RMNI

Interested in Rimini Street, Inc.? Here are five stocks we like better. Second-quarter revenue rose 6.7% to $111.1 million, while adjusted revenue excluding winding-down PeopleSoft products increased 10% year over year. The company reiterated its full-year 2026 forecast for 4%–6% revenue growth and a 12.5%–15.5% adjusted EBITDA margin. Profitability was pressured by higher sales and marketing investment: adjusted EBITDA fell to $10.5 million from $14 million a year earlier, while billings declined 8.8% due partly to customer-renewal timing. Rimini Street ended the quarter with $123.4 million in cash and reduced debt to $48.4 million. Rimini Street is expanding its AI strategy with the launch of Rimini Govern for AI, alongside its Agentic UX and AgentWorks offerings. The company reported double-digit pipeline growth, 58 new customer logos in the quarter and continued progress with ServiceNow-related AI projects. Rimini Street (NASDAQ:RMNI) reported second-quarter revenue growth and reiterated its full-year outlook, citing demand for its core support offerings, expansion of its enterprise software services portfolio and progress in selling AI-focused solutions. Revenue for the quarter ended June 30 was $111.1 million, up 6.7% from a year earlier. Excluding PeopleSoft products, which the company is winding down, adjusted revenue grew 10% year over year, Chief Financial Officer Michael Perica said. Annualized recurring revenue excluding PeopleSoft rose 8.1% to $401.1 million. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now The company reported net income attributable to shareholders of $2.4 million, or $0.03 per diluted share, compared with $0.32 per diluted share in the prior-year period. The prior-year result included a $37.9 million one-time pre-tax gain related to the Oracle settlement. On a non-GAAP basis, net income was $5.9 million, or $0.06 per diluted share, compared with $0.08 per diluted share a year earlier. Adjusted EBITDA was $10.5 million, representing 9.5% of revenue, down from $14 million, or 13.4% of revenue, in the second quarter of 2025. Gross margin improved to 60.9%, compared with 60.4% a year earlier and 59% in the first quarter. Non-GAAP gross margin was 61.3%. → Microsoft Just Flipped the AI Spending Narrative Overnight Sales and marketing expense rose to 38.5% of revenue from 36.5% a year earlier, reflecting investments in the go-to-market effort for expanded and new service offerings. Perica said the company is investing in AI-driven offerings while streamlining global operations for scale and efficiency. Second-quarter billings declined 8.8% year over year to $100.9 million. Excluding PeopleSoft-related support billings, billings declined 8%. Perica attributed the quarterly decline in part to timing differences related to customer renewals, noting that first-half billings increased 3.2%, or 4.7% excluding PeopleSoft products. → Carrier Earnings Could Send the Stock to a New All-Time High The company ended the quarter with $123.4 million in cash, up from $101.3 million a year earlier, and reduced outstanding debt to $48.4 million after prepaying $10 million during the quarter. Year-to-date operating cash flow was $22.9 million, representing 118% cash-flow conversion, according to the company. Deferred revenue rose to $267.1 million from $262.9 million a year ago. Remaining performance obligations increased 8% to $636.9 million, while adjusted RPO excluding PeopleSoft support increased 8.8%. Chief Executive Officer Seth Ravin said Rimini Street closed 14 new customer transactions with total contract value exceeding $1 million during the quarter, totaling $30 million, and added 58 new logos. In the first half, the company closed 25 transactions above $1 million in TCV totaling $62.9 million and added 108 new logos. The revenue retention rate for service subscriptions was 90%. Subscriptions represented 93% of total revenue, with approximately 84% of subscription revenue non-cancellable for at least 12 months. Ravin said the company’s pipeline had grown by double digits year over year and that its pipeline close rate was approximately 30%. He also said partnerships and alliances assisted in closing a meaningful number of quarterly sales transactions, although he did not quantify the contribution. On sales hiring, Ravin said the company is increasing its total seller count while adjusting the skills it seeks in sales representatives as its offerings increasingly involve AI and technology discussions. The company has also added sales support and AI support capabilities, he said. Ravin said the company’s Americas organization has adopted a split model in which “hunters” focus on new-logo acquisition and “farmers” manage existing accounts, cross-selling and renewals. He said the approach has produced significant growth in new-logo acquisition in North America. The company announced the immediate availability of Rimini Govern for AI, a governance-as-a-service offering intended to provide oversight, control, visibility and measurement for AI agent activity. Ravin said the offering joins Rimini Agentic UX, an AI-driven experience and automation layer, and Rimini AgentWorks, a service for designing, testing and deploying AI agents and workflows. Ravin said organizations are using savings from switching to Rimini Street maintenance and avoiding ERP upgrades or migrations to fund AI deployments within existing IT budgets. He said the company is also using AI internally in sales, finance and pipeline management, including tools that help sales representatives gather prospect information and assess close rates. While he did not quantify potential savings, Ravin said he expects AI use to produce a “meaningful reduction in total operating cost and more leverage” over coming years. Regarding its ServiceNow relationship, Ravin said several clients testing the company’s Agentic AI ERP solution have moved into production and that some are pursuing additional projects. He said Rimini Street and ServiceNow share more than 1,000 customers, creating opportunities to expand their respective footprints. For the third quarter, Rimini Street expects revenue of $110 million to $112 million. The company reiterated its full-year 2026 forecast for revenue growth of 4% to 6% and adjusted EBITDA margin of 12.5% to 15.5%, which it said is consistent with its goal of achieving a Rule of 20 result for the year. PeopleSoft support revenue represented 3% of total revenue in the quarter, down from 6% a year earlier and 8% when the transition began in 2024. The company said it remains on track to complete the PeopleSoft support-services wind-down by July 2028. Rimini Street, Inc (NASDAQ: RMNI) is a provider of enterprise software support services, specializing in third-party maintenance for mission-critical applications from leading technology vendors. The company offers comprehensive support for ERP, CRM and database environments, with coverage for systems from providers such as Oracle and SAP. Through its proactive system monitoring, performance tuning, regulatory and tax update services, Rimini Street aims to extend the lifecycle of enterprise applications while delivering service levels comparable to or exceeding those of original software vendors. Founded in 2005 by technology entrepreneur Seth Ravin, Rimini Street has grown from a startup into a publicly traded company following its initial public offering in March 2018. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Rimini Street Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management attributed four consecutive quarters of improved growth metrics to the strategic evolution from a support-only provider to an innovation-focused company. Performance was driven by strong demand for core Rimini Support and increasing adoption of the broader enterprise software service portfolio, including Agentic AI solutions. The 'Rimini SmartPath' methodology is being utilized to help clients self-fund innovation by redirecting savings from avoided vendor upgrades toward AI and automation. Strategic positioning focuses on enabling clients to bypass vendor-driven upgrade cycles, turning static systems of record into autonomous systems of action via Agentic UX. Sales execution improved through a 'hunter and farmer' model in North America, which successfully drove net new logo acquisition during a historically difficult second quarter. The company is leveraging partnerships and alliances as a 'strategic multiplier' to accelerate adoption and expand market influence through shared go-to-market opportunities. Reiterated fiscal year 2026 guidance for Rule of 20 results, assuming continued double-digit new bookings growth and disciplined cost management. Management expects a meaningful reduction in total operating costs over the long term as internal AI deployments for sales and finance achieve greater scale and leverage. The PeopleSoft support wind-down is sequenced to complete by July 2028, with revenue from this product line already reduced to 3% of total revenue. Sales and marketing expenses are expected to be near their peak as a percentage of revenue, with future leverage anticipated as new service launches mature. Capital allocation strategy remains focused on debt repayment and share repurchases, with management signaling a potential shift in allocation weighting moving forward. Gross margins exceeded the 60% target despite increased COGS required to support the launch and delivery of new AI-driven service offerings. The company launched 'Rimini Govern for AI,' a new governance-as-a-service solution designed to address enterprise-scale adoption risks and ROI measurement. Management noted higher-than-desired sales rep turnover, attributed to a strategic shift in required skill sets toward technology-heavy AI and innovation discussions. A $10 million debt prepayment was executed during the quarter, reducing total outstanding debt to $48.4 million. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management is deploying AI in sales for prospect research and pipeline management, and in finance for operational efficiency. These initiatives are expected to drive meaningful long-term leverage and reduction in total operating costs, though specific margin impact percentages were not provided. Demand is increasing because clients now see a viable path to innovation that does not require a 'boomerang' return to vendor roadmaps. Vendor-imposed deadlines, particularly from SAP, are acting as catalysts for customers to seek third-party alternatives to extend product life. Management views the decision as a positive development that increases the overall competitive environment by limiting punitive licensing practices. The ruling is expected to benefit third-party providers by giving customers more choice during mergers, acquisitions, and system integrations. Current elevated spending reflects the 'forward loading' of costs to support new product launches and aggressive sales hiring. Management explained that revenue typically lags these expenses due to a 15-month average first-year contract duration, including a 3-month onboarding period.

This article first appeared on GuruFocus. Release Date: July 30, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Rimini Street Inc (NASDAQ:RMNI) delivered its fourth consecutive quarter of improved growth metrics, reiterating its Rule of 20 guidance for fiscal 2026. Second quarter revenue grew 6.7% year-over-year, with adjusted revenue (excluding PeopleSoft) up 10%, and annualized recurring revenue (excluding PeopleSoft) increased 8.1%. The company closed 14 new client transactions over $1 million in TCV, totaling $30 million, and added 58 new logos in the quarter, with strong demand for its AI solutions. Gross margin improved to 60.9% (61.3% non-GAAP), exceeding the 60% target, and operating cash flow conversion reached 118% year-to-date. Rimini Street Inc (NASDAQ:RMNI) launched Rimini Govern for AI, expanding its end-to-end AI governance capabilities, and continues to see strong adoption of its agentic AI ERP solutions, with several clients moving to production. Billings declined 8.8% year-over-year in Q2 (8% excluding PeopleSoft), impacted by timing differences in client renewals, though first-half billings grew 3.2%. Non-GAAP sales and marketing expenses rose to 37.6% of revenue, up from 35.5% a year ago, due to investments in go-to-market for new offerings. Adjusted EBITDA decreased to $10.5 million (9.5% of revenue) from $14 million (13.4%) in the prior year, reflecting higher costs. The company experienced higher-than-desired sales rep turnover as it adjusts skill sets to focus on AI and innovation, which may impact near-term sales execution. PeopleSoft support wind-down continues, with revenue declining to 3% of total revenue, and the company faces ongoing costs to support new product launches, pressuring margins. Warning! GuruFocus has detected 8 Warning Signs with RMNI. Is RMNI fairly valued? Test your thesis with our free DCF calculator. Q: Can you provide an update on the number of customers testing your Agentic AI ERP solution with ServiceNow, and how many have moved into production?A: Seth Raven (CEO and President): Several customers have moved into production, with many featured in the Rimini Street catalog with case studies and quotes. The rollout has been a significant success, with clients already working on expansion projects and multiple next projects. The company is now expanding the project further with new solutions and governance offerings. Q: How is AI impacting your cost model and adjusted EBITDA margins over the long term?A: Seth Raven (CEO and President): Internally, Rimini Street is using AI for sales prospecting, pipeline management, and finance. The company is deploying AI thoughtfully to achieve a meaningful reduction in total operating costs and improved leverage in the coming years. Q: Can you discuss the top-of-funnel prospect changes since the Oracle settlement, and what is driving growth?A: Seth Raven (CEO and President): The shift to an innovation company and the ability to offer a path that avoids vendor upgrades has been a game changer. Customers who previously feared leaving the vendor's roadmap are now signing, and macro factors like SAP deadlines are driving demand. This has created a much higher top-of-funnel experience. Q: How do you view the flexibility on your balance sheet and the best use of capital, given the debt prepayment and cash position?A: Michael Perrea (CFO): The company has been focused on debt repayment and share repurchases. Looking forward, there may be a shift in how capital is allocated, but the two levers remain the same. Q: How is sales hiring progressing, and how are newer reps ramping productivity?A: Seth Raven (CEO and President): There has been some turnover as the company readjusts skill sets to discuss AI and innovation. Reps with the aptitude to discuss technology in business terms are performing better. The company is committed to growing the sales force and building out new AI support teams and capabilities. Q: What gives you confidence in the second-half acceleration implied by the guidance, given the RPO slowdown?A: Michael Perrea (CFO): The company has delivered four consecutive quarters of improved year-over-year metrics, with retention rates in the 90s. Healthy double-digit new bookings growth year-over-year positions the company well to achieve its reiterated guidance for the second half. Q: What are your thoughts on the European Commission's decision about SAP's anti-competitive practices and its impact on Rimini Street?A: Seth Raven (CEO and President): The decision is bigger than SAP and addresses complex software licensing challenges. It benefits third-party providers like Rimini Street by increasing the competitive environment and allowing customers more choice, particularly around merger and split scenarios. Q: Can you provide more quantification on the pipeline growth and conviction in second-half billings?A: Seth Raven (CEO and President): The company has seen double-digit growth in the pipeline year-over-year, with a 30% close rate on a clean pipe. The company is balancing investments in AI and new products with top-line and bottom-line growth, and feels good about the reiterated guidance. Q: Is the non-GAAP sales and marketing expense as a percentage of revenue at its peak, or will it tick higher?A: Seth Raven (CEO and President): The company is around the peak, though there will be some marketing push for new services like Rimini Govern for AI. Revenue will follow expenses on a ratable basis, as first-year contracts are amortized over 15 months while costs are incurred immediately. Q: Can you quantify the pipeline for the ServiceNow partnership and how much is existing versus new customers?A: Seth Raven (CEO and President): The pipeline is a combination from both companies, with over 1,000 shared customers. The partnership allows both to expand footprints together, and similar momentum is expected with other partners like T-Systems. Q: What is driving the net client acquisition in the second quarter, after losing clients in previous years?A: Seth Raven (CEO and President): The combination of improved retention and a focus on new logo acquisition, particularly through a hunter-farmer model in the Americas, has driven significant growth in new logos. This model has worked well for the company over the last couple of years. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Image source: The Motley Fool. Thursday, July 30, 2026 at 5:00 p.m. ET VP, Treasurer and Investor Relations - Dean Pohl CEO and President - Seth Ravin CFO - Michael Perica Operator: Good afternoon, ladies and gentlemen, welcome to the Rimini Street Q2 2026 earnings conference call. At this time, all lines are in listen-only mode. Following the presentation, we will conduct a question-and-answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on Thursday, July 30th, 2026. I would now like to turn the conference over to Dean Pohl, VP, Treasurer and Investor Relations. Please go ahead. Dean Pohl: Thank you, operator. I'd like to welcome everyone to Rimini Street's fiscal second quarter 2026 earnings conference call. Joining me today are Seth Ravin, our CEO and President, and Michael Perica, our CFO. Today, we issued our earnings press release for the second quarter ending June 30th, 2026, which is available on our website under the investor relations section. A reconciliation of GAAP to non-GAAP financial measures are included in the tables following the financial statements in the press release. Additional explanations of these measures and why we believe they are useful can also be found in the press release and on our website under about non-GAAP financial measures and certain key metrics. As a reminder, today's discussion will include forward-looking statements about our operations that reflect our current outlook. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those discussed today. We encourage you to review our most recent SEC filings, including the Form 10-Q filed today, for a detailed discussion of the risk factors that may affect our future results or stock price. Now before taking questions, we will begin with prepared remarks. With that, I'd like to turn the call over to Seth. Seth Ravin: Thank you, Dean, thank you everyone for joining us. Second quarter results. At our December 2025 Investor Day, we shared our vision, strategy, and plan for evolving into an innovation company and returning to growth and improved profitability. We provided fiscal year 2026 guidance for achieving Rule of 20 results. We have now delivered four consecutive quarters of improved growth metrics in alignment with the vision, strategy, and plan we shared at the 2025 Investor Day, we reiterate our Rule of 20 guidance for fiscal 2026. Second quarter results demonstrate strong demand for our core Rimini Support offering, increasing adoption of our broader enterprise software service portfolio and improving sales execution. Sales transactions included household brands in many countries, we sold across our solutions portfolio. During the quarter, we closed 14 new client transactions with over $1 million in TCV, totaling $30 million and added 58 new logos. For H1 of 2026, we closed 25 new client transactions with over $1 million in TCV, totaling $62.9 million and added 108 new logos. Partnerships and alliances sourced or assisted with the closing of a meaningful number of sales transactions in the quarter. Also during the quarter, clients continued their adoption of Rimini Street's AI solutions that are helping them solve real business problems using innovative technology quickly and economically deployed over the top of their existing ERP software and releases without any need for ERP software upgrades, migrations, or replatforming. Our clients used the collective savings from switching to Rimini Street annual maintenance on their ERP software and avoided costly low-value ERP upgrades and migrations to fund their Rimini AI ERP solution deployments. They did not have to spend beyond their current IT budgets for the innovation. Driving increased growth and profitability. Organizations today are under increasing pressure to innovate and modernize their enterprise systems while managing cost, risk, and disruption. Many are finding that large-scale ERP replacements are expensive, time-consuming, and often fail to deliver the expected business value. Real innovation is not about installing a software vendor's next dot AI release. It is about reducing total operating costs, improving profitability, and enhancing competitive advantage. We help organizations achieve these goals by avoiding unnecessary ERP software upgrades, migrations, or replatforming, instead deploying Rimini Street's innovative Agentic AI ERP solutions over the top of existing ERP software to deliver faster, better, cheaper, and more agile ERP process execution funded within the current IT budget. As we continue to expand sales and cross-sales of our entire service portfolio, our focus remains on enabling clients to extract more value from their existing systems and achieving innovation and modernization that lowers total cost of operations, improves profitability, and enhances competitive advantage Leadership in Agentic AI ERP. We are helping more and more clients set a new vision, technical and functional path forward from their current vendor ERP software release. A path that does not require any return to the vendor for a future upgrade or migration to their current ERP software release in order to achieve innovation or modernization. The client can innovate and modernize their existing ERP software and other enterprise software using Agentic AI ERP solutions deployed easily, economically, right over the top of their existing software releases. We guide clients through this path using our proprietary and proven three-step methodology called the Rimini SmartPath. Our methodology is being used by clients to self-fund and accelerate innovation, especially AI and automation, without undergoing costly, risky, or unnecessary ERP upgrades or rip-and-replace migrations by leveraging and modernizing existing IT environments, all without operational disruption. Today, we rounded out our end-to-end AI capabilities with the launch and immediate availability of Rimini Govern for AI, our new governance as a service solution. Rimini Govern for AI is the newest offering in our governance, risk, and compliance solutions. The service brings together AI governance capabilities, deep enterprise application expertise, and global managed services that enable organizations to control, secure, and scale AI agent activity with confidence. With Rimini Govern for AI, organizations can now confidently and securely deploy AI agents and scale AI agent operations with the oversight, control, visibility, and measurement needed to accelerate adoption, measure ROI, and achieve business outcomes that include reduced total operating costs, improved profitability, and enhanced competitive advantage. As Ray Wang, CEO of Constellation Research, noted with the launch of Rimini Govern for AI, "As organizations move from AI experimentation to enterprise-scale adoption, they need trusted visibility, governance, and control to deploy AI responsibly and securely." Other Rimini AI solutions include Rimini Agentic UX, our AI-driven experience and automation layer that is deployed right over existing client ERP software and turns their ERP software from a static system of record into an autonomous system of action, delivering innovation and modernization in weeks, not years, and at a fraction of the cost of a major upgrade, migration, or replatforming project. Rimini AgentWorks, our comprehensive AI agent lifecycle service that enables organizations to move from AI concepts to trusted production deployment. The service helps clients define agent strategies, design and build AI agents and workflows, validate interoperability, perform functional and security, and certify operational readiness. As part of this process, Rimini AgentWorks helps assure, before any approved deployment, that AI agents operate within approved business accuracy, security, and compliance guardrails and meet stringent requirements for governance, monitoring, and production operation. Rimini AgentWorks tests and certifies both AI agents developed by Rimini Street and those from other third parties. Together, Rimini AgentWorks, Rimini Agentic UX, and Rimini Govern for AI provide organizations with an end-to-end set of services to design, deploy, govern, and optimize AI agent operations across mission-critical enterprise environments. Partners, alliances, and channels. We continue strengthening and maturing our indirect sales ecosystem, including adding new partner managers for strategic technology, services, and channel relationships, and completed new partnership agreements. These partnerships extend our reach, bring complementary expertise, and help clients execute modernization strategies that combine Rimini Street support with world-class platforms, cloud services, and AI tooling. The ecosystem is becoming a strategic multiplier for us, accelerating adoption, expanding influence, and enabling shared go-to-market opportunities. Client success stories. We are helping clients across many industries, geographies, and software protect and optimize their core ERP systems while funding innovation and modernization, including fixing broken processes, automating workflows and functions, and using AI to solve specific business challenges, all without disruptive, costly, and risky ERP software upgrades, migrations, or replatforming. Here are some examples of how our solutions are reducing operating costs and enabling innovation, transformation, and improved competitive advantage for clients across different geographies and industries. VIVERI GROUP, an Indonesian interior contractor and furniture manufacturer, selected Rimini Support for SAP ECC 6 to strengthen business continuity, avoid a costly and disruptive SAP migration, and redirect resources towards digital transformation and innovation. This win further demonstrates the ongoing demand for our proven model of reducing operating costs while creating capacity for growth and innovation. One NZ, a New Zealand telecommunications company, chose Rimini Support to optimize its Oracle environment, including Siebel CRM and Oracle Database, while accelerating its AI transformation strategy. The company describes Rimini Street as a trusted, "co-innovation partner," enabling it to redirect capital and talent towards future growth and its vision of becoming a world-leading AI-enabled telecommunications provider. Medical Microinstruments, an Italian robotic microsurgery company, leveraged Rimini Consult for Salesforce to maximize ROI on its technology investment and helped eliminate unnecessary third-party software costs, implement critical training and certification workflows, and develop a long-term Salesforce roadmap to support the company's global growth and continued innovation in life-enhancing surgical technology. The client noted the strategic value Rimini Street brings to their Salesforce evolution. Cochlear Limited, an Australian hearing technology leader, chose Rimini Support for Oracle to gain greater control and flexibility over its ERP roadmap, avoid vendor-driven upgrade cycles, and free critical resources for digital transformation and new AI-powered customer service and analytics initiatives. The company noted, "Moving to Rimini Street gave us back control of our ERP platform. It took us out of the vendor-driven upgrade cycle." Summary. We are focused on growth acceleration, improving profitability, and shareholder return. We will continue executing against our vision, strategy, and plan laid out at the December 2025 Investor Day. Our vision, strategy, and plan leverage Rimini Street's proprietary and proven SmartPath methodology, along with our comprehensive service portfolio and capabilities, to help a growing number of clients regain control of their technology roadmap and spending while also achieving modernization and innovation that drives down total operating costs, improves profitability, and enhances competitive advantage, all within their current budget. Now, over to you, Michael. Michael Perica: Thank you, Seth, and thank you for joining us, everyone. Q2 results. We delivered strong second quarter 2026 results as positive growth drivers over the past four quarters has lifted revenue and revenue retention rates on a year-over-year basis. We continue to invest strategically in new AI-driven innovation offerings while streamlining global operations to enhance scale and efficiency. Looking ahead, we remain focused on profitable growth, disciplined cost management, and maintaining a strong balance sheet. During the quarter, we prepaid $10 million of debt, reduced outstanding debt to $48.4 million, and we maintained a healthy total cash balance of $123.4 million as of June 30th, 2026. Revenue for the second quarter was $111.1 million, up 6.7% year-over-year. Excluding revenue for PeopleSoft products, the adjusted revenue grew 10% year-over-year. Foreign exchange movements were negligible in the quarter, reducing second quarter revenue by approximately 0.2%. Annualized recurring revenue, excluding PeopleSoft products, was $401.1 million in the second quarter, an 8.1% increase year-over-year. Our revenue retention rate for service subscriptions, which represent 93% of total revenue, was 90%, with approximately 84% of subscription revenue non-cancellable for at least 12 months. Billings for the second quarter were $100.9 million, down 8.8% year-over-year. Excluding billings associated with support services for PeopleSoft products, the year-over-year decline was 8%. The past two quarters included timing differences related to client renewals. So H1 results provide a more complete view, as H1 billings grew 3.2% year-over-year, and excluding PeopleSoft products, grew 4.7%. Gross margin for the second quarter was 60.9% compared to 60.4% in the prior year period and rose 190 basis points sequentially from the first quarter to again exceed our key objective above 60%. On a non-GAAP basis, gross margin was 61.3%, up from 60.8% in the prior year second quarter. Operating expenses. Sales and marketing expense was 38.5% of revenue in the second quarter, compared to 36.5% in the prior year period. On a non-GAAP basis, sales and marketing expense was 37.6% of revenue, up from 35.5% a year ago. The increase reflects our investments in go-to-market of our expanded and new service offerings during the quarter. General and administrative expenses were 15.6% of revenue in the second quarter, down from 60.2% in the prior year period. On a non-GAAP basis, G&A was 14.5% of revenue, down from 14.9% in the prior year second quarter. Net income attributable to shareholders for the second quarter was $2.4 million, or $0.03 per diluted share, compared to $0.32 per diluted share in the prior year period. Last year's net income benefited from a one-time pre-tax gain of $37.9 million associated with the Oracle settlement. Therefore, on a non-GAAP basis, net income was $5.9 million, or $0.06 per diluted share, versus $0.08 per diluted share a year ago. Adjusted EBITDA, as defined in our earnings release, was $10.5 million for the second quarter, representing 9.5% of revenue. This compares to $14 million, or 13.4% of revenue, in the prior year second quarter. Balance sheet. We ended the second quarter of 2026 with a cash balance of $123.4 million, up from $101.3 million in the prior year second quarter. Operating cash flow for the quarter decreased by $1.6 million, compared to a decrease of $17.8 million in the prior year period. Year-to-date operating cash flow was $22.9 million, representing a cash flow conversion of 118%, placing us in a strong position to achieve our goal laid out at our recent Investor Day of 90% plus conversion on an annual basis. Deferred revenue as of June 30th, 2026 was $267.1 million, up from $262.9 million in the prior year second quarter. Remaining performance obligations, RPO, which include billed deferred revenue, contract assets, and non-cancellable future revenue, were $636.9 million as of June 30, 2026, an increase of 8%. Excluding RPO associated with support services for PeopleSoft products, adjusted RPO increased 8.8%, reflecting our continued growth momentum in new bookings and longer duration client commitments. PeopleSoft support wind down update. We continue to execute the wind down of our PeopleSoft support services. PeopleSoft revenue declined to 3% of total revenue this quarter, down from 6% a year ago and 8% when we began the transition in 2024, reflecting steady progress toward completing the wind down by July 2028. Business outlook. The company expects third quarter 2026 revenue to be in the range of $110 million-$112 million. The company also is reiterating its full year 2026 outlook, which calls for revenue growth of 4%-6% and adjusted EBITDA margins of 12.5%-15.5% and is consistent with the goal of achieving the Rule of 20 for fiscal year 2026. For additional information, please see the disclosures in our Form 10-Q filed today, July 30th, 2026, with the U.S. Securities and Exchange Commission. This concludes our prepared remarks. Operator, we'll now take questions. Operator: Thank you. Ladies and gentlemen, we will now begin the question and answer session. Should you have a question, please press star followed by one on your telephone keypad. Should you wish to cancel your request, please press star followed by two. If you're using a speakerphone, please lift the handset before pressing any keys. One moment please for your first question. Thank you. Your first question comes from the line of Richard Baldry from ROTH Capital Partners. Please go ahead. Richard Baldry: Thanks. Could you talk about how much maybe to date and how much ahead AI should be able to impact your cost model? Sort of we're hearing from people it's not just faster development or lower service costs, but things like virtual sales development reps or improving sales efficiencies and things. Sort of where are we at? How much could that impact your sort of adjusted EBITDA margins over the long term? Thanks. Seth Ravin: Sure, Rich. I think internally, when you talk about internal usage and deployment of AI, we, like everybody else, are looking for good use cases. We're using it for sales. We're using it to gather broad amounts of information about prospects very quickly and present it in a way that sales reps can see what's happening at a prospect. Before they ever pick up the phone and call them. That's certainly a huge improvement in time and productivity. We also, of course, use tools like Clari, which are excellent in the sales side on top of Salesforce to be able to understand and predict close rates. It's very accurate, in fact, what we've seen over the last couple of years that we've used it. So we deploy tools in that part of the pipeline management, and it also allows us to aggregate very large views of what's happening when you have sellers all over the world working different types of transactions. It makes it much easier to manage at a very large level. Of course, we're using AI in finance. We're continuing to deploy those items. So I think overall, look at the more thoughtful way that we're using it, not just throwing AI all over the place. I think that, yes, we will achieve a meaningful reduction in total operating cost and more leverage as we move forward in the coming years. Richard Baldry: Could you talk a little bit about any color you can give us on sort of top of the funnel prospect changes? It's been maybe a year now, I guess, since the big settlement with Oracle. Sort of curious how that top of the funnel growth is going, whether it's mostly driven by sales headcount increases, or whether really there's some natural growth of the addressable market or the willingly addressable market, I guess I could look at it. Thanks. Seth Ravin: Well, I think you're looking at a few different things. One, there's no doubt that our change in the world of litigation, our change in the world of putting AI services, and the evolution into being an innovation company have driven a lot more customers to us. I think there are other elements. Number one, Rich, the fact that we are now giving customers a path where they can leave the vendor's maintenance, forego upgrades, and go on a path that has innovation and modernization in it, where they do not have to think about a potential return to the vendor's roadmap at some point down the line, has been a game changer, I think, in terms of overall demand generation, to the point you could say there are deals that we lost years ago where customers said, "We love the support, we know we're going to get better service, but we're just afraid to leave the vendor's path because we think we might have to go back someday." Now that's changing, and those customers, we have several of them that have signed with us because now they're confident they don't need to make that return trip to the vendor, the boomerang effect that some refer to. I think that is the single biggest driver of the top of the funnel. I think there's some other macro issues. With SAP setting deadlines, we have all sorts of release deadlines happening in the software world, and those deadlines are driving customers to seek other alternatives to extend the life of their products because they're not ready to make a change. They don't see the value, and they feel like they're being pressured from every angle. Those things combined, I think, are creating a much higher top of the funnel experience. Richard Baldry: Last for me, beyond the balance sheet, you knocked out $10 million in debt ahead of schedule. You've been pretty steadily kind of taking that number down. How do you think about the flexibility on your balance sheet and where best to allocate capital? You've got a good amount of cash. You could take out the debt overnight if you wanted to. Arguably, the shares are undervalued. You could do buybacks or is M&A interesting? How do you view the best use of the balance sheet flexibility you have now? Michael Perica: Yeah, Rich, Michael here. As you noted, right, we've been heavily concentrated on one of our two levers we've identified on capital return, the debt repayment so far this year. Last two quarters of last year, the lower amount share repurchases. We continue to evaluate, looking forward, we may see a shift in how we allocate sitting here today. Still the two levers, but may see a shift moving forward. Richard Baldry: Thanks. Congrats on a good quarter. Michael Perica: Thank you. Seth Ravin: Thank you. Operator: Thank you. Your next question comes from the line of Andrew Sherman from TD Cowen. Please go ahead. Andrew Sherman: Oh, great. Hey, guys. Thanks, and nice quarter. Seth, I wasn't sure if I heard a whole lot on the go-to-market side in the prepared remarks. How's the sales hiring? Where do you stand versus plan on that? How are some of the newer reps ramping to productivity? Seth Ravin: Thanks, Andrew. I think we're doing okay. I think we've had a little bit more turnover than I'd like in some of the sales reps, and I think part of that was we've been readjusting the skill sets that we're looking for. I think like everybody else, our folks now have to talk about AI. They have to talk about innovation in different ways with a lot more technology than they did even two, three years ago. I do think some of the reps aren't going to make that turn, and I think that's not just true for us. I think you're going to see that across technology. We're making some changes in the force, and I think some people who are more aptitude towards being able to discuss technology in ways that business people can understand are doing better. Those who could not make that turn were not doing as well. Our sales numbers, the total number of sellers is increasing. We are committed to, again, growing our sales force. We talked about that on the last couple of calls, where we were feeling optimistic enough and bullish enough about the business to begin the aggressive hiring of sellers, but not just sellers. A lot of different sales support. We had to build out a new AI support team. We had to build out new capabilities as we talked about the new service launches. Those had to come in, and we had to retrain sellers as well. Overall, I think the go-to-market is working for the sellers. I think the go-to-market in the alliances and channels is another very big part. As you know, we expect a substantial amount of our pipe to come from indirect channel. We continue to work with our friends at ServiceNow and many other of our partners to build out more pipeline into that operation to reduce our total cost of sale and increase our leverage on sales. Andrew Sherman: That's great. Thanks. Michael, just on the 3Q guide and the implied Q4, just help us get a little bit more confident in the acceleration there. I know some of it is easier comps. The RPOx PeopleSoft did slow down a little bit, anything you can give us on the confidence or the pipeline heading into the second half that'll help us with the second half numbers, that'd be great. Thanks. Michael Perica: Sure, Andrew. In highlighting, as Seth noted, we outlined that the building of our positive year-over-year metrics in four quarters in a row, our retention rate, a key area that has the nine in front of it. We also highlighted relative to billings, renewals timing has impacted the quarter-over-quarter. Putting all of this together, we are still seeing healthy, meaning double digits plus, new bookings growth year-over-year puts us in a strong position where, again, we've reiterated guidance, we feel we're in a very good position to achieve what we've laid out for the second half of the year. Andrew Sherman: Great. Thanks, guys. Michael Perica: Thank you. Seth Ravin: Thank you. Operator: Thank you. Your next question comes from the line of Jeff Van Rhee from Craig-Hallum. Please go ahead. Jeff Van Rhee: Great. Yeah. Thanks for taking the question. Seth, on the European Commission decision about SAP's anti-competitive practices seems dead spot on in terms of forcing SAP to stop the punitive measures they were imposing on customers and allow them to choose third-party support. Would seem to have some pretty direct ramifications for you and possibly even be a shot across the bow for Oracle's behavior. Just any thoughts on that? Seen any impact? Obviously, it's very recent, but just love a little feedback there. Seth Ravin: Sure, Jeff. I think that when you look at the decision, the agreement in Europe with SAP, I think this is really bigger than SAP. I think this is more along the lines that software licensing is getting extremely complex. We're connecting systems all over the place. All of us are. This is the new world. It's an integrated environment. How we integrate, what we're allowed to move, data moving between places. Licenses get brought together, they get separated, companies are merged, companies are separated. A lot of the points that were raised and agreed upon between SAP and the European Union really were around some of these challenges that companies have with their licenses and what we might consider to be fair or unfair practices. They're not uncommon. It's just that these challenges are really impacting people's ability to run their business. I think that they're good. I think that the decisions, of course, they're not everything we all would want, but I do think that there's positives in there. For example, what I was just saying about the ability, if a company splits apart and has to split its licenses or has to merge and comes together with another company, there are provisions about not being able to overcharge for the cost of that merger, not being able to hold people hostage around taking things apart and moving them back together. Yes, that does have downstream impact on people like Rimini Street and other third-party providers and other IT providers who will see this as a big benefit because it increases the overall competitive environment and allows customers much more choice. Jeff Van Rhee: I would think it would be obviously very positive. Let me revisit the billings just real quickly. I understand the lumpiness, but sort of back to overall momentum in the pipeline. Obviously, you've had very steady build in that overall momentum the last handful of quarters. Just any more quantification you'd give on the scope, size, growth in the pipeline around, again, getting that conviction in second half billings? Seth Ravin: I think again, that's why we felt that reiterating guidance that we put out there at the end of 2025 was important. We feel good about it. I think as Michael mentioned in his prepared remarks, we have pulled forward a bit of cost. We said that at the end of Q1 as well. That's why you saw sales costs be a bit higher than last year. We decided to forward load some of those costs, but we wanted to reiterate the guidance because it's important for people to understand that we're committed to the top line and bottom line. Now, this is not an easy time, Jeff, as you know. There's a lot of investment being made in AI, in bringing new people in, tools, technologies, launching new products. That drives up sales and marketing costs as you get those launched. It's also driving up the COGS. That's why even though we moved up to a 60, we said we just wanted to make sure there was a six in front of the gross margin, because we're having to increase costs on the back end to support all these new products. It's a balancing act when you're in growth mode and you're trying to deliver top-line and bottom-line number growth. I think we're balancing it well. I feel good about where we are. The top line, we keep seeing that pipeline grow. We've seen double-digit growth in the pipeline year-over-year. We're feeling good about what we're seeing. We're feeling optimistic about the numbers that are flowing through. The close rate, for example. We're hitting 30% of pipe close rates. Those are very good numbers. That means we have a solid pipe, it's a clean pipe. We have good visibility as to what's coming down the pipe. I feel that we are really in a good place as we give our reiterating guidance. Jeff Van Rhee: Yeah. You kind of preempted a little bit of my follow-on there. I just want to clarify. On the sales and marketing expenses, it's ticked up 34, 35, 37, I think we're 37.5% this quarter on non-GAAP. Is this the peak in non-GAAP as a percent of revenue, or do we still see that tick higher through the remainder of this year and then comes down in 2027? Seth Ravin: I think we're at around the peak. There's still some pieces we're putting in place, but we launched a brand-new service, our Rimini Govern for AI today, which is a big service. There will still be a little bit of marketing push that goes with all those new products and services. As a percentage of revenue, the revenue, as you know, on a ratable basis, revenue will always follow the expense when you're in a growth mode. For most people who don't know, our average first-year contract is essentially a 15-month contract, three months of onboarding. You're amortized over 15 months. You sign a contract. We start delivering service the next day usually, which means we have to hire the resources, take the expense immediately, long before the revenue starts to add in on the ratable scale. That is the challenge in the growth model that we're balancing right now. Jeff Van Rhee: Got it. Maybe one last quick one, if I could. On the partner front, I guess this is for either of you. You talked about the momentum with the partners. Can you just give any quantification there? What percent of the pipeline at this point, or what percent of new bookings are being driven through those partner relationships maybe versus what it was, say, a year ago? Seth Ravin: Well, I definitely think we're seeing increases. We're doing $1 million deals with partners, which is great. If I were to use the old walk, jog, run approach, I would say we're in the jog approach. We're getting off and running. As everyone knows, we are a little more immature in our partner program, based on age, than a lot of other companies because we started later in the partner world. We are making progress. We are absolutely working with dozens of partners on a global basis. We're really solidifying around our top global strategic partners, and we'll have more announcements around that very soon. Jeff Van Rhee: Sounds good. Congrats on the ARR growth and revenue growth. There's a lot working here. Congrats, guys. Seth Ravin: Thank you. Michael Perica: Thank you. Operator: Thank you. Your next question comes from the line of Alex Fuhrman from Lucid Capital Markets. Please go ahead. Alex Fuhrman: Hey, guys. Thanks very much for taking my question. You look like the last couple of years, you lost about 30 clients or so in the second quarter before getting back to net client acquisition in the back half of the year. This year, you actually gained a few in the second quarter. Can you talk a little bit about what's driving that? Has that been some of the sales pipeline and just moving some of those customers through the funnel that you mentioned? Or is that maybe some of the little sequential uptick in retention starting to show in the numbers a little bit more? Seth Ravin: I think it's actually a combination of all. First, you got the retention component. The second one is we've been very focused on new logo acquisition. As you noted, back in the last couple of years, we were losing clients, net loss, in the end of the second quarter usually. We turned that around by focusing in exclusively on new logo acquisitions. We put programs in place, interestingly enough, in the Americas, we went to a separated model where we have hunters and farmers. The hunters are only focused on new logo acquisition, while the farmers manage all the existing clients and focus on the cross-sell and the retention of the account on the renewal front. That has yielded, especially in North America, significant growth in new logo acquisitions. Of course, we all know there's no perfect sales model. That's why we all change them around as we evolve our businesses. This model has worked very well for Rimini over the last couple of years. We can see the results. Alex Fuhrman: Okay. That's really good to hear. Thank you for that, Seth. Seth Ravin: Certainly. Operator: Thank you. Our next question comes from the line of Brian Kinstlinger from Alliance Global Partners. Please go ahead. Unknown Speaker: Hi, this is Trey. I'm in for Brian. During your last Investor Day, you highlighted that there were 26 customers testing out your Agentic AI ERP solution with ServiceNow. Can you provide an update with a count of how many customers have moved into production with this new solution and how many are currently still in the test phase? Seth Ravin: Well, we have several of them that have moved into production, in fact, there's a Rimini catalog you can get on our website. A lot of those customers are in there with case studies and quotes, it's been a very interesting progress as we've rolled these solutions out. We've learned a lot about the technology. We've learned a lot about how to solve very specific business issues, I think this has really allowed us to move into position to be the best at the Agentic AI ERP solutions in the world. I feel very strongly about that, I think that we're watching a good number of them already in production. I think a good number of them are already working to expand. Some of them are already working on next projects, multiple next projects. I think we could declare it a very big success, we're now expanding that project out even more, because we have the new solutions and the new Rimini Govern for AI solutions, that we have clients who have been waiting to deploy. Unknown Speaker: Thank you. That's helpful. As a quick follow-up, are you able to quantify the pipeline for your ServiceNow partnership and how much of it is existing customers versus brand-new customers? Seth Ravin: Well, the pipeline has certainly been a combination from both of us, which is what we wanted. Of course, ServiceNow would love access to our customers. We would love access to theirs. We actually share, I believe, over 1,000 customers together, that have both our services already. It's already very much a situation where we can both come in and work to expand our footprints together. We're very pleased about where we can go on that side of the house, and I think you're going to see a lot of that with our other partners out there, such as T-Systems and many others. Speaker 8: Got it. Thank you. Seth Ravin: Certainly. Operator: Thank you. There are no further question at this time. I will now hand the call back to Mr. Seth Ravin for any closing remarks. Seth Ravin: Great. Well, thank you, everyone. Appreciate you joining us, I want to thank our clients for all their trust and their business and allowing us to be part of their innovation story. Of course, to all of our colleagues for the work that they did in the quarter and delivering some great results. Thanks, everybody, and we look forward to talking to you at our third quarter call. Thank you very much. Operator: Thank you. This concludes today's call. Thank you for participating. You may all disconnect. Before you buy stock in Rimini Street, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Rimini Street wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $397,081!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,166,221!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of July 30, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has positions in and recommends Rimini Street. The Motley Fool has a disclosure policy. Rimini Street (RMNI) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Rimini Street (RMNI) came out with quarterly earnings of $0.07 per share, in line with the Zacks Consensus Estimate . This compares to break-even earnings per share a year ago. These figures are adjusted for non-recurring items. A quarter ago, it was expected that this company would post earnings of $0.08 per share when it actually produced earnings of $0.03, delivering a surprise of -62.5%. Over the last four quarters, the company has not been able to surpass consensus EPS estimates. Rimini Street, which belongs to the Zacks Internet - Software industry, posted revenues of $111.08 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 4.59%. This compares to year-ago revenues of $104.11 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Rimini Street shares have added about 27.3% since the beginning of the year versus the S&P 500's gain of 6.9%. While Rimini Street has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Rimini Street was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.12 on $110.71 million in revenues for the coming quarter and $0.39 on $440.99 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Software is currently in the bottom 41% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Vivid Seats Inc. (SEAT), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 4. This company is expected to post quarterly loss of $1.03 per share in its upcoming report, which represents a year-over-year change of -118.4%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Vivid Seats Inc.'s revenues are expected to be $121.22 million, down 15.6% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Rimini Street, Inc. (RMNI) : Free Stock Analysis Report Vivid Seats Inc. (SEAT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Second Quarter Financial Highlights Include:Revenue of $111.1 million, up 6.7% year over yearAdjusted Revenue of $108.0 million, up 10.0% year over yearRemaining Performance Obligations (RPO) of $636.9 million, up 8.0% year over yearAdjusted Annualized Recurring Revenue of $401.1 million, up 8.1% year over year LAS VEGAS, July 30, 2026--(BUSINESS WIRE)--Rimini Street, Inc., (Nasdaq: RMNI), a global provider of end-to-end enterprise software support, managed services and Agentic AI ERP innovation solutions, and the leading third-party support provider for Oracle, SAP and VMware software, today announced results for the fiscal second quarter ended June 30, 2026. "Second-quarter results and four consecutive quarters of improved growth metrics demonstrate strong demand for our core Rimini Support™ offering, increasing adoption of our broader enterprise software services portfolio and improving sales execution," said Seth Ravin, president and CEO, Rimini Street. "Real innovation is not about installing a software vendor’s next ‘.ai’ release — it is about reducing total operating costs, improving profitability and enhancing competitive advantage. We help organizations achieve these goals by avoiding the costs and risks of unnecessary ERP Software upgrades and migrations and instead economically deploying Rimini Street’s innovative Agentic AI ERP solutions ‘over the top’ of existing ERP Software to deliver faster, better, cheaper and more agile ERP process execution – funded within the current IT budget." "The quarter results reflect continued growth momentum, expanding contracted revenue visibility and disciplined balance sheet management," said Michael Perica, CFO, Rimini Street. "During the quarter, we prepaid another $10 million of debt, reduced outstanding debt to $48.4 million and increased total cash and cash equivalents to $123.4 million as of June 30, 2026. Comparisons of second quarter of 2026 operating income, net income and earnings per share are significantly impacted by a litigation settlement benefit recognized during the second quarter of 2025. Excluding prior-year litigation-related items, the Company continued to deliver profitability and growth while investing in sales capacity, product innovation and AI service offerings - where today we launched Rimini Govern™ for AI that offers AI agent governance and management as a service." Select Second Quarter 2026 Financial Results Revenue was $111.1 million for the second quarter of 2026, an increase of 6.7% compared to $104.1 million for the same period last year; excluding revenue for Oracle’s PeopleSoft software products, Adjusted Revenue increased by 10.0%. U.S. revenue was $48.4 million for the second quarter of 2026, a decrease of 1.6% compared to $49.2 million for the same period last year; excluding revenue for Oracle’s PeopleSoft software products, U.S. revenue increased by 3.1%. International revenue was $62.7 million for the second quarter of 2026, an increase of 14.1% compared to $55.0 million for the same period last year; excluding revenue for Oracle’s PeopleSoft software products, international revenue increased by 15.8%. Subscription revenue was $103.2 million, which accounted for 92.9% of total revenue for the second quarter of 2026, compared to subscription revenue of $98.5 million, which accounted for 94.6% of total revenue for the same period last year; excluding the support services for Oracle’s PeopleSoft software products, subscription revenue was $100.3 million, or 92.8% of total revenue, for the second quarter of 2026 compared to $92.8 million, or 94.5% of total revenue, for the same period last year. Annualized Recurring Revenue was $412.8 million for the second quarter of 2026, an increase of 4.8% compared to $394.1 million for the same period last year; excluding the support services for Oracle’s PeopleSoft software products, Adjusted Annualized Recurring Revenue was $401.1 million for the second quarter of 2026, an increase of 8.1% compared to $371.1 million for the same period last year. Active Clients as of June 30, 2026 were 3,132, an increase of 2.4% compared to 3,060 Active Clients as of June 30, 2025. Revenue Retention Rate was 90% and 90% for the trailing 12 months ended June 30, 2026 and 2025, respectively. Calculated Billings was $100.9 million for the second quarter of 2026, a decrease of 8.8% compared to $110.6 million for the same period last year. Adjusted Calculated Billings, which excludes Calculated Billings related to the support services for Oracle’s PeopleSoft software products, was $99.3 million for the second quarter of 2026, a decrease of 8.0% compared to $107.9 million for the same period last year. Remaining Performance Obligations (RPO) was $636.9 million as of June 30, 2026, an increase of 8.0% compared to $589.8 million as of June 30, 2025; excluding the support services for Oracle’s PeopleSoft software products, Adjusted RPO was $627.5 million as of June 30, 2026, an increase of 8.8% compared to $576.7 million as of June 30, 2025. Gross margin was 60.9% for the second quarter of 2026 compared to 60.4% for the same period last year. Operating income was $6.4 million for the second quarter of 2026 compared to $41.2 million for the same period last year. Non-GAAP Operating Income was $9.2 million for the second quarter of 2026 compared to $10.9 million for the same period last year. Net income was $2.4 million for the second quarter of 2026 compared to $30.3 million for the same period last year. Non-GAAP Net Income was $5.9 million for the second quarter of 2026 compared to $7.8 million for the same period last year. Adjusted EBITDA for the second quarter of 2026 was $10.5 million compared to $14.0 million for the same period last year. Basic and diluted earnings per share attributable to common stockholders was $0.03 and $0.03, respectively, for the second quarter of 2026, compared to a basic and diluted earnings per share of $0.33 and $0.32, respectively, for the same period last year. Cash and cash equivalents were $123.4 million at June 30, 2026 compared to $101.3 million at June 30, 2025. Select Second Quarter 2026 Operating Results Announced new and existing clients that expanded their agreements with Rimini Street, including the following: Resolved nearly 6,800 support cases and delivered over 4,500 tax, legal, and regulatory updates across 25 countries, achieving an average Rimini Support client satisfaction score of 4.9 out of 5.0 (where 5.0 is rated excellent). Business Outlook The Company expects third quarter 2026 revenue to be in the range of $110 million to $112 million. The Company is also reiterating its full year 2026 outlook, which calls for revenue growth of 4% to 6% and Adjusted EBITDA margins of 12.5% to 15.5% and is consistent with the goal of achieving the "Rule of 20" for fiscal year 2026. Webcast and Conference Call Information The Company will host a conference call and webcast to discuss the second quarter of 2026 results and offer commentary on full year 2026 at 5:00 p.m. Eastern Time / 2:00 p.m. Pacific Time on July 30, 2026. A live webcast of the event will be available on Rimini Street’s Investor Relations site at Rimini Street IR events link and directly via the webcast link. Dial-in participants can access the conference call by dialing 1-800-836-8184. A replay of the webcast will be available for one year following the event. Company’s Use of Non-GAAP Financial Measures This press release contains certain "non-GAAP financial measures." Non-GAAP financial measures are not based on a comprehensive set of accounting rules or principles. This non-GAAP information supplements and is not intended to represent a measure of performance in accordance with disclosures required by U.S. generally accepted accounting principles, or GAAP. Non-GAAP financial measures should be considered in addition to, and not as a substitute for or superior to, financial measures determined in accordance with GAAP. Reconciliations of the non-GAAP financial measures included in this press release and described below to their most directly comparable GAAP financial measures are provided in the financial tables included at the end of this press release. An explanation of these measures, why we believe they are meaningful and how they are calculated is also included under the heading "About Non-GAAP Financial Measures and Certain Key Metrics." About Rimini Street, Inc. Rimini Street, Inc. (Nasdaq: RMNI), a Russell 2000® Company, is a proven, trusted global provider of end-to-end, mission-critical enterprise software support, managed services and innovative Agentic AI ERP solutions, and is the leading third-party support provider for Oracle, SAP and VMware software. The Company has signed thousands of IT service contracts with Fortune Global 100, Fortune 500, midmarket, public sector and government organizations who have leveraged the Rimini Smart Path™ methodology to achieve better operational outcomes, billions of US dollars in savings and fund AI and other innovation. To learn more, please visit www.riministreet.com, and connect with Rimini Street on X, Facebook, Instagram, and LinkedIn. Forward-Looking Statements Certain statements included in this communication are not historical facts but are forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by words such as "anticipate," "assume," "believe," "budget," "continue," "could," "currently," "estimate," "expect," "forecast," "future," "intend," "may," "might," "outlook," "plan," "possible," "goal," "potential," "predict," "project," "reflect," "results," "seem," "seek," "should," "will," "would" and other similar words, phrases or expressions. These forward-looking statements include, but are not limited to, statements regarding our expectations of future events, future opportunities, global expansion and other growth initiatives and our investments in such initiatives. These statements are based on various assumptions and on the current expectations of management and are not predictions of actual performance, nor are these statements of historical facts. These statements are subject to a number of risks and uncertainties regarding Rimini Street’s business, and actual results may differ materially. These risks and uncertainties include, but are not limited to our ability to attract new clients or retain and/or sell additional products or services to existing clients; our ability to achieve and maintain an adequate rate of revenue growth; cost of revenue, including changes in costs associated with our efforts to grow and the results of any efforts to manage costs to align with current revenue expectations and the expansion of our offerings; the effects of increased intense competition in our industry and our ability to compete effectively; our ability to successfully educate the market regarding the advantages of our support and managed services for ERP software and to sell the products and services comprising our "Rimini Smart Path™" solutions portfolio, including but not limited to our Agentic AI ERP solutions; our intentions with respect to our pricing model and expectations of client savings relative to use of other providers; the evolution of the ERP software management and support landscape facing our clients and prospects; estimates of our total addressable market; the effects of seasonal trends on our results of operations, including the contract renewal cycles for vendor-supplied software support and managed services; the effects of the efforts of enterprise software vendors to sell upgrades or migrations to cloud-based versions of their enterprise software on our results of operations; our ability to scale our operations quickly enough to meet our clients’ changing needs or decrease our costs adequately in response to changing client demand; risks arising from incorporating artificial intelligence ("AI") technologies into our products or services or any deficiencies associated with AI technologies used by us or by our third-party vendors and service providers; our ability to maintain, protect, and enhance our brand; the loss of one or more members of our management team and our ability to attract and retain additional qualified technical, sales and marketing personnel; our ability to expand our marketing and sales capabilities; our ability to avoid interruptions to, or degraded performance of, our services and the impact of any such interruptions or performance problems on our operations; our ability to defend against cybersecurity threats and to comply with data protection and privacy regulations; our expectations regarding new product offerings, innovation solutions, partnerships and alliance programs and our ability to develop and maintain strategic partnerships; our ability to expand internationally and the risks associated with global operations; our wind down of support services for Oracle’s PeopleSoft software products and the impact on future period revenue and costs incurred related to these efforts; the continuing impact of and our ability to comply with the terms of our July 2025 settlement agreement with Oracle; the impact of macro-economic trends, including inflation and changes in foreign exchange rates, as well as general financial, economic, regulatory and political conditions affecting the industry in which we operate and the industries in which our clients operate; our ability to generate significant capital through our operations or to raise additional capital necessary to fund and expand our operations and invest in new services and products; our business plan and our ability to effectively secure and manage our growth and associated investments; risks relating to retention rates, including our ability to accurately predict retention rates; our ability to protect our intellectual property; our ability to maintain an effective system of internal control over financial reporting; changes in laws or regulations, including tax laws or unfavorable outcomes of tax positions we take; tariff costs; our ability to realize benefits from our net operating losses; any negative impact of environmental, social and governance ("ESG") matters on our reputation or business and the exposure of our business to additional costs or risks from our reporting on such matters; our credit facility’s ongoing debt service obligations and financial and operational covenants on our business and related interest rate risk; the sufficiency of our cash and cash equivalents to meet our liquidity requirements; the volatility of our stock price; the amount and timing of repurchases, if any, under our stock repurchase program and our ability to enhance stockholder value through such program; our ability to maintain our good standing with the United States and international governments and capture new contracts with public sector entities; the occurrence of catastrophic events that may disrupt our business or that of our current and prospective clients; future acquisitions of, or investments in, complementary companies, products, subscriptions or technologies; and those discussed under the heading "Risk Factors" in Rimini Street’s Quarterly Report on Form 10-Q filed on July 30, 2026, and as updated from time to time by Rimini Street’s future Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and other filings by Rimini Street with the U.S. Securities and Exchange Commission. In addition, forward-looking statements provide Rimini Street’s expectations, plans or forecasts of future events and views as of the date of this communication. Rimini Street anticipates that subsequent events and developments will cause Rimini Street’s assessments to change. However, while Rimini Street may elect to update these forward-looking statements at some point in the future, Rimini Street specifically disclaims any obligation to do so, except as required by law. These forward-looking statements should not be relied upon as representing Rimini Street’s assessments as of any date subsequent to the date of this communication. © 2026 Rimini Street, Inc. All rights reserved. "Rimini Street" is a registered trademark of Rimini Street, Inc. in the United States and other countries, and Rimini Street, the Rimini Street logo, and combinations thereof, and other marks marked by TM are trademarks of Rimini Street, Inc. All other trademarks remain the property of their respective owners, and unless otherwise specified, Rimini Street claims no affiliation, endorsement, or association with any such trademark holder or other companies referenced herein. About Non-GAAP Financial Measures and Certain Key Metrics To provide investors and others with additional information regarding Rimini Street’s results, we have disclosed the following non-GAAP financial measures and certain key metrics. We have described below Active Clients, Adjusted Revenue, Annualized Recurring Revenue, Adjusted Annualized Recurring Revenue, Revenue Retention Rate and Remaining Performance Obligations, each of which is a key operational metric for our business. In addition, we have disclosed the following non-GAAP financial measures: non-GAAP operating income, non-GAAP net income, EBITDA, Adjusted EBITDA, Calculated Billings, Adjusted Calculated Billings and Adjusted Remaining Performance Obligations. In addition, we present certain financial metrics excluding our Oracle’s PeopleSoft software product offering to permit investors to see the operation of our continuing business, excluding reductions associated with the PeopleSoft wind down. Rimini Street has provided in the tables above a reconciliation of each non-GAAP financial measure used in this earnings release to the most directly comparable GAAP financial measure. These non-GAAP financial measures are also described below. The primary purpose of using non-GAAP measures is to provide supplemental information that management believes may prove useful to investors and to enable investors to evaluate our results in the same way management does. We also present the non-GAAP financial measures because we believe they assist investors in comparing our performance across reporting periods on a consistent basis, as well as comparing our results against the results of other companies, by excluding items that we do not believe are indicative of our core operating performance. Specifically, management uses these non-GAAP measures as measures of operating performance; to prepare our annual operating budget; to allocate resources to enhance the financial performance of our business; to evaluate the effectiveness of our business strategies; to provide consistency and comparability with past financial performance; to facilitate a comparison of our results with those of other companies, many of which use similar non-GAAP financial measures to supplement their GAAP results; and in communications with our board of directors concerning our financial performance. Investors should be aware however, that not all companies define these non-GAAP measures consistently. Active Client is a distinct entity that purchases our services to support a specific product, including a company, an educational or government institution, or a business unit of a company. For example, we count as two separate active clients when support for two different products is being provided to the same entity. We believe that our ability to expand our active clients is an indicator of the growth of our business, the success of our sales and marketing activities, and the value that our services bring to our clients. Adjusted Revenue is revenue adjusted to exclude revenue associated with services for Oracle’s PeopleSoft software products. Annualized Recurring Revenue (ARR) is the amount of subscription revenue recognized during a fiscal quarter and multiplied by four. This gives us an indication of the revenue that can be earned in the following 12-month period from our existing client base, assuming no cancellations or price changes occur during that period. Subscription revenue excludes any non-recurring revenue, which has been insignificant to date. Adjusted Annualized Recurring Revenue (Adjusted ARR) is annualized recurring revenue adjusted to exclude subscription revenue associated with services for Oracle’s PeopleSoft software products recognized during a fiscal quarter and multiplied by four. Revenue Retention Rate is the actual subscription revenue (dollar-based) recognized over a 12-month period from customers that were clients on the day prior to the start of such 12-month period, divided by our Annualized Recurring Revenue as of the day prior to the start of the 12-month period. Non-GAAP Operating Income is operating income adjusted to exclude: litigation costs and related recoveries, net, stock-based compensation expense and reorganization costs. The exclusions are discussed in further detail below. Non-GAAP Income Taxes is the income tax effect adjusted to exclude: litigation costs and related recoveries, net, stock-based compensation expense and reorganization costs from income before income taxes. Non-GAAP Net Income is net income adjusted to exclude: litigation costs and related recoveries, net, stock-based compensation expense and reorganization costs after taxes. These exclusions are discussed in further detail below. Specifically, management excludes the following items from its non-GAAP financial measures, as applicable, for the periods presented: Litigation Costs and Related Recoveries, Net: Litigation costs and the associated litigation settlement, insurance and appeal recoveries relate to outside costs of litigation activities. These costs and recoveries reflect the litigation we are involved with, and do not relate to the day-to-day operations or our core business of serving our clients. Stock-Based Compensation Expense: Our compensation strategy includes the use of stock-based compensation to attract and retain employees. This strategy is principally aimed at aligning employee interests with those of our stockholders and to achieve long-term employee retention. As a result, stock-based compensation expense varies for reasons that are generally unrelated to operational decisions in any particular period. Reorganization Costs: The costs consist primarily of severance costs associated with the Company's reorganization plan. EBITDA is net income adjusted to exclude: interest expense, income taxes, and depreciation and amortization expense. Adjusted EBITDA is EBITDA adjusted to exclude: litigation costs and related recoveries, net, stock-based compensation expense and reorganization costs, as discussed above. In addition, it is also adjusted by unrealized foreign exchange (gains) or losses. Calculated Billings represents the change in deferred revenue for the current period plus revenue for the current period. Adjusted Calculated Billings is calculated billings adjusted to exclude the calculated billings associated with services for Oracle’s PeopleSoft software products. Remaining Performance Obligations (RPO) represent all future non-cancellable revenue under contract that has not yet been recognized as revenue, and includes deferred revenue and unbilled amounts. Adjusted Remaining Performance Obligations (Adjusted RPO) is the Company's remaining performance obligations adjusted to exclude the remaining performance obligations for services for Oracle’s PeopleSoft software products. Rule of 20 is achieved when the revenue growth percentage and adjusted EBITDA percentage of revenue equal 20% when added together. View source version on businesswire.com: https://www.businesswire.com/news/home/20260730702735/en/ Contacts Investor Relations Contact Dean PohlRimini Street, Inc.+1 925 [email protected] Media Relations Contact Janet RavinRimini Street, Inc.+1 702 [email protected]

LAS VEGAS, July 06, 2026--(BUSINESS WIRE)--Rimini Street, Inc. (Nasdaq: RMNI), the Software Support and Agentic AI ERP Company™ and the leading third-party support provider for Oracle, SAP and VMware software, today announced it will report earnings after market close on July 30, 2026. The company will host a conference call and webcast on that date to discuss the second quarter 2026 results and the second half 2026 outlook at 5:00 p.m. Eastern / 2:00 p.m. Pacific time. A live webcast of the event will be available on Rimini Street’s Investor Relations site via the Rimini Street IR events link and directly via the webcast link. Dial-in participants can access the conference by dialing 1-800-836-8184. A replay of the webcast will be available for one year following the event. About Rimini Street, Inc. Rimini Street, Inc. (Nasdaq: RMNI), a Russell 2000® Company, is a proven, trusted global provider of end-to-end, mission-critical enterprise software support, managed services and innovative Agentic AI ERP solutions and is the leading third-party support provider for Oracle, SAP and VMware software. The Company has signed thousands of IT service contracts with Fortune Global 100, Fortune 500, midmarket, public sector and government organizations who have leveraged the Rimini Smart Path™ methodology to achieve better operational outcomes, billions of US dollars in savings and fund AI and other innovation. To learn more, please visit https://www.riministreet.com, and connect with Rimini Street on X, Facebook, Instagram, and LinkedIn. Forward-Looking Statements Certain statements included in this communication are not historical facts but are forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by words such as "anticipate," "assume," "believe," "budget," "continue," "could," "currently," "estimate," "expect," "forecast," "future," "intend," "may," "might," "outlook," "plan," "possible," "goal," "potential," "predict," "project," "reflect," "results," "seem," "seek," "should," "will," "would" and other similar words, phrases or expressions. These forward-looking statements include, but are not limited to, statements regarding our expectations of future events, future opportunities, global expansion and other growth initiatives and our investments in such initiatives. These statements are based on various assumptions and on the current expectations of management and are not predictions of actual performance, nor are these statements of historical facts. These statements are subject to a number of risks and uncertainties regarding Rimini Street’s business, and actual results may differ materially. These risks and uncertainties include, but are not limited to our ability to attract new clients or retain and/or sell additional products or services to existing clients; our ability to achieve and maintain an adequate rate of revenue growth; cost of revenue, including changes in costs associated with our efforts to grow and the results of any efforts to manage costs to align with current revenue expectations and the expansion of our offerings; the effects of increased intense competition in our industry and our ability to compete effectively; our ability to successfully educate the market regarding the advantages of our support and managed services for ERP software and to sell the products and services comprising our "Rimini Smart Path™" solutions portfolio, including but not limited to our Agentic AI ERP solutions; our intentions with respect to our pricing model and expectations of client savings relative to use of other providers; the evolution of the ERP software management and support landscape facing our clients and prospects; estimates of our total addressable market; the effects of seasonal trends on our results of operations, including the contract renewal cycles for vendor-supplied software support and managed services; the effects of the efforts of enterprise software vendors to sell upgrades or migrations to cloud-based versions of their enterprise software on our results of operations; our ability to scale our operations quickly enough to meet our clients’ changing needs or decrease our costs adequately in response to changing client demand; risks arising from incorporating artificial intelligence ("AI") technologies into our products or services or any deficiencies associated with AI technologies used by us or by our third-party vendors and service providers; our ability to maintain, protect, and enhance our brand; the loss of one or more members of our management team and our ability to attract and retain additional qualified technical, sales and marketing personnel; our ability to expand our marketing and sales capabilities; our ability to avoid interruptions to, or degraded performance of, our services and the impact of any such interruptions or performance problems on our operations; our ability to defend against cybersecurity threats and to comply with data protection and privacy regulations; our expectations regarding new product offerings, innovation solutions, partnerships and alliance programs and our ability to develop and maintain strategic partnerships; our ability to expand internationally and the risks associated with global operations; our wind down of support services for Oracle’s PeopleSoft software products and the impact on future period revenue and costs incurred related to these efforts; the continuing impact of and our ability to comply with the terms of our July 2025 settlement agreement with Oracle; the impact of macro-economic trends, including inflation and changes in foreign exchange rates, as well as general financial, economic, regulatory and political conditions affecting the industry in which we operate and the industries in which our clients operate; our ability to generate significant capital through our operations or to raise additional capital necessary to fund and expand our operations and invest in new services and products; our business plan and our ability to effectively secure and manage our growth and associated investments; risks relating to retention rates, including our ability to accurately predict retention rates; our ability to protect our intellectual property; our ability to maintain an effective system of internal control over financial reporting; changes in laws or regulations, including tax laws or unfavorable outcomes of tax positions we take; tariff costs, including those imposed by the United States government and the potential for retaliatory trade measures by affected countries; our ability to realize benefits from our net operating losses; any negative impact of environmental, social and governance ("ESG") matters on our reputation or business and the exposure of our business to additional costs or risks from our reporting on such matters; our credit facility’s ongoing debt service obligations and financial and operational covenants on our business and related interest rate risk; the sufficiency of our cash and cash equivalents to meet our liquidity requirements; the volatility of our stock price; the amount and timing of repurchases, if any, under our stock repurchase program and our ability to enhance stockholder value through such program; our ability to maintain our good standing with the United States government and international governments and capture new contracts with governmental entities/agencies; the occurrence of catastrophic events that may disrupt our business or that of our current and prospective clients; future acquisitions of, or investments in, complementary companies, products, subscriptions or technologies; and those discussed under the heading "Risk Factors" in Rimini Street’s Annual Report on Form 10-K filed on April 30, 2026, and as updated from time to time by Rimini Street’s future Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and other filings by Rimini Street with the U.S. Securities and Exchange Commission. In addition, forward-looking statements provide Rimini Street’s expectations, plans or forecasts of future events and views as of the date of this communication. Rimini Street anticipates that subsequent events and developments will cause Rimini Street’s assessments to change. However, while Rimini Street may elect to update these forward-looking statements at some point in the future, Rimini Street specifically disclaims any obligation to do so, except as required by law. These forward-looking statements should not be relied upon as representing Rimini Street’s assessments as of any date subsequent to the date of this communication. © 2026 Rimini Street, Inc. All rights reserved. "Rimini Street" is a registered trademark of Rimini Street, Inc. in the United States and other countries, and Rimini Street, the Rimini Street logo, and combinations thereof, and other marks marked by TM are trademarks of Rimini Street, Inc. All other trademarks remain the property of their respective owners, and unless otherwise specified, Rimini Street claims no affiliation, endorsement, or association with any such trademark holder or other companies referenced herein. View source version on businesswire.com: https://www.businesswire.com/news/home/20260706560476/en/ Contacts Investor Relations Contact Dean PohlRimini Street, Inc.+1 (925) [email protected] Media Relations Contact: Janet RavinVP, Global CommunicationsRimini Street, Inc.+1 (702) [email protected]

Image source: The Motley Fool. Thursday, April 30, 2026 at 5 p.m. ET Chief Executive Officer — Seth Ravin Chief Financial Officer — Michael Perica Seth Ravin: Thank you, Dean, and thank you, everyone, for joining us. First quarter results. Our first quarter results reflect continued growth and accelerating momentum. A growing number of organizations are leveraging Rimini support and our proven Rimini Smart Path to execute their global ERP and operational transaction processes faster, better and cheaper with more agility and speed to value, all within existing budgets. Rimini Street can help just about any organization lower its total operating costs and improve competitive advantage or improve return for government constituents using technology. We delivered strong growth in adjusted calculated billings and adjusted ARR and expanded remaining performance obligations year-over-year, adjusted for the Oracle PeopleSoft support and services wind down and which includes new logo and renewal subscription sales. We also continue to make additional strategic investments in our next-generation Rimini Agentic AI ERP solutions that can be quickly deployed over existing ERP software without the cost and risk of unnecessary upgrades, migrations or re-platforming. During the quarter, we closed 11 new client transactions with over $1 million in TCV and totaling $33 million compared to 5 transactions totaling $5.6 million during the same period last year. We added 50 new logos that included household global and regional brand wins. The combined strength of the second half of 2025 and first quarter 2026 results give us continued confidence in delivering growth in fiscal 2026, positioning the company for increased growth and profitability. We are continuing our evolution beyond our position as the premier third-party enterprise software support provider to a leader in also helping clients modernize their existing business transaction systems in the AI era. We are now the software support and Agentic AI ERP company. Today, more than 1,900 Rimini Street employees in 22 countries are helping organizations avoid unnecessary, costly and risky ERP and other enterprise software upgrades, migrations and re-platformings that often deliver low ROI and offer little competitive advantage. Instead, Organizations can invest in modernization of their existing systems, leveraging next-generation Rimini Agentic AI ERP solutions that can be quickly and economically deployed over their current ERP and other enterprise software and deliver real competitive advantage. We believe we can help organizations achieve significant IT operating cost savings, improve profitability, enhance competitive advantage and accelerate growth. Our clients have already realized over $10 billion in operational savings. Rimini Street leads an Agentic AI ERP. We are helping clients set a new vision, technical and functional path forward from their current vendor ERP software release. A path does not require any return to the vendor for a future upgrade or migration to their current ERP software release in order to achieve innovation and modernization. The client can innovate and modernize their existing ERP software and other enterprise software using Agentic AI ERP solutions deployed easily, economically right over the top of their existing software releases. The Rimini Smart Path is our proprietary proven 3-step methodology that clients can use to self-fund and accelerate innovation, especially AI and automation without undergoing costly, risky or unnecessary ERP upgrades or rip and replace migrations by leveraging and modernizing existing IT environments, all without operational disruption. Rimini Agentic UX is our AI-driven experience and automation layer that is deployed right over existing client ERP software and turns their ERP software from a static system of record into an autonomous system of action, delivering innovation and modernization in weeks, not years, and at a fraction of the cost of a major upgrade migration or re-platforming project. Client success stories. Rimini Street is helping clients across many industries, geographies and software, protect and optimize their core ERP systems while funding innovation and modernization, including fixing broken processes, automating workflows and functions and using AI to solve specific business challenges without disruptive, costly or risky ERP software upgrade migrations or re-platforming. Here are a few examples of how Rimini Street solutions for SAP, Oracle and VMware software are enabling innovation, transforming an improved competitive advantage for clients. Cubic Corporation, a U.S. defense and transportation technology company, so that partnering with Rimini Street allowed them to gain full control of their SAP road map, avoid a costly S/4HANA upgrade and reallocate savings and internal capacity towards automation, AI and broader modernization initiatives. Flexitech, a French automotive products company, said that they chose Rimini Support to help reduce risk and operational disruption in its SAP environment, strengthening cybersecurity posture and accelerating compliance readiness while enabling the reallocation of savings towards R&D and modernization programs. Cleanera, a South Korean paper and hygiene products company, said they were able to cut SAP and Oracle vendor maintenance costs by approximately 50% with Rimini Street, stabilizing their core ERP environment and freeing budget and talent to accelerate AI, analytics, cloud expansion and IoT-driven operational improvements. Elmort, a Brazilian industrial company, said that unifying support across VMware and SAP with Rimini Street created the opportunity to increase operational stability and security while redirecting budget internal resources from maintenance to sustainability and growth initiatives. Partners, alliances and channels. We continued strengthening and maturing our indirect sales ecosystem, including adding new partner managers for strategic technology, services and channel relationships. During the quarter, we closed accretive sales transactions globally that we do not believe we would have otherwise closed without partners. These partnerships extend our reach, bring complementary expertise and help clients execute modernization strategies that combine Rimini Street support with world-class platforms, cloud services and AI tooling. The ecosystem is becoming a strategic multiplier for us, accelerating adoption, expanding influence and enabling shared go-to-market opportunities. Summary. We are focused on accelerating growth, improving profitability and delivering shareholder return. We plan to leverage Rimini Street's proprietary unique and proven Smart Path methodology, service portfolio and capabilities to help a growing list of clients take back control of their technology road map and spending and successfully navigate business and technical complexity in the age of AI. Now over to you, Michael. Michael Perica: Thank you, Seth, and thank you for joining us, everyone. Q1 results. Our first quarter results reflect solid execution and continued sign of momentum, highlighted by remaining performance obligations, RPO, and billings growth, along with a return to top line growth despite the headwinds from the wind-down of support and services for Oracle's PeopleSoft software. Our strong operating cash flow and cash position enabled us to comfortably make $10 million of additional voluntary principal prepayments that reduced our debt balance to $58.4 million and increased our net cash position to $73.8 million at the end of the quarter. Revenue for the first quarter was $105.5 million, a year-over-year increase of 1.2%. Excluding support services for PeopleSoft products, revenue increased by 5.2% year-over-year. FX movements impacted first quarter revenue negatively by 0.5%. Annualized recurring revenue was $400.8 million for the first quarter, a year-over-year increase of 1.2%. Our revenue retention rate for service subscriptions, which makes up 95% of our revenue, was 88%, with approximately 81% of subscription revenue noncancelable for at least 12 months. Billings for the first quarter were $95.3 million, an increase of 19.9% year-over-year. When excluding billings associated with support services for PeopleSoft products, the year-over-year increase was 22.9%. Gross margin was 59.0% of revenue for the first quarter compared to 61.0% of revenue for the prior year first quarter. On a non-GAAP basis, which excludes stock-based compensation expense, gross margin was 59.5% of revenue for the first quarter compared to 61.5% of revenue for the prior year first quarter. Our gross margin in the period was negatively impacted by investments pulled forward in the year to take advantage of market opportunities and select non-subscription engagements that had large, front-loaded start-up costs. Nonetheless, as noted during our Investor Day presentation last December, our use of innovation and other analytics deployed on top of our existing systems of record provides us with confidence in our ability to build from this current gross margin level and achieve the targets we outlined. Operating expenses. Reorganization charges associated with optimization costs for the first quarter were $407,000. Also, we have carved out our R&D expenditures of $571,000 in the quarter in a separate line item that reflects our ongoing and increasing research and development activity for our proprietary historical offerings as well as our burgeoning Agentic AI ERP and UX solutions. Sales and marketing expense as a percentage of revenue was 36.6% for the first quarter compared to 32.9% of revenue for the prior year first quarter. On a non-GAAP basis, which excludes stock-based compensation expense, sales and marketing expense as a percentage of revenue was 35.8% for the first quarter compared to 32% of revenue for the prior year first quarter. Our sales and marketing costs in the period was negatively impacted by investments pulled forward in the year to take advantage of market opportunities. General and administrative expenses as a percentage of revenue was 16.9% of revenue for the first quarter compared to 16.8% of revenue for the prior year first quarter. On a non-GAAP basis, which excludes stock-based compensation expense, G&A was 15.7% of revenue for the first quarter compared to 15.6% of revenue for the prior year first quarter. As we stated in our most recent earnings call, we do not expect litigation expenses to be material on a going-forward basis and are now including any residual legal costs in the G&A line item in our income statement. Net income attributable to shareholders for the first quarter was $1.4 million or $0.01 per diluted share compared to the prior year first quarter of $0.04 per diluted share. On a non-GAAP basis, net income for the first quarter was $4 million or $0.04 per diluted share compared to the first quarter of the prior year of $0.10 per diluted share. Adjusted EBITDA, as defined in our earnings release and now excludes unrealized FX translation adjustments was $8.9 million for the first quarter or 8.4% of revenue compared to the prior year's first quarter of $15.7 million or 15.1% of revenue. Balance sheet. We ended the first quarter of 2026 with a cash balance of $132.2 million compared to $122.6 million of cash for the prior year first quarter. On a cash flow basis, first quarter operating cash flow increased $24.5 million compared to the prior year's first quarter increase of $33.7 million. Deferred revenue as of March 31, 2026, was $277.3 million compared to deferred revenue of $256.4 million for the prior year first quarter. Remaining performance obligations, RPO, which includes the sum of billed deferred revenue, contract assets and noncancelable future revenue was $643.6 million as of March 31, 2026, compared to $553.1 million for the prior year first quarter, an increase of 16.4%. When excluding RPO relating to support services for PeopleSoft products, the year-end balance increased 18.2%, reflecting our building momentum with both new bookings growth and longer duration commitments. PeopleSoft support wind-down update. As we discussed during previous quarter's earnings conference calls, our July 2025 settlement agreement with Oracle provides amongst other obligations and terms between the parties that the company will complete its previously announced wind-down of its support and services for Oracle's PeopleSoft software no later than July 31, 2028. We have made progress in reducing both the number of PeopleSoft's software support clients and related revenues since announcing the wind down. Revenue from PeopleSoft software support services was 3% of revenue for the first quarter compared to approximately 7% for the previous year first quarter and down from 8% of revenue when we began the wind-down process during the second half of 2024. Business outlook. The company is providing second quarter 2026 revenue guidance to be in the range of $106 million to $108 million and reiterating the full year 2026 guidance provided at our Investor Day in December 2025 of revenue growth in the 4% to 6% range and adjusted EBITDA margins in the 12.5% to 15.5% range, combined to achieve Rule of 20. For additional information, please see the disclosures in our Form 10-Q filed today, April 30, 2026, with the U.S. Securities and Exchange Commission. This concludes our prepared remarks. Operator, we'll now take questions. Operator: [Operator Instructions] Our first question comes from the line of Brian Kinstlinger from Alliance Global Partners. Brian Kinstlinger: You talked about stronger bookings trends that have started since the second half of '25. Can you provide any quantifiable context maybe year-over-year comparisons? Are there booking totals you can provide or a book-to-bill? And then lastly, maybe from a qualitative standpoint, discuss domestic versus international. Seth Ravin: Sure, Brian. Seth here. As we said starting mid-last year, we started to see an uptick, and we've shown it, of course, in the billings and bookings numbers. The compares, I think, have already been in each of the releases. So, the team will be happy to get you those at a later date. But I think we're seeing continued growing demand. We're seeing continued growing pipelines. And those are now converting as you're seeing into larger contracts. We're seeing longer-term contracts. Just look at the number of deals with TCV over $1 million, even in North America, where we had 0 of those deals in Q1 of last year, 60% of those deals were in North America this year. So, we're seeing all different indicators of continued growing demand and our ability to execute continues to get better and better. So, we're pleased with what we saw happening in Q1 and how it sets us up even for the full year. Brian Kinstlinger: And then a follow-up on that. You mentioned in your prepared remarks and just now as well about the longer duration. I think traditionally, you've had 1-year contracts, correct me if I'm wrong, whereas the renewable for every year. What's happening now? What are you seeing in terms of duration? Or maybe dig a little deeper into what you're describing as longer duration? Seth Ravin: Well, I think our average contract length before used to be something short of 3 years, about 2.5, 2.6 years for a new contract. And we're seeing longer-term contracts being signed. And I think the indication of that is we're watching customers think about a much longer term for this next phase of technology transition. And they're looking at their existing systems. They're looking at the amount of change that's coming their way or being pushed their way, realizing a lot of it isn't going to generate the kind of return on investment or the competitive advantage they need. And they're looking to us for longer-term solutions. And I think that's what you're seeing play out in the contracts. Brian Kinstlinger: Okay. My last question is, last quarter, you highlighted 26 customers that were testing their Argentic AI solutions. Maybe you can update us on that number, share what feedback you're getting from them and timelines to production? And then lastly, how would you want to be measured over the next 18 months on your progress of that new solution? Is it improving organic growth rates? Are you going to discuss the revenue contribution? Just how should investors think about that? Seth Ravin: Well, I think how we should think about it is exactly based on the guidance. It's about growth. The fact that we're returning to growth against the headwinds of the PeopleSoft wind down is certainly a nice indicator. And I think the fact that we would return to growth with a mid-single digit this year, as we said, a Rule of 20 is what we're aiming for between the top line and a bottom line, want to give ourselves a little range and flexibility between the top line and bottom line. And then look to us to get to that Rule of 40 that we want to get to, which, of course, requires us to see a double-digit growth on the top line and a double-digit return on the bottom. So, I think those are very, very key. The other part is, obviously, we have investors who want to see shareholder return. We believe that we sit on surplus cash. We believe that, that should be returned to shareholders in one way or another. Whether that's through stock buybacks, whether that's through paying down debt, but increasing shareholder value is a key component. So, I think those are the measures that we're looking at in terms of growing the business. Now when it comes to the world of Agentic AI and Agentic AI ERP, there's 2 things you need to remember. There's one, there's the fact that we create a path and we create a vision that customers can follow that doesn't require any future return to the vendor. That's very, very key. That is a big change from prior years where customers often thought of us as more of a temporary detour for some number of years and then a return to the vendor to get their next level of innovation. That's no longer the case. And that's why you're watching us win bigger and bigger contracts because customers are liking what we put on the table as a path and a strategy that does not lead them back to the software vendor in a future year. And that is changing the game dramatically for us on the ground. Operator: Your next question comes from the line of Jeff Van Rhee from Craig-Hallum. Jeff Van Rhee: Some great underlying metrics here. It looks like some good momentum and good to see some ARR growth year-over-year. Seth, you were just touching on leverage, and I want to revisit that. Gross margins, this is on the lower end of anything I've seen in quite a while. And Michael, I think you referenced there were some pull forwards for some, I guess, what I would characterize as sounds like unexpected business opportunities. I think you -- S&M is up from 34% to 37% year-over-year, but revenue is generally flat. And so, given that, I'm just trying to understand around the -- number one, what is this near-term opportunity that you're seeing that you've got to invest in right now, given that you're not raising the overall outlook? Maybe we could just start there and understand those. Seth Ravin: Sure, Jeff. So, first, yes, we made a decision to pull forward some expense from future quarters. But we, of course, reiterated guidance being on target with what we provided in the Investor Day in December. And the things we're seeing, for example, we're investing in our U.S. federal team, brand-new team. 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. But there's also a significant amount of work for us to do with PE firms. And we've got our first Vice President of PE sales on board because today, we service accounts that have over 20 different major PE firms represented, and we're going to go in and try and work with these firms to work on their bigger portfolios in general. So that, again, is another expansion area for us to build on. And so those investments were being made. We also, of course, are investing in our Agentic AI ERP solutions. And you saw the first time we have an R&D line item because we're making some investments at the product level. So those are also taking place. We also expanded our sales team. We're over 80 sellers now. And so, we've moved our numbers back up from the mid-70s when we last had our last call for end of year. And so, we're continuing to expand and invest in sales and marketing as well. So, you saw temporarily the expenses went up as a percent of revenue, but we expect those will normalize throughout the year. Jeff Van Rhee: And so then just to follow on to that, given all of those incremental revenue opportunities and in light of the revenue outperformance in the quarter relative to the guide, you didn't flow it through to the annual guide. So just help me understand what was in play there. Seth Ravin: Well, I think we want to just take it very carefully. As you know, we didn't grow for a while there, and we're back and feeling very positive and very confident in our growth for the year and hence, the mid-single-digit growth targets that we set out there. But we want to just get another quarter under the belt and think about that before we talk about any kind of raise in the guidance. Jeff Van Rhee: Okay. And then maybe just last, Seth, on customer retention. I know it's a focus and the Agentic UX and some other things probably have some opportunities to help there. But how should we think about churn over the next several quarters? This retention number has been at 88% here for at least a few quarters. Just any big churn events coming up here? And how do you think about retention next several quarters? Seth Ravin: Well, the 88%, remember, is a TTM, rearview view of the total number. We feel very good. And as I noted in the prepared remarks, we beat our internal numbers on the retention number. It's just going to take a while to show up in the TTM number. I think when you look at the RPO, some of those are even related to renewals. So, we're seeing good, strong renewals out of the first quarter and feeling good about where we're looking to the year. 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. Operator: Your next question comes from the line of Alex Fuhrman from Lucid Capital Markets. Alex Fuhrman: Congratulations on the return to growth here in Q1. It looks like here in the first quarter, you added about 30 active clients relative to where you ended 2025. The last 3 years, give or take, Q1 has been about flat in terms of customer acquisition. Is this just more of the same what we've been kind of talking about, increased demand for your AI solutions? Or are we maybe starting to see more of a year-round sales and adoption process as your clients are starting to implement more AI? Seth Ravin: Sure. And thanks. We absolutely are seeing improvements in everything from the number of leads coming in to lead conversion to opportunity, opportunity to closes. So higher quality pipeline, higher quality execution, but the demand environment is absolutely growing as well. There is no doubt that the world of AI has changed the dynamics from a technological standpoint. You're also watching, as Rimini Street had predicted many years ago, the breakup of these big ERP monolithic systems into smaller pieces, we call it composable ERP, those pieces are breaking down further. And what this means is that businesses and government organizations are now able to buy pieces, a la carte, let's say, versus having to buy them all in one big package. And we're well positioned, maybe the best position to help customers through all these technological transitions, including the thoughtful implementation of AI where it's appropriate. And because our #1 objective is driving down the total cost of operations and improving profitability or improving share return for government organizations, we think we are well-positioned to help customers for the long term, and we're talking 5, 10, 15, 20 years through this next phase of transition. So, I think all of that coming together is what we're watching it showing up in the numbers. Alex Fuhrman: Okay. That's really helpful. Thanks for all that color. And then I see you have a new line item here, research and development. It sounds like that's going to be more of a focus for the company going forward. How much should we expect to see there -- going forward there this year and in the future? Michael Perica: Well, I think this -- I'm sorry. No, go ahead. Seth Ravin: I was just going to say that we expect to continue to make investments in this space because we've been a services company. We've always had products, but the opportunity for us to develop more in the product and the licensing arena for subscription licenses has increased. And so, we're going to make those investments. But keep in mind, we're staying within our guidance limits. We're not talking about changing guidance even with the R&D line item. And I'm sorry, Michael, you want to add there? Michael Perica: Yes. I just want to augment the point that Seth made, Alex, at the end that this was incorporated overall in our guidance. We do expect it to creep up throughout the year and can exit the year about 1% or so. That's how we're looking at it to augment these key technological investments, both with what we have existing and these new offerings that we're talking about. Operator: Your next question comes from the line of Brian Kinstlinger from Alliance Global Partners. Brian Kinstlinger: 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 into next year? And then my second part of my question is, will there eventually be a report or some kind of metric that helps investors frame how much revenue is coming from that new solution? Seth Ravin: Sure, Brian. Of course, it's not what we call a material amount yet from the Agentic AI ERP solutions themselves. But 2 ways to think about this, there is the actual revenue that's accretive that comes from solutions and sales and licensing and subscriptions in the Agentic bucket. That's a new set of products and services. There's a second more important one, which is already at work here. And that is the fact that we have created a vision and we have a path and we have a solution going forward for customers that leads them away from having to do vendor upgrades and migrations in the future and allows them to drive their existing systems with modernization on that platform, that alone is what's driving, we believe, underneath a lot of the extra demand we're seeing because that is creating new demand that we did not have before, and it's bringing customers back to the table who have now come back to us to join Rimini Street who before had turned us down, proposals that they didn't move forward with. We're now able to show them a path forward with an Agentic capability that says, okay, we'll go ahead and move forward at this time. So don't underestimate the very fact that we have this path and this vision and technology, that alone is driving increased sales. Operator: There are no further questions at this time. I will now turn the call over to Seth Ravin, CEO. Please continue. Seth Ravin: Great. Well, thank you very much, and thanks, everyone, for joining us, and we will see you on the next earnings call. Have a great day. Operator: Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may now disconnect. Before you buy stock in Rimini Street, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Rimini Street wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $504,832!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,223,471!* Now, it’s worth noting Stock Advisor’s total average return is 971% — a market-crushing outperformance compared to 202% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of May 1, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has positions in and recommends Rimini Street. The Motley Fool has a disclosure policy. Rimini Street (RMNI) Q1 2026 Earnings Transcript was originally published by The Motley Fool

(Bloomberg) -- Apple Inc. reports quarterly earnings after the close on Thursday, but investors will be largely looking past the numbers and seeking clues to incoming Chief Executive Officer John Ternus’ strategic plans. Most Read from Bloomberg US Seeks to Deploy Hypersonic Missile for the First Time Against Iran North Korea Confirms Suicide Rule for Soldiers Ukraine Captures Two NJ Malls Separated by Just Four Miles — and Very Different Fates Junior Bankers Sick of Grunt Work Build $2 Billion AI Tool to Do the Job Meta Shares Plunge on Rising Concern About AI Spending Spree The iPhone maker announced last week that Ternus, its current head of hardware infrastructure, will take over for CEO Tim Cook on Sept. 1. That makes Apple’s fiscal second-quarter earnings report, outlook and conference call the first significant opportunity for Wall Street to get a reading on the new leader’s priorities. It isn’t clear if Ternus will appear on the call, and a company spokesperson declined to comment. “It isn’t really about the numbers,” said Anthony Saglimbene, chief market strategist at Ameriprise. “We want to know what the CEO transition looks like.” Ternus is taking over at a complex time for one of the world’s biggest companies, which is expected to debut a number of major products in upcoming months — notably a foldable iPhone. But while growth trends are improving, Apple has been grappling with skyrocketing costs for key components like memory chips and a volatile macro backdrop driven by the war in Iran and advances in AI that have minted stock market winners and losers. “Investors have reason to be excited about Ternus since he was an overseer of some of Apple’s most successful recent products, but his strategy will be a long-term story,” said David Wagner, portfolio manager at Aptus Capital Advisors, which has about $14 billion in assets and holds Apple in a variety of portfolios. “In the short term, the impact of component costs will be the focal point.” Apple shares are up less than 1% this year after a relatively disappointing 8.6% gain in 2025. By contrast, the technology-heavy Nasdaq 100 Index is up 8.3% in 2026 and the S&P 500 Index has gained 4.9%. Apple’s stock was up 1.2% on Thursday afternoon. While the company is accelerating development of AI-powered hardware devices and features, it has also seen a number of delays with its own artificial intelligence products. However, Apple hasn’t followed its megacap peers in sinking tens of billions of dollars into building out AI infrastructure, which has diminished the stock’s correlation to the rest of the tech industry. Earnings from the four biggest spenders — Alphabet Inc., Amazon.com Inc., Meta Platforms Inc. and Microsoft Corp. — after the bell on Wednesday offered a mixed bag on that theme. For example, Meta shares were punished in extended trading after the Facebook parent raised its expectations for capital expenditures in 2026. Meanwhile Alphabet’s stock jumped as its cloud computing unit reported strong growth, signaling that its AI investments are starting to pay off. Wall Street expects Apple to report 19% earnings growth on a 15% jump in revenue, according to data compiled by Bloomberg. For the fiscal year, which closes at the end of September, analysts anticipate that revenue will climb 12%, nearly twice last year’s 6.4% pace and the fastest rate since 2021. However, that still trails the tech sector, which is expected to post revenue growth of more than 26% in 2026, according to Bloomberg Intelligence data. The relatively slow expansion has made Apple’s stock more expensive. The shares trade at nearly 30 times estimated earnings, a sizable premium to their 10-year average of roughly 23. That gives Apple the second-highest valuation among the Magnificent Seven group of tech giants, trailing only Tesla Inc. and its nosebleed multiple of more than 180 times forward earnings. “Apple is a quality name, which warrants a premium, but it continues to look pretty expensive relative to its growth,” said Matt Stucky, chief portfolio manager of equities at Northwestern Mutual Wealth Management Company, which manages around $5 billion. This setup could put more pressure on Ternus to chart a path to stronger long-term growth, according to Stucky. “If innovation from the new CEO can provide that, then there’s reason to be optimistic about Apple from here, and that optimism could keep the multiple strong or even push it higher,” he said. “Right now, we don’t know what that growth catalyst could be. If the strategy is more about grinding out market-share gains, keeping products refreshed, that would be good but not game-changing.” The soaring cost of memory chips is one of the biggest factors in the company’s outlook. Memory is a major part of the buildout of artificial intelligence infrastructure, and the aggressive spending on AI has created a supply crunch. An index of spot prices for dynamic random-access memory, or DRAM, chips has risen more than 500% since the end of August. That said, Apple is better positioned to absorb higher costs than many of its rivals due to its size and balance-sheet strength. For example, it recently rolled out a less expensive version of the MacBook designed to improve the company’s market share in lower-end laptops. However, the longer memory prices stay elevated the more the impact is expected to spread, potentially hitting Apple’s bottom line. “The stocks that have been hit the hardest are the ones that show some kind of margin degradation,” Aptus Capital’s Wagner said. “So if the memory headwind sticks around, it will start to become a margin risk for Apple. And given the valuation, there’s more room to the downside.” Tech Chart of the Day Top Tech Stories A frenzied day of earnings reports offered a glimpse at how some of the world’s biggest tech companies are doing in artificial intelligence. The upshot: Alphabet Inc.’s Google is seeing a clear payoff from its AI spending, while Meta Platforms Inc. is lagging behind. Alphabet reported high demand for its cloud and artificial intelligence offerings, boosting shares and giving investors confidence that its unprecedented investments in AI infrastructure will pay off. Meta Chief Executive Officer Mark Zuckerberg reignited fears that the historic levels of investment he’s making to catch up in the artificial intelligence race won’t pay off, a prospect that sent shares sliding after the company raised its spending outlook for the year. Amazon.com Inc. is spending at a rapid rate to expand data center capacity to meet the intense demand for artificial intelligence computing power, fueling the fastest quarterly sales growth for its cloud unit in more than three years. Microsoft Corp. said cloud computing revenue and spending on AI infrastructure will accelerate this year, a bid to convince investors that its huge bets on artificial intelligence are poised to pay off. Qualcomm Inc. rallied in premarket trading after the company said it was making headway in the lucrative data center market and predicted that the China phone industry would bounce back. Anthropic PBC has begun weighing a fresh funding round that would value the artificial intelligence developer at more than $900 billion, according to people familiar with the matter, potentially leapfrogging its longtime rival OpenAI as the world’s most valuable AI startup. OpenAI has met a key milestone for securing AI capacity in the US several years ahead of schedule, boosting the startup’s ambitious plans for data center expansion. Earnings Due Thursday Earnings Premarket: Asure Software Inc. (ASUR US) Bandwidth Inc. (BAND US) Cable One Inc. (CABO US) Diebold Nixdorf Inc. (DBD US) Entegris Inc. (ENTG US) InterDigital Inc. (IDCC US) L3Harris Technologies Inc. (LHX US) Silicom Ltd. (SILC US) Vistance Networks Inc. (VISN US) Earnings Postmarket: Cohu Inc. (COHU US) Apple Inc. (AAPL US) Axt Inc. (AXTI US) Dolby Laboratories Inc. (DLB US) Five9 Inc. (FIVN US) GoDaddy Inc. (GDDY US) Grid Dynamics Holdings Inc. (GDYN US) Monolithic Power Systems Inc. (MPWR US) OneSpan Inc. (OSPN US) Rimini Street Inc. (RMNI US) Riot Platforms Inc. (RIOT US) SPS Commerce Inc. (SPSC US) Twilio Inc. (TWLO US) Universal Display Corp. (OLED US) Western Digital Corp. (WDC US) --With assistance from Subrat Patnaik, Neil Campling and David Watkins. (Updates to afternoon trading.) Most Read from Bloomberg Businessweek ‘I Have Half of MAGA’: The Republican Challenging Trump From Within Running America’s Second-Busiest Airport in Turbulent Times It’s Boating Season, But Only If You Can Afford Fuel United’s CEO Is Here to Buy Your Struggling Airline Outrage Over Pesticides Is Alienating Some Trump Voters ©2026 Bloomberg L.P.