Rimini Street’s Undervalued Resilience: Navigating Legal Risks and Sales Challenges in a High-Growth Niche Market

Rimini Street, a provider of third-party enterprise software support services, operates in a niche market defined by its focus on Oracle and SAP systems. Despite a protracted legal battle with Oracle and modest revenue declines in 2025, the company has demonstrated resilience through strong revenue retention, margin expansion, and strategic diversification. These factors position it as a compelling long-term investment in a market poised for significant growth.

A Niche Market with Expanding Potential

The Oracle services market, a critical segment of the broader ERP industry, is projected to grow from $24 billion in 2023 to $52 billion by 2032, driven by digital transformation and cloud adoption [1]. Rimini Street’s core business—offering cost-effective support for Oracle and SAP systems—benefits from this trend. While the company reported a 2.4% year-over-year revenue decline in Q1 2025, its gross margin improved to 61.0%, reflecting operational efficiency [2]. Active client count rose 1.7% to 3,092, and the trailing twelve-month revenue retention rate hit 90%, up from 88% in 2024 [2]. These metrics underscore the company’s ability to retain clients despite competitive pressures.

The broader ERP market is also expanding, with Oracle and SAP dominating key subcategories. Oracle’s Fusion Cloud ERP and SAP’s Sourcing & Procurement solutions are driving growth, particularly in industries like healthcare and finance [3]. Rimini Street’s expertise in these areas allows it to capitalize on demand for cost-effective support, even as clients migrate to cloud-based systems.

Legal Risks and Strategic Adaptation

Rimini Street’s 15-year legal battle with Oracle culminated in a July 2025 settlement, which resolved the “Rimini II” case. Under the agreement, Oracle returned $37.8 million in legal fees to Rimini Street and allowed the company to wind down PeopleSoft support services by July 2028 [4]. While this transition phase could reduce revenue by 6-8%, the settlement avoids further litigation and includes a litigation standstill during the wind-down period [4].

The company is proactively mitigating these risks by restructuring operations. Cost-cutting measures, including reductions in sales and marketing teams, are offset by investments in regional CTOs and enterprise architects to support larger clients [5]. Rimini Street has also expanded its service portfolio to include SAP, Salesforce, and VMware, diversifying its revenue streams and reducing reliance on Oracle-specific offerings [5].

Financial Resilience and Margin Expansion

Despite the legal uncertainties, Rimini Street has maintained financial discipline. In Q2 2025, revenue rose 1.0% year-over-year to $104.1 million, with international revenue growing 6.4% to $55.0 million [2]. Adjusted EBITDA improved to $13.0 million, up from $8.8 million in Q2 2024 [2]. The company’s gross margin of 60.4% in Q2 2025 reflects its ability to scale efficiently, even amid legal and operational challenges [2].

The 90% revenue retention rate is particularly noteworthy in a market where clients often face long sales cycles and integration complexities. This metric suggests that Rimini Street’s value proposition—lower-cost, high-quality support—remains compelling for clients seeking alternatives to Oracle’s licensing fees.

Long-Term Investment Thesis

Rimini Street’s position in a high-growth niche market, combined with its operational efficiency and strategic adaptability, supports its long-term investment potential. The Oracle services market’s projected CAGR of approximately 8.5% (from $24B in 2023 to $52B by 2032) provides a robust backdrop for growth [1]. Rimini Street’s expansion into SAP and Salesforce support further insulates it from Oracle-specific risks, while its margin expansion and client retention rates highlight its competitive advantages.

The legal settlement, though requiring a phased exit from PeopleSoft support, removes a major overhang and allows the company to focus on innovation and diversification. With a litigation standstill in place and a clear path to compliance, Rimini Street can now allocate resources to high-margin opportunities, such as AI-driven optimization tools and cross-platform integration services [5].

Conclusion

Rimini Street’s resilience in the face of legal and sales challenges underscores its value as an undervalued player in a critical market. While the wind-down of PeopleSoft support introduces near-term risks, the company’s financial discipline, margin expansion, and strategic diversification position it to thrive in the evolving ERP landscape. For investors seeking exposure to a niche market with strong growth fundamentals, Rimini Street offers a compelling case study in adaptability and long-term potential.

Source:
[1] Oracle Services Market Report | Global Forecast From ... [https://dataintelo.com/report/global-oracle-services-market]
[2] Rimini Street Announces Q1 2025 Financial & Operating Results [https://www.riministreet.com/press-releases/rimini-street-announces-q1-2025-financial-operating-results/]
[3] ERP Market Share in 2025: Who's Leading, What's ... [https://www.linkedin.com/pulse/erp-market-share-2025-whos-leading-whats-changing-why-matters-s1mge]
[4] Rimini Street and Oracle Reach Historic Settlement Ending 15-Year Legal Battle [https://licenseware.io/rimini-street-and-oracle-reach-historic-settlement-ending-15-year-legal-battle/]
[5] Rimini Street to wind down Oracle PeopleSoft support [https://www.constellationr.com/blog-news/insights/rimini-street-wind-down-oracle-peoplesoft-support]