Rimini Street Pushes AI Innovation Amid Strong Q2 Growth and Debt Reduction

LAS VEGAS, NV – July 30, 2026 – Rimini Street, Inc. (Nasdaq: RMNI) today announced solid second-quarter financial results, demonstrating resilient demand for its core software support services while aggressively expanding into the artificial intelligence landscape. The company reported a 6.7% year-over-year revenue increase to $111.1 million, surpassing analyst expectations. This growth was accompanied by the launch of a new AI governance solution and significant strides in strengthening its balance sheet, painting a picture of a company in a strategic and well-funded transition.

While revenue beat forecasts, the company’s stock saw a dip in after-hours trading as investors weighed a miss on adjusted earnings per share against the positive top-line growth and forward-looking strategy. The results underscore a pivotal moment for the firm as it leverages its stable, recurring revenue from third-party software support to fuel its transformation into what it calls an “Agentic AI ERP Company.”

A Strategic Pivot to 'Over-the-Top' AI

The most significant announcement alongside the earnings was the launch of Rimini Govern™ for AI, a new service offering AI agent governance and management. This move crystallizes the company's strategy to provide innovative solutions that can be deployed “over the top” of clients' existing enterprise resource planning (ERP) systems, a vision articulated by President and CEO, Seth Ravin.

“Real innovation is not about installing a software vendor’s next ‘.ai’ release — it is about reducing total operating costs, improving profitability and enhancing competitive advantage,” Ravin stated in the announcement. He explained that Rimini Street’s approach helps organizations sidestep the “costs and risks of unnecessary ERP Software upgrades and migrations.” Instead, clients can deploy the company’s AI solutions on their current infrastructure, funding these innovations with savings generated from switching to third-party support.

This strategy is already resonating with clients. One NZ, a leading telecommunications provider in New Zealand, described Rimini Street as a trusted “co-innovation partner” enabling its own AI transformation. By optimizing its Oracle environment with Rimini Support™, One NZ is redirecting capital and talent toward its goal of becoming an AI-enabled industry leader. This approach of extending the life and value of legacy systems while layering on next-generation capabilities appears to be a core pillar of Rimini Street’s value proposition in an era where IT budgets are under constant scrutiny.

Dissecting the Financials: Growth, Profit, and Prudent Management

A deeper look at the Q2 2026 financials reveals a company managing multiple strategic initiatives. The reported revenue of $111.1 million was a clear bright spot, driven by a robust 14.1% increase in international revenue, which offset a slight 1.6% decline in the U.S. market. However, the GAAP net income of $2.4 million marked a steep decline from the $30.3 million reported in the same quarter last year. This comparison, as CFO Michael Perica noted, is significantly skewed by a large, one-time litigation settlement benefit the company recognized in Q2 2025. Excluding that prior-year item, the underlying profitability story remains intact.

The company’s non-GAAP net income was $5.9 million, and its non-GAAP operating income stood at $9.2 million. More telling of its financial discipline is its balance sheet management. During the quarter, Rimini Street prepaid another $10 million of debt, bringing its total outstanding debt down to $48.4 million. Simultaneously, its cash and cash equivalents grew to $123.4 million, providing substantial liquidity to invest in its strategic priorities.

“The quarter results reflect continued growth momentum, expanding contracted revenue visibility and disciplined balance sheet management,” Perica commented. This financial prudence allows the company to invest in sales capacity and product innovation, particularly in its new AI service offerings, while navigating the planned wind-down of its support for Oracle’s PeopleSoft products.

The Enduring Appeal of Third-Party Support

Rimini Street’s core business continues to demonstrate the growing market appetite for alternatives to vendor-dictated upgrade cycles. The company’s active client count grew by 2.4% to 3,132, with a steady revenue retention rate of 90%. These figures highlight a consistent demand from enterprises seeking more control and flexibility over their IT roadmaps.

Client testimonials included in the announcement underscore this trend. Cochlear Limited, an Australian hearing technology leader, chose Rimini Support™ for Oracle to escape the vendor-driven cycle. “Moving to Rimini Street gave us back control of our ERP platform,” the company noted, emphasizing its newfound ability to free up resources for digital transformation and AI-powered initiatives.

Similarly, VIVERE Group, an Indonesian furniture maker, selected Rimini Support™ for its SAP system to avoid a costly migration and redirect funds toward innovation. Even clients with newer cloud-based systems are finding value. Medical Microinstruments, Inc., an Italian robotics firm, utilized Rimini Consult™ for Salesforce to maximize its ROI, eliminate unnecessary software costs, and develop a long-term roadmap. The firm praised the “strategic value Rimini Street brings to our Salesforce evolution.”

To provide clearer insight into its ongoing business, Rimini Street also reported adjusted metrics that exclude the impact of its PeopleSoft wind-down. Adjusted Annualized Recurring Revenue, for instance, grew by a healthy 8.1% to $401.1 million, indicating that the rest of its portfolio is more than compensating for the planned reduction in that specific service line.

Navigating the Future: Outlook and Market Position

Looking ahead, Rimini Street reaffirmed its full-year 2026 guidance, projecting revenue growth of 4% to 6% and an Adjusted EBITDA margin between 12.5% and 15.5%. This guidance aligns with its stated goal of achieving the “Rule of 20” for the fiscal year, a metric combining revenue growth percentage and adjusted EBITDA margin to demonstrate a balance of profitable growth.

For the upcoming third quarter, the company anticipates revenue in the range of $110 million to $112 million, which aligns with market consensus and suggests continued stability. By positioning itself as a partner for both cost optimization and AI-driven innovation, Rimini Street is carving out a unique niche in the competitive enterprise software market. The firm is betting that as more companies look to modernize intelligently, its model of liberating IT budgets from legacy vendor constraints to fund future-focused projects will become increasingly attractive.