Rimini Street (Nasdaq: RMNI), which sells support for Oracle and SAP software in place of the vendors' own, reported revenue of $112.1 million for the third quarter of 2026, which ended September 30, up 8.3% from a year earlier and just above the top of its own $110 million to $112 million forecast. Excluding Oracle PeopleSoft support, which it must stop providing by July 31, 2028, adjusted annualized recurring revenue (ARR) rose 9.8% to $410.4 million.
That growth rate was 1.0% a year earlier. The company also forecast fourth-quarter revenue of $117 million to $119 million and reiterated its "Rule of 20" target for 2026, under which revenue growth and adjusted EBITDA margin add up to 20%. Shares rose 8.27% to $4.32 in after-hours trading on October 29, Investing.com reported.
The quarter in numbers
Subscription revenue, 93.9% of the total, rose 7.6% to $105.2 million. Adjusted calculated billings, a non-GAAP measure of what the company invoiced outside PeopleSoft, rose 21.9% to $78.0 million, faster than revenue. Remaining performance obligations, the contracted backlog, grew more slowly, up 6.8% to $652.9 million.
Measure | Q3 2026 | Q3 2025 | Change |
|---|---|---|---|
Revenue | $112.1M | $103.4M | 8.3% |
Adj. revenue | $109.3M | $98.8M | 10.7% |
Adj. ARR | $410.4M | $373.7M | 9.8% |
RPO | $652.9M | $611.2M | 6.8% |
Gross margin | 61.4% | 59.9% | 1.5 pts |
Net income | $6.5M | $2.8M | 136% |
Adj. EBITDA | $15.1M | $9.9M | 52.0% |
Source: Rimini Street third-quarter 2026 results release (8-K, Exhibit 99.1). Adjusted figures exclude PeopleSoft and, with adjusted EBITDA, are non-GAAP; gross margin and net income are GAAP. Changes recalculated by SaasBuzz.
GAAP net income was $6.5 million, or 7 cents a diluted share, against $2.8 million, or 3 cents. The adjusted EBITDA margin was 13.5%, from 9.6%. PeopleSoft revenue fell 42% to $2.7 million, 2.4% of the total. The company bought back $5.0 million of its shares and prepaid $5.0 million of its term loan, leaving $43.4 million outstanding.
What it says about staying off the upgrade cycle
Rimini's business is a bet that large companies would rather keep running the Oracle and SAP releases they have than pay for the vendors' next upgrade. Chief executive Seth Ravin put that case on the call, according to a transcript published by Investing.com:
there is simply not enough labor, time, or money to perform all vendor-pushed upgrades and migrations.Seth Ravin, CEO of Rimini Street, on the October 29, 2026 results call
Measured outside PeopleSoft, that demand has picked up each quarter. Adjusted ARR growth went from 1.0% in the third quarter of 2025 to 3.1%, 5.0%, 8.1% and now 9.8%. Total ARR, which still carries the shrinking PeopleSoft book, turned from a 4.7% decline in the first quarter of 2025 to 7.7% growth.
Quarter | ARR | Growth | Retention |
|---|---|---|---|
Q4 2024 | $414.8M | -4.1% | 88% |
Q1 2025 | $396.2M | -4.7% | 88% |
Q2 2025 | $394.1M | -1.3% | 90% |
Q3 2025 | $391.0M | -2.6% | 89% |
Q4 2025 | $411.4M | -0.8% | 88% |
Q1 2026 | $400.8M | 1.2% | 88% |
Q2 2026 | $412.8M | 4.8% | 90% |
Q3 2026 | $421.0M | 7.7% | 90% |
Source: Rimini Street quarterly results releases, Q4 2024 to Q3 2026, as filed with the SEC. ARR is the quarter's subscription revenue times four, including PeopleSoft; growth is from a year earlier; retention is the company's trailing 12-month revenue retention rate.
The table also shows what has not changed. Revenue retention has stayed between 88% and 90% for eight quarters, and active clients rose only 1.9% to 3,214. Rimini defines a client per product supported, so the same company can count twice. So the faster growth has not come from keeping more of the existing base. Most of the added revenue came from outside the United States: international revenue rose $6.6 million and US revenue $2.0 million. Excluding PeopleSoft, international revenue grew 13.5% and US revenue 7.1%.
The quarter's customer examples were about money moved, not upgrades bought. The release quotes Khimji Ramdas Group, an Omani conglomerate, as saying Rimini cut its total SAP support costs by 80% and that it is spending the savings on AI projects "without undergoing migrations or replatforming." That is the customer's own figure, published by Rimini.
What the full-year target asks of the fourth quarter
At the $118 million midpoint, fourth-quarter revenue would grow 7.5% from a year earlier, and full-year revenue would reach about $446.6 million, up 5.9%, at the top of the 4% to 6% range the company set at its December 2025 investor day.
The margin side is steeper. Adjusted EBITDA for the first nine months was $34.6 million, or 10.5% of revenue. To reach 12.5% for the year, the bottom of the margin range Rimini last spelled out in July, the fourth quarter would need about $21.3 million of adjusted EBITDA, an 18% margin, SaasBuzz calculates. A literal Rule of 20 at 5.9% growth would need about $28.2 million. The third quarter's $15.1 million was the highest of the year so far.
Chief financial officer Michael Perica said on the call that the company "is reiterating its Rule of 20 guidance for fiscal year 2026," according to the Investing.com transcript. Ravin said 2027 plans and guidance would come at an upcoming investor day. The fourth-quarter adjusted EBITDA figure, due with the full-year results, is the number to watch.
