Rimini Street Q2-2026 earnings conference call

Good afternoon, ladies and gentlemen, and welcome to the Remini Street Q2 2026 earnings conference call. At this time, online are in listen-only mode. Following the presentation, we will conduct a question-and-answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on Thursday, July 30, 2026. And I would now like to turn the conference over to Dean Paul, VP Treasurer and Investor Relations. Please go ahead.

Thank you, Operator. I'd like to welcome everyone to Rameen Street's fiscal second quarter 2026 earnings conference call. Joining me today are Seth Raven, our CEO and President, and Michael Parika, our CFO. Today we issued our earnings press release for the second quarter ending June 30, 2026, which is available on our website under the Investor Relations section. A reconciliation of GAAP to non-GAAP financial measures are included in the tables following the financial statements in the press release. Additional explanations of these measures and why we believe they are useful can also be found in the press release and on our website under About Non-GAAP Financial Measures and Certain Key Metrics. As a reminder, today's discussion will include forward-looking statements about our operations that reflect our current outlook. These statements are subject to risk and uncertainty that could cause actual results to differ materially from those discussed today. And we encourage you to review our most recent SEC file, including the Form 10-Q file today, for a detailed discussion of the risk factors that may affect our future results or stock price. Now, before taking questions, we will begin with prepared remarks. With that, I'd like to turn the call over to Seth.

Thank you, Dean, and thank you, everyone, for joining us. Second quarter results. At our December 2025 Investor Day, we shared our vision, strategy, and plan for evolving into an innovation company and returning to growth and improved profitability. We provided fiscal year 2026 guidance for achieving Rule of 20 results. We have now delivered four consecutive quarters of improved growth metrics in alignment with the vision, strategy, and plan we shared at the 2025 Investor Day. And we reiterate our Rule of 20 guidance for fiscal 2026. Second quarter results demonstrate strong demand for our core Remini support offering. increasing adoption of our broader enterprise software service portfolio and improving sales execution. Sales transactions included household brands in many countries, and we sold across our solutions portfolio. During the quarter, we closed 14 new client transactions with over $1 million in TCV, totaling $30 million and added 58 new logos. And for the first half of 2026, we closed 25 new client transactions with over 1 million in TCV, totaling 62.9 million, and added 108 new logos. Partnerships and alliances sourced or assisted with the closing of a meaningful number of sales transactions in the quarter. Also during the quarter, clients continue their adoption of ReminiStreet's AI solutions that are helping them solve real business problems using innovative technology quickly and economically deployed over the top of their existing ERP software and releases without any need for ERP software upgrades, migrations, or replatforming. Our clients used the collective savings from switching to Rimini Street annual maintenance on their ERP software and avoided costly, low-value ERP upgrades and migrations to fund their Rimini AI ERP solution deployments. And they did not have to spend beyond their current IT budgets for the innovation, driving increased growth and profitability. Organizations today are under increasing pressure to innovate and modernize their enterprise systems while managing cost, risk, and disruption. Many are finding that large-scale ERP replacements are expensive, time-consuming, and often fail to deliver the expected business value. Real innovation is not about installing a software vendor's Next.ai release. It's about reducing total operating costs, improving profitability, and enhancing competitive advantage. We help organizations achieve these goals by avoiding unnecessary ERP software upgrades, migrations, or replatforming, and instead deploying ReminiStreet's innovative, agentic AI ERP solutions over the top of existing ERP software to deliver faster, better, cheaper, and more agile ERP process execution funded within the current IT budget. As we continue to expand sales and cross-sales of our entire service portfolio, Our focus remains on enabling clients to extract more value from their existing systems and achieving innovation and modernization that lowers total cost of operations, improves profitability, and enhances competitive advantage. Leadership in Agentec AI ERP You're helping more and more clients set a new vision, technical, and functional path forward from their current vendor ERP software release. a path that does not require any return to the vendor for a future upgrade or migration to their current ERP software release in order to achieve innovation or modernization. The client can innovate and modernize their existing ERP software and other enterprise software using agentic AI ERP solutions deployed easily economically right over the top of their existing software releases. We guide clients through this path using our proprietary and proven three-step methodology called the Ramini SmartPath. Our methodology is being used by clients to self-fund and accelerate innovation, especially AI and automation, without undergoing costly, risky, or unnecessary ERP upgrades or rip-and-replace migrations. by leveraging and modernizing existing IT environments, all without operational disruption. Today, we rounded out our end-to-end AI capabilities with the launch and immediate availability of Remini Govern for AI, our new governance-as-a-service solution. Remini Govern for AI is the newest offering in our governance, risk, and compliance solutions. The service brings together AI governance capabilities, deep enterprise application expertise, and global managed services that enable organizations to control, secure, and scale AI agent activity with confidence. With Remedy Governed for AI, organizations can now confidently and securely deploy AI agents and scale AI agent operations with the oversight, control, visibility, and measurement needed to accelerate adoption, measure ROI, and achieve business outcomes that include reduced total operating costs, improved profitability, and enhanced competitive advantage. As Ray Wang is speaking with the launch of Remini Govern for AI, quote, As organizations move from AI experimentation to enterprise-scale adoption, they need trusted visibility, governance, and other Remini AI solutions include Remini Agente QS, Our AI-driven experience and automation layer that is deployed right over existing client ERP software and turns their ERP software from a static system of record into an autonomous system of action, delivering innovation and modernization in weeks, not years, and at a fraction of the cost of a major upgrade, migration, or replatforming project. Remini Agentworks Our comprehensive AI agent lifecycle service that enables organizations to move from AI concepts to trusted production deployment. The service helps clients define agent strategies, design and build AI agents and workflows, validate interoperability, form functional and security, and certify operational readiness. As part of this process, Remini Agent Works helps assure, before any approved deployment, that AI agents operate within approved business, accuracy, security, and compliance guardrails, and meet stringent requirements for governance, monitoring, and production operation. Remini Agent Works tests and certifies both AI agents developed by Remini Street and those from other third parties. Remini AgentWorks, Remini Agentic UX, and Remini Govern for AI provide organizations with an end-to-end set of services to design, deploy, govern, and optimize AI agent operations across mission-critical enterprise environments. We continue strengthening and maturing our indirect sales ecosystem, including adding new partner managers for strategic technology, services, and channel relationships and completed new partnership agreements. These partnerships extend our reach, bring complementary expertise, and help clients execute modernization strategies that combine Remini Street support with world-class platforms, cloud services, and AI tooling. The ecosystem is becoming a strategic multiplier for us, accelerating adoption, expanding influence, and enabling shared go-to-market opportunities. We are helping clients across many industries, geographies, and software protect and optimize their core ERP systems while funding innovation and modernization, including fixing broken processes, automating workflows and functions, and using AI to solve specific business challenges. all without disruptive, costly, and risky ERP software upgrades, migrations, or re-platforming. Here are some examples of how our solutions are reducing operating costs and enabling innovation, transformation, and improved competitive advantage for clients across different geographies and industries. An Indonesian interior contractor and furniture manufacturer selected Ramini support for SAP ECC6 to strengthen business continuity, avoid a costly and disruptive SAP migration, and redirect resources towards digital transformation and innovation. This wind further demonstrates the ongoing demand for our proven model of reducing operating costs while creating capacity for growth and innovation. OneNZ, a New Zealand telecommunications company, chose Rumini's support to optimize its Oracle environment, including Siebel's CRM and Oracle Database, while accelerating its AI transformation strategy. The company describes Remini Street as a trusted, quote, co-innovation partner, end quote, enabling it to redirect capital and talent towards future growth and its vision of becoming a world-leading AI-enabled telecommunications provider. Medical Micro Instruments An Italian robotic microsurgery company leveraged Remini Consult for Salesforce to maximize ROI on its technology investment and help eliminate unnecessary third-party software costs, implement critical training and certification workflows, and develop a long-term Salesforce roadmap to support the company's global growth and continued innovation in life-enhancing surgical technology. The client noted the strategic value Ramini Street Cochlear Limited, an Australian hearing technology leader, chose Ramini's support for Oracle to gain greater control and flexibility over its ERP roadmap, avoid vendor-driven upgrade cycles, and free critical resources for digital transformation and new AI-powered customer service and analytics initiatives. The company noted moving to Rimini Street gave us back control of our ERP platform and took us out of the vendor-driven upgrade cycle. Summary We are focused on growth acceleration, improving profitability, and shareholder return. We will continue executing against our vision, strategy, and plan laid out the December 2025 Investor Day. Our vision, strategy, and plan leverage Rumini Street's proprietary and proven SmartPath methodology, along with our comprehensive service portfolio and capabilities, to help a growing number of clients regain control of their technology roadmap and spending while also achieving modernization and innovation that drives down total operating costs, improves profitability, and enhances competitive advantage all within their current. Over to you, Michael.

Thank you, Seth, and thank you for joining us, everyone. Q2 results. We delivered strong second quarter 2026 results as positive growth drivers over the past four quarters has lifted revenue and revenue retention rates on a year-over-year basis. We continue to invest strategically in new AI-driven innovation offerings while streamlining global operations to enhance scale and efficiency. Looking ahead, we remain focused on profitable growth, discipline, cost management, and maintaining a strong balance sheet. During the quarter, we prepaid $10 million of debt, reduced outstanding debt to $48.4 million, and we maintained a healthy total cash balance of $123.4 million as of June 30, 2026. Revenue for the second quarter was $111.1 million, up 6.7% year-over-year. Excluding revenue for PeopleSoft products, the adjusted revenue grew 10% year-over-year. Foreign exchange movements were negligible in the quarter, reducing second quarter revenue by approximately 0.2%. Annualized recurring revenue, excluding PeopleSoft products, was $401.1 million in the second quarter, an 8.1% increase year-over-year. Our revenue retention rate for service subscriptions, which represent 93% of total revenue, was 90%, with approximately 84% of subscription revenue non-cancelable for at least 12 months. Billings for the second quarter were $100.9 million, down 8.8% year-over-year. Excluding billings associated with support services for PeopleSoft products, The year-over-year decline was 8%. The past two quarters included timing differences related to client renewables, so first-half results provide a more complete view. As first-half billings grew 3.2% year-over-year and excluding people-soft products grew 4.7%. Gross margin for the second quarter was 60.9% compared to 60.4% in the prior year period and rose 190 basis points sequentially from the first quarter to again exceed our key objective above 60%. On a non-GAAP basis, gross margin was 61.3%, up from 60.8% in the prior year second quarter. Operating expenses. Sales and marketing expense was 38.5% of revenue in the second quarter, compared to 36.5% in the prior year period. On a non-GAAP basis, sales and marketing expense was 37.6% of revenue, up from 35.5% a year ago. The increase reflects our investments in go-to-market of our expanded and new service offerings during the quarter. General and administrative expenses were 15.6% of revenue in the second quarter, down from 60.2% in the prior year period. On a non-GAAP basis, G&A was 14.5% of revenue, down from 14.9% in the prior year second quarter. Net income attributable to shareholders for the second quarter was $2.4 million, or $0.03 per diluted share, compared to $0.32 per diluted share in the prior year period. Last year's net income benefited from a one-time pre-tax gain of $37.9 million associated with the Oracle settlement. Therefore, on a non-GAAP basis, net income was $5.9 million, or $0.06 per diluted share, versus $0.08 per diluted share a year ago. Adjusted divot, as defined in our earnings release, was $10.5 million for the second quarter, representing 9.5% of revenue. This compares to $14 million, or 13.4% of revenue, in the prior year second quarter. Balance sheet. We ended the second quarter of 2026 with a cash balance of $123.4 million, up from $101.3 million in the prior year's second quarter. Operating cash flow for the quarter decreased by $1.6 million, compared to a decrease of $17.8 million in the prior year period. Year-to-date operating cash flow was $22.9 million, representing a cash flow conversion of 118%, placing us in a strong position to achieve our goal laid out at our recent investor day of 90% plus conversion on an annual basis. Deferred revenue as of June 30, 2026, was $267.1 million, up from $262.9 million in the prior year's second quarter. Remaining performance obligations, RPO, which include billed deferred revenue, contract assets, and non-cancelable future revenue, were $636.9 million as of June 30, 2026, an increase of 8%. Excluding RPO associated with support services for PeopleSoft products, adjusted RPO increased 8.8%, reflecting our continued growth momentum in new bookings and longer-duration client commitments. PeopleSoft support wind-down update. We continue to execute the wind-down of our PeopleSoft support services. PeopleSoft revenue declined to 3% of total revenue this quarter, down from 6% a year ago and 8% when we began the transition in 2024, reflecting steady progress toward completing the wind-down by July, 2028. Business Outlook. The company expects third-quarter 2026 revenue to be in the range of $110 to $112 million. The company also is reiterating its full-year 2026 outlook, which calls for revenue growth of 4% to 6% and adjusted EBITDA margins of 12.5% to 15.5% and is consistent with the goal of achieving the Rule of 20 for fiscal year 2026. For additional information, please see the disclosures in our Form 10-2 filed today, July 30, 2026, with the U.S. Securities and Exchange Commission. This concludes our prepared remarks. operator. We'll now take questions.

Ladies and gentlemen, we will now begin the question and answer session. Should you have a question, please press star followed by the one on your telephone keypad. And should you wish to cancel your request, please press star followed by the two. If you're using a speakerphone, just lift the handset before pressing any keys. One moment piece for your first question. Thank you. And your first question comes on the line of Richard Balgree from Roth Capital Partners. Please go ahead.

Thanks. Can you talk about how much maybe to date and how much ahead AI should be able to impact your cost model? We're hearing from people it's not just faster development or lower service costs, but things like virtual sales development reps are improving sales efficiencies and things. So sort of where are we at? How much could that impact your sort of adjusted EBITDA margins over the long term? Thanks.

Sure, Rich. I think internally, when you talk about internal usage and deployment of AI, we, like everybody else, are looking for good use cases. We're using it for sales. We're using it to gather broad amounts of information about prospects very quickly and present it in a way that sales reps can see what's happening at a prospect before they ever pick up the phone and call them. That's certainly a huge improvement in time and productivity. We also, of course, use tools like Clary, which are excellent in the sales side on top of Salesforce to be able to understand and predict close rates. And it's very accurate management. When you have sellers all over the world working different types of transactions, it makes it much easier to manage at a very large level. And, of course, we're using AI in finance. We're continuing to deploy those items.

And so I think overall, if you look at the more thoughtful way that we're using it, not just throwing AI all over the place, I think that, yes, we will receive a meaningful reduction in total operating costs and more leverage as we move forward in the coming years. and hey can you talk a little bit about if any color you can give us some sort of top-of-the-funnel prospect you know changes it's been maybe a year now I guess since the big you know settlement with Oracle sort of curious how that top of the funnel growth is going whether it's mostly driven by sales headcount increases or whether you really know there's some natural growth of the addressable market as a willingly addressable market I guess we can look at it? Thanks.

Well, I think you're looking at a few different things. One, there's no doubt that our change in the world of litigation, our change in the world of putting AI services and the evolution into being an innovation company have driven a lot more customers to us. I think there other elements. Number one, Rich, the fact that we are now giving customers a path where they can leave the vendor's maintenance, forego upgrades, and go on a path that has innovation and modernization in it where they do not have to think about a potential return to the vendor's roadmap at some point down the line has been a game changer, I think, in terms of overall demand generation to the point you could say there are deals that we lost years ago where customers said we love the support, we know we're going to get better service, but we're just afraid to leave the vendor's path because we think we might have to go back someday. Now that's changing, and those customers, we have several of them that have signed with us because now they're confident they don't need to make that return trip to the vendor, the boomerang effect that some refer to, and I think that that is the single biggest driver of the top of the funnel, and I think there's some other macro issues. I mean, with SAP setting deadlines, we have all sorts of release deadlines happening in the software world, and those deadlines are driving customers to send the life of their products because they're not ready to make a change. They don't see the value, and they feel like they're being pressured from every angle. Those are the much higher top-of-the-funnel experience.

The last for me to be on the balance sheet, you knocked out $10 million in debt ahead of the schedule. You've been pretty steadily kind of taking that number down. How do you think about the flexibility on your balance sheet and where it's best to allocate capital? You've got a good amount of cash. You could take out the debt overnight if you wanted to. Arguably, the shares are undervalued. you could do buybacks or, you know, is M&A interesting? How do you view the best use of the balance sheet flexibility you have now?

Yeah, Rich, Michael here, as you noted, right, we've been heavily concentrated on one of our two levers we've identified in capital return, the debt repayment so far this year. Last two quarters of last year, the lower amount share repurchases, we continue to evaluate. But looking forward, we may see a shift in how we allocate sitting here today. So it's still the two levers, but may see a shift moving forward.

Congrats on a good quarter.

Thank you. Thank you.

Thank you. And your next question comes in the line of Andrew Sherman from TD Calvary. Please go ahead.

Oh, great. Hey, guys. Nice quarter. Sure. Seth, I wasn't sure if I heard a whole lot on the go-to-market side in the prepared remarks. How's the sales hiring? Where do you stand versus plan on that? And how are some of the newer reps ramping to productivity?

Thanks, Andrew. I think we're doing okay. I think we have – we've had a little bit more turnover than I'd like in some of the sales reps. And I think part of that was we've been readjusting the skill sets. that we're looking for. I think like everybody else, our folks now have to talk about AI. They have to talk about innovation in different ways with a lot more technology than they did even two, three years ago. And I do think some of the reps aren't going to make that turn. And I think that's not just true for us. I think you're going to see that across technology. But 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. Those who could not make that turn were not doing as well. And so our sales numbers, the total number of sellers is increasing. We are committed to, again, growing our sales force. We talked about that on the last couple of calls where we were feeling optimistic enough and bullish enough about the business to begin the aggressive hiring of sellers, but not just sellers. A lot of different sales support. We had to build out a new AI support team. We had to build out new capabilities, as we talked about the new service launches. Those had to come in, and we had to retrain sellers as well. So, overall, I think the go-to-market is working for the sellers. I think the go-to-market in the alliances and channels is another very big part. As you know, we expect a substantial amount of our pipe to come from indirect channel. So, we continue to work with our friends at ServiceNow and many other of our partners to build out more pipeline into that operation to reduce our total cost of sale and increase our leverage on sales.

That's great. And then, Michael, just on the 3Q guide and the implied Q4, just help us get a little bit more confident in the acceleration there. I know some of it is easier comps. The RPOX people did slow down a little bit, but anything you can give us on the confidence or the pipeline heading into the second half that will help us with the second half numbers, that'd be great.

Sure, Andrew. And highlighting this, Seth, note, and we outlined that the building of our positive year-of-year metrics in four quarters in a row, our retention rate, a key area that has the nine in front of it, we also highlighted relative to buildings, renewal timing has impacted the quarter over quarter. But putting all of this together, we are still seeing healthy, meaning double digits plus new bookings growth year over year, puts us in a strong position where, again, we've reiterated guidance, and we feel we're in a very good position to achieve what we've laid out for the second half of the year.

Great. Thanks, guys.

Thank you.

Thank you. And your next question comes in the line of Jeff Van Rie from Cape Holland.

Great. Yeah, thanks for taking the question. So, Seth, on the European Commission decision about SAP's anti-competitive practices, it seems dead spot on in terms of forcing SAP to stop the punitive measures they were imposing on customers and allow them to choose third-party support. It would seem to have some pretty direct ramifications for you and possibly even be kind of a shot across the bow for Oracle's behavior. Just any thoughts on that? I haven't seen any impact. Obviously, it's very recent, but just a little feedback there.

Sure, Jeff. I think that when you look at the decision, the agreement in Europe with SAP, I think this is really bigger than SAP. I think this is more along the lines that software licensing is getting extremely complex. We're connecting systems all over the place. All of us are. This is the new world. It's an integrated environment. How we integrate, what we're allowed to move, data moving between places, licenses get brought together, they get separated, companies are merged, companies are separated. And a lot of the points that were raised and agreed upon between SAP and the European Union really were around some of these challenges that companies have with their licenses and what we might consider to be fair or unfair practices, they're not uncommon. It's just that these challenges are really impacting people's ability to run their business, and I think that they're good. I think that the decisions, of course, are not everything we all would have won, but I do think that there's positives in there. For example, what I was just saying about the ability, if a company splits apart and has to split its licenses or has to merge and comes together with another company, there are provisions about not being able to overcharge for the cost of that merger, not being able to hold people hostage around taking things apart and moving them back together. And, yes, that extreme impact on people like Remini Street and other third-party providers and other IT providers who will see this as a big benefit because it increases the overall competitive environment and allows customers much more choice.

Yeah, I would think it would be obviously very positive. Let me revisit the billing just real quickly. I understand the lumpiness, but sort of back to overall momentum in the pipeline, and obviously you've had very steady build in that overall. So just any more quantification you give on the scope, size, you know, growth in the pipeline around, again, getting that conviction in second-half billings?

Yeah, I think, again, that's why we felt that, you know, reiterating guidance that we put out there at the end of 2025 was important. We feel good about it. And I think, as Michael mentioned in his prepared remarks, we have pulled forward a bit of cost. We said that at the end of Q1 as well. That's why you saw sales costs be a bit higher than last year. We decided to forward load some of those costs, but we wanted to reiterate the guidance because it's important for people to understand that we're committed to the top line and bottom line. Now, this is not an easy time, Jeff, as you know. There's a lot of investment being made in AI and bringing new people in, tools, technologies, launching new products. That drives up sales and marketing costs as you get those launched. It's also driving up the COGS. That's why even though we moved up to a 60, we said we just wanted to make sure there was a 6 in front of the gross margin because we're having to increase costs on the back end to support all these new products. It's a balancing act when you're in growth mode and you're trying to deliver top-line and bottom-line number growth. So I think we're balancing it well. I feel good about where we are, and the top line, we keep seeing that pipeline grow. We've seen double-digit growth in the pipeline year over year, so we're feeling good about what we're seeing. We're feeling optimistic about the numbers that are flowing through. The close rate, for example, we're hitting 30% of pipe close rates. Those are very, very good numbers, and that means we have a solid pipe. It's a clean pipe, and we have good visibility as to what's coming down the pipe. So I feel that we are really in a good place as we give our reiterated guidance.

Yeah, you kind of preempted a little bit of my follow-on there. I just want to clarify. On the sales and marketing expenses, it's ticked up 34, 35, 37. I think we're 37.5 this quarter on non-GAAP. Is this the peak in non-GAAP as a percent of revenue, or do we still see that tick higher through the remainder of this year and then comes down in 27?

I think we're at around the peak. You know, there's still some pieces we're putting in place. We launched a brand-new service, our Remini governed for AI today, which is a big service. So there will still be a little bit of marketing push that goes with all those new products and services. But as a percentage of revenue, the revenue, as you know, on a ratable basis, Revenue will always follow the expense when you're in a growth mode. For most people who don't know, our average first-year contract is essentially a 15-month contract, three months of onboarding. So you're amortized over 15 months, and you sign a contract. We start delivering service the next day usually, which means we have to hire the resources, take the expense immediately long before the revenue starts to add in on the ratable scale. That is the challenge in the growth model that we're balancing right now.

Got it. Maybe one last quick one, if I could. On the partner front, I guess this is for either of you. You talked about the momentum with the partners. Can you just give any quantification there, like what percent of the pipeline at this point or what percent of new bookings are being driven through those partner relationships maybe versus what it was, say, a year ago?

Well, I definitely think we're seeing increases. We're doing million-dollar deals with partners, which is great. We are not, if I were to use the old walk, jog, run approach, I would say we're in the jog approach. We're getting off and running. But as everyone knows, we're a little more immature in our partner program based on age than a lot of other companies because we started later in the partner world. But we are making progress. We are absolutely working with dozens of partners on a global basis, and then we're really solidifying around our top global strategic partners, and we'll have more announcements around that very soon.

Sounds good. Congrats on the ARR growth and revenue growth. There's a lot working here, so congrats, guys.

Thank you. Thank you.

Thank you. and your next question comes from the line of Alex Furman from Lizzie Capital Markets. Please go ahead.

Hey, guys. Thanks very much for taking my question. You look like the last couple of years you lost about 30 clients or so in the second quarter before, you know, getting back to net client acquisition in the back half of the year. This year you actually gained a few in the second quarter. Can you talk a little bit about what's driving that? Has that been, you know, some of the sales pipeline and just moving some of those customers through the funnel that you mentioned? Or is that, you know, maybe some of the little sequential uptick in retention starting to show in the numbers a little bit more?

I think it's actually a combination of all. First, you've got the retention component. The second one is we've been very focused on new logo acquisition. As you noted, back in the last couple years, we were losing clients, net loss in the end of the second quarter usually. We turned that around by focusing in exclusively on new logo acquisitions. So we put programs in place. And interestingly enough, in the Americas, we went to a separated model where we have hunters and farmers. And the hunters are only focused on new logo acquisition, while the farmers manage all the existing clients and focus on the cross-sell and the retention of the account on the renewal front. And that has yielded, especially in North America, significant growth in new logo acquisition. Of course, we all know there's no perfect sales model. That's why we all change them around as we evolve our businesses. But this model has worked very well for Raminia over the last couple years. We can see the results.

Okay, that's really good to hear. Thank you for that, Seth.

Thank you. And our next question comes in the line of Brian Kinslinger from Alliance Global Partner. Please go ahead.

Hi, this is Shrey. I'm in for Brian. During your last endless day, you highlighted that there were 26 customers testing out your Agentec AI ERP solution with ServiceDow. Can you provide an update with a count of how many customers have moved into production with this new solution and how many are currently still in the test phase?

Oh, great. Well, we have several of them that have moved into production, and in fact there's a Ramini catalog you can get on our website, and a lot of those customers are in there with case studies and quotes, and so it's been a very, very interesting progress as we've rolled these solutions out. We've learned a lot about the technology. We've learned a lot about how to solve very specific business issues, and I think this has really allowed us to move into position to be the best at the agentic AI ERP solutions in the world. I feel very strongly about that. And I think that we're watching a good number of them already in production. I think a good number of them are already working to expand. Some of them are already working on next projects, multiple next projects. So I think we could declare it a very big success. And we're now expanding that project down even more because we have the new solutions and the new Rimini governance solutions that we have clients who have been waiting to deploy.

Thank you. That's helpful. And then as a quick follow-up, are you able to quantify the pipeline for your ServiceNow partnership and how much of it is existing customers versus brand-new customers?

Well, the pipeline has certainly been a combination from both of us, which is what we wanted. Of course, ServiceNow would love access to our customers. We would love access to theirs. We actually share, I believe, over 1,000 customers together that have both our services already. So it's already very much a situation where we can both come in and work to expand our footprints together. So we're very, very pleased about where we can go on that side of the house, and I think you're going to see a lot of that with our other partners out there, such as T-Systems and many others. Got it. Thank you.

Certainly.

Thank you. And there are no further questions at this time. I want to hand a call back to Mr. Seth Raven for any closing remarks.

Great. Well, thank you, everyone. I appreciate you joining us. And I want to thank our clients for all their trust in their business and allowing us to be part of their innovation story. And, of course, to all of our colleagues for the work that they did in the quarter and delivering some great results. So thanks, everybody. We look forward to talking to you at our third car voter call. Thank you very much.

Thank you, and this concludes today's call. Thank you for participating, and we all rest...