Rimini Street, Inc.RMNI
Rimini Street, Inc. Segments Disclosure
SEGMENT AND GEOGRAPHIC INFORMATION
Segment Information
The Company derives revenues from clients primarily by providing subscription support services for ERP and other software systems, and to a lesser extent, software licensing and related maintenance and professional services. The service period for a subscription is variable and the services are provided to clients in a similar manner regardless of product or customer type. See Note 2 for further information regarding the Company’s revenue recognition policies.
The Company’s chief operating decision maker (the “CODM”) is the Company’s President, Chief Executive Officer and Chairman of the Board.
The Company operates as one operating segment. Operating segments are defined as components of an enterprise for which separate financial information is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and assess performance. While the Company has multiple product offerings and employees in multiple countries, the Company’s business operates as one operating segment because most of the Company's service offerings are subscription support services which are provided in a nearly identical manner, and the Company’s CODM evaluates the Company’s financial information and resources, and assesses the performance of these resources, on a consolidated basis.
The CODM assesses the performance of the Company and decides how to allocate resources based on consolidated net income (loss), which is identical to the information presented in the accompanying consolidated statements of operations and comprehensive loss. The CODM uses net income (loss) to monitor actual results against the budget. The measure of segment assets is reported on the balance sheet as total assets. See Note 2 for further information regarding the Company’s accounting policies.
The following table presents selected financial information with respect to the Company’s single operating segment for the years ended December 31, 2025, 2024 and 2023 (in thousands):
| 2025 | 2024 | 2023 | ||||||||||||||||||
| Revenue | $ | 421,536 | $ | 428,753 | $ | 431,496 | ||||||||||||||
| Less: | ||||||||||||||||||||
| Cost of revenue, adjusted | ||||||||||||||||||||
Employee compensation and benefits (a) | 98,249 | 103,891 | 101,728 | |||||||||||||||||
| Engineering consulting costs | 27,929 | 26,225 | 26,738 | |||||||||||||||||
| Administrative allocations | 18,046 | 16,267 | 14,540 | |||||||||||||||||
All other costs (b) | 20,081 | 19,198 | 17,332 | |||||||||||||||||
| Total cost of revenue, adjusted | 164,305 | 165,581 | 160,338 | |||||||||||||||||
Sales and marketing, adjusted (c) | 147,580 | 147,528 | 139,495 | |||||||||||||||||
General and administrative, adjusted (c) | 61,684 | 64,301 | 62,714 | |||||||||||||||||
| Stock-based compensation expense | 11,071 | 9,545 | 12,522 | |||||||||||||||||
| Depreciation and amortization expense | 3,861 | 3,596 | 2,827 | |||||||||||||||||
| Reorganization costs | 4,491 | 5,737 | 59 | |||||||||||||||||
| Litigation costs and related recoveries, net | (31,365) | 64,593 | 9,776 | |||||||||||||||||
| Interest expense | 6,151 | 6,305 | 5,522 | |||||||||||||||||
| Other income, net | (1,873) | (1,790) | (2,989) | |||||||||||||||||
| Income taxes | 18,533 | (371) | 15,173 | |||||||||||||||||
| Segment net income (loss) | 37,098 | (36,272) | 26,059 | |||||||||||||||||
| Reconciliation of profit or loss | ||||||||||||||||||||
| Adjustments and reconciling items | — | — | — | |||||||||||||||||
| Consolidated net income (loss) | $ | 37,098 | $ | (36,272) | $ | 26,059 | ||||||||||||||
(a) Adjusted to exclude stock-based compensation expense.
(b) Adjusted to exclude depreciation and amortization expense.
(c) Adjusted to exclude stock-based compensation expense as well as depreciation and amortization expense.
Geographic Information
The Company attributes revenues to geographic regions based on the location of its clients. The following shows revenues by geographic region for the years ended December 31, 2025, 2024 and 2023 (in thousands):
| 2025 | 2024 | 2023 | |||||||||||||||
| United States of America | $ | 193,043 | $ | 209,995 | $ | 219,975 | |||||||||||
| International | 228,493 | 218,758 | 211,521 | ||||||||||||||
| Total revenue | $ | 421,536 | $ | 428,753 | $ | 431,496 | |||||||||||
For the years ended December 31, 2025, 2024 and 2023, Japan represented 12%, 11% and 10% of total revenue, respectively.
No customers represented more than 10% of revenue for the years ended December 31, 2025, 2024 and 2023. As of December 31, 2025 and 2024, the Company had no customers greater than 10% of total net accounts receivable.
The Company tracks its assets by physical location. The following shows the net carrying value of the Company’s property and equipment by geographic region as of December 31, 2025 and 2024 (in thousands):
| 2025 | 2024 | ||||||||||
| United States of America | $ | 6,396 | $ | 7,007 | |||||||
| Brazil | 2,326 | 754 | |||||||||
| India | 592 | 1,432 | |||||||||
| Rest of World | 925 | 698 | |||||||||
| Total property and equipment, net | $ | 10,239 | $ | 9,891 | |||||||
Prior year amounts of property and equipment for India and Brazil have been reclassified from Rest of World for consistency with the current year presentation. This reclassification had no effect on the Consolidated Financial Statements.
The following shows the operating lease ROU assets by geographic region as of December 31, 2025 and 2024 (in thousands):
| 2025 | 2024 | ||||||||||
| United States of America | $ | 2,948 | $ | 4,112 | |||||||
| India | 15,124 | 1,390 | |||||||||
| Malaysia | 1,009 | — | |||||||||
| Brazil | 967 | 1,193 | |||||||||
| Rest of World | 1,323 | 466 | |||||||||
| Total operating lease right-of-use assets | $ | 21,371 | $ | 7,161 | |||||||
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.