Rimini Street Reports Q1 2025 Financial Results with Revenue Decline and Increased Net Income

Rimini Street, Inc. reported its financial results for the first quarter of 2025, revealing a revenue of $104.2 million, a decrease of 2% from $106.7 million in the same period last year. The company achieved a net income of $3.4 million, significantly up from $1.3 million in Q1 2024, reflecting a 154% increase. The gross profit margin improved to 61.0% from 59.8% year-over-year, attributed to better cost management in non-core products and services. Operating income also saw a substantial rise, reaching $9.4 million compared to $3.4 million in the prior year.

The company experienced a decline in revenue primarily due to the attrition of some large client contracts, which was reflected in the current period's results. While the number of unique clients increased from 1,535 to 1,577, the revenue from the United States fell by 7% to $50.1 million, while international revenue grew by 2% to $54.1 million. The company continues to wind down its services for Oracle PeopleSoft products, which accounted for approximately 7% of total revenue in Q1 2025, down from 8% in the previous year.

Rimini Street's operational metrics indicate a total of 3,092 active clients as of March 31, 2025, an increase from 3,040 a year earlier. The company employed over 2,000 professionals, reflecting its commitment to maintaining a robust workforce to support its expanding service offerings. The annualized recurring revenue was reported at $396 million, down from $416 million in the previous year, indicating challenges in client retention.

The company’s liquidity position remains strong, with cash, cash equivalents, and restricted cash totaling $123.8 million as of March 31, 2025. However, it reported a working capital deficit of $60.1 million, primarily due to deferred revenue of $234.8 million, which is expected to be recognized as revenue over the next year. Rimini Street refinanced its credit facility in April 2024, securing a $75 million term loan and a $35 million revolving line of credit, which provides additional financial flexibility.

Looking ahead, Rimini Street anticipates continued challenges due to global economic uncertainties, including inflation and geopolitical tensions. The company remains focused on expanding its service offerings and client base while managing costs effectively. It expects to leverage its existing cash reserves and future cash flows to meet operational needs and contractual obligations over the next year.