Key Highlights

  • Revenue rose 8% to $112.1 million from $103.4 million a year earlier.
  • Net income was $6.5 million, or $0.07 per diluted share, against $2.8 million, or $0.03.
  • Gross profit was $68.8 million, versus $61.9 million.
  • Annualized recurring Revenue reached $421 million, up from $391 million.
  • The term Loan balance fell to $41.7 million from $67.2 million at year-end.

Revenue climbs 8% as Net Income more than doubles

Rimini Street (NASDAQ:RMNI) provides third-party enterprise software support, managed services and AI-enabled ERP solutions as an alternative to software vendor support. It reported results for the quarter ended September 30, 2026, supporting 3,214 active clients, including 79 Fortune 500 companies. Revenue was $112.1 million, up from $103.4 million, which is about 8.3% growth on a calculated basis.

Net income rose to $6.5 million from $2.8 million, and diluted EPS was $0.07 compared with $0.03. Operating Income was $9.8 million, against $4.4 million a year earlier.

Subscription revenue was $105 million, or 94% of the total, compared with $98 million, or 95%. Revenue retention for the 12 months ended September 30, 2026 was 90%, versus 89% a year earlier.

Gross Margin improves while spending rises

Gross profit was $68.8 million, which is a 61.4% margin on a calculated basis, up from 59.9% a year ago. Cost of revenue grew to $43.3 million from $41.5 million, a slower rate than revenue.

Sales and Marketing expense rose to $39.0 million from $37.9 million, while general and administrative expense fell to $16.8 million from $18.2 million. The company also began reporting Research and Development expense, which was $1.2 million in the quarter, and booked reorganization costs of $1.9 million.

Interest expense declined to $1.0 million from $1.4 million as the term loan shrank. Income taxes were $3.4 million, compared with $0.7 million.

The PeopleSoft wind down shapes the revenue mix

The company agreed in a July 2025 settlement with a software vendor to complete a wind down of its services for that vendor's PeopleSoft products no later than July 31, 2028. Those products accounted for roughly 3% of revenue in the first nine months of 2026, down from about 6% a year earlier.

Excluding PeopleSoft support, subscription revenue was $103 million, against $93 million, so the underlying base grew faster than the headline figure. Annualized Recurring Revenue was $421 million, up from $391 million, a rise of about 7.7% on a calculated basis.

Revenue from the United States was about 43% of the total, down from 45%, and foreign jurisdictions supplied about 57%.

Cash, Debt and share repurchases

Cash and cash equivalents were $93.3 million at September 30, 2026, compared with $120.0 million at December 31, 2025. Net cash from Operating Activities was $7.7 million over nine months against $40.7 million, reflecting a $53.0 million decrease in deferred revenue.

The company repaid $25.9 million of term loan principal in the nine months, leaving $41.7 million, and its next scheduled principal payment is not due until April 30, 2029. It also repurchased 1.0 million shares for $5.0 million in the quarter.

The company reported a stockholders' Deficit of $11.5 million and an accumulated deficit of $191.1 million.

Nine month comparison and what to watch

For the nine months, revenue rose to $328.6 million from $311.7 million, about 5.4% on a calculated basis. Net income was $10.3 million, or $0.11 per share, versus $36.4 million, or $0.39, because the prior period included a $36.2 million litigation settlement gain.

Readers will likely watch whether subscription growth outside PeopleSoft continues, whether retention holds near 90% and how Operating Cash Flow develops after the nine month decline.