Rimini Street Doubles Third-Quarter Net Income on Margin Gains and SAP Demand

Aditi Sarkar

02 November 2026 10:39 PM AEDT

Rimini Street Doubles Third-Quarter Net Income on Margin Gains and SAP Demand

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Highlights

Third-quarter 2026 Revenue rose 8.3% to US$112.1 million, or 10.7% to US$109.3 million excluding PeopleSoft.
GAAP Net Income more than doubled to US$6.5 million, or US$0.07 per diluted share, from US$2.8 million.
Adjusted EBITDA climbed 52.0% to US$15.1 million, while gross Margin widened to 61.4% from 59.9%.
Management guided fourth-quarter 2026 revenue of US$117 million to US$119 million and reiterated its Rule of 20 target.

Rimini Street, Inc. (NASDAQ:RMNI) reported a sharper rise in profit than in sales for the third quarter of 2026, as the enterprise software support provider widened margins and grew its international Business while continuing to wind down support for Oracle's PeopleSoft products.

Revenue for the quarter ended 30 September 2026 reached US$112.1 million, up 8.3% from US$103.4 million. Excluding PeopleSoft, adjusted revenue grew 10.7% to US$109.3 million.

International Clients Drive Top-Line Growth

International revenue rose 11.6% to US$63.8 million, outpacing a 4.3% increase in US revenue to US$48.3 million. PeopleSoft revenue fell to US$2.7 million from US$4.7 million. Subscription revenue reached US$105.2 million, or 93.9% of the total.

Annualized Recurring Revenue increased 7.7% to US$421.0 million, or 9.8% to US$410.4 million excluding PeopleSoft. Active clients rose 1.9% to 3,214, and the trailing 12-month revenue retention rate improved to 90% from 89%. Calculated billings jumped 21.0% to US$80.5 million, and remaining performance obligations grew 6.8% to US$652.9 million.

New client wins in the quarter included Khimji Ramdas Group in Oman for SAP, Chen Full International in Taiwan for SAP S/4HANA, and AUTOBACS SEVEN in Japan for SAP ECC 6.0 and Oracle Database. The company resolved nearly 6,700 support cases and delivered nearly 4,500 regulatory updates across 26 countries, with an average client satisfaction score of 4.9 out of 5.0.

Operating Leverage Shows Through in Earnings

Gross margin improved to 61.4% from 59.9%. GAAP Operating Income more than doubled to US$9.8 million from US$4.4 million, and non-GAAP operating income rose to US$14.0 million from US$8.5 million.

GAAP net income reached US$6.5 million, or US$0.07 per diluted share, compared with US$2.8 million, or US$0.03, a year earlier. Non-GAAP net income nearly doubled to US$11.3 million, and adjusted EBITDA increased 52.0% to US$15.1 million.

Cash and cash equivalents were US$93.3 million at quarter end. The company prepaid US$5.0 million of its term loan, leaving US$43.4 million outstanding, and repurchased US$5.0 million of common stock in the quarter.

Partnerships, AI Services and Fourth-Quarter Targets

Chief Executive Seth Ravin said the quarter marked a third straight period of meeting the fiscal 2026 plan, citing record third-quarter SAP services sales. Rimini formed a Partnership with Datacom to offer support for Oracle and SAP software in Australia and New Zealand and launched Rimini Govern for AI, a managed service for governing and measuring AI agents.

For Q4 2026, the company expects revenue of US$117 million to US$119 million and reiterated its fiscal 2026 Rule of 20 target, under which revenue growth plus adjusted EBITDA margin equals 20%. Keith Costello was appointed chief operating officer, and Chief Revenue Officer Steven Hershkowitz returned to his role on 14 September 2026 after resigning on 8 September.

FAQs

Q: What does Rimini Street do?

A: Rimini Street provides third-party support and managed services for enterprise software, including Oracle and SAP products, as an alternative to vendor support.

Q: Why does Rimini Street report figures excluding PeopleSoft?

A: The company is winding down support for Oracle's PeopleSoft products, so it presents adjusted metrics that exclude that business.

Q: What is Rimini Street's Q4 2026 revenue guidance?

A: Management expects fourth-quarter 2026 revenue of US$117 million to US$119 million.

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