Rimini Street, Inc. (RMNI) DCF Valuation & Fundamental Primer
Rimini Street, Inc. (RMNI) trades at $16.31 with a market enterprise value of $1.47B and generated $429.8M in TTM revenue and $63.9M in free cash flow (filed 2026-07-30 (period ended 2026-06-30)). Our 5-year DCF model estimates an implied intrinsic value of $10.22 per diluted share ($891.9M DCF enterprise value, Grade: A · 80/100 · High-Quality Compounder).
SEC 10-K/10-Q DCF teardown of Rimini Street, Inc. (RMNI): $429.8M TTM revenue (3.0% growth), 60.1% GAAP gross margin, 14.9% FCF margin, 2.5% SBC/revenue, and Rule of 40 score of 17.9%.
Rimini Street, Inc. (RMNI) earns a "Pass" rating and an institutional Quality Score of 80/100 (Grade A). On $429.8M in baseline revenue (3.0% growth, 60.1% gross margin, 14.9% FCF margin), our 5-year DCF yields an Enterprise Value of $891.9M ($10.22/share vs. $16.31 market price). On the R&D Return Benchmark, RMNI ranks #1 of 174 (Harvesters · Grade AAA, 7762904.81× return).
Gross Margin & Unit Economics: Rimini Street, Inc. operates at a 60.1% gross margin on $429.8M revenue (12.6 pts below the Software - Application median of 72.7%).
R&D Productivity (Harvesters · Grade AAA): Investing 0.0% of revenue in R&D ($0) generates $7762904.81 of incremental gross profit per R&D dollar (Rank #1 of 174).
Rule of 40 & Cash Conversion: Combining 3.0% top-line growth with 14.9% FCF margin yields a 17.9% Rule of 40 score (vs. 47.2% cohort median) and $891.9M DCF Enterprise Value.
3-Statement Financial Schedule & 5-Year Horizon
Synchronized directly with the 3-Year Operating Statement (60.1% Gross Margin · 3.0% Growth)
| Income Statement Line | Year 1 (2026) | Year 2 (2027) | Year 3 (2028) |
|---|---|---|---|
| Revenue | $429.8M | $442.7M | $456.0M |
| Cost of Revenue (COGS) | ($171.6M) | ($174.5M) | ($177.5M) |
| Gross Profit & Margin | $258.2M (60.1%) | $268.2M (60.6%) | $278.5M (61.1%) |
| Research & Development (R&D) | $0 | $21.2M | $21.0M |
| Sales & Marketing (S&M) | $171.1M | $169.2M | $167.0M |
| General & Administrative (G&A) | $66.5M | $65.8M | $65.0M |
| Operating EBIT | $20.5M (4.8%) | $11.9M (2.7%) | $25.5M (5.6%) |
| Adjusted EBITDA | $24.6M (5.7%) | $16.3M (3.7%) | $30.1M (6.6%) |
3 Key Underwriting Risks
Structural sensitivities monitored in the 3-Statement Financial Engine
Value-Creation Levers · Quantified Statement Impact
Apply any lever below to write its operating assumptions directly into the 3-Statement Model
Automate cloud hosting & support workflows to lift gross margin from 60.1% to 65.1%.
Align R&D intensity and ASC 350-40 capitalization to the R&D Compounders cohort median, recapturing $8.6M in annual EBITDA.
Lift net dollar retention and expansion velocity by +300 bps, compounding Year 3 revenue to $483.0M.
Rimini Street, Inc. (RMNI) 3-Scenario DCF Valuation Range
Stress-test RMNI's 5-year growth, target FCF margin, WACC, terminal methodology, and SBC/dilution friction in real time.
Simulate how deploying Gemini workflow automation and autonomous engineering expands RMNI's Gross Margin, FCF Margin, DCF share price, and 2x2 R&D Return Quadrant.
Split between 5-Year Explicit Cash Flows and Discounted Terminal Value
2D Institutional Valuation Sensitivity Heatmap
Implied share price & upside/downside spread across 25 valuation states (Current Price: $16.31).
| WACC \ Terminal | 1.5% | 2.0% | 2.5% | 3.0% | 3.5% |
|---|---|---|---|---|---|
| 8.5% | $11.26 -31% | $11.88 -27% | $12.60 -23% | $13.46 -17% | $14.48 -11% |
| 9.3% | $10.24 -37% | $10.73 -34% | $11.29 -31% | $11.94 -27% | $12.70 -22% |
| 10.0% | $9.40 -42% | $9.79 -40% | $10.24 -37% | $10.75 -34% | $11.33 -31% |
| 10.8% | $8.70 -47% | $9.02 -45% | $9.38 -43% | $9.78 -40% | $10.25 -37% |
| 11.5% | $8.10 -50% | $8.37 -49% | $8.66 -47% | $8.99 -45% | $9.37 -43% |
Institutional Software Quality Scorecard (80/100 · Grade A)
Strong fundamentals, above-average cash generation, and robust competitive positioning.
Elite deferred revenue float; FCF exceeds operating income by >20%
Minimal dilution friction; management compensation aligned with shareholders
Sub-par gross margins; higher cost of delivery or hardware/services mix
Positive net cash cushion; self-funding operations with zero insolvency risk
Core Investment Strengths & Moats
- High-grade cash conversion: FCF is 311% of EBIT driven by upfront annual collections
- Low dilution friction: SBC is only 2.5% of revenue
- Net cash positive: $76.9M balance sheet buffer
Key Operational & Dilution Risks
- Lower software gross margins (60.1%), indicating higher hosting or service delivery drag
Compare Rimini Street, Inc. (RMNI) against the software universe on the 2x2 R&D Return vs. R&D Intensity matrix.
Reverse-DCF Solver: What Growth is Priced Into RMNI?
The current share price demands 15.2% 5-year CAGR (18.5% net of SBC & dilution)—a +12.2% acceleration over historical run-rate (3.0%). Any growth slowdown risks valuation multiple contraction.
Headline Reverse-DCF ignores Stock-Based Compensation (2.5% of revenue) and annual share dilution (0.7%/yr). Accounting for both requires 18.5% 5-year revenue CAGR to justify $16.31/sh on a true per-share economic cash flow basis.
Rimini Street, Inc. (RMNI) 5-Year Fundamental Forecast
| Statement Line Item | TTM Audited Base | TTM | Y1 | Y2 | Y3 | Y4 | Y5 |
|---|---|---|---|---|---|---|---|
| Revenue | $429.8M | $429.8M | $442.7M | $456.0M | $469.8M | $483.9M | $498.5M |
| Gross Profit | $258.2M | $258.2M | $265.9M | $273.9M | $282.2M | $290.7M | $299.4M |
| Operating Income (EBIT) | $20.5M | $20.5M | $21.2M | $21.8M | $22.5M | $23.1M | $23.8M |
| Stock-Based Compensation (SBC) | $10.8M | $10.8M | $11.2M | $11.5M | $11.8M | $12.2M | $12.6M |
| Unlevered Free Cash Flow (FCF) | $63.9M | $63.9M | $65.8M | $67.8M | $69.8M | $71.9M | $74.1M |
| SBC-Adjusted True Cash Flow | $53.1M | $53.0M | $54.6M | $56.3M | $58.0M | $59.7M | $61.5M |
Software - Application Peer Comparables & Rule of 40 Regression
Rule of 40 vs. EV / Revenue Multiple Regression
OLS Fit: EV/Rev = 6.9 + 0.05 × (Rule of 40) · R² = 12%Stocks below the gold regression line trade at a discount relative to their Rule of 40 compounding efficiency.
| Company | Ticker | Market Cap | TTM Revenue | Gross Margin | FCF Margin | Rule of 40 | SBC % Rev | EV / Rev |
|---|---|---|---|---|---|---|---|---|
| Rimini Street, Inc. | RMNI | $1.55B | $429.8M | 60.1% | 14.9% | 17.9% | 2.5% | 3.4× |
| Grab Holdings Limited | GRAB | $20.18B | $2.80B | 42.0% | 27.7% | 84.0% | 10.0% | 6.3× |
| Figma, Inc. | FIG | $18.07B | $749.0M | 88.3% | -9.2% | 39.1% | 126.5% | 23.5× |
| Full Truck Alliance Co. Ltd. | YMM | $71.73B | $11.24B | 86.6% | 25.8% | 70.2% | 4.4% | 5.9× |
| ServiceTitan, Inc. | TTAN | $9.97B | $771.9M | 64.9% | 2.0% | 30.5% | 21.2% | 12.5× |
| InterDigital, Inc. | IDCC | $8.65B | $868.5M | 80.5% | 30.6% | 55.3% | 5.3% | 9.9× |
| OPEN TEXT CORP | OTEX | $8.11B | $5.30B | 63.5% | 13.0% | 23.8% | 2.0% | 2.6× |
| Peer Cohort Median Benchmark (N=6) | 72.7% | 19.4% | 47.2% | 7.6% | 8.1× | |||
EV / Revenue Multiple Compression Stress Test
| Multiple Scenario | EV / Revenue | Implied Enterprise Value | Implied Equity Value | Implied Share Price | Delta vs Current |
|---|---|---|---|---|---|
| Current Multiple | 3.4× | $1.47B | $1.55B | $16.31 | 0.0% |
| -20% Multiple Compression | 2.7× | $1.18B | $1.25B | $13.21 | -20.0% |
| -35% Multiple Compression | 2.2× | $955.4M | $1.03B | $10.89 | -35.0% |
| Software Baseline Floor (5.0× EV/Rev) | 5.0× | $2.15B | $2.23B | $23.47 | +46.2% |
Frequently Asked Questions: Rimini Street, Inc. (RMNI) Valuation
What is Rimini Street, Inc. (RMNI)'s intrinsic DCF valuation and implied share price?
Based on audited SEC 10-K/10-Q filings and a 5-year 3-statement discounted cash flow (DCF) model, Rimini Street, Inc. (RMNI) has a Base Case implied value of $10.22 per share (with a Bear Case of $6.53 and a Bull Case of $14.13), compared to its current price of $16.31. The model discounts projected free cash flows at a 10.0% WACC and a 2.5% terminal growth rate.
What is Rimini Street, Inc. (RMNI)'s Rule of 40 score and Free Cash Flow margin?
Rimini Street, Inc. achieves a Rule of 40 score of 17.9%, combining a 3.0% revenue growth run-rate with a 14.9% TTM free cash flow margin on $429.8M in trailing twelve-month revenue. In the Software - Application peer cohort, the median Rule of 40 benchmark is 47.2%.
What revenue growth rate is priced into RMNI stock according to Reverse-DCF analysis?
At $16.31 per share (Enterprise Value of $1.47B), our Reverse-DCF solver indicates the market is pricing in a 5-year implied revenue CAGR of 15.2%, compared to Rimini Street, Inc.'s historical CAGR of 3.0%. Overall market expectations are rated as "Aggressive Growth Expectations Priced In".
What is Rimini Street, Inc. (RMNI)'s R&D Return Score and innovation productivity?
Rimini Street, Inc. (RMNI) recorded N/A in FY R&D expense (tracked from SEC filings) and $254.6M in FY gross profit. It is currently unranked on the letter-grade leaderboard (pending full multi-year XBRL R&D history).
How does Rimini Street, Inc. compare to Software - Application peers?
Rimini Street, Inc. (RMNI) earns an institutional Software Quality Score of 80/100 (Grade A — High-Quality Compounder). Across its Software - Application peer group (GRAB, FIG, YMM, TTAN, IDCC), the cohort trades at a median EV/TTM Revenue multiple of 8.1× and a median gross margin of 72.7%.
How does Stock-Based Compensation (SBC) impact Rimini Street, Inc. (RMNI)'s valuation?
Rimini Street, Inc. recorded $10.8M in TTM stock-based compensation (2.5% of revenue). When treating SBC as a cash-equivalent compensation expense, Rimini Street, Inc.'s SBC-adjusted free cash flow yield is 3.4%, scoring 25/25 on our Shareholder Dilution Friction pillar.