ePlus inc【PLUS】株式ニュース

ePlus Reports Fourth Quarter and Fiscal Year 2026 Financial ResultsMay 28, 2026 4:05 PM
PR Newswire (US) Double Digit Growth Year Over Year Across Key Metrics
Including Net Sales, Gross Profit and Earnings Per Share~ Initiates Fiscal 2027 Guidance and Announces Increased Common Stock Dividend of $0.27 Per Share ~Fourth Quarter of Fiscal Year 2026Net sales increased 20.6% to $576.2 million; services revenues increased 4.9% to $110.0 million.Gross billings increased 11.7% to $881.0 million.Gross profit increased 11.6% to $141.6 million.Gross margin was 24.6%, compared to 26.5% for last fiscal year's fourth quarter.Net earnings from continuing operations increased 51.7% to $20.5 million.Adjusted EBITDA increased 40.2% to $40.1 million.Net earnings from continuing operations per common share- diluted increased 52.9% to $0.78. Non-GAAP: net earnings from continuing operations per common share - diluted increased 44.9% to $1.00.Fiscal Year 2026Net sales increased 22.1% to $2,442.5 million; services revenues increased 15.6% to $462.9 million.Gross billings increased 17.0% to $3,838.5 million.Gross profit increased 20.3% to $616.1 million.Gross margin was 25.2%, compared with 25.6% for fiscal year 2025.Net earnings from continuing operations increased 62.4% to $124.1 million.Adjusted EBITDA increased 49.5% to $204.8 million.Net earnings from continuing operations per common share - diluted increased 64.1% to $4.71. Non-GAAP: Net earnings per common share - diluted increased 52.7% to $5.39.HERNDON, Va., May 28, 2026 /PRNewswire/ -- ePlus inc. (NASDAQ: PLUS), a leading provider of technology solutions, today announced financial results for the three months and fiscal year ended March 31, 2026, or the fourth quarter of its 2026 fiscal year. Management Comment"In the fourth quarter, we achieved double digit growth across both net sales and gross billings, demonstrating expanding market share, and underscoring the durability and resilience of our business, " said Mark Marron, president and CEO of ePlus. "We had a very strong fiscal 2026 signaling strong execution from our team. We saw revenue grow 22% to $2.4 billion and gross billings expand to $3.8 billion, an increase of 17% while generating adjusted EBITDA of $205 million, an increase of 50%, delivering meaningful operating leverage for the year. With a healthy balance sheet, including cash of $411 million, we continued to enhance shareholder value through a share repurchase plan and are increasing our quarterly dividend by 8% to $0.27 per common share. "ePlus' services-led strategy, especially as it relates to the leveraging of our AI consulting services capabilities, makes us nimble enough to capture emerging opportunities and large enough to scale solutions for large enterprises, enabling us to help our customers in a rapidly evolving IT environment. We believe we are well positioned to capture market opportunity and scale growth over the long term," Mr. Marron concluded.Fourth Quarter Fiscal Year 2026 Results On June 30, 2025, we completed the sale of our domestic financing business. Consequently, alongside the results of our continuing operations, we are retrospectively presenting the results of our domestic financing business as discontinued operations, for all prior periods.For the fourth quarter ended March 31, 2026, as compared to the fourth quarter ended March 31, 2025:Net sales increased 20.6% to $576.2 million, from $477.9 million due to higher product sales and higher service revenue. Gross billings increased 11.7% to $881.0 million from $789.0 million.   Product segment sales increased 25.0% to $466.1 million from $373.0 million due to increases in revenue from networking, cloud, security, and collaboration products. Product segment gross margin was 22.2%, down from 24.7% last year due to a shift in product mix along with a decrease in the proportion of sales recorded on a net basis.Professional services segment revenues increased 1.6% year over year to $61.3 million from $60.4 million, primarily due to increases in project services revenue, offset by decreases in consulting and staff augmentation revenues. Gross margin increased to 38.3% from 35.9% during the same period last year due to a shift in mix.Managed services segment revenue increased 9.3% to $48.7 million primarily due to additional revenue from cloud services. Gross profit from our managed services segment increased 14.3% from last year due to the increase in revenue and an increase in gross margin to 30.5% from 29.1% in the prior year quarter.Gross profit increased 11.6% to $141.6 million, from $126.9 million, due to increases in all three segments. Gross margin was 24.6%, compared with 26.5% in the prior year quarter, due to lower gross margin from our product segment.Operating expenses were $110.7 million, up 2.4% from $108.1 million last year, primarily due to an increase in variable compensation and share-based compensation. Operating income increased 64.7% to $30.9 million. Other income (expense), net was an expense of $0.6 million compared to income of $1.0 million last year as this year's quarter included a charge of $3.0 million relating to the disposition of our financing business offset by interest income of $2.4 million. Earnings from continuing operations before taxes increased 53.6% to $30.3 million.Our effective tax rate for the current quarter was 32.2%, which was higher than the prior year quarter of 31.4% due to higher state income taxes and non-deductible expenses.Net earnings from continuing operations increased 51.7% to $20.5 million from $13.5 million in the prior year quarter. Adjusted EBITDA increased 40.2% to $40.1 million from $28.6 million in the prior year quarter. Net earnings from continuing operations per common share-diluted was $0.78, compared with $0.51 in the prior year quarter. Non-GAAP net earnings per common share from continuing operations was $1.00, compared with $0.69 in the prior year quarter.Net earnings (loss) from discontinued operations for the three months ending March 31, 2026, was ($0.4) million, as compared to $3.9 million for the same three-month period in the prior year. Net earnings (loss) from discontinued operations per common share-diluted was ($0.02), compared with $0.15 in the prior year quarter.Fiscal Year 2026 Results For the fiscal year ended March 31, 2026, as compared to the fiscal year ended March 31, 2025:Net sales increased 22.1% to $2,442.5 million, from $2,000.2 million due to higher product sales and higher services revenue. Gross billings increased 17.0% to $3,838.5 million from $3,280.4 million.   Product segment sales increased 23.8% to $1,979.3 million from $1,599.4 million due to increases in revenue from cloud, networking, and security products, offset by a decline in collaboration products. Product segment gross margin was 22.9%, down from 23.1% last year due to a shift in mix.Professional services segment revenues increased 19.4% year over year to $273.4 million from $229.0 million, primarily due to the acquisition of Bailiwick Services, LLC, on August 19, 2024. Professional services gross margin declined to 38.7% from 39.5% last year due to the addition of Bailiwick Services, LLC, which has services margins that are generally lower than our legacy professional services.Managed services segment revenue increased 10.6% to $189.4 million, primarily due to additional sales of cloud services and enhanced maintenance support. Gross profit from the managed services segment increased 10.1% from last year due to the increase in revenue, offset by a slight decline in gross margin to 29.8% from 29.9% in the prior year.Gross profit increased 20.3% to $616.1 million, from $512.1 million, due to increases from all segments. Gross margin was 25.2%, compared with last year's 25.6%, due to lower gross margin from our product segment as a result of a shift in mix.Operating expenses were $449.9 million, up 9.1% from $412.4 million last year, primarily due to increases in variable compensation commensurate with the increase in our gross profit, as well as additional fringe benefits and general and administrative costs.Operating income increased 66.7% to $166.1 million. Other income was $7.3 million compared to $6.4 million last year, as higher interest income was offset by adjustments to the fair value of a contingent consideration receivable. Earnings from continuing operations before taxes increased 63.4% to $173.4 million.Our effective tax rate for the fiscal year ended March 31, 2026, was 28.4%, higher than the prior fiscal year of 28.0%, due to higher state income taxes and non-deductible expenses.Net earnings from continuing operations increased 62.4% to $124.1 million from $76.4 million in the prior year. Adjusted EBITDA increased 49.5% to $204.8 million from $137.0 million in the prior year period. Net earnings from continuing operations per common share-diluted was $4.71, compared with $2.87 in the prior year. Non-GAAP net earnings from continuing operations per common share-diluted was $5.39, compared with $3.53 in the prior year.Net earnings from discontinued operations for the fiscal year ended March 31, 2026, were $8.5 million, a decrease of $19.6 million, as compared to $28.1 million in the prior year. The decrease was due to the sale of our domestic financing business on June 30, 2025. Net earnings from discontinued operations per common share-diluted was $0.32, compared with $1.06 in the prior year.Balance Sheet HighlightsAs of March 31, 2026, cash and cash equivalents were $410.8 million, up from $389.4 million last year, as proceeds from the sale of our domestic financing business were offset by working capital needs. Inventory increased 66.8% to $200.9 million as of March 31, 2026 compared with $120.4 million as of March 31, 2025 due to an increase in projects in process. Accounts receivable—trade, net increased 31.4% to $667.8 million as of March 31, 2026 from $508.3 million as of March 31, 2025. Total stockholders' equity was $1,069.0 million as of March 31, 2026, compared with $970.7 million as of March 31, 2025. Total shares outstanding were 26.3 million and 26.5 million on March 31, 2026 and March 31, 2025, respectively.Fiscal Year GuidanceePlus is initiating fiscal year 2027 guidance for percentage growth over the prior fiscal year of mid-single digits for net sales, gross profit and adjusted EBITDA.This guidance does not factor in recessionary conditions, or other unexpected developments. ePlus cannot predict with reasonable certainty and without unreasonable effort, the ultimate outcome of unusual gains and losses, the occurrence of matters creating GAAP tax impacts, fluctuations in interest expense or interest income and share-based compensation, and acquisition- or disposition-related expenses. These items are uncertain, depend on various factors, and could be material to ePlus' results computed in accordance with GAAP. Accordingly, ePlus is unable to provide a reconciliation of GAAP net earnings to adjusted EBITDA for the full fiscal year 2027 forecast.Summary and Outlook "As we look ahead to fiscal 2027, we are operating from a position of strength with solid industry fundamentals that support growth for the coming year. Our long-term strategy includes expanding and enhancing our solutions, services and footprint, and deepening our customer relationships all while delivering solid financial performance. We have a strong financial position and healthy liquidity, enabling a disciplined capital allocation approach that fuels long-term growth organically and with M&A opportunities. We remain committed to enhancing shareholder returns over time," concluded Mr. Marron.ePlus Announces Quarterly DividendePlus announced today that its Board of Directors has declared a quarterly cash dividend of $0.27 per common share which will be paid on June 30, 2026, to shareholders of record as of the close of business on June 17, 2026. Recent Corporate Developments/RecognitionsIn the fourth quarter of its 2026 fiscal year:ePlus appointed Mike Portegello to its Board of DirectorsePlus Technology subsidiary Bailiwick was selected for the prestigious National Retail Federation Innovators Showcase for digital lock technologyePlus Vice President, Dori White, was named Solution Provider Marketing Executive of the Year in CRN's 2025 Women of the Year AwardsePlus Launches Private AI Infrastructure Managed ServiceConference Call InformationePlus will hold a conference call and webcast at 4:30 p.m. ET on May 28, 2026:Date: May 28, 2026Time: 4:30 p.m. ETAudio Webcast (Live & Replay): https://events.q4inc.com/attendee/661235710

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Conference ID: 8293082# (live call and replay)A replay of the call will be available approximately two hours after the call through June 4, 2026.About ePlus inc. ePlus is a customer-first, services-led, and results-driven industry leader offering transformative technology solutions and services to provide the best customer outcomes. Offering a full portfolio of solutions, including artificial intelligence, security, cloud and data center, networking, and collaboration, as well as managed, consultative and professional services, ePlus works closely with organizations across many industries to successfully navigate business challenges. With a long list of industry-leading partners and approximately 2,150 employees, our expertise has been honed over more than three decades, giving us specialized yet broad levels of experience and knowledge. ePlus is headquartered in Virginia, with locations in the United States, United Kingdom, Europe, and Asia-Pacific. For more information, visit www.eplus.com, call 888-482-1122, or email info@eplus.com. Connect with ePlus on LinkedIn, X, Facebook, and Instagram.ePlus, Where Technology Means More®.ePlus® and ePlus products referenced herein are either registered trademarks or trademarks of ePlus inc. in the United States and/or other countries.Forward-looking statementsStatements in this press release that are not historical facts may be deemed to be "forward-looking statements," including, among other things, statements regarding the future financial performance of ePlus. Actual and anticipated future results may vary materially due to certain risks and uncertainties, including, without limitation, financial losses resulting from national and international political instability fostering uncertainty and volatility in the global economy including changes in interest rates, tariffs, inflation, export requirements applicable to products we sell, sanctions and exposure to foreign currency rate changes; supply chain issues, including a shortage of information technology ("IT") component parts and products, and our vendors' rapid and unpredictable price fluctuations relating thereto, or a customer's or vendor's cancellation of orders such as for, but not limited to, memory chips, which may increase our and the customer's costs, decrease gross profit, cause a delay in fulfilling or inability to fulfill customer orders, increase our need for working capital, delay the completion of professional services, or require the purchase of IT products or services needed to support our internal infrastructure or operations, resulting in an adverse impact on our financial results; significant adverse changes in our relationship with one or more of our larger customer accounts or vendors, including decreased account profitability, reductions in contracted services, or a loss of such relationships; risks relating to artificial intelligence ("AI"), including the use or capabilities of AI and emerging laws, rules and regulations related to AI; our ability to manage a diverse product set of solutions, including AI products and services, in highly competitive markets with a number of key vendors; changes in the IT industry and/or rapid changes in product offerings, including the proliferation of the cloud, infrastructure as a service ("IaaS"), software as a service ("SaaS"), platform as a service ("PaaS"), and AI which may affect our financial results; our ability to remain secure during a cybersecurity attack or other IT outage, including disruptions in our, our vendors or a third party's IT systems and data and audio communication networks; a material decrease in the credit quality of our customer base, or a material increase in our credit losses; increases to our costs including wages and our ability to increase our prices to our customers as a result, or negative financial impacts due to the pricing arrangements we have with our customers; reliance on third parties to perform some of our service obligations to our customers, and the reliance on a small number of key vendors in our supply chain with whom we do not have long-term supply agreements, guaranteed price agreements, or assurance of stock availability; the possibility of a reduction of vendor incentives provided to us; our inability to identify merger and acquisition candidates, perform sufficient due diligence prior to completing mergers and acquisitions, successfully complete merger and acquisition transactions (including on favorable terms), successfully integrate a completed merger and/or acquisition, identify an opportunity for, or successfully complete a business disposition, or achieve the operational and financial results we anticipate after a disposition (such as from completing the sale of our domestic financing business); our ability to secure our own and our customers' electronic and other confidential information, while maintaining compliance with evolving data privacy and cybersecurity laws and regulations and appropriately providing required notice and disclosure of cybersecurity incidents when and if necessary; our dependence on key personnel to maintain certain customer relationships, and our ability to hire, train, and retain sufficient qualified personnel by recruiting and retaining highly skilled, competent personnel with needed vendor certifications; inadequate design or maintenance of our IT platforms for internal use or solutions we offer to our customers or our inability to effectively and timely capitalize on the opportunities made available by the adoption of AI and not having adequate or competent IT personnel to support our business; cybersecurity attacks that have occurred while employees work remotely and our ability to adequately train our personnel to prevent a cyber event; our ability to raise capital, maintain or increase, as needed, our lines of credit with vendors or our floor plan facility, or the effect of those matters on our common stock price; our ability to predictably meet expectations of the investor and analyst community, including relative to our financial performance guidance that we provide, including based on the continuation of dividends and share repurchases; our ability to implement comprehensive plans for the integration of sales forces, cost containment, asset rationalization, systems integration, and other key strategies following mergers and acquisitions; and other risks or uncertainties detailed in our reports filed with the Securities and Exchange Commission.The declaration and payment of future dividends are subject to the sole discretion of our Board of Directors.All information set forth in this press release is current as of the date of this release and ePlus undertakes no duty or obligation to update this information either as a result of new information, future events or otherwise, except as required by applicable U.S. securities law.ePlus inc. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in thousands, except per share amounts)

March 31, 2026

March 31, 2025ASSETS

Current assets:

Cash and cash equivalents$410,769
$389,375Accounts receivable—trade, net
667,831

508,272Accounts receivable—other, net
38,896

19,382Inventories
200,888

120,440Deferred costs
77,748

66,769Other current assets
31,602

31,437   Current assets of discontinued operations
-

222,399Total current assets
1,427,734

1,358,074

Deferred tax asset
8,955

3,658Property, equipment and other assets—net
100,039

98,657Goodwill
202,880

202,858Other intangible assets—net
61,344

82,007Non-current assets of discontinued operations
-

133,835TOTAL ASSETS$1,800,952
$1,879,089

LIABILITIES AND STOCKHOLDERS' EQUITY

LIABILITIES

Current liabilities:

Accounts payable$264,605
$323,890Accounts payable—floor plan
119,693

89,527Salaries and commissions payable
48,590

42,722Deferred revenue
168,127

154,067Other current liabilities
37,128

22,463Current liabilities of discontinued operations
-

166,463Total current liabilities
638,143

799,132

Deferred tax liability—long-term
-

1,454Deferred revenue—long-term
83,010

81,759Other liabilities
10,829

13,540Non-current liabilities of discontinued operations
-

12,546TOTAL LIABILITIES
731,982

908,431

COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' EQUITY

Preferred stock, $0.01 per share par value; 2,000 shares authorized; none
outstanding
-

-Common stock, $0.01 per share par value; 50,000 shares authorized;
27,765 shares issued and 26,299 outstanding at March 31, 2026 and
27,582 shares issued and 26,526 outstanding at March 31, 2025
278

276Additional paid-in capital
210,274

194,475Treasury stock, at cost, 1,466 shares at March 31, 2026 and 1,056 shares at
March 31, 2025
(101,944)

(70,748)Retained earnings
956,000

843,214Accumulated other comprehensive income—foreign currency translation
adjustment
4,362

3,441Total Stockholders' Equity
1,068,970

970,658TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$1,800,952
$1,879,089 ePlus inc. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)

Three Months Ended
March 31,
Year Ended
March 31,

2026
2025
2026
2025
Net sales

Product$466,202
$373,049
$1,979,664
$1,599,791
Services
109,972

104,874

462,885

400,377
Total
576,174

477,923

2,442,549

2,000,168
Cost of sales

Product
362,868

280,790

1,525,960

1,229,495
Services
71,679

70,262

300,508

258,553
Total
434,547

351,052

1,826,468

1,488,048

Gross profit
141,627

126,871

616,081

512,120

Selling, general, and administrative
104,552

100,612

423,393

386,681
Depreciation and amortization
6,171

7,493

26,543

25,753
Operating expenses
110,723

108,105

449,936

412,434

Operating income
30,904

18,766

166,145

99,686

Other income (expense), net
(605)

964

7,293

6,438

Earnings from continuing operations before tax
30,299

19,730

173,438

106,124

Provision for income taxes
9,753

6,189

49,318

29,685

Net earnings from continuing operations
20,546

13,541

124,120

76,439

Earnings (loss) from discontinued operations, net of tax
(400)

3,913

8,516

28,137

Net earnings$20,146
$17,454
$132,636
$104,576

Earnings per common share—basic

Continuing operations$0.79
$0.51
$4.73
$2.88
Discontinued operations
(0.02)

0.15

0.32

1.06
Earnings per common share—basic$0.77
$0.66
$5.05
$3.94

Earnings per common share—diluted

Continuing operations$0.78
$0.51
$4.71
$2.87
Discontinued operations
(0.02)

0.15

0.32

1.06
Earnings per common share—diluted$0.76
$0.66
$5.03
$3.93

Weighted average common shares outstanding—basic
26,127

26,307

26,234

26,503
Weighted average common shares outstanding—diluted26,262

26,422

26,371

26,666
Segment Results
Three Months Ended

Year Ended

March 31,

March 31,

2026
2025
Change
2026
2025
ChangeNet sales

Product segment$466,092
$372,972
25.0 %
$1,979,288
$1,599,369
23.8 %Professional services segment
61,300

60,354
1.6 %

273,438

229,030
19.4 %Managed services segment
48,672

44,520
9.3 %

189,447

171,347
10.6 %Other
110

77
42.9 %

376

422
(10.9 %)        Total$576,174
$477,923
20.6 %
$2,442,549
$2,000,168
22.1 %

Gross profit

Product segment$103,288
$92,248
12.0 %
$453,564
$370,153
22.5 % Professional services segment
23,464

21,638
8.4 %

105,910

90,517
17.0 % Managed services segment
14,829

12,974
14.3 %

56,467

51,307
10.1 % Other
46

11
318.2 %

140

143
(2.1 %)        Total$141,627
$126,871
11.6 %
$616,081
$512,120
20.3 %

Gross Billings by Type

Networking$268,121
$213,621
25.5 %
$1,152,117
$929,708
23.9 % Cloud
244,024

220,967
10.4 %

1,016,717

865,855
17.4 % Security
174,349

177,341
(1.7 %)

841,523

683,597
23.1 % Collaboration
22,791

18,295
24.6 %

109,460

120,369
(9.1 %) Other
58,378

51,347
13.7 %

252,073

244,997
2.9 %Product segment
767,663

681,571
12.6 %

3,371,890

2,844,526
18.5 % Services
113,293

107,394
5.5 %

466,567

435,921
7.0 %Total$880,956
$788,965
11.7 %
$3,838,457
$3,280,447
17.0 %

Net Sales by Type

Product segment

       Networking$226,574
$178,820
26.7 %
$933,818
$781,703
19.5 %       Cloud
157,853

134,343
17.5 %

668,471

509,774
31.1 %       Security
51,680

48,739
6.0 %

239,731

191,872
24.9 %       Collaboration
10,184

8,205
24.1 %

51,917

55,483
(6.4 %)       Other
19,801

2,865
591.1 %

85,351

60,537
41.0 %Total products segment
466,092

372,972
25.0 %

1,979,288

1,599,369
23.8 %Professional services segment
61,300

60,354
1.6 %

273,438

229,030
19.4 %Managed services segment
48,672

44,520
9.3 %

189,447

171,347
10.6 %Other
110

77
42.9 %

376

422
(10.9 %)Total net sales$576,174
$477,923
20.6 %
$2,442,549
$2,000,168
22.1 %

Net Sales by Customer End Market

Telecom, media & entertainment$182,460
$101,268
80.2 %
$720,616
$453,892
58.8 %Healthcare
76,913

74,289
3.5 %

314,949

286,474
9.9 %SLED
70,927

72,176
(1.7 %)

308,681

333,371
(7.4 %)Financial services
67,992

44,097
54.2 %

244,675

174,798
40.0 %Technology
59,119

65,078
(9.2 %)

300,783

300,465
0.1 %Retail
29,988

35,431
(15.4 %)

136,415

103,185
32.2 %All other
88,775

85,584
3.7 %

416,430

347,983
19.7 %Total net sales$576,174
$477,923
20.6 %
$2,442,549
$2,000,168
22.1 %

Amounts for 2025 reflect the correction of certain misstatements, which we determined are not material either individually or in the aggregate. See our Form 10-K for the year ended March 31, 2026, including Note 2 to the Consolidated Financial Statements, for more information.ePlus inc. AND SUBSIDIARIESRECONCILIATION OF NON-GAAP INFORMATIONWe included reconciliations below for the following non-GAAP financial measures: (i) Adjusted EBITDA, (ii) Non-GAAP: Net earnings from continuing operations and (iii) Non-GAAP Net earnings from continuing operations per common share - diluted.We define Adjusted EBITDA as net earnings from continuing operations calculated in accordance with US GAAP, adjusted for the following: interest expense, depreciation and amortization, share-based compensation, acquisition related expenses, provision for income taxes, and other income (expense). Non-GAAP: Net earnings from continuing operations and Non-GAAP Net earnings from continuing operations per common share – diluted are based on net earnings from continuing operations calculated in accordance with US GAAP, adjusted to exclude other (income) expense, share-based compensation, and acquisition related amortization expenses, and the related tax effects.We use the above non-GAAP financial measures as supplemental measures of our performance to gain insight into our operating performance and performance trends. We believe that these financial measures provide management and investors with a useful measure for period-to-period comparisons of our business and operating results by excluding items that management believes are not reflective of our underlying operating performance. Accordingly, we believe that such non-GAAP financial measures provide useful information to investors and others in understanding and evaluating our operating results.Our use of non-GAAP information as analytical tools has limitations, and should not be considered in isolation or as substitutes for analysis of our financial results as reported under US GAAP. In addition, other companies, including companies in our industry, might calculate Adjusted EBITDA, Non-GAAP: Net earnings from continuing operations and Non-GAAP: Net earnings from continuing operations per common share-diluted, or similarly titled measures differently, which may reduce their usefulness as comparative measures.The amounts in the tables below are results from our continuing operations (in thousands):(i) Reconciliation of Adjusted EBITDA
Three Months EndedMarch 31,
Year EndedMarch 31,
2026
2025
2026
2025GAAP: Net earnings from continuing operations$20,546
$13,541
$124,120
$76,439Provision for income taxes
9,753

6,189

49,318

29,685Share-based compensation
2,989

2,318

12,134

10,502Acquisition related expenses
-

-

-

1,072Depreciation and amortization [1]
6,171

7,493

26,543

25,753Other (income) expense, net [2]
605

(964)

(7,293)

(6,438)Non-GAAP: Adjusted EBITDA$40,064
$28,577
$204,822
$137,013(ii) Reconciliation of Non-GAAP: Net earnings from continuing operations
Three Months EndedMarch 31,
Year EndedMarch 31,
2026
2025
2026
2025GAAP: Net earnings from continuing operations before tax$30,299
$19,730
$173,438
$106,124Share-based compensation
2,989

2,318

12,134

10,502Acquisition related expenses
-

-

-

1,072Acquisition related amortization expense [3]
4,758

5,749

20,625

19,929Other (income) expense, net [2]
605

(964)

(7,293)

(6,438)Non-GAAP: Earnings from continuing operations before tax
38,651

26,833

198,904

131,189

GAAP: Provision for income taxes
9,753

6,189

49,318

29,685Share-based compensation
966

729

3,490

2,992Acquisition related expenses
-

-

-

300Acquisition related amortization expense [3]
1,571

1,706

5,934

5,495Other (income) expense, net [2]
200

(290)

(2,043)

(1,788)Tax benefit on restricted stock
35

14

136

527Non-GAAP: Provision for income taxes
12,525

8,348

56,835

37,211

Non-GAAP: Net earnings from continuing operations$26,126
$18,485
$142,069
$93,978(iii) Reconciliation of Non-GAAP: Net earnings from continuing operations per common share - diluted
Three Months EndedMarch 31,
Year EndedMarch 31,
2026
2025
2026
2025GAAP: Net earnings from continuing operations per common share - diluted$0.78
$0.51
$4.71
$2.87

Share-based compensation
0.08

0.06

0.33

0.28Acquisition related expenses
-

-

-

0.03Acquisition related amortization expense [3]
0.12

0.15

0.56

0.54Other (income) expense, net [2]
0.02

(0.03)

(0.20)

(0.17)Tax (benefit) on restricted stock
-

-

(0.01)

(0.02)Total non-GAAP adjustments - net of tax
0.22

0.18

0.68

0.66

Non-GAAP: Net earnings from continuing operations per common share - diluted$1.00
$0.69
$5.39
$3.53
[1] Amount consists of depreciation and amortization for assets used internally.[2] Interest income, foreign currency transaction gains and losses, and adjustments to the fair value of contingent consideration.[3] Amount consists of amortization of intangible assets from acquired businesses. View original content to download multimedia:https://www.prnewswire.com/news-releases/eplus-reports-fourth-quarter-and-fiscal-year-2026-financial-results-302784884.htmlSOURCE EPLUS INC. Original: ePlus Reports Fourth Quarter and Fiscal Year 2026 Financial Results

/C O R R E C T I O N -- EPLUS INC./February 4, 2026 4:54 PM
PR Newswire (US)

In the news release, ePlus Reports Third Quarter and First Nine Months Financial Results of Fiscal Year 2026, issued 04-Feb-2026 by EPLUS INC. over PR Newswire, we are advised by the company that the Audio Webcast link has been updated. The complete, corrected release follows:
ePlus Reports Third Quarter and First Nine Months Financial Results of Fiscal Year 2026
Double Digit Growth Year Over Year Across Key Metrics
Including Net Sales, Gross Profit and Earnings Per Share~ Raises Fiscal 2026 Guidance
and Announces Common Stock Quarterly Dividend of $0.25 Per Share ~Third Quarter of Fiscal Year 2026Consolidated net sales increased 24.6% to $614.8 million; services revenues decreased 0.7% to $112.8 million.Gross billings increased 15.6% to $982.1 million.Consolidated gross profit increased 26.8% to $158.7 million.Consolidated gross margin was 25.8%, compared to 25.4% for last fiscal year's third quarter.Net earnings from continuing operations increased 129.3% to $33.4 million.Adjusted EBITDA increased 97.4% to $53.4 million.Net earnings from continuing operations per common share- diluted increased 130.9% to $1.27. Non-GAAP: net earnings from continuing operations per common share - diluted increased 104.2% to $1.45.First Nine Months of Fiscal Year 2026Consolidated net sales increased 22.2% to $1,860.9 million; services revenues increased 19.4% to $352.9 million.Gross billings increased 18.7% to $2,957.5 million.Consolidated gross profit increased 23.7% to $469.0 million.Consolidated gross margin was 25.2%, compared with 24.9% for last fiscal year's first nine months.Net earnings from continuing operations increased 68.5% to $98.7 million.Adjusted EBITDA increased 55.0% to $158.8 million.Net earnings from continuing operations per common share - diluted increased 70.8% to $3.74. Non-GAAP: Net earnings per common share - diluted increased 59.0% to $4.23.HERNDON, Va., Feb. 4, 2026 /PRNewswire/ -- ePlus inc. (NASDAQ: PLUS), a leading provider of technology solutions, today announced financial results for the three months and nine months ended December 31, 2025, or the third quarter of its 2026 fiscal year.

Management Comment"We continued to experience strong momentum in our third fiscal quarter as we achieved robust growth, with net sales increasing 24.6% and net earnings from continuing operations more than doubling year over year," said Mark Marron, president and CEO of ePlus. "The scalability of our operating platform has provided operating leverage which is reflected in our growth in gross profit, operating income, adjusted EBITDA and earnings per share.""Our solid revenue growth reflects, in part, demand for AI that is fueling spend across all of our solution sets including cloud, compute, storage and networking. We continued to see strong revenue growth from our largest enterprise customers, who are modernizing their infrastructure to support their AI initiatives. We also saw strong demand from our mid-market customer base where we have continued to evolve and expand our product and services solutions to meet our customers' needs in today's market," Mr. Marron concluded.Third Quarter Fiscal Year 2026 Results On June 30, 2025, we completed the sale of our domestic financing business. Consequently, alongside the results of our continuing operations, we are retrospectively presenting the results of our domestic financing business as discontinued operations, for all prior periods.For the third quarter ended December 31, 2025, as compared to the third quarter ended December 31, 2024:Consolidated net sales increased 24.6% to $614.8 million, from $493.2 million due to higher product sales, offset by lower service revenue. Gross billings increased 15.6% to $982.1 million from $849.5 million.   Product segment sales increased 32.2% to $501.8 million from $379.5 million due to increases in revenue from networking, cloud, security, and collaboration products. Product segment margin was 23.8%, up from 22.1% last year due to a shift in product mix offset by a decrease in the proportion of sales recorded on a net basis.Professional services segment revenues decreased 7.8% year over year to $64.1 million from $69.5 million, primarily due to project delays by certain retail and consumer customers, offset by increases in consulting revenue. Gross margin decreased to 39.2% from 40.1% during the same period last year due to a shift in the mix of services provided.Managed services segment revenue increased 10.5% to $48.8 million primarily due to additional revenue from cloud services. Gross profit from our managed services segment increased 7.5% from last year due to the increase in revenue, offset by a decline in gross margin to 29.0% from 29.8% in the prior year quarter.Consolidated gross profit increased 26.8% to $158.7 million, from $125.1 million. Consolidated gross margin was 25.8%, compared with 25.4% in the prior year quarter.Consolidated operating expenses were $115.2 million, up 6.1% from $108.6 million last year, primarily due to an increase in variable compensation commensurate with the increase in gross profit. Consolidated operating income increased 163.9% to $43.5 million. Other income was $2.1 million compared to $3.4 million last year. Earnings from continuing operations before taxes increased 128.9% to $45.6 million.Our effective tax rate for the current quarter was 26.7%, which was lower than the prior year quarter of 26.9%.Net earnings from continuing operations increased 129.3% to $33.4 million from $14.6 million in the prior year quarter. Adjusted EBITDA increased 97.4% to $53.4 million from $27.0 million in the prior year quarter. Net earnings from continuing operations per common share-diluted was $1.27, compared with $0.55 in the prior year quarter. Non-GAAP net earnings per common share from continuing operations was $1.45, compared with $0.71 in the prior year quarter.Net earnings from discontinued operations, for the three months ending December 31, 2025, was $1.7 million primarily due to the settlement of a legal matter, as compared to $9.6 million for the same three-month period in the prior year. Net earnings from discontinued operations per common share-diluted was $0.06, compared with $0.36 in the prior year quarter.First Nine Months of Fiscal Year 2026 Results For the nine months ended December 31, 2025, as compared to the nine months ended December 31, 2024:Consolidated net sales increased 22.2% to $1,860.9 million, from $1,522.2 million due to higher product sales and higher services revenue. Gross billings increased 18.7% to $2,957.5 million from $2,491.5 million. Product segment sales increased 22.9% to $1,507.7 million from $1,226.4 million due to increases in revenue from cloud, networking, and security products, offset by a decline in collaboration products. Product segment margin was 22.9%, up from 22.2% last year due to a shift in product mix.Professional services segment revenues increased 25.8% year over year to $212.1 million from $168.7 million, primarily due to the acquisition of Bailiwick Services, LLC, on August 19, 2024. Professional services gross margin declined to 38.9% from 40.8% during the same period last year due to the addition of Bailiwick Services, LLC, which has services margins that are generally lower than our legacy professional services.Managed services segment revenue increased 11.0% to $140.8 million, primarily due to additional sales of enhanced maintenance support and cloud services. Gross profit from the managed services segment increased 8.6% from last year due to the increase in revenue, offset by a decline in gross margin to 29.6% from 30.2% in the prior year nine-month period.Consolidated gross profit increased 23.7% to $469.0 million, from $379.3 million. Consolidated gross margin was 25.2%, compared with last year's 24.9%.Consolidated operating expenses were $340.5 million, up 11.9% from $304.3 million last year, primarily due to increases in variable compensation commensurate with the increase in our gross profit, as well as additional salaries and benefits and general and administrative costs.Consolidated operating income increased 71.5% to $128.5 million. Other income was $7.9 million compared to $5.5 million last year, due to increased interest income. Earnings from continuing operations before taxes increased 69.7% to $136.4 million.Our effective tax rate for the nine months ended December 31, 2025, was 27.6%, higher than the same nine-month period in the prior year of 27.2%.Net earnings from continuing operations increased 68.5% to $98.7 million from $58.6 million in the prior year. Adjusted EBITDA increased 55.0% to $158.8 million from $102.4 million in the prior year nine-month period. Net earnings from continuing operations per common share-diluted was $3.74, compared with $2.19 in the prior year. Non-GAAP net earnings from continuing operations per common share-diluted was $4.23, compared with $2.66 in the prior year.Net earnings from discontinued operations, for the nine months ended December 31, 2025, were $8.9 million, a decrease of $15.3 million, as compared to $24.2 million for the same nine-month period in the prior year. The decrease was due to the sale of our domestic financing business on June 30, 2025. Net earnings from discontinued operations per common share-diluted was $0.34, compared with $0.91 in the prior year nine-month period.Balance Sheet HighlightsAs of December 31, 2025, cash and cash equivalents were $326.3 million, down from $389.4 million as of March 31, 2025. Inventory increased 100.1% to $241.0 million as of December 31, 2025 compared with $120.4 million as of March 31, 2025 due to an increase in projects in process. Accounts receivable—trade, net increased 35.0% to $698.0 million as of December 31, 2025 from $516.9 million as of March 31, 2025. Total stockholders' equity was $1,063.3 million as of December 31, 2025, compared with $977.6 million as of March 31, 2025. Total shares outstanding were 26.4 million and 26.5 million on December 31, 2025 and March 31, 2025, respectively.Fiscal Year GuidanceBased on our strong performance year to date and the momentum we see ahead, the Company is raising its fiscal year 2026 guidance for net sales, gross profit, and Adjusted EBITDA. Net sales is now expected to increase 20% to 22% year-over-year, an increase from the prior guidance of mid-teens. This increase is against Fiscal Year 2025's $2.01B from continuing operations. Gross profit is expected to grow at a rate of 19% to 21% now, as compared to the prior guidance of mid-teens from fiscal year 2025's $515.5 million from continuing operations. We now expect Adjusted EBITDA to increase 41% to 43% over our Fiscal Year 2025 Adjusted EBITDA of $141M from continuing operations. This is an increase from our prior guidance that was twice the pace of net sales when net sales was expected to be in the mid-teens.This guidance does not factor in recessionary conditions or other unexpected developments. ePlus cannot predict with reasonable certainty and without unreasonable effort, the ultimate outcome of unusual gains and losses, the occurrence of matters creating GAAP tax impacts, fluctuations in interest expense or interest income and share-based compensation, and acquisition-related expenses. These items are uncertain, depend on various factors, and could be material to ePlus' results computed in accordance with GAAP. Accordingly, ePlus is unable to provide a reconciliation of GAAP net earnings to adjusted EBITDA for the full fiscal year 2026 forecast.Summary and Outlook "As a result of our strong third quarter and nine-month results, we are raising our fiscal year 2026 guidance."Our teams remain committed to executing on our long-term strategy centered on expanding services and value-added solutions, delivering consistent growth, maintaining strong financial discipline and returning capital to shareholders in the form of dividends and share repurchases. We will continue to take a disciplined approach to capital deployment, prioritizing investments in our core business, strengthening our capabilities, and focusing on areas where we can achieve sustainable competitive advantages, all while preserving a healthy balance sheet. We are executing from a position of strength, delivering solid near-term performance while investing strategically for the future. All of this positions us well to deliver sustainable growth over the long term and lasting value for our shareholders," concluded Mr. Marron.ePlus Announces Quarterly DividendePlus announced today that its Board of Directors has declared a quarterly cash dividend of $0.25 per common share which will be paid on March 18, 2026, to shareholders of record as of the close of business on February 24, 2026. Recent Corporate Developments/RecognitionsIn the third quarter of its 2026 fiscal year:ePlus appointed Mike Portegello to its Board of DirectorsePlus Technology subsidiary Bailiwick was selected for the prestigious National Retail Federation Innovators Showcase for digital lock technologyePlus Vice President, Dori White, was named Solution Provider Marketing Executive of the Year in CRN's 2025 Women of the Year AwardsConference Call InformationePlus will hold a conference call and webcast at 4:30 p.m. ET on February 4, 2026:
Date: February 4, 2026Time: 4:30 p.m. ETAudio Webcast (Live & Replay): https://events.q4inc.com/attendee/464506706

Live Call: (888) 596-4144 (toll-free/domestic)
(646) 968-2525 (international)

Archived Call: (800) 770-2030 (toll-free/domestic)
(609) 800-9909 (international)

Conference ID: 5394845# (live call and replay)

A replay of the call will be available approximately two hours after the call through February 11, 2026.About ePlus inc. ePlus is a customer-first, services-led, and results-driven industry leader offering transformative technology solutions and services to provide the best customer outcomes. Offering a full portfolio of solutions, including artificial intelligence, security, cloud and data center, networking, and collaboration, as well as managed, consultative and professional services, ePlus works closely with organizations across many industries to successfully navigate business challenges. With a long list of industry-leading partners and approximately 2,160 employees, our expertise has been honed over more than three decades, giving us specialized yet broad levels of experience and knowledge. ePlus is headquartered in Virginia, with locations in the United States, United Kingdom, Europe, and Asia-Pacific. For more information, visit www.eplus.com, call 888-482-1122, or email info@eplus.com. Connect with ePlus on LinkedIn, X, Facebook, and Instagram.ePlus, Where Technology Means More®.ePlus® and ePlus products referenced herein are either registered trademarks or trademarks of ePlus inc. in the United States and/or other countries.Forward-looking statementsStatements in this press release that are not historical facts may be deemed to be "forward-looking statements," including, among other things, statements regarding the future financial performance of ePlus. Actual and anticipated future results may vary materially due to certain risks and uncertainties, including, without limitation, financial losses resulting from national and international political instability fostering uncertainty and volatility in the global economy including changes in interest rates, tariffs, inflation, export requirements applicable to products we sell, sanctions and exposure to foreign currency rate changes; supply chain issues, including a shortage of IT component parts and products, and our vendors' rapid and unpredictable price fluctuations relating thereto, or a customer's or vendor's cancellation of orders such as for, but not limited to, memory chips, which may increase our and the customer's costs, decrease gross profit, cause a delay in fulfilling or inability to fulfill customer orders, increase our need for working capital, delay completing professional services, or purchase IT products or services needed to support our internal infrastructure or operations, resulting in an adverse impact on our financial results; significant adverse changes in our relationship with one or more of our larger customer accounts or vendors, including decreased account profitability, reductions in contracted services, or a loss of such relationships; increases to our costs including wages and our ability to increase our prices to our customers as a result, or we experience negative financial impacts due to the pricing arrangements we have with our customers; a material decrease in the credit quality of our customer base, or a material increase in our credit losses; reliance on third parties to perform some of our service obligations to our customers, and the reliance on a small number of key vendors in our supply chain with whom we do not have long-term supply agreements, guaranteed price agreements, or assurance of stock availability; the possibility of a reduction of vendor incentives provided to us; our inability to identify merger and acquisition candidates, perform sufficient due diligence prior to completing mergers and acquisitions, successfully integrate a completed merger and/or acquisition, successfully complete merger and acquisition transactions, including on favorable terms, or identify an opportunity for or successfully completing a business disposition; our ability to remain secure during a cybersecurity attack or other information technology ("IT") outage, including disruptions in our, our vendors or a third party's IT systems and data and audio communication networks; our ability to secure our own and our customers' electronic and other confidential information, while maintaining compliance with evolving data privacy and cybersecurity laws and regulations and appropriately providing required notice and disclosure of cybersecurity incidents when and if necessary; our dependence on key personnel to maintain certain customer relationships, and our ability to hire, train, and retain sufficient qualified personnel by recruiting and retaining highly skilled, competent personnel with needed vendor certifications; risks relating to artificial intelligence ("AI"), including the use or capabilities of AI and emerging laws, rules and regulations related to AI; our ability to manage a diverse product set of solutions, including AI products and services, in highly competitive markets with a number of key vendors; changes in the IT industry and/or rapid changes in product offerings, including the proliferation of the cloud, infrastructure as a service ("IaaS"), software as a service ("SaaS"), platform as a service ("PaaS"), and AI which may affect our financial results; ongoing remote work trends, and the increase in cybersecurity attacks that have occurred while employees work remotely and our ability to adequately train our personnel to prevent a cyber event; our ability to raise capital, maintain or increase, as needed, our lines of credit with vendors or our floor plan facility, or the effect of those matters on our common stock price; our ability to predictably meet expectations of the investor and analyst community, including relative to our financial performance guidance that we provide; our ability to implement comprehensive plans for the integration of sales forces, cost containment, asset rationalization, systems integration, and other key strategies following mergers and acquisitions; and other risks or uncertainties detailed in our reports filed with the Securities and Exchange Commission.The declaration and payment of future dividends are subject to the sole discretion of our Board of Directors.All information set forth in this press release is current as of the date of this release and ePlus undertakes no duty or obligation to update this information either as a result of new information, future events or otherwise, except as required by applicable U.S. securities law.ePlus inc. AND SUBSIDIARIES

UNAUDITED CONSOLIDATED BALANCE SHEETS

(in thousands, except per share amounts)

December 31, 2025

March 31, 2025ASSETS

Current assets:

Cash and cash equivalents$326,291
$$389,375Accounts receivable—trade, net
697,989

516,925Accounts receivable—other, net
43,521

19,382Inventories
240,979

120,440Deferred costs
76,533

66,769Other current assets
68,902

28,500   Current assets of discontinued operations
-

222,399Total current assets
1,454,215

1,363,790

Deferred tax asset
9,048

3,658Property, equipment and other assets—net
99,381

98,657Goodwill
202,927

202,858Other intangible assets—net
66,113

82,007Non-current assets of discontinued operations
-

133,835TOTAL ASSETS$1,831,684
$$1,884,805

LIABILITIES AND STOCKHOLDERS' EQUITY

LIABILITIES

Current liabilities:

Accounts payable$291,378
$$324,580Accounts payable—floor plan
133,150

89,527Salaries and commissions payable
53,405

42,219Deferred revenue
168,282

152,631Other current liabilities
35,875

22,463Current liabilities of discontinued operations
-

166,463Total current liabilities
682,090

797,883

Deferred tax liability—long-term
-

1,454Deferred revenue—long-term
74,721

81,759Other liabilities
11,575

13,540Non-current liabilities of discontinued operations
-

12,546TOTAL LIABILITIES
768,386

907,182

COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' EQUITY

Preferred stock, $0.01 per share par value; 2,000 shares authorized; none outstanding
-

-Common stock, $0.01 per share par value; 50,000 shares authorized; 26,391 outstanding at
December 31, 2025 and 26,526 outstanding at March 31, 2025
278

276Additional paid-in capital
207,285

193,698Treasury stock, at cost, 1,376 shares at December 31, 2025 and 1,056 shares at March 31, 2025
(95,063)

(70,748)Retained earnings
945,305

850,956Accumulated other comprehensive income—foreign currency translation adjustment
5,493

3,441Total Stockholders' Equity
1,063,298

977,623TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$1,831,684
$$1,884,805 ePlus inc. AND SUBSIDIARIESUNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS(in thousands, except per share amounts)

Three Months Ended
December 31,
Nine Months Ended
December 31,
2025
2024
2025
2024Net sales

Product$501,931
$379,574
$1,508,002
$1,226,742Services
112,843

113,647

352,913

295,503Total
614,774

493,221

1,860,915

1,522,245Cost of sales

Product
382,549

295,497

1,163,092

954,700Services
73,571

72,646

228,829

188,291Total
456,120

368,143

1,391,921

1,142,991

Gross profit
158,654

125,078

468,994

379,254

Selling, general, and administrative
108,695

100,932

320,121

286,069Depreciation and amortization
6,493

7,676

20,372

18,260Operating expenses
115,188

108,608

340,493

304,329

Operating income
43,466

16,470

128,501

74,925

Other income, net
2,123

3,447

7,898

5,474

Earnings from continuing operations before tax
45,589

19,917

136,399

80,399

Provision for income taxes
12,189

5,351

37,711

21,841

Net earnings from continuing operations
33,400

14,566

98,688

58,558

Earnings from discontinued operations, net of tax (Note 4)
1,652

9,567

8,916

24,224

Net earnings$35,052
$24,133
$107,604
$82,782

Earnings per common share—basic

Continuing operations$1.28
$0.55
$3.76
$2.20Discontinued operations
0.06

0.36

0.34

0.92Earnings per common share—basic$1.34
$0.91
$4.10
$3.12

Earnings per common share—diluted

Continuing operations$1.27
$0.55
$3.74
$2.19Discontinued operations
0.06

0.36

0.34

0.91Earnings per common share—diluted$1.33
$0.91
$4.08
$3.10

Weighted average common shares outstanding—basic
26,174

26,495

26,269

26,568Weighted average common shares outstanding—diluted26,288

26,620

26,388

26,727 Segment results
Three Months Ended

Nine Months Ended

December 31,

December 31,

2025
2024
Change
2025
2024
ChangeNet sales

Product segment$501,827
$379,472
32.2 %
$1,507,736
$$1,226,397
22.9 %Professional services segment
64,065

69,497
(7.8 %)

212,138

168,676
25.8 %Managed services segment
48,778

44,150
10.5 %

140,775

126,827
11.0 %Other
104

102
2.0 %

266

345
(22.9 %)        Total$614,774
$493,221
24.6 %
$1,860,915
$1,522,245
22.2 %

Gross profit

Product segment$119,321
$84,046
42.0 %
$344,816
$271,910
26.8 %Professional services segment
25,121

27,841
(9.8 %)

82,446

68,879
19.7 %Managed services segment
14,151

13,160
7.5 %

41,638

38,333
8.6 %Other
61

31
96.8 %

94

132
(28.8 %)        Total$158,654
$125,078
26.8 %
$468,994
$379,254
23.7 %

Gross Billings by Type

Networking$300,075
$214,762
39.7 %
$883,996
$716,087
23.4 %Cloud
257,848

207,762
24.1 %

772,693

644,888
19.8 %Security
221,971

190,808
16.3 %

667,174

506,256
31.8 %Collaboration
22,606

22,381
1.0 %

86,669

102,074
(15.1 %)Other
72,358

76,513
(5.4 %)

200,721

193,650
3.7 %Product segment
874,858

712,226
22.8 %

2,611,253

2,162,955
20.7 %Services
107,223

137,320
(21.9 %)

346,248

328,527
5.4 %Total$982,081
$849,546
15.6 %
$2,957,501
$2,491,482
18.7 %

Net Sales by Type

Product segment

      Networking$230,886
$181,367
27.3 %
$707,244
$602,883
17.3 %       Cloud
175,352

116,864
50.0 %

510,618

375,431
36.0 %       Security
61,055

53,919
13.2 %

188,051

143,133
31.4 %       Collaboration
13,418

8,391
59.9 %

41,733

47,278
(11.7 %)       Other
21,116

18,931
11.5 %

60,090

57,672
4.2 %Total products segment
501,827

379,472
32.2 %

1,507,736

1,226,397
22.9 %Professional services segment
64,065

69,497
(7.8 %)

212,138

168,676
25.8 %Managed services segment
48,778

44,150
10.5 %

140,775

126,827
11.0 %Other
104

102
2.0 %

266

345
(22.9 %)Total net sales$614,774
$493,221
24.6 %
$1,860,915
$1,522,245
22.2 %

Net Sales by Customer End Market

Telecom, media & entertainment$176,405
$126,201
39.8 %
$538,156
$352,624
52.6 %Technology
89,368

71,293
25.4 %

241,664

235,387
2.7 %Healthcare
81,460

58,670
38.8 %

238,036

212,185
12.2 %Financial services
66,104

46,217
43.0 %

176,683

130,701
35.2 %SLED
59,946

71,412
(16.1 %)

237,754

261,195
(9.0 %)Retail
34,394

33,785
1.8 %

106,427

67,754
57.1 %All other
107,097

85,643
25.1 %

322,195

262,399
22.8 %Total net sales$614,774
$493,221
24.6 %
$1,860,915
$1,522,245
22.2 % ePlus inc. AND SUBSIDIARIESRECONCILIATION OF NON-GAAP INFORMATIONWe included reconciliations below for the following non-GAAP financial measures: (i) Adjusted EBITDA, (ii) Non-GAAP: Net earnings from continuing operations and (iii) Non-GAAP Net earnings from continuing operations per common share - diluted.We define Adjusted EBITDA as net earnings from continuing operations calculated in accordance with US GAAP, adjusted for the following: interest expense, depreciation and amortization, share-based compensation, acquisition related and integration expenses, provision for income taxes, and other income (expense). Non-GAAP: Net earnings from continuing operations and Non-GAAP Net earnings from continuing operations per common share – diluted are based on net earnings from continuing operations calculated in accordance with US GAAP, adjusted to exclude other (income) expense, share-based compensation, and acquisition related amortization and integration expenses, and the related tax effects.We use the above non-GAAP financial measures as supplemental measures of our performance to gain insight into our operating performance and performance trends. We believe that these financial measures provide management and investors with a useful measure for period-to-period comparisons of our business and operating results by excluding items that management believes are not reflective of our underlying operating performance. Accordingly, we believe that such non-GAAP financial measures provide useful information to investors and others in understanding and evaluating our operating results.Our use of non-GAAP information as analytical tools has limitations, and should not be considered in isolation or as substitutes for analysis of our financial results as reported under US GAAP. In addition, other companies, including companies in our industry, might calculate Adjusted EBITDA, Non-GAAP: Net earnings from continuing operations and Non-GAAP: Net earnings from continuing operations per common share-diluted, or similarly titled measures differently, which may reduce their usefulness as comparative measures.The amounts in the tables below are results from our continuing operations (in thousands):(i) Reconciliation of Adjusted EBITDA

Three Months EndedDecember 31,
Nine Months EndedDecember 31,
2025
2024
2025
2024GAAP: Net earnings from continuing operations$33,400
$14,566
$98,688
$58,558Provision for income taxes
12,189

5,351

37,711

21,841Share-based compensation
3,424

2,863

9,922

8,184Acquisition related expenses
-

29

-

1,072Depreciation and amortization [1]
6,493

7,676

20,372

18,260Other (income) expense, net [2]
(2,123)

(3,447)

(7,898)

(5,474)Non-GAAP: Adjusted EBITDA$53,383
$27,038
$158,795
$102,441 (ii) Reconciliation of Non-GAAP: Net earnings from continuing operations

Three Months EndedDecember 31,
Nine Months EndedDecember 31,
2025
2024
2025
2024GAAP: Earnings from continuing operations before tax$45,589
$19,917
$136,399
$80,399Share-based compensation
3,424

2,863

9,922

8,184Acquisition related expenses
-

29

-

1,072Acquisition related amortization expense [3]
5,006

5,983

15,867

14,180Other (income) expense, net [2]
(2,123)

(3,447)

(7,898)

(5,474)Non-GAAP: Earnings from continuing operations before tax
51,896

25,345

154,290

98,361

GAAP: Provision for income taxes
12,189

5,351

37,711

21,841Share-based compensation
916

772

2,728

2,266Acquisition related expenses
-

7

-

300Acquisition related amortization expense [3]
1,338

1,495

4,363

3,788Other (income) expense, net [2]
(568)

(930)

(2,243)

(1,498)Tax benefit (expense) on restricted stock
12

21

101

513Non-GAAP: Provision for income taxes
13,887

6,716

42,660

27,210

Non-GAAP: Net earnings from continuing operations$38,009
$18,629
$111,630
$71,151 (iii) Reconciliation of Non-GAAP: Net earnings from continuing operations per common share - diluted

Three Months EndedDecember 31,
Nine Months EndedDecember 31,
2025
2024
2025
2024GAAP: Net earnings from continuing operations per common share - diluted$1.27
$0.55
$3.74
$2.19

Share-based compensation
0.10

0.08

0.27

0.22Acquisition related expenses
-

-

-

0.03Acquisition related amortization expense [3]
0.14

0.17

0.43

0.39Other (income) expense, net [2]
(0.06)

(0.09)

(0.21)

(0.15)Tax benefit (expense) on restricted stock
-

-

-

(0.02)Total non-GAAP adjustments - net of tax
0.18

0.16

0.49

0.47

Non-GAAP: Net earnings from continuing operations per common share - diluted$1.45
$0.71
$4.23
$2.66
[1] Amount consists of depreciation and amortization for assets used internally.[2] Interest income and foreign currency transaction gains and losses.[3] Amount consists of amortization of intangible assets from acquired businesses.

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