Rimini Street (NasdaqGM:RMNI) FY Conference March 23, 2026 05:00 PM ET Company ParticipantsDavid Steinberg - CEOSeth Ravin - Chairman, President, and CEOModeratorIt never gets less. All right. I think we're good to go. Really glad to have my panelists here to talk about an issue that is near and dear to my heart today, 'cause I've been following the software industry for coming on three decades, I think now, and watching it get absolutely under attack by the fears that AI is gonna disrupt it and break all o ...

Rimini Street Announces Participation in the ROTH Capital Partners 38th Annual Investor Conference Rimini Street Announces Participation in the ROTH Capital Partners 38th Annual Investor Conference Share Rimini Street Announces Participation in the ROTH Capital Partners 38th Annual Investor Conference LAS VEGAS--(BUSINESS WIRE)-- Rimini Street, Inc.(Nasdaq: RMNI), a global provider of end-to-end enterprise software support, managed services and Agentic AI ERP innovation solutions, and the leading third- par ...

Core Insights - Rimini Street, Inc. provides enterprise software support services, focusing on third-party support for Oracle and SAP software, allowing clients to reduce maintenance costs while receiving quality support [1] - The company demonstrates strong financial metrics, particularly with a Return on Invested Capital (ROIC) of 49.18% and a Weighted Average Cost of Capital (WACC) of 10.03%, resulting in a ROIC to WACC ratio of 4.90, indicating high capital efficiency [2][5] Financial Performance Comparison - Rimini Street's ROIC of 49.18% significantly exceeds its WACC of 10.03%, showcasing exceptional capital efficiency and making it an attractive investment option [5] - In contrast, Issuer Direct Corporation has a negative ROIC of -34.35% and a WACC of 6.52%, resulting in a ROIC to WACC ratio of -5.27, indicating ineffective capital utilization [3] - Cambium Networks Corporation also shows a negative ROIC of -48.79% against a WACC of 10.67%, leading to a ROIC to WACC ratio of -4.57, further highlighting Rimini Street's superior performance [3] - OneSpan Inc. and Kiniksa Pharmaceuticals show positive ROIC to WACC ratios of 1.63 and 1.75, respectively, but these figures are still significantly lower than Rimini Street's 4.90, emphasizing its unmatched capital efficiency among peers [4]

​Rimini Street, Inc. (NASDAQ:RMNI) is one of the Best Value Penny Stocks to Buy Now. On February 19, Rimini Street, Inc. (NASDAQ:RMNI) released its fiscal Q4 2025 earnings. The company reported a 3.87% year-over-year decline in revenue to $109.79 million, but topped estimates by $4.32 million. The EPS of $0.06 fell short of the consensus by $0.01. ​The decline in revenue was largely due to lower subscription revenue for the quarter, which came in at $104.9 million, down from $109.1 million in Q4 2024. Su ...

Core Viewpoint - Rimini Street (RMNI) has been upgraded to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based solely on a company's changing earnings picture, with the Zacks Consensus Estimate reflecting EPS estimates from sell-side analysts [1][2]. - Changes in future earnings potential, as indicated by earnings estimate revisions, are strongly correlated with near-term stock price movements [4][6]. - Institutional investors utilize earnings estimates to determine the fair value of a company's shares, leading to stock price movements based on their buying or selling activities [4]. Rimini Street's Earnings Outlook - The company is projected to earn $0.46 per share for the fiscal year ending December 2026, showing no year-over-year change [8]. - Over the past three months, the Zacks Consensus Estimate for Rimini Street has increased by 15.8%, indicating a positive trend in earnings estimates [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 (Strong Buy) stocks historically generating an average annual return of +25% since 1988 [7]. - The upgrade to Zacks Rank 2 places Rimini Street in the top 20% of Zacks-covered stocks, suggesting a strong potential for market-beating returns in the near term [10].

Core Insights - Rimini Street, Inc. is a leading provider of enterprise software support services, offering third-party support for major software brands like Oracle and SAP, which allows clients to significantly reduce maintenance costs [1] - The company demonstrates remarkable financial performance and efficient capital utilization, distinguishing itself in the competitive landscape of software support services [1] Financial Performance - Rimini Street's Return on Invested Capital (ROIC) is 49.18%, which is substantially higher than its Weighted Average Cost of Capital (WACC) of 10.19%, resulting in a ROIC to WACC ratio of 4.82, indicating superior value creation [3][6] - In contrast, Issuer Direct Corporation has a negative ROIC of -34.35% and a WACC of 6.52%, leading to a ROIC to WACC ratio of -5.27, suggesting inefficiencies in capital utilization [4] - Cambium Networks Corporation also exhibits a negative ROIC of -48.79% against a WACC of 10.51%, resulting in a ROIC to WACC ratio of -4.64, emphasizing challenges in generating returns above its cost of capital [4] - OneSpan Inc. shows a ROIC of 18.65% and a WACC of 10.72%, with a ROIC to WACC ratio of 1.74, indicating value creation, albeit lower than Rimini Street [5] - Kiniksa Pharmaceuticals has a ROIC of 4.77% and a WACC of 4.59%, resulting in a ROIC to WACC ratio of 1.04, showing marginal value creation [5]

Core Viewpoint - The focus is on producing objective, data-driven research primarily about small- to mid-cap companies, which are often overlooked by many investors, while also occasionally analyzing large-cap companies to provide a broader market perspective [1] Group 1 - The research emphasizes the importance of small- to mid-cap companies in investment analysis due to their potential for growth and the lack of attention they receive from larger investors [1] - The analyst's approach includes a mix of both small- to mid-cap and large-cap companies to ensure a comprehensive understanding of the equity markets [1]

Core Insights - The company is focusing on its "Rimini Smart Path" strategy and the introduction of "Agentic AI ERP" solutions, claiming that traditional ERP software has reached its technical peak and that its approach offers new capabilities more efficiently [1][3] Financial Performance - Fourth-quarter revenue was reported at $109.8 million, reflecting a year-over-year decline of 3.9%, while full-year revenue for 2025 was $421.5 million, down 1.7% [9] - Adjusted EBITDA for the fourth quarter was $11.5 million, representing 10.4% of revenue, a decrease from 17.5% in the prior year [12] - The company ended 2025 with a cash position of $120 million, an increase from $88.8 million the previous year, indicating a stronger balance sheet [13] Sales and Growth Indicators - The company reported 73 new logos and 19 new client transactions exceeding $1 million in total contract value, totaling $58.1 million, which supports expectations for growth in 2026 [2][5] - Remaining performance obligations (RPO) reached a record $653 million, up approximately 11% from the previous year, which management views as a positive indicator for future growth [14] Strategic Initiatives - The launch of "Agentic AI ERP" solutions aims to reduce operating costs for existing ERP systems by up to 90%, allowing clients to invest savings into modernization efforts [6] - The company has formed a partnership with ServiceNow to enhance its offerings, claiming early deployments have led to significant operational improvements, including faster approvals and reduced order cycle times [5][6] Guidance and Future Outlook - For the first quarter of 2026, the company guided revenue in the range of $101.5 million to $103.5 million, with full-year growth expectations of 4% to 6% and adjusted EBITDA margins of 12.5% to 15.5% [16] - Management anticipates that broader momentum for its solutions will build later in 2026 as customer installations expand and reference customers increase [7]

Core Insights - Rimini Street (RMNI) reported quarterly earnings of $0.07 per share, missing the Zacks Consensus Estimate of $0.09 per share, and down from $0.12 per share a year ago, representing an earnings surprise of -17.65% [1] - The company posted revenues of $109.79 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 3.88%, but down from $114.21 million year-over-year [2] - Rimini Street shares have declined approximately 21.7% since the beginning of the year, contrasting with the S&P 500's gain of 0.5% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.10 on revenues of $107.33 million, and for the current fiscal year, it is $0.45 on revenues of $445.57 million [7] - The estimate revisions trend for Rimini Street was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Internet - Software industry, to which Rimini Street belongs, is currently in the top 36% of over 250 Zacks industries, suggesting that companies in the top 50% outperform those in the bottom 50% by more than 2 to 1 [8] - VERRA MOBILITY CORP (VRRM), another company in the same industry, is expected to report quarterly earnings of $0.32 per share, reflecting a year-over-year change of -3%, with revenues anticipated to be $240.99 million, up 8.8% from the previous year [9][10]

Financial Data and Key Metrics Changes - Q4 2025 revenue was $109.8 million, a year-over-year decrease of 3.9%, while full-year revenue was $421.5 million, down 1.7% year-over-year [18] - Annualized recurring revenue (ARR) for Q4 was $411.4 million, a decrease of 0.8% year-over-year [18] - Gross margin for Q4 was 60.4%, compared to 63.7% for the prior year Q4 [20] - Net income attributable to shareholders for Q4 was $724,000, or $0.01 per diluted share, compared to $0.07 per diluted share in the prior year Q4 [24] Business Line Data and Key Metrics Changes - Core Rimini Support subscription billings grew, with 19 new client transactions over $1 million in total contract value (TCV) totaling $58.1 million [6] - Revenue from PeopleSoft support services was 4% of revenue for Q4 and 5% for full year 2025, down from 8% when the wind down began [28] Market Data and Key Metrics Changes - Remaining performance obligations (RPO) increased by 11% year-over-year to $653 million as of December 31, 2025 [27] - Billings for Q4 were $171.3 million, relatively flat year-over-year, while full-year billings were $427.9 million, an increase of 1.2% [19] Company Strategy and Development Direction - The company is positioning itself as a bridge between traditional ERP software and modern AI capabilities, emphasizing the Agentic AI ERP solutions [9] - Strategic partnerships with AI platform companies like ServiceNow are aimed at enhancing service offerings without requiring software upgrades [10] - The focus is on reducing operating costs for clients by up to 90% and enabling modernization without disruption [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering growth in 2026, supported by a strong pipeline and improved close rates [40] - The company anticipates revenue growth in the range of 4%-6% for full year 2026, with adjusted EBITDA margins between 12.5%-15.5% [29] Other Important Information - The company ended Q4 2025 with a cash balance of $120 million, compared to $88.8 million in the prior year Q4 [26] - Operating cash flow increased by $60.2 million compared to the prior year [26] Q&A Session Summary Question: Visibility on revenue growth for 2026 - Management expects Q1 numbers to reflect contracts signed in Q4, indicating solid growth potential [32] Question: Drivers of improved visibility - Increased sales momentum and a growing pipeline contribute to higher confidence in revenue growth [38] Question: Changes in sales and marketing expenses - The increase is attributed to hiring new sales staff and launching new products, with expectations to stabilize at lower levels in the future [48] Question: Impact of litigation resolution on sales - Management noted improved win rates and faster deal closures post-litigation settlement [51] Question: Adoption of Rimini Agentic UX solutions - Adoption is in early stages, with customers interested but needing time to digest the new technology [82]