Rimini Street, Inc. (RMNI): BCG Matrix [Dec-2025 Updated]

You're looking for a clear map of where Rimini Street, Inc. is making money and where they're placing their bets in 2025. Honestly, the picture is sharp: the core Oracle and SAP support remains the bedrock, driving 94.5% of revenue and boasting a record $611.2 million in Remaining Performance Obligations, firmly planting them in the Cash Cow quadrant. Still, the growth engine is clearly international, with a 7.7% jump in that segment, while the U.S. business is a clear Dog, shrinking by 10.3% last quarter. We'll break down exactly how the heavy investment in new Agentic AI ERP solutions-the Question Marks-balances against these established performers below.

Background of Rimini Street, Inc. (RMNI)

You're looking at Rimini Street, Inc. (RMNI), which has established itself as a global provider of end-to-end enterprise software support, managed services, and innovation solutions. Honestly, the core of their business is being the leading third-party support provider for mission-critical applications from major vendors like Oracle, SAP, and VMware. They help large organizations, including Fortune 100 and Fortune 500 companies, extend the life of their existing software and avoid costly, forced upgrades by offering support services that aim to meet or exceed vendor service levels. This value proposition is built around their service pillars: support, optimize, and innovate.

Let's look at the numbers coming out of the fiscal third quarter of 2025, which ended September 30, 2025. Total revenue for that quarter was $103.4 million, which was actually a slight dip of 1.2% compared to the same period last year. Now, here's the nuance you need to see: if you exclude the revenue from the ongoing wind-down of support services for Oracle's PeopleSoft software, the underlying revenue actually grew by 2.5%. The company expects its forecasted annual revenue growth rate for 2025 to be around 2.1%.

When we check the forward-looking indicators, things look a bit stronger. Annualized Recurring Revenue (ARR) stood at $391.0 million for the third quarter of 2025, though this was down 2.6% year-over-year overall. However, stripping out that PeopleSoft wind-down shows ARR actually increased by 1.0%. More importantly, the backlog, officially called Remaining Performance Obligations (RPO), hit a record of $611.2 million as of September 30, 2025, marking a 6.4% increase over the prior year.

On the bottom line, Rimini Street, Inc. showed significant improvement in Q3 2025, returning to GAAP profitability with an operating income of $4.4 million, a huge swing from the operating loss of $49.6 million reported in Q3 2024. Gross margin for the quarter was 59.9%. The client base continues to expand, with Active Clients growing by 1.9% to reach 3,155. Geographically, for Q3 2025, international revenue made up 55% of the total, while the U.S. accounted for 45%. The balance sheet remains sound, holding $108.7 million in cash and cash equivalents at the end of the quarter.

Rimini Street, Inc. (RMNI) - BCG Matrix: Stars

You're looking at the business units within Rimini Street, Inc. (RMNI) that are operating in high-growth segments and commanding a strong relative market position, which is the definition of a Star in the Boston Consulting Group Matrix. These areas require significant investment to maintain that growth trajectory, but they are the future cash cows if market growth moderates.

The international segment is clearly demonstrating this Star characteristic. For the third quarter of 2025, international revenue grew 7.7% year-over-year, reaching $57.2 million, which represented 55% of the total Q3 2025 revenue of $103.4 million. This growth is outpacing the U.S. segment, which saw a 10.3% year-over-year decline in reported revenue.

The non-PeopleSoft core business is another area showing the underlying strength you want to see in a Star. Excluding the wind-down of Oracle PeopleSoft support services, the core revenue actually increased by 2.5% in Q3 2025. Even better, the Annualized Recurring Revenue (ARR) excluding PeopleSoft rose 1.0% year-over-year, signaling that the core business is gaining traction despite the planned sunsetting of the legacy product line.

Adoption of newer, high-growth offerings is strong, which fuels the Star classification. For instance, third-party support for VMware has seen significant uptake, surpassing 100 contracts signed to date. This is a clear indicator of market share capture in a segment where Rimini Street, Inc. positions itself as a leading provider.

The expansion of indirect and partnership sales channels is directly translating into new business wins. Management highlighted the addition of 79 new client logos during the quarter. Furthermore, sales momentum is visible in the backlog figures; Remaining Performance Obligations (RPO) hit a record $611.2 million, up 6.4% year-over-year. When you exclude the PeopleSoft wind-down, the RPO growth accelerates to 9.3% year-over-year, which is what you expect from a Star.

Here's a quick look at the key adoption and growth metrics supporting the Star categorization for these segments as of Q3 2025:

The focus on expanding the go-to-market reach is also evident through strategic channel developments. You can see the tangible results of this investment in the pipeline indicators. These are the areas where Rimini Street, Inc. needs to keep pouring resources to convert market share leadership into long-term Cash Cow status.

The strategic traction points for these high-growth areas include:

• Approval as a supplier on the U.S. GSA Multiple Award Schedule.
• Announced partnership with American Digital for joint full-stack solutions.
• Over two dozen client engagements for the Agentic AI ERP solution.
• 17 new client sales transactions above $1 million TCV in Q3, totaling $63.1 million.

If the company sustains this success in these high-growth areas while the PeopleSoft wind-down completes, these segments will mature into the Cash Cow quadrant. Finance: draft the Q4 2025 investment allocation plan for the VMware and AI ERP sales teams by next Wednesday.

Rimini Street, Inc. (RMNI) - BCG Matrix: Cash Cows

The core third-party support for Oracle and SAP represents the definite largest revenue source for Rimini Street, Inc., operating in a mature segment where competitive advantage translates directly into strong cash generation. This business unit is the engine that funds other strategic areas of the company.

The stability of this cash flow is best illustrated by the subscription revenue component. For the third quarter of 2025, subscription revenue was $97.8 million, which accounted for 94.5% of the total revenue for that period. This high percentage underscores the predictable, recurring nature of the cash inflows generated by the existing client base.

You can see the strength of future contracted revenue in the backlog figures. Rimini Street, Inc. achieved a record Remaining Performance Obligations (RPO) of $611.2 million as of September 30, 2025. This represents a year-over-year increase of 6.4% over the RPO recorded on September 30, 2024. If you look at the backlog excluding the wind down of support services for Oracle's PeopleSoft software products, the RPO growth was even stronger at 9.3%.

The profitability profile supports the Cash Cow classification. The gross margin remained high, consistently around the 60% mark across the first three quarters of 2025. Specifically, the gross margin for the third quarter of 2025 was 59.9%. This high margin, achieved in a mature market, shows the efficiency of servicing this established customer base. The company reported an operating income of $4.4 million for the third quarter of 2025, a significant turnaround from the operating loss of $49.6 million reported in the same period last year.

Investments here are focused on maintaining efficiency rather than aggressive market share capture, which is reflected in the client growth metrics. As of September 30, 2025, the company served 3,155 Active Clients, an increase of 1.9% year-over-year. The focus is clearly on maximizing the cash yield from this installed base.

Here's a quick look at the key financial metrics from the Q3 2025 period that define this cash-generating unit:

The cash flow generated supports the entire enterprise structure. You can see where that cash is being deployed through the following activities:

• Cash and cash equivalents stood at $108.7 million at September 30, 2025.
• The company repaid the remaining outstanding $10 million balance on its revolving line of credit.
• They repurchased 0.9 million shares of Common Stock for approximately $3.8 million during the third quarter of 2025.
• International revenue comprised 55% of the total revenue for the quarter.

The stability is paramount; this business unit is the foundation. If onboarding takes 14+ days, churn risk rises, but the high RPO suggests strong forward commitment from the core customer base.

Rimini Street, Inc. (RMNI) - BCG Matrix: Dogs

Dogs are units or products with a low market share and low growth rates. They frequently break even, neither earning nor consuming much cash. Dogs are generally considered cash traps because businesses have money tied up in them, even though they bring back almost nothing in return. These business units are prime candidates for divestiture.

For Rimini Street, Inc. (RMNI), the elements fitting the Dog quadrant are characterized by declining revenue contribution and negative growth in specific segments or legacy services. Dogs should be avoided and minimized; expensive turn-around plans usually do not help.

The wind-down of support services for Oracle PeopleSoft software products is a clear example of a legacy service being managed out of the portfolio. This specific revenue stream accounted for approximately 5% of Q3 2025 revenue, which is a reduction from approximately 8% in the prior year's third quarter. This managed decline directly impacts overall reported figures.

The U.S. revenue segment acts as a clear drag on overall growth momentum. For the third quarter of 2025, U.S. revenue was $46.3 million, representing a year-over-year decline of 10.3% compared to $51.6 million in Q3 2024. Even when excluding the PeopleSoft wind-down effect, U.S. revenue still decreased by 4.4%.

Legacy services, tied to the PeopleSoft wind-down, are contributing to the contraction in the core recurring revenue base. Overall Annualized Recurring Revenue (ARR) for Q3 2025 was $391.0 million, marking a 2.6% decrease compared to $401.5 million in Q3 2024. This 2.6% decrease in overall ARR is directly linked to these legacy dynamics.

Here's a quick look at the key metrics associated with these lower-growth areas as of Q3 2025:

The overall revenue decline of 1.2% to $103.4 million is largely attributed to these factors, even as subscription revenue remained the vast majority at 94.5% of total revenue, or $97.8 million.

The strategy here is minimization, which is evident in the following operational shifts:

• Oracle PeopleSoft support services revenue contribution reduced to approximately 5% of Q3 2025 revenue.
• U.S. revenue segment declined by 10.3% year-over-year in Q3 2025.
• Overall Annualized Recurring Revenue (ARR) decreased by 2.6% year-over-year to $391.0 million.
• Excluding the PeopleSoft wind-down, ARR growth was 1.0%, indicating the core business ex-Dog is growing.

To be fair, the company is actively managing this down, as demonstrated by the fact that ex-PeopleSoft revenue increased by 2.5% year-over-year for the quarter. Still, the drag from the Dog segment is material to the top-line numbers you see reported.

Rimini Street, Inc. (RMNI) - BCG Matrix: Question Marks

You're looking at the new frontiers for Rimini Street, Inc., the areas where management is placing big bets for future growth, but which haven't yet delivered significant revenue scale. These are the classic Question Marks: high potential, high investment, and currently low market penetration.

Agentic AI ERP Innovation Solutions

The introduction of Rimini Agentic UX, an intelligent, AI-driven user engagement layer, represents a clear push into a high-growth market paradigm-Agentic AI ERP. This solution is designed to sit on top of existing ERP software, delivering automation without requiring costly upgrades or migrations. As of the third quarter of 2025, the financial impact is minimal; CEO Seth Ravin confirmed the impact on the Profit & Loss statement is currently negligible. However, the pipeline is forming, with the company reporting over two dozen client engagements for this new solution powered by ServiceNow AI in Q3 2025. Monetization is explicitly targeted for 2026, which confirms the high-cash-burn, low-return profile of a Question Mark in the near term.

Managed Services Expansion and Partnerships

Rimini Street, Inc. is actively expanding its Managed Services reach through strategic alliances, aiming to capture market share in adjacent technology spending. The partnership with ServiceNow, which fuels the Agentic AI ERP engagements, is seen as one of the company's largest long-term growth opportunities. Furthermore, a partnership was announced with Dayforce to provide Rimini Manage for Dayforce's suite. These moves are designed to increase the total addressable market beyond traditional third-party support. While the overall Annualized Recurring Revenue (ARR) for the company stood at $391.0 million as of September 30, 2025, these new service lines are still in the early adoption phase, consuming cash to build out the sales and delivery infrastructure.

U.S. Government Sector Entry

Gaining access to the U.S. Government sector is a significant strategic step, positioning Rimini Street, Inc. for a large, stable, high-growth market. The company secured approval as a supplier on the United States General Services Administration (GSA) Multiple Award Schedule (MAS) under contract 47QTCA25D00DT. This listing allows federal, state, local, and tribal government agencies to procure support and security services directly, potentially realizing savings of up to 50% compared to standard software vendor annual maintenance fees. The U.S. revenue segment was $46.3 million in Q3 2025, a decrease of 10.3% year-over-year, though the underlying revenue excluding the PeopleSoft wind-down decreased by 4.4%. The GSA listing is a necessary investment to convert this high-potential market segment into a Star, but revenue contribution in 2025 remains small relative to the total revenue of $103.4 million for the quarter.

Rimini Consult™ Services Development

Rimini Consult™ services are focused on advisory, resource planning, and roadmap development to help clients with digital transformation initiatives, often building on top of existing ERP systems. A concrete example of this service line's application is the University of Melbourne selecting Rimini Consult for Salesforce alongside Rimini Manage. The services tied to the Oracle PeopleSoft wind-down, which included Rimini Consult services, accounted for approximately 8% of total revenue for the year ended December 31, 2024. The current focus is shifting these advisory capabilities to newer platforms and the Agentic AI roadmap, which demands heavy upfront investment in expertise and methodology development, like the Rimini Smart Path™.

Here's a snapshot of the current state of the business units that fit the Question Mark profile, based on recent activity and financial context:

The overall company performance shows underlying strength outside of the wind-down, with Adjusted Calculated Billings up 6.7% year-over-year in Q3 2025, suggesting the market is responding to the core offering, but these new initiatives are the future growth engine requiring capital deployment now.

• Total new client sales TCV (>$1M deals) in Q3 2025: $63.1 million.
• Active Clients as of September 30, 2025: 3,155.
• Sales and Marketing expenses as a percentage of revenue in Q3 2025: 36.7%.
• Total company revenue in Q3 2025: $103.4 million.
• The company repaid the remaining outstanding $10 million balance on its revolving line of credit in Q3 2025.

You need to decide if the investment in these areas-Agentic AI, GSA access, and new partnerships-warrants the current cash burn to turn them into Stars, or if they risk becoming Dogs if market adoption lags past 2026.