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Rimini Street Inc

Rimini Street Inc

RMNI
$4.64USD↓-1.07%-0.05 today

MARKET CAP

429.5M

P/E (TTM)

29.0x

FWD P/E

9.1x

DAY RANGE

$5 – $5

52W RANGE

$3
$5

AI Summary

Stalk
StalkMedium

Price has recently broken out above consolidation with strong volume and uptrending EMAs, aligning with upward medium-term asymmetry signaled by the Momentum Breakout and Pivot Point patterns. However, price is now extended and overbought on short-term indicators, so immediate execution is deferred for a pullback into key support near rising EMAs or the prior consolidation range. Medium-term bias remains bullish given Stage 1 basing and strong pattern implications, anchored by the long-term uptrend.

  • ↑Adjusted billings rose 22.9% YoY excluding PeopleSoft
  • ↑Generated $24.5M in operating cash flow last quarter
  • ↓Elevated leverage risk could strain cash flow if demand slows
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The case for & against

Bull & Bear analysis

Bearish

Rimini Street, Inc. (NASDAQ: RMNI) is a leading provider of independent enterprise software support services, focusing on extending the life of existing ERP systems primarily from Oracle, SAP, and VMware. As the demand for critical software solutions continues to evolve, Rimini Street positions itself at the forefront of this transition, particularly through the integration of AI-driven methodologies such as their Rimini SmartPath. The company is navigating a changing landscape marked by the wind-down of certain legacy support services while leveraging growth in high-potential areas like AI solutions.

Bull says

  • ↑Adjusted billings rose 22.9% YoY excluding PeopleSoft
  • ↑Generated $24.5M in operating cash flow last quarter
  • ↑ServiceNow partnership enables AI layering without costly upgrades
  • ↑RPO totaled $643.6M (+16.4% YoY), backing future revenue
  • ↑Gross margin held at 59% despite investment-led pressures
  • ↑High earnings yield and strong profitability factors support valuation

Bear says

  • ↓Elevated leverage risk could strain cash flow if demand slows
  • ↓Negative growth factor and declining analyst revisions signal softening revenue outlook
  • ↓Client retention at 88% misses 90% target, risking churn
  • ↓Gross margin narrowed to 59% due to front-loaded investments
  • ↓High short interest reflects investor skepticism and amplifies selling pressure
  • ↓Weak momentum and liquidity factors may deter new capital

Earnings Call · Q1 2026 · Mgmt. Guidance

Updated 05-02-2026neutral

Transcript signals

Bull points

  • Fiscal First Quarter 2026 Earnings Conference Call
  • We see a lot of opportunity in the federal government space with our new GSA contract, our partners that we're putting in place. And so there's a lot going on in that part of the world.
  • Our goal is, of course, to see that TTM return to over a 90% number, and we feel that we should start to see it show up in the metrics starting in the next quarter or so.

Bear points

  • Gross margins, this is on the lower end of anything I've seen in quite a while.
  • I just wanted to confirm that today the revenue from the agentic AI solution is quite modest, but that we'll begin to see that contribution pick up maybe in the second half of the year, in the next year.
  • Gross margin was 59.0% of revenue for the first quarter compared to 61.0% of revenue for the prior year first quarter.
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