Rimini Street (RMNI) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was $104.2 million, down 2.4% year-over-year, with net income rising to $3.4 million from $1.3 million and adjusted EBITDA increasing to $15.3 million from $10.7 million.

• Gross margin improved to 61.0% from 59.8% year-over-year, driven by cost controls and operational efficiency.

• Billings rose 7.2% year-over-year to $79.4 million, with international revenue representing 52% of total and leading billings growth.

• Company continues to wind down Oracle PeopleSoft support, now 7% of revenue, and expanded partnerships with ServiceNow, Workday, Valley Cyber, and T-Systems North America.

• Active clients grew to 3,092, with high satisfaction ratings (4.9/5.0) and over 7,200 support cases closed.

Financial highlights

• Subscription revenue was $99.0 million (95% of total), with annualized recurring revenue at $396.2 million, down 4.7% year-over-year.

• Gross margin was 61.0% (non-GAAP 61.5%), and adjusted EBITDA margin was 14.7% for Q1 2025.

• Net income attributable to shareholders was $3.4 million ($0.04 per diluted share); non-GAAP net income was $8.4 million ($0.09 per share).

• Cash and cash equivalents totaled $122.6 million at quarter end.

• Deferred revenue was $256.4 million; backlog (RPO) was $553.1 million.

Outlook and guidance

• Guidance remains suspended due to ongoing Oracle litigation; management expects margin pressure but is confident in future revenue growth and meaningful ServiceNow partnership contribution in 2026.

• Cash and credit facility expected to cover needs for at least 12 months, barring major adverse events.