Rimini Street (RMNI) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue increased 1% year-over-year to $104.1 million, with international growth offsetting a U.S. decline and net income reaching $30.3 million, reversing a prior year loss, aided by a $37.9 million Oracle litigation settlement.

• Gross margin improved to 60.4% (GAAP), up from 59.1% last year, driven by cost management.

• Major client wins, new partnerships (including ServiceNow, Merlin Cyber, Dayforce), and executive appointments highlighted operational progress and expanded offerings.

• Settled long-standing Oracle litigation, receiving $37.9 million and agreeing to wind down PeopleSoft support by July 2028, impacting about 6% of revenue.

• Expanded product and service portfolio into three pillars: support, optimize, and innovate, enabling clients to save nearly $10 billion and self-fund innovation.

Financial highlights

• Q2 2025 revenue was $104.1 million (up 1% year-over-year); net income was $30.3 million, reversing a prior year loss; adjusted EBITDA rose to $13 million (12.4% of revenue), up from 8.5% last year.

• Annualized recurring revenue was $394.1 million, down 1.3% year-over-year; billings were $110.6 million, down 0.9% year-over-year; adjusted billings (excluding PeopleSoft) increased 3.9%.

• Operating income for Q2 2025 was $41.2 million, up from a loss of $0.8 million year-over-year, mainly due to the litigation settlement gain.

• Cash and cash equivalents at quarter-end were $101.3 million, down from $134.2 million last year.

• Deferred revenue was $262.9 million; backlog (RPO) was $589.8 million, up from $556.7 million last year.

Outlook and guidance

• Guidance will be reinitiated at the upcoming analyst day in Q4 2025; management remains committed to top-line and bottom-line growth, aiming for Rule of 40 performance.

• Company expects significant reductions in PeopleSoft-related revenue over the wind down period through July 2028.

• Expectation of reduced litigation costs going forward, with more clarity to be provided at analyst day.

• Management anticipates continued investment in new and existing products and services despite macroeconomic pressures.

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