growth for 2026 suggests a measured pace. The stock may be suitable for long-term investors who believe in the Agentic AI ERP vision and the company's ability to execute, but the current growth profile does not warrant a 'buy' or 'strong buy' recommendation for immediate significant upside. The risks associated with litigation and AI adoption also suggest a cautious approach.

Keywords

Rimini Street, Agentic AI ERP, Enterprise Software Support, Third-Party Support, ERP Modernization, IT Cost Savings, AI Innovation, Digital Transformation, Software Support, Managed Services, Financial Performance, Growth Strategy, Nasdaq, RMNI