RMNI

Rimini Street is a leading independent provider of third-party enterprise software support (an alternative to Oracle/SAP vendor support), now extending into managed services and 'Agentic AI ERP' via the Rimini Smart Path methodology. The FY2025 numbers show a genuine profitability inflection: operating income jumped to $59.9M (+286.5%, a 14.2% operating margin), net income swung to $37.1M from a $36.3M loss in FY2024, diluted EPS reached $0.39, and operating cash flow tripled to $60.2M. With only $4.57M of capex, free cash flow is roughly $56M — a ~13% FCF yield against the $416M market cap — and management used that cash to cut long-term debt 23.2% to $63.2M and lift cash to $120M. The auditor issued a clean opinion and affirmed effective internal control over financial reporting, removing a common small-cap red flag.

The problem is that this is not a growth story. Revenue of $422M fell 1.7% YoY and has now declined two straight years off the FY2023 peak of $431M (374 → 410 → 431 → 429 → 422), and gross profit slipped 2.5%. So the earnings rebound is a cost/operating-leverage and litigation-normalization story layered on a flat-to-shrinking top line, and this company's net income has been violently volatile — swinging from +$75.2M to -$2.5M to +$26.1M to -$36.3M to +$37.1M over five years — which makes the trailing 11.6x P/E less reliable than it looks. The MD&A leans heavily on new optionality (Rimini Agentic UX launched December 2025 with ServiceNow, plus managed services for Workday, Dayforce and ServiceNow) that is not yet visible in the revenue line.