The Software License War: Rimini Street vs Harmonic, Deepening Profitability Dilemmas

On February 20, 2026, the earnings calls from Rimini Street and Harmonic for Q4 2025 illuminated the complex dynamics of the software licensing market once again. Both companies are struggling to improve profitability, raising fundamental questions about the long-term growth model of the software industry. Notably, Rimini Street faces two key challenges – legal disputes and brand image damage – stemming from its provision of unofficial licenses for key software from competitors. Harmonic also grapples with similar issues, with market competition intensifying and profitability pressures mounting. According to FireMarkets’ analysis, this situation suggests that software companies need to explore innovative business models.

Rimini Street’s Profitability Dilemma: Legal Disputes and Brand Image

Rimini Street is known for its provision of unofficial licenses for leading software vendors such as SAP and Oracle. This strategy has been attractive to customers seeking to reduce existing licensing costs, but it has also triggered strong legal resistance. In the Q4 2025 earnings call, Rimini Street acknowledged increased costs associated with ongoing lawsuits, which are placing a significant burden on its profitability. According to Yahoo Finance, Rimini Street is actively working to settle lawsuits, but these efforts are expected to have only a short-term effect. Furthermore, the risk of brand image damage and the strong resistance from competitors limit Rimini Street’s long-term growth potential.

Escalation of Legal Disputes

Rimini Street has been sued multiple times by SAP and Oracle, and these lawsuits are draining the company’s resources and causing significant disruption to its operations. Notably, in the Q4 2025 earnings call, Rimini Street expressed concerns about the possibility of new lawsuits, further increasing uncertainty about its future.

Impact of Increased Litigation Costs

The increase in litigation costs is a major factor negatively impacting Rimini Street’s profitability. Legal fees, legal advice, fines, and other expenses consume a significant portion of the company’s revenue, making it difficult to allocate capital to other investment areas. For Rimini Street, these costs further exacerbate its profitability and hinder its long-term growth potential.

Harmonic’s Challenges: Intensifying Market Competition and Profitability Pressure

Harmonic is also facing challenges in the software licensing market, including intensifying market competition and profitability pressure. According to a report by Yahoo Finance, Harmonic is losing market share due to aggressive pricing strategies and technological innovation from competitors, negatively impacting the company’s revenue. Harmonic is striving to improve profitability through the development of new products and market expansion, but these efforts are expected to require significant costs and time.

Intensifying Market Competition

The software licensing market is highly competitive, with new competitors emerging continuously. This intensifying competition drives price competition and negatively impacts profitability. Harmonic is attempting to gain a competitive advantage by offering differentiated technology and services compared to its rivals, but this is a challenging endeavor.