Rimini Street Doubles Down on Agentic AI as It Pivots from Support Vendor to Innovation Partner
Q2 FY26 shows accelerating revenue, new AI governance launch, and a clear strategic shift toward agentic ERP solutions.
RMNIW · Earnings Call · 2026-07-30
The Innovation Pivot Gains Traction
Rimini Street’s Q2 FY2026 earnings call was less about quarterly numbers and more about a coming identity shift. CEO Seth Ravin framed the company’s strategy around “Agentic AI ERP” — deploying AI over existing ERP systems to avoid costly upgrades. This builds on a growing global narrative where enterprises are looking for AgenTic Enterprise solutions to extract value from legacy software. The company launched Rimini Govern for AI, a governance-as-a-service offering, completing an end-to-end AI stack alongside AgentWorks and Agentic UX.
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.
Ravin emphasized the “Rimini SmartPath” — Seth Ravin, CEO and President · 2026-07-30 methodology, which lets clients self-fund innovation by avoiding ERP upgrades. This is a clear departure from the company’s traditional third-party support role, aligning with a broader market shift toward generative AI capabilities and AI-native service models.
Financial Momentum and the Road to Rule of 20
Financially, the quarter was solid. Revenue hit $111.1 million, up 6.7% year-over-year, with adjusted revenue growth at 10% excluding PeopleSoft wind-down. Gross margin improved to 60.9% GAAP, and the company reiterated its full-year outlook of 4–6% growth and adjusted EBITDA margins of 12.5–15.5%. CFO Michael Perica noted that “we have now delivered four consecutive quarters of improved growth metrics,” supported by New logo growth — the company added 58 new logos in the quarter and 108 in H1. The balance sheet remains healthy, with $123.4 million in cash and debt reduced to $48.4 million.
On the go-to-market front, Ravin acknowledged sales force turnover as they retrain for AI-related conversations: “We're making some changes in the force, and I think some people who are more aptitude towards being able to discuss technology in ways that business people can understand are doing better.” — Seth Ravin, CEO and President · 2026-07-30 This is a typical friction point for companies pivoting from legacy support to higher-value AI services.
Partnerships and the Path Forward
A recurring theme was the growing importance of alliances, especially with ServiceNow. Ravin noted they share over 1,000 customers and are moving from “walk” to “jog” in partner maturity. The pipeline is also strengthening, with double-digit new bookings growth and a 30% close rate. The company reiterated its Rule of 20 guidance, confident that the forward-loaded costs in sales and marketing will pay off as revenue ratably catches up.
The European Commission’s decision on SAP’s licensing practices was also highlighted as a tailwind, opening more market for third-party support and AI overlays. Ravin called it a validation of the competitive environment — a positive signal for Rimini’s model.
While the stock itself has been volatile (the warrants are a high-risk instrument), the underlying business is showing steady improvement. The pivot to agentic AI is not just marketing — it’s already generating client wins and CEO confidence. The question is whether the market will ultimately reward this transformation.