The sharp deterioration in profitability (operating income -49%, adjusted EBITDA -43%) combined with a major EPS miss and soft Q2 guidance ($106-108M) signals that the company's cost structure is out of alignment with revenue growth. Watch for potential downward revision to the full-year 4-6% revenue growth and 12.5-15.5% adjusted EBITDA margin targets on the earnings call. The strong RPO and billing growth provide a buffer, but the margin compression is the dominant signal.
Price Chart
Executive Summary
Rimini Street reported Q1 2026 revenue of $105.5M (+1.2% YoY) and GAAP EPS of $0.01, a significant miss vs the $0.04 consensus. Operating income fell 49% to $4.8M and adjusted EBITDA dropped 43% to $8.9M. While the company highlighted strong RPO growth (+16.4%) and adjusted calculated billings (+22.9%), the core financials deteriorated meaningfully, and the company guided Q2 revenue of $106-108M (below the implied run-rate needed to hit full-year 4-6% growth targets). The combination of declining profitability, a major EPS miss, and soft guidance makes this a bearish report.
Key Financial Metrics
Key Facts
- Revenue $105.5M, +1.2% YoY, slightly above $104.2M but below the $102.7M consensus on an apples-to-apples basis (the filing's $104.2M prior-year figure is the GAAP reported number)
- GAAP EPS $0.01 vs $0.04 consensus — a 75% miss; GAAP net income fell 59% to $1.4M
- Operating income $4.8M, down 49% from $9.4M; Non-GAAP operating income $7.9M, down 45% from $14.5M
- Adjusted EBITDA $8.9M, down 43% from $15.7M
- Gross margin contracted to 59.0% from 61.0%
- Q2 2026 revenue guidance $106-108M, below the pace needed to achieve full-year 4-6% growth target
- RPO $643.6M, +16.4% YoY; Adjusted Calculated Billings $92.2M, +22.9% YoY
- Voluntary debt prepayment of $10M reduced term loan to $58.4M; cash $132.2M
- PeopleSoft wind-down continues to distort comparisons — excluding PeopleSoft, revenue grew 5.2%
Financial Impact
GAAP EPS of $0.01 missed the $0.04 consensus by 75%; operating income halved to $4.8M; adjusted EBITDA fell 43% to $8.9M
Risk Factors
- Continued margin compression from investment spending and PeopleSoft wind-down costs
- Q2 guidance below the trajectory needed to hit full-year targets — risk of guidance cut
- U.S. revenue declined 6.4% YoY, suggesting competitive pressure in the core market
- Gross margin erosion (59.0% vs 61.0%) could accelerate if pricing pressure intensifies
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 4 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001635282-26-000043 |
| Document: 0001635282-26-000043-index.html | 0001635282-26-000043 |
| Document: 0001635282-26-000043.txt | 0001635282-26-000043 |
| 8-K Data (Synthetic) | 0001635282-26-000043 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 14, 2026 6w ago | 8-K | $4.69 | awaiting T+60 | — | $4.05 (−13.65%) |
Aug 12, 2026 10w ago | 8-K | $4.77 | awaiting T+60 | — | $4.05 (−15.09%) |
Apr 30, 2026 25w ago | 8-K | $4.05 $4.89 | ▼ −20.74% | ▼ −17.67% | $4.05 (−0.00%) |
Apr 30, 2026 25w ago | Insider Cluster | $3.41 $4.67 | ▲ +36.95% | ▲ +33.84% | $4.05 (+18.77%) |
Apr 3, 2026 29w ago | Insider Cluster | $3.44 $4.50 | ▼ −30.81% | ▼ −17.34% | $4.05 (−17.73%) |
US Market Status
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