Rimini Street beats Q2 revenue estimates, swings to profit

Rimini Street

31/07/2025 21:09

Overview

Rimini Street fiscal Q2 revenue rises 1%, beating analyst expectations

Net income for fiscal Q2 reaches $30.3 mln, reversing last year's loss

Co received $37.9 mln in legal cost recovery from Oracle settlement

Outlook

Company plans to reinitiate guidance at Analyst Day for Q4

Result Drivers

GROSS MARGIN IMPROVEMENT - Gross margin increased to 60.4% from 59.1% a year ago, indicating better cost management

INTERNATIONAL GROWTH - International revenue rose by 6.4%, offsetting a 4.5% decline in U.S. revenue

CLIENT RETENTION - Revenue retention rate improved to 90% from 88% in the previous year, reflecting stronger client retention

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$104.11 mln
$103.10 mln (4 Analysts)
Q2 Net Income
$30.26 mln
Q2 Gross Profit
$62.85 mln
Q2 Operating Income
$41.20 mln
Q2 Pretax Profit
$40.80 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

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

Wall Street's median 12-month price target for Rimini Street Inc is $6.25, about 25.6% above its July 30 closing price of $4.65

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

Press Release: ID:nBw1vl2yya

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)