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]

Financial Data and Key Metrics Changes - Revenue for Q4 2025 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 [12] - Annualized recurring revenue (ARR) was $411.4 million for Q4, reflecting a decrease of 0.8% year-over-year [12] - Gross margin was 60.4% for both Q4 and full year 2025, compared to 63.7% for Q4 2024 [15] - 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 [19] Business Line Data and Key Metrics Changes - The company closed 19 new client transactions over $1 million in total contract value (TCV), totaling $58.1 million, compared to 22 transactions totaling $51.9 million last year [4] - Revenue from PeopleSoft support services was 4% of total revenue for Q4 and 5% for full year 2025, down from 8% when the wind down began [24] Market Data and Key Metrics Changes - Remaining performance obligations (RPO) grew 11.1% year-over-year, reaching $653 million as of December 31, 2025 [22] - Deferred revenue as of December 31, 2025, was $288 million, compared to $281 million for the prior year [22] Company Strategy and Development Direction - The company is positioning itself as a bridge between traditional ERP software and modern AI innovations, focusing on reducing operating costs by up to 90% for existing ERP landscapes [5] - The introduction of Agentic AI ERP solutions aims to modernize existing ERP systems without the need for costly upgrades or migrations [5][9] - Strategic partnerships with AI platform companies like ServiceNow are expected to enhance the company's offerings and market reach [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering growth in 2026, citing accelerating momentum in bookings and pipeline [4] - The company anticipates a revenue growth range of 4%-6% for full year 2026, with adjusted EBITDA margins expected between 12.5%-15.5% [25] - Management noted improved visibility and confidence in achieving top-line guidance due to a growing sales pipeline and increased close rates [29][35] Other Important Information - The company ended Q4 2025 with a cash balance of $120 million, up from $88.8 million in the prior year [21] - Operating cash flow increased significantly in 2025, reflecting a strong cash position [21] Q&A Session Summary Question: Visibility on revenue growth for 2026 - Management expects Q1 numbers to be solid based on contracts signed in Q4, with improved visibility due to a growing sales pipeline [28][29] Question: Drivers of RPO growth - Management indicated that RPO growth is encouraging and reflects increased confidence in achieving revenue expectations [56] Question: Sales productivity and North American growth - Management noted that sales productivity is improving, with a focus on stabilizing North American operations and increasing sales capacity [58] Question: Adoption of Rimini Agentic UX solutions - Management highlighted that customer interest is growing, but adoption will take time as clients digest the new technology [75]

Core Insights - Rimini Street, Inc. is identified as an undervalued technology penny stock with significant potential for investment [1] - The company has made strides in partnerships with SP Electricity North West and Tidewater, enhancing its service offerings and market position [2][3] Group 1: Partnership Developments - SP Electricity North West has resolved SAP system challenges by switching to Rimini Support, resulting in substantial cost savings and improved system reliability [2] - The partnership with Tidewater has expanded to include comprehensive ERP solutions, supporting Tidewater's growth in energy exploration and production [3][4] Group 2: Financial Performance and Analyst Insights - TD Cowen analyst Derrick Wood has reaffirmed a Hold rating on Rimini Street with a price target of $5, noting a mix of positives and challenges in the company's outlook [5] - The company's long-term guidance appears strong, with FY26 revenue and margin projections exceeding prior estimates, although near-term Q4 expectations have fallen short [5] Group 3: Company Overview - Rimini Street, Inc. specializes in enterprise software support and managed services for critical applications, including Oracle and SAP [6]