Rimini Street, Inc. Q2 2026 Earnings Call Summary

Moby Intelligence

Thu, July 30, 2026 at 9:08 PM PDT 3 min read

Strategic Evolution and Performance Drivers

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• 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.

Guidance Framework and Strategic Outlook

• 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.

Operational Context and Risk Factors

• 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.