Rimini Street, Inc.

Q2 revenue was $111.1 million, up 6.7% year over year; excluding PeopleSoft products, adjusted revenue grew 10% year over year. Gross margin was 60.9% versus 60.4% in the prior year period, and non-GAAP gross margin was 61.3% versus 60.8%. Net income attributable to shareholders was $2.4 million, or $0.03 per diluted share; on a non-GAAP basis, net income was $5.9 million, or $0.06 per diluted share. Adjusted EBITDA was $10.5 million, or 9.5% of revenue, versus $14 million, or 13.4% of revenue a year ago. ARR excluding PeopleSoft products was $401.1 million, up 8.1% year over year; revenue retention was 90%. Billings were $100.9 million, down 8.8% year over year, though H1 billings grew 3.2% year over year. Cash ended at $123.4 million, debt was reduced to $48.4 million after a $10 million prepayment, and operating cash flow for H1 was $22.9 million with 118% conversion. Q3 2026 revenue is expected to be $110 million-$112 million, and full-year 2026 guidance is 4%-6% revenue growth with 12.5%-15.5% adjusted EBITDA margins.

Seth Ravin framed the quarter as evidence that the company’s Investor Day strategy is working, saying Rimini Street has now delivered four consecutive quarters of improved growth metrics. He emphasized strong demand for core support, broader adoption of AI and modernization offerings, and a shift in customer mindset away from vendor upgrades and migrations. His tone was confident and constructive, with repeated references to growth acceleration, improved profitability, and a stronger top of funnel.

Michael Perica highlighted improving revenue and retention trends, disciplined cost management, and a healthy balance sheet. He cited $111.1 million in revenue, 60.9% gross margin, $10.5 million of adjusted EBITDA, $123.4 million in cash, and $48.4 million in debt after a $10 million repayment. He also noted operating cash flow of $22.9 million year to date, 118% cash conversion, deferred revenue of $267.1 million, and RPO of $636.9 million, while reiterating the 2026 outlook for 4%-6% revenue growth and 12.5%-15.5% adjusted EBITDA margin.

Analysts pressed management on how AI could affect internal costs and margins, and Seth Ravin said AI is already being used in sales and finance and should drive meaningful reductions in total operating cost over time. Questions also focused on pipeline strength, billings timing, and second-half confidence; Michael Perica said underlying new bookings are growing at double digits plus and management feels good about achieving the reiterated outlook. On go-to-market execution, Seth Ravin acknowledged some sales turnover and said the company is adjusting skills, expanding the sales force, and leaning more on alliances and channels.