Rimini Street's Q3 2025 Earnings Outlook: Navigating Challenges and Unlocking Long-Term Value in Enterprise Software Support

Rimini Street (Nasdaq: RMNI) is poised to release its Q3 2025 earnings on October 30, 2025, against a backdrop of mixed performance in the first half of the year. The company's Q2 2025 results revealed a 1.0% year-over-year revenue increase to $104.1 million, driven by a 6.4% rise in international revenue to $55.0 million, while U.S. revenue dipped 4.5% to $49.2 million, according to a Business Wire release. Subscription revenue, which accounts for 94.6% of total revenue, reached $98.5 million, according to the same Business Wire release. However, these gains were partially offset by a $36.2 million litigation settlement in Q2 2025, which boosted net income to $30.3 million-a stark contrast to the $1.1 million net loss in Q2 2024, according to a Panabee report.

A Mixed Bag of Growth and Headwinds

Rimini Street's long-term value proposition hinges on its ability to balance growth in international markets with the challenges posed by its reliance on legacy systems. The company's gross margin improved to 60.4% in Q2 2025, a 120-basis-point increase year-over-year, reflecting operational efficiency gains such as a 5% reduction in average headcount, the Panabee report noted. Meanwhile, its trailing twelve-month revenue retention rate climbed to 90%, signaling strong customer loyalty in a competitive sector, according to the Panabee report.

Yet, the Oracle PeopleSoft wind-down-mandated by July 31, 2028-remains a critical risk. This service line contributed 6% of H1 2025 revenue, and its phased exit could disrupt revenue streams unless Rimini Street accelerates its pivot to newer support offerings, the Panabee report said. The company's international expansion, however, offers a counterbalance. With 4% year-over-year growth in international revenue for H1 2025, reaching $109.1 million, Rimini Street is diversifying its geographic exposure-a strategic move to mitigate U.S. market volatility, the Panabee report observed.

The Road to Sustainable Value

For investors, the key question is whether Rimini Street can maintain its gross margin expansion while navigating the Oracle transition. The company's focus on subscription-based services-now 94.6% of revenue-positions it to benefit from the broader shift toward recurring revenue models in enterprise software, as highlighted in the Business Wire release. However, the litigation settlement in Q2 2025 was an outlier; sustaining profitability without such windfalls will require disciplined cost management and innovation in its service portfolio.

The upcoming Q3 2025 report will be a litmus test for Rimini Street's adaptability. If the company can demonstrate progress in reducing its dependency on Oracle PeopleSoft and accelerating international growth, it could reinforce its value proposition. Conversely, a slowdown in U.S. revenue or margin compression could raise concerns about its long-term resilience.

Conclusion

Rimini Street's Q3 2025 earnings will provide critical insights into its ability to transform challenges into opportunities. While the Oracle wind-down and U.S. market headwinds pose risks, the company's operational efficiency, international traction, and subscription-driven model offer a foundation for long-term value creation. Investors should watch for clarity on its 2025 roadmap, particularly how it plans to replace Oracle PeopleSoft revenue and scale its global footprint.