Rimini Street beats Q1 revenue estimates

Overview

• Enterprise software support firm's fiscal Q1 revenue rose 1.2%, beating analyst expectations

• Net income and adjusted EBITDA declined yr/yr

• Company made $10 mln voluntary debt prepayment, reducing outstanding debt to $58.4 mln

Outlook

• Company sees Q2 2026 revenue between $106 mln and $108 mln

• Rimini Street reiterates 2026 revenue growth guidance of 4% to 6%

• Company expects 2026 adjusted EBITDA margin of 12.5% to 15.5%

Result Drivers

• PEOPLESOFT WIND-DOWN - Revenue growth was stronger excluding support services for Oracle’s PeopleSoft products, which are being wound down

• INTERNATIONAL GROWTH - International revenue increased 8.3%, offsetting a 6.4% decline in U.S. revenue, mainly due to PeopleSoft support wind-down

• CLIENT DEMAND AND NEW AGREEMENTS - Co cited continued demand for its core support business and announced new and expanded client agreements

Company press release: ID:nBwbt3FSGa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the it services & consulting peer group is "buy"

• Wall Street's median 12-month price target for Rimini Street Inc is $6.00, about 77% above its April 29 closing price of $3.39

• The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 9 three months ago

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