#United States #financial results #Herndon #stock repurchase #ePlus

ePlus Reports Strong Financial Performance

Overview of Q1 Fiscal Year 2026

On August 7, 2025, ePlus inc. (NASDAQ: PLUS), a prominent provider of technology solutions, announced their financial results for the first quarter ended June 30, 2025. The company showcased remarkable growth, with consolidated net sales climbing by 19% to reach $637.3 million from the previous year's $535.7 million. Particularly noteworthy was the rise in service revenues, which surged by an impressive 48.8% to $116.3 million. This robust performance underscores ePlus's strategic focus on integrating advanced technology solutions into their service offerings, particularly in the realms of cloud computing and cybersecurity.

The financial highlights of the quarter are compelling:

• - Gross billings increased by 14.3%, totaling $952.8 million.
• - Gross profit saw a marked rise of 16.8%, hitting $148.2 million.
• - Net earnings from continuing operations went up by 12.1%, reaching $27.1 million.
• - Adjusted EBITDA also rose by 19.6%, amounting to $46.7 million.
• - Diluted earnings per share from continuing operations grew by 14.4% to $1.03, while non-GAAP diluted net earnings per share increased by 24.8% to $1.26.

Strategic Management Comments

Mark Marron, President and CEO of ePlus, expressed enthusiasm about the commencement of fiscal 2026, citing a blend of financial stability and strategic growth initiatives. He stated, “Fiscal 2026 is off to a strong start both financially and strategically. We reported double-digit growth across key financial metrics, including revenue, gross profit, and earnings per share.”

Marron highlighted the significant contribution from their services division, which experienced a spectacular growth rate of nearly 50%. He attributed this success to ePlus’s disciplined execution within a dynamic market landscape, emphasizing their commitment to innovation in technology solutions.

Financial Reallocations and Future Directions

During this quarter, ePlus made a meaningful step by selling its domestic financing business, transitioning the company into a pure-play technology entity. Marron indicated that this shift enhances their capital position and provides flexibility to adapt to evolving market trends and customer needs.

To further bolster shareholder value, ePlus announced its first-ever quarterly dividend of $0.25 per common share, set to be paid on September 17, 2025. Additionally, the board has authorized a new stock buyback program, allowing for the repurchase of up to 1.5 million shares within a 12-month period.

Insights from Financial Performance

The first quarter saw product segment sales increasing to $521 million, driven by heightened demand for cloud and security products, despite some declines in networking and collaboration offerings. Notably, the professional services segment experienced explosive growth, up 92.4% to $71.7 million due to the recent acquisition of Bailiwick Services, LLC, although it did affect overall margins slightly.

Managed services also reported solid performance with a revenue increment of 9%, primarily through increased maintenance support and cloud services sales.

As of June 30, 2025, ePlus’s cash reserves stood at $480.2 million, an increase attributed to the financing business sale. This liquidity aids future growth endeavors while optimizing their operational framework.

Conclusion and Market Outlook

In summary, ePlus's first-quarter results for fiscal year 2026 reflect a strong trajectory of financial health, strategic repositioning, and a focus on growth sectors that promise value for shareholders and clients alike. The outlook remains optimistic with expectations of continued growth across major product lines, especially in areas earmarked for expansion like AI and cloud services. As the tech landscape evolves, ePlus maintains its commitment to creating innovative, customer-centric solutions, thereby solidifying its standing within the technology sector.

For more details, ePlus will hold a conference call on August 7, 2025, to discuss these results and answer any shareholder inquiries.