[Management View]
Key metrics: Revenue of $103.4 million, down 1.2% YoY; 17 new client sales transactions totaling $63.1 million; record RPO backlog of $611.2 million.
Strategic priorities: Focus on support, optimize, and innovate solutions, including AgenTic AI ERP powered by ServiceNow.

[Outlook]
Performance guidance: Forward-looking guidance to be provided at the Analyst Investor Day on December 3, 2025.
Future plans: Expansion through government sector entry with GSA schedule, deepened indirect and partnership sales channels, and monetization of AI solutions starting in 2026.

[Financial Performance]
YoY trends: Revenue decreased by 1.2%, ARR decreased by 2.6%, gross margin declined to 59.9% from 60.7%.
QoQ trends: Billings increased by 2%, adjusted billings (excluding PeopleSoft) rose 6.7%.

[Q&A Highlights]
Question 1: I heard the mention of 24 AgenTeC AI wins with ServiceNow. Are these wins? What's an average deal size on these wins? How many of these did you have prior quarter versus this quarter? And then kind of what does the pipeline look like? (Line breaks here)
Answer: We have 26 customers on their way with the ServiceNow component, building AgenTic AI ERP first transactions. The goal is to have 26 great use cases by the end of the year. The P&L impact is currently negligible, with full monetization expected in 2026.

Question 2: What do you think it takes to get this company back to double-digit top-line growth? How do we get there? What are the components that get us there? (Line breaks here)
Answer: We are becoming the support and agentic AI ERP company, uniquely positioned to extend the life of existing systems and build the next generation of technology. This combination is expected to accelerate core business growth.

Question 3: Where is the indirect and channel now as a percent of revenues? Where do you think it's going? And thoughts on retention rates over the next few quarters? (Line breaks here)
Answer: We will provide detailed numbers at the Investor Day. Retention is expected to become extremely sticky with the deployment of AgenTic AI ERP over existing systems, avoiding the need for upgrades.

Question 4: Can you remind us of your role in the partnership with ServiceNow? Are you providing support services on top of the technology that ServiceNow is bringing? (Line breaks here)
Answer: ServiceNow provides the tool, and we create solutions called AgenTik AI ERP, layering them on top of existing ERP systems. We handle consulting, installation, and service, capturing most of the revenue.

Question 5: Are the 24 to 26 customers with your existing client base or generally new customers? (Line breaks here)
Answer: Most, if not all, are existing customers engaged to deploy the first set of solutions.

Question 6: Has there been any change in engagement levels with prospects post the Oracle settlement? (Line breaks here)
Answer: Yes, we have real cases where prospects and partners who were previously concerned about litigation have come back to us, indicating improved market access.

Question 7: Will litigation costs trend towards zero near term, and would there be any in 2026? Can Generative AI materially lower your cost of service delivery? (Line breaks here)
Answer: Litigation costs will continue but at a reduced level. We are focused on deploying AI to reduce internal costs and improve service, with a dedicated team and new global CIO leading these efforts.

Question 8: For the new GSA schedule, how do you expect this to impact your ability to do business with the US government? (Line breaks here)
Answer: The GSA schedule is a significant win, allowing us to sell directly to federal, state, local, and educational buyers without competitive procurement. We are engaged with federal agencies and partnering with Merlin Cyber.

Question 9: Should we expect any impact in your next quarters' results from the current shutdown? (Line breaks here)
Answer: No, we do not expect any impact based on the shutdown.

Question 10: Could you break out the number of net new customers versus cross-sell motion into your existing base for VMware? (Line breaks here)
Answer: The majority of VMware customers are net new logos, though there are a good number in the existing client base.

Question 11: Can you talk more about the partnership with American Digital? Is the goal to leverage the full stack solution to go after more customers or to better leverage cost-effective AI tools? (Line breaks here)
Answer: The partnership helps us provide a great solution for customers who don't want to upgrade, keeping them on their current platform and providing a win-win for us and American Digital.

[Sentiment Analysis]
Tone of analysts: Generally positive, with a focus on growth potential and strategic initiatives.
Tone of management: Confident and forward-looking, emphasizing strategic shifts and AI integration.

[Quarterly Comparison]
| Metric | Q3 2025 | Q3 2024 |
|----------------------------|---------------|---------------|
| Revenue | $103.4 million| $104.6 million|
| Gross Margin | 59.9% | 60.7% |
| ARR | $391 million | $401 million |
| Billings | $66.5 million | $65.2 million |
| Adjusted EBITDA | $10.1 million | $13.7 million |
| Net Income (Non-GAAP) | $6.9 million | $21.2 million |

[Risks and Concerns]
- Decline in gross margin and net income.
- Increased sales and marketing, and G&A expenses.
- Dependency on litigation settlement proceeds for cash flow.
- Potential impact of reorganization costs.

[Final Takeaway]
Rimini Street's Q3 2025 results reflect a strategic shift towards AI integration and expansion into government sectors. Despite a slight decline in revenue and profitability, the company shows promising growth in non-PeopleSoft core businesses and a strong RPO backlog. The settlement of Oracle litigation has opened new market opportunities, and the upcoming Analyst Investor Day is expected to provide further insights into future growth strategies and financial goals. Investors should monitor the company's progress in AI monetization and its ability to leverage strategic partnerships for sustained growth.