Rimini Street, Inc.RMNI
Rimini Street, Inc. Leases Disclosure
LEASES
Operating Leases
The Company has operating leases for real estate and equipment with an option to renew the leases in the range of one month to five years. Some of the leases include the option to terminate the leases upon a specified notice period with a penalty. The Company’s leases have various remaining lease terms ranging from 2 months to 9.3 years. The Company’s lease agreements may include renewal or termination options for varying periods that are generally at the Company’s discretion. The Company’s lease terms only include those periods related to renewal options the Company believes are reasonably certain to exercise. The Company generally does not include these renewal options as it is not reasonably certain to renew at the lease commencement date. This determination is based on consideration of certain economic, strategic and other factors that the Company evaluates at lease commencement date and reevaluates throughout the lease term. Some leases also include options to terminate the leases and the Company only includes those periods beyond the termination date if it is reasonably certain not to exercise the termination option.
The Company uses a discount rate to calculate the ROU asset and lease liability. As most of the Company’s leases do not provide an implicit rate, the Company uses an estimated incremental borrowing rate based on the information available at the lease commencement date in determining the present value of future payments.
Some leasing arrangements require variable payments that are dependent on usage or may vary for other reasons, such as payments for insurance and tax payments. The variable portion of lease payments is not included in the Company’s ROU assets or lease liabilities. Rather, variable payments, other than those dependent upon an index or rate, are expensed when the obligation for those payments is incurred and are included in lease expenses recorded in selling and administrative expenses on the Consolidated Statements of Operations.
The Company has lease agreements with both lease and non-lease components that are treated as a single lease component for all underlying asset classes. Accordingly, all expenses associated with a lease contract are accounted for as lease expenses.
The Company has elected to apply the short-term lease exception for all underlying asset classes. That is, leases with a term of 12 months or less are not recognized on the balance sheet, but rather expensed on a straight-line basis over the lease term. The Company’s leases do not include significant restrictions or covenants, and residual value guarantees are generally not included within its operating leases.
The components of operating lease expense and supplemental balance sheet information for the years ended December 31, 2025, 2024 and 2023 were as follows (in thousands):
| 2025 | 2024 | 2023 | |||||||||||||||
| Operating lease expense related to ROU assets and liabilities | $ | 5,060 | $ | 4,566 | $ | 4,483 | |||||||||||
| Other lease expense | 829 | 695 | 512 | ||||||||||||||
| Total lease expense | $ | 5,889 | $ | 5,261 | $ | 4,995 | |||||||||||
Other information related to leases as of December 31, 2025 and 2024 was as follows (in thousands):
| Supplemental Balance Sheet Information | 2025 | 2024 | |||||||||
| Operating lease right-of-use assets, noncurrent | $ | 21,371 | $ | 7,161 | |||||||
| Operating lease liabilities, current | $ | 4,984 | $ | 3,967 | |||||||
| Operating lease liabilities, noncurrent | 18,843 | 7,064 | |||||||||
| Total operating lease liabilities | $ | 23,827 | $ | 11,031 | |||||||
The increase in ROU assets and liabilities year over year was driven primarily by new operating leases in India and Malaysia, which contributed $14.5 million and $1.0 million to the ROU asset balance as of December 31, 2025, respectively, and $14.1 million and $1.2 million to the ROU liability balance as of December 31, 2025, respectively.
As of December 31, 2025, the Company did not have any additional material operating leases that have not yet commenced.
| Weighted Average Remaining Lease Term | Years | ||||||||||
| Operating Leases | 6.7 | ||||||||||
| Weighted Average Discount Rate | |||||||||||
| Operating Leases | 7.6 | % | |||||||||
Maturities of operating lease liabilities as of December 31, 2025 were as follows (in thousands):
| Years Ending December 31: | ||||||||
| 2026 | $ | 6,608 | ||||||
| 2027 | 4,350 | |||||||
| 2028 | 4,041 | |||||||
| 2029 | 3,003 | |||||||
| 2030 | 2,209 | |||||||
| Thereafter | 10,995 | |||||||
| Total future undiscounted lease payments | 31,206 | |||||||
| Less imputed interest | (7,379) | |||||||
| Total | $ | 23,827 | ||||||
For the years ended December 31, 2025 and 2024, the Company paid $6.1 million and $5.7 million, respectively, for operating leases.
Finance Leases
The Company has, at times, entered into various financing lease agreements for certain computer equipment. As of December 31, 2025, there were no finance leases outstanding.About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.