Rimini Street Surges 400% in Q2 Earnings on Litigation Settlement, International Growth

Rimini Street (RMNI) reported Q2 FY2025 earnings, with diluted GAAP EPS reaching $0.32, beating estimates by a significant margin. GAAP revenue was $104.1 million, also exceeding estimates. The quarter demonstrated stabilization and growth, but with questions about future momentum due to U.S. revenue contraction and the ongoing PeopleSoft support wind-down. International revenue growth was 6.4%, while U.S. revenue contracted 4.5%.

Rimini Street (NASDAQ:RMNI), a provider of independent enterprise software support and managed services, reported its Q2 FY2025 earnings on July 31, 2025. The company's diluted GAAP earnings per share (EPS) reached $0.32, significantly surpassing the $0.08 analyst estimate. GAAP revenue was $104.1 million, slightly exceeding the analyst estimate of $103.08 million. The earnings swing was primarily driven by a $36.2 million litigation settlement with Oracle, which was recognized in Q2 FY2025 [1].

The quarter demonstrated stabilization and renewed growth, but future momentum remains uncertain due to U.S. revenue contraction and the ongoing PeopleSoft support wind-down. International revenue grew by 6.4%, reaching $55.0 million, while U.S. revenue declined by 4.5% to $49.2 million. GAAP gross margin improved by 1.3 percentage points to 60.4%, and adjusted EBITDA increased by 47.7% to $13.0 million compared to the same period last year [1].

Rimini Street's core business model focuses on offering cost-effective, independent support for enterprise software platforms such as Oracle and SAP. The company's recent strategy has been to move beyond classic break/fix software support toward managed services, consulting, and security. Expansion of the portfolio and global reach are priorities, as the company seeks to build a more resilient, diversified revenue base while navigating legacy headwinds [1].

The company's annualized recurring revenue (ARR) fell by 1.3% to $394.1 million, while active clients grew by 1.8% to 3,060. The revenue retention rate improved to 90% for the trailing twelve months. Calculated billings were down by 0.9%, but adjusted calculated billings (excluding PeopleSoft services) rose by 3.9%. The ongoing wind-down of PeopleSoft continues to weigh on growth rates, but newer service lines such as Rimini Manage and Rimini Consult are showing promise [1].

Management did not provide specific financial guidance for the remainder of the fiscal year. The company plans to reinitiate formal outlooks later in the fiscal year during an Analyst Day event. Investors will be closely watching the pace of core revenue growth after the completion of the PeopleSoft wind-down, continued margin improvement, and the reduction in cash reserves and flat non-GAAP profitability [1].

References:
[1] https://www.nasdaq.com/articles/rimini-street-rmni-q2-eps-jumps-400