Rimini Street 2026 Q2 Earnings Call

Please go ahead. Thank you, operator.

I'd like to welcome everyone to Rimini Street's fiscal second quarter 2026 earnings conference call. Joining me today are Seth Ravin, our CEO and President, and Michael Perica, our CFO. Today, we issued our earnings press release for the second quarter ending June 30, 2026, which is available on our website under the investor relations section. A reconciliation of GAAP to non-GAAP financial measures are included in the tables following the financial statements in the press release. Additional explanations of these measures and why we believe they are useful can also be found in the press release and on our website under about non-GAAP financial measures and certain key metrics. As a reminder, today's discussion will include forward-looking statements about our operations that reflect our current outlook.

These statements are subject to risks and uncertainties that could cause actual results to differ materially from those discussed today. We encourage you to review our most recent SEC filings, including the Form 10-Q filed today, for a detailed discussion of the risk factors that may affect our future results or stock price. Now before taking questions, we will begin with prepared remarks. With that, I'd like to turn the call over to Seth.

Thank you, Dean, thank you everyone for joining us. Second quarter results. At our December 2025 Investor Day, we shared our vision, strategy, and plan for evolving into an innovation company and returning to growth and improved profitability. We provided fiscal year 2026 guidance for achieving Rule of 20 results. We have now delivered four consecutive quarters of improved growth metrics in alignment with the vision, strategy, and plan we shared at the 2025 Investor Day, we reiterate our Rule of 20 guidance for fiscal 2026. Second quarter results demonstrate strong demand for our core Rimini Support offering, increasing adoption of our broader enterprise software service portfolio and improving sales execution. Sales transactions included household brands in many countries, we sold across our solutions portfolio.

During the quarter, we closed 14 new client transactions with over $1 million in TCV, totaling $30 million and added 58 new logos. For the first half of 2026, we closed 25 new client transactions with over $1 million in TCV, totaling $62.9 million and added 108 new logos. Partnerships and alliances sourced or assisted with the closing of a meaningful number of sales transactions in the quarter. Also during the quarter, clients continued their adoption of Rimini Street's AI solutions that are helping them solve real business problems using innovative technology quickly and economically deployed over the top of their existing ERP software and releases without any need for ERP software upgrades, migrations, or replatforming.

Our clients used the collective savings from switching to Rimini Street annual maintenance on their ERP software and avoided costly low-value ERP upgrades and migrations to fund their Rimini AI ERP solution deployments. They did not have to spend beyond their current IT budgets for the innovation. Driving increased growth and profitability. Organizations today are under increasing pressure to innovate and modernize their enterprise systems while managing cost, risk, and disruption. Many are finding that large-scale ERP replacements are expensive, time-consuming, and often fail to deliver the expected business value. Real innovation is not about installing a software vendor's next dot AI release. It is about reducing total operating costs, improving profitability, and enhancing competitive advantage.

We help organizations achieve these goals by avoiding unnecessary ERP software upgrades, migrations, or replatforming, instead deploying Rimini Street's innovative Agentic AI ERP solutions over the top of existing ERP software to deliver faster, better, cheaper, and more agile ERP process execution funded within the current IT budget. As we continue to expand sales and cross-sales of our entire service portfolio, our focus remains on enabling clients to extract more value from their existing systems and achieving innovation and modernization that lowers total cost of operations, improves profitability, and enhances competitive advantage Leadership in Agentic AI ERP. We are helping more and more clients set a new vision, technical and functional path forward from their current vendor ERP software release.

A path that does not require any return to the vendor for a future upgrade or migration to their current ERP software release in order to achieve innovation or modernization. The client can innovate and modernize their existing ERP software and other enterprise software using Agentic AI ERP solutions deployed easily, economically, right over the top of their existing software releases. We guide clients through this path using our proprietary and proven three-step methodology called the Rimini SmartPath. Our methodology is being used by clients to self-fund and accelerate innovation, especially AI and automation, without undergoing costly, risky, or unnecessary ERP upgrades or rip-and-replace migrations by leveraging and modernizing existing IT environments, all without operational disruption. Today, we rounded out our end-to-end AI capabilities with the launch and immediate availability of Rimini Govern for AI, our new governance as a service solution.

Rimini Govern for AI is the newest offering in our governance, risk, and compliance solutions. The service brings together AI governance capabilities, deep enterprise application expertise, and global managed services that enable organizations to control, secure, and scale AI agent activity with confidence. With Rimini Govern for AI, organizations can now confidently and securely deploy AI agents and scale AI agent operations with the oversight, control, visibility, and measurement needed to accelerate adoption, measure ROI, and achieve business outcomes that include reduced total operating costs, improved profitability, and enhanced competitive advantage. As Ray Wang, CEO of Constellation Research, noted with the launch of Rimini Govern for AI, "As organizations move from AI experimentation to enterprise-scale adoption, they need trusted visibility, governance, and control to deploy AI responsibly and securely.

Other Rimini AI solutions include Rimini Agentic UX, our AI-driven experience and automation layer that is deployed right over existing client ERP software and turns their ERP software from a static system of record into an autonomous system of action, delivering innovation and modernization in weeks, not years, and at a fraction of the cost of a major upgrade, migration, or replatforming project. Rimini AgentWorks, our comprehensive AI agent lifecycle service that enables organizations to move from AI concepts to trusted production deployment. The service helps clients define agent strategies, design and build AI agents and workflows, validate interoperability, perform functional and security, and certify operational readiness. As part of this process, Rimini AgentWorks helps assure, before any approved deployment, that AI agents operate within approved business accuracy, security, and compliance guardrails and meet stringent requirements for governance, monitoring, and production operation.

Rimini AgentWorks tests and certifies both AI agents developed by Rimini Street and those from other third parties. Together, Rimini AgentWorks, Rimini Agentic UX, and Rimini Govern for AI provide organizations with an end-to-end set of services to design, deploy, govern, and optimize AI agent operations across mission-critical enterprise environments. Partners, alliances, and channels. We continue strengthening and maturing our indirect sales ecosystem, including adding new partner managers for strategic technology, services, and channel relationships, and completed new partnership agreements. These partnerships extend our reach, bring complementary expertise, and help clients execute modernization strategies that combine Rimini Street support with world-class platforms, cloud services, and AI tooling. The ecosystem is becoming a strategic multiplier for us, accelerating adoption, expanding influence, and enabling shared go-to-market opportunities. Client success stories. We are helping clients across many industries, geographies, and software protect and optimize their core ERP systems while funding innovation and modernization, including fixing broken processes, automating workflows and functions, and using AI to solve specific business challenges, all without disruptive, costly, and risky ERP software upgrades, migrations, or replatforming.

Here are some examples of how our solutions are reducing operating costs and enabling innovation, transformation, and improved competitive advantage for clients across different geographies and industries. Baveri Group, an Indonesian interior contractor and furniture manufacturer, selected Rimini Support for SAP ECC 6 to strengthen business continuity, avoid a costly and disruptive SAP migration, and redirect resources towards digital transformation and innovation. This win further demonstrates the ongoing demand for our proven model of reducing operating costs while creating capacity for growth and innovation.

One NZ, a New Zealand telecommunications company, chose Rimini Support to optimize its Oracle environment, including Siebel CRM and Oracle Database, while accelerating its AI transformation strategy. The company describes Rimini Street as a trusted, quote, "co-innovation partner," end quote, enabling it to redirect capital and talent towards future growth and its vision of becoming a world-leading AI-enabled telecommunications provider. Medical Microinstruments, an Italian robotic microsurgery company, leveraged Rimini Consult for Salesforce to maximize ROI on its technology investment and helped eliminate unnecessary third-party software costs, implement critical training and certification workflows, and develop a long-term Salesforce roadmap to support the company's global growth and continued innovation in life-enhancing surgical technology. The client noted the strategic value Rimini Street brings to their Salesforce evolution.