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INVESTOR ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of ePlus, inc. - PLUS
Prnewswire· 2026-03-27 02:02
<!doctype html> <!-- For structured data --> <!-- For language declaration --> INVESTOR ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of ePlus, inc. - PLUS <!-- Additional Authorable Meta tags --> Accessibility StatementSkip NavigationNEW YORK, March 26, 2026 /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of ePlus, inc. ("ePlus" or the "Company") (NASDAQ: PLUS). Such investors are advised to contact Danielle Peyton at [email protected]or 646-581-9980, ext ...
ePlus, Inc. Investigated by the Portnoy Law Firm
Globenewswire· 2026-03-25 13:00
LOS ANGELES, March 25, 2026 (GLOBE NEWSWIRE) -- The Portnoy Law Firm advises ePlus, Inc., (“ePlus" or the "Company") (NASDAQ:PLUS) investors that the firm has initiated an investigation into possible securities fraud, and may file a class action on behalf of investors. Investors are encouraged to contact attorney Lesley F. Portnoy, by phone 310-692-8883 or email: lesley@portnoylaw.com, to discuss their legal rights, or join the case via https://portnoylaw.com/eplus-inc. The Portnoy Law Firm can provide a co ...
ePlus: The Growth Machine Keeps Running, But The Cash Keeps Waiting (NASDAQ:PLUS)
Seeking Alpha· 2026-03-10 16:08
Core Insights - The analyst downgraded ePlus inc. (PLUS) from a Strong Buy rating after the Q2 FY26 results, indicating a shift in outlook despite ongoing involvement in the crypto space [1] - The analyst has a long position in PLUS shares, reflecting confidence in the company's potential [1] Company Focus - ePlus inc. operates in the technology sector, with a focus on capital allocation, market structure, and management execution [1] - The analyst emphasizes the importance of fundamentals over surface-level metrics, aiming to identify deeper insights into the company's performance [1] Investment Strategy - The analyst covers various sectors, including Bitcoin miners, digital asset treasuries, and crypto ETFs, while also exploring emerging tech sectors like quantum computing and orbital intelligence [1] - Several stocks initiated by the analyst have shown significant returns, ranging from double to triple digits since coverage began [1]
FPA Queens Road Small Cap Value Fund’s New Addition: Eplus (PLUS)
Yahoo Finance· 2026-02-12 16:12
Core Insights - The FPA Queens Road Small Cap Value Fund reported a return of -0.36% in Q4 2025, underperforming the Russell 2000 Value Index which gained 3.26% during the same period. However, for the full year 2025, the Fund achieved a return of 13.36%, slightly outperforming the Index's 12.59% [1] Group 1: Fund Performance - The Fund outperformed in the first half of 2025 amidst weak and volatile markets, but underperformed in the second half as markets favored speculative and low-quality stocks [1] - The portfolio aims to protect clients from market drawdowns by focusing on quality and value [1] Group 2: EPlus Inc. (NASDAQ:PLUS) - EPlus Inc. provides IT solutions to optimize IT environments and supply chain processes, with a one-month return of -7.32% and a 52-week gain of 17.89% [2] - As of February 11, 2026, EPlus Inc. shares closed at $83.91, with a market capitalization of $2.148 billion [2] - The Fund added a new position in EPlus Inc. in Q4 2025, considering it well-managed and inexpensive relative to its growth and quality profile, especially after adjusting for its significant cash holdings [3] Group 3: Hedge Fund Interest - EPlus Inc. was held by 19 hedge fund portfolios at the end of Q3 2025, an increase from 17 in the previous quarter [4] - While EPlus Inc. is recognized for its potential, the company is not among the 30 most popular stocks among hedge funds, with certain AI stocks being viewed as having greater upside potential and less downside risk [4]
ePlus Q3 Earnings Call Highlights
Yahoo Finance· 2026-02-05 01:28
Core Insights - ePlus reported a strong fiscal third quarter with net sales growth of 24.6% to approximately $615 million, driven by a 32.2% increase in product sales, particularly in data center, cloud, networking, and security sectors [3][7][4] - The company raised its full-year guidance for net sales growth to 20-22%, gross profit growth to 19-21%, and adjusted EBITDA growth to 41-43% [19][7] Financial Performance - Consolidated net sales were $614.8 million, with product revenue at $501.9 million and services revenue at $112.8 million [2] - Gross billings increased by 15.6% in the quarter to $982.1 million, with year-to-date gross billings rising 18.7% to nearly $3 billion [1] - Net earnings from continuing operations surged 129% to $33.4 million, while adjusted EBITDA rose 97% to $53.4 million, resulting in an adjusted EBITDA margin of 8.7% [8][7] Demand Drivers - The demand for AI-driven infrastructure modernization and cybersecurity is accelerating, contributing to growth in data center, cloud, networking, and security products [4][11] - Security gross billings grew 16.4% quarter-over-quarter and 27.6% year-over-year, reflecting heightened customer priorities due to rising threat levels [12][6] Customer Trends - Growth was broad-based across customer sizes and sectors, with notable strength in mid-market and enterprise segments [14] - Telecom, media, and entertainment accounted for 27% of net sales, while technology, SLED, and healthcare each represented 13% [14] Operational Insights - Managed services revenue grew 10.5%, while professional services revenue declined 7.8% due to project delays in the retail sector [2][16] - The company emphasized expense discipline and alignment of workforce towards higher-growth areas, resulting in improved profitability [8] Balance Sheet and Capital Allocation - Cash and cash equivalents totaled $326.3 million, down from $389.4 million, while inventory rose to $241.0 million, attributed to increased projects in process [17] - The board approved a quarterly dividend of $0.25 per share and repurchased over 200,000 shares during the quarter [19] Future Outlook - The company anticipates a potential near-term memory shortage that could impact AI deployment timing, but believes it is well-positioned to manage this through diversified supplier relationships [20]
ePlus(PLUS) - 2026 Q3 - Earnings Call Transcript
2026-02-04 22:32
Financial Data and Key Metrics Changes - Net sales grew 24.6% to $615 million, with product sales increasing 32.2% year-over-year, driven by strong performance in data center and cloud, networking, and security [5][12] - Net earnings from continuing operations increased 129.3% to $33.4 million, with adjusted EBITDA rising 97% to $53.4 million, reflecting a margin of 8.7%, which is 320 basis points higher than the same period last year [9][17] - Year-to-date consolidated net sales increased 22.2% to $1.86 billion, with net earnings from continuing operations totaling $98.7 million, a 68.5% increase from the previous year [18] Business Line Data and Key Metrics Changes - Product revenue grew 32.2% year-over-year to $501.9 million, while service revenue totaled $112.8 million, slightly down from $113.6 million in the prior year [12] - Managed services revenue grew 10.5%, driven by demand for cloud and enhanced maintenance support, while professional services revenue declined 7.8% due to project delays in the retail sector [12][29] - Security gross billings for products and services grew 16.4% year-over-year, with a 27.6% increase over the trailing twelve months, as customers prioritize cybersecurity investments [8] Market Data and Key Metrics Changes - The company saw growth across all customer size segments, with particularly strong performance in the mid-market and enterprise space [4] - Telecom, media, and entertainment accounted for 27% of net sales on a trailing twelve-month basis, while technology, SLED, and healthcare each accounted for 13% [13] Company Strategy and Development Direction - The company is focused on expanding its solutions portfolio, growing professional and managed services capabilities, and extending geographic reach [10] - The strategy emphasizes AI, cloud, security, and networking, which are seen as key growth areas [4][10] - The company is evaluating acquisitions and investments to enhance its position in higher growth areas and support long-term vision [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued growth, supported by industry demand trends and financial flexibility [11] - The company raised its full-year guidance for net sales to 20%-22% year-over-year growth, up from mid-teens, and adjusted EBITDA growth is now expected to be 41%-43% [22][23] - Potential near-term risks include an industry-wide memory shortage, which could impact customer deployments [23] Other Important Information - The company repurchased over 200,000 shares during the quarter and announced a quarterly dividend of $0.25 per common share [5][20] - Cash and cash equivalents at quarter end totaled $326.3 million, down from $389.4 million at the end of the last fiscal year [19] Q&A Session Summary Question: Nature of outsized projects from enterprise customers - Management noted that mid-market customers had the biggest growth, with some large enterprise customers contributing significantly to Q3 performance, but they do not expect to replicate this in Q4 [26][27] Question: Professional services project delays - Management expects project delays from retail customers to materialize in fiscal 2027, attributing the decline in professional services revenue to these delays and a tough comparison to last year's growth [28][29] Question: Inventory build and project timing - Management indicated that inventory levels are expected to remain inflated in the next several quarters due to increased demand and fluctuating projects [34] Question: Impact of AI on business - Management highlighted that AI is now seen as a tailwind, driving growth in data center, cloud, and networking areas, with customers defining use cases to leverage AI capabilities [36][38] Question: Importance of integrated solutions - Management emphasized that offering integrated solutions across AI, cloud, and networking is a key differentiator, as customers prefer to work with fewer strategic vendors [39]
ePlus(PLUS) - 2026 Q3 - Earnings Call Transcript
2026-02-04 22:32
Financial Data and Key Metrics Changes - Net sales grew 24.6% to $615 million, with product sales increasing 32.2% year-over-year, driven by strong performance in data center, cloud, networking, and security [5][12] - Net earnings from continuing operations increased 129.3% to $33.4 million, with adjusted EBITDA rising 97% to $53.4 million, reflecting a margin of 8.7%, which is 320 basis points higher than the previous year [9][17] - Year-to-date consolidated net sales increased 22.2% to $1.86 billion, with net earnings from continuing operations totaling $98.7 million, a 68.5% increase from the prior year [18] Business Line Data and Key Metrics Changes - Product revenue grew 32.2% year-over-year to $501.9 million, while service revenue totaled $112.8 million, slightly down from $113.6 million in the prior year [12] - Managed services revenue grew 10.5%, while professional services revenue declined 7.8% due to project delays in the retail sector [12][29] - Security gross billings for products and services grew 16.4% year-over-year, with a 27.6% increase over the trailing 12 months, as customers prioritize cybersecurity investments [8] Market Data and Key Metrics Changes - The company saw growth across all customer size segments, with particularly strong performance in the mid-market and enterprise space [4] - Telecom, media, and entertainment accounted for 27% of net sales, while technology, SLED, and healthcare each accounted for 13%, and financial services at 9% [13] Company Strategy and Development Direction - The company is focused on expanding its solutions portfolio, growing professional and managed services capabilities, and extending geographic reach [10] - The strategy emphasizes AI, cloud, security, and networking, which are seen as key growth areas [4][10] - The company is evaluating acquisitions and investments to enhance its position in higher growth areas and support long-term vision [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued growth, supported by industry demand trends and financial flexibility [11] - The company raised its full-year guidance for net sales to 20%-22% year-over-year growth, up from mid-teens, and adjusted EBITDA growth to 41%-43% [22][23] - Potential near-term risks include an industry-wide memory shortage, which could impact customer deployments [23] Other Important Information - The company repurchased over 200,000 shares during the quarter and announced a quarterly dividend of $0.25 per common share [5][20] - Cash and cash equivalents at quarter end totaled $326.3 million, down from $389.4 million, primarily due to working capital needs [19] Q&A Session Summary Question: Nature of outsized projects from enterprise customers - Management noted that mid-market customers had the biggest growth, with some large enterprise customers contributing significantly to Q3 performance, but they do not expect to replicate this in Q4 [26][27] Question: Professional services project delays - Management expects project delays from retail customers to materialize in fiscal 2027, attributing the decline in professional services to a few customers and tough comparisons from the previous year [28][29] Question: Inventory build and project timing - Inventory increased due to demand, and management expects levels to remain inflated in the next several quarters [34] Question: Impact of AI on business - AI is now seen as a tailwind, driving growth in data center, cloud, and networking areas, with customers defining use cases and modernizing legacy systems [36][38] Question: Importance of integrated solutions - Integrated solutions across AI, cloud, and networking are becoming a differentiator for the company, as customers prefer to work with fewer strategic vendors [39]
ePlus(PLUS) - 2026 Q3 - Earnings Call Transcript
2026-02-04 22:30
Financial Data and Key Metrics Changes - Net sales grew 24.6% to $615 million, with product sales increasing 32.2% year-over-year, driven by strong performance in data center, cloud, networking, and security [5][12] - Net earnings from continuing operations increased 129.3% to $33.4 million, with adjusted EBITDA rising 97% to $53.4 million, reflecting a margin of 8.7%, which is 320 basis points higher than the same period last year [9][17] - Year-to-date consolidated net sales increased 22.2% to $1.86 billion, with gross profit rising 23.7% to $469 million [18] Business Line Data and Key Metrics Changes - Product revenue grew 32.2% year-over-year to $501.9 million, while service revenue totaled $112.8 million, slightly down from $113.6 million in the prior year [12][16] - Managed services revenue grew 10.5%, while professional services revenue declined 7.8% due to project delays in the retail sector [12][28] - Security gross billings for products and services grew 16.4% year-over-year, with a 27.6% increase for the trailing twelve months [7] Market Data and Key Metrics Changes - Growth was observed across all customer size segments, particularly in the mid-market and enterprise space [4][5] - Telecom, media, and entertainment accounted for 27% of net sales, while technology, SLED, and healthcare each accounted for 13% [13] Company Strategy and Development Direction - The company is focused on expanding its solutions portfolio, enhancing professional and managed services capabilities, and extending geographic reach [10] - There is an emphasis on AI, cloud, security, and networking as key growth areas, with plans to enhance AI envisioning sessions and acceleration offerings [10][21] - The company is evaluating acquisitions and investments to enhance its position in higher growth areas [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued growth, supported by industry demand trends and financial flexibility [11][21] - The company raised its full-year guidance for net sales to 20%-22% year-over-year growth, up from mid-teens [21] - Potential near-term risks include an industry-wide memory shortage impacting customer deployments [22][23] Other Important Information - The company approved a quarterly dividend of $0.25 per common share and repurchased over 200,000 shares during the quarter [5][20] - Cash and cash equivalents at quarter end totaled $326.3 million, down from $389.4 million at the end of the last fiscal year [19] Q&A Session Summary Question: Nature of outsized projects from enterprise customers - Management noted that mid-market customers had the biggest growth, with some large enterprise customers contributing significantly in Q3, but they do not expect to replicate that in Q4 [26][27] Question: Professional services project delays - Management expects project delays from retail customers to materialize in fiscal 2027, attributing the decline in professional services to a few customers and tough comparisons from the previous year [28] Question: Inventory build and project timing - Management indicated that inventory increased due to demand, and they expect inventory levels to remain inflated in the next several quarters [33] Question: Impact of AI on business - AI is now seen as a tailwind, driving growth in data center, cloud, and networking areas, with customers defining use cases to modernize legacy systems [35][36] Question: Importance of integrated solutions - Management highlighted that offering integrated solutions across AI, cloud, and networking is a key differentiator, as customers prefer to work with fewer strategic vendors [37][38]
ePlus(PLUS) - 2026 Q3 - Quarterly Report
2026-02-04 22:06
Financial Performance - Total net sales for the three months ended December 31, 2025, reached $614.8 million, a 24.6% increase from $493.2 million in the same period of 2024[17] - Gross profit for the nine months ended December 31, 2025, was $469.0 million, compared to $379.3 million for the same period in 2024, reflecting a 23.6% increase[17] - Net earnings from continuing operations for the nine months ended December 31, 2025, were $98.7 million, up 68.5% from $58.6 million in 2024[20] - Earnings per common share—basic for continuing operations increased to $3.76 for the nine months ended December 31, 2025, compared to $2.20 in 2024, representing a 70.9% growth[17] - The company reported a total comprehensive income of $35.1 million for the three months ended December 31, 2025, compared to $20.8 million in the same period of 2024, marking a 68.5% increase[18] - Net earnings for the three months ended December 31, 2025, were $35,052,000, compared to $24,133,000 for the same period in 2024, representing a year-over-year increase of approximately 45%[63] - Basic earnings per share for continuing operations increased to $1.28 in Q4 2025 from $0.55 in Q4 2024, while diluted earnings per share rose to $1.33 from $0.91[63] Revenue Growth - Total revenue from contracts with customers for the three months ended December 31, 2025, was $614.67 million, a 24.6% increase from $493.12 million in the same period of 2024[92] - Total revenue for the nine months ended December 31, 2025, was $1.86 billion, compared to $1.52 billion for the same period in 2024, marking a 22.4% growth[92] - Total net sales for the product segment reached $501.8 million for the three months ended December 31, 2025, up from $379.5 million in the prior year, representing a growth of 32.3%[88] - Revenue from the Telecom, Media & Entertainment sector for the three months ended December 31, 2025, reached $176.41 million, up 40% from $126.20 million in 2024[92] - The Technology sector generated $89.37 million in revenue for the three months ended December 31, 2025, representing a 25.4% increase from $71.29 million in 2024[92] - Cloud revenue for the three months ended December 31, 2025, was $175.35 million, up 50% from $116.86 million in 2024[92] - The Networking product segment achieved $230.89 million in revenue for the three months ended December 31, 2025, a 27.3% increase from $181.37 million in 2024[92] - Managed services segment revenue for the three months ended December 31, 2025, was $48.78 million, a 10.5% increase from $44.15 million in 2024[92] Balance Sheet and Liabilities - Total current liabilities decreased to $682.1 million as of December 31, 2025, from $797.9 million at the end of the previous year, a reduction of 14.5%[15] - Total stockholders' equity increased to $1.063 billion as of December 31, 2025, from $977.6 million in 2024, reflecting an 8.8% growth[16] - The company experienced a decrease in accounts payable from $324.6 million to $291.4 million, a decline of 10.2%[15] - The outstanding balance under the accounts payable floor plan facility was $133.2 million, up from $89.5 million as of March 31, 2025[53] - The company had no outstanding balances under the revolving credit facility as of December 31, 2025[55] Cash Flow and Investments - Cash and cash equivalents at the end of the period were $326.3 million, compared to $253.1 million at the beginning of the period, indicating a significant increase[21] - The company reported a net cash used in operating activities of continuing operations of $(223.4) million for the nine months ended December 31, 2025, compared to $186.6 million in the previous year[20] - The company issued 30,000 shares of common stock, raising $1,850,000 during the quarter ending September 30, 2025[23] - ePlus repurchased 213,000 shares of common stock for $16,607,000 during the quarter ending September 30, 2025[23] - The company paid dividends of $6,599,000 during the quarter ending September 30, 2025[23] - The company repurchased 272,900 shares of common stock at a value of $21.0 million during the nine months ended December 31, 2025[65] Acquisitions and Divestitures - ePlus completed the sale of its domestic financing business on June 30, 2025, which is expected to allow the company to focus more on technology solutions[30] - The company completed the sale of its domestic financing business, HoldCo, for net cash proceeds of $156.7 million on June 30, 2025[42] - The acquisition of Bailiwick Services, LLC was completed for a total consideration of $124.9 million, including $126.2 million in cash paid at closing[82] - Identified intangible assets from the Bailiwick acquisition amounted to $58.0 million, primarily consisting of customer relationships valued at $49.3 million[82] - The total purchase consideration for the Bailiwick acquisition included $41.3 million in goodwill, attributed to expected synergies and the acquired workforce[83] Tax and Regulatory Matters - The provision for income tax expense was $12.2 million for the three months ended December 31, 2025, compared to $5.4 million for the same period in the prior year, reflecting a significant increase[12] - The effective tax rate for the three months ended December 31, 2025, was 26.7%, slightly lower than 26.9% for the same period in the prior year[12] - The company is evaluating the impact of recently issued accounting pronouncements on its financial statement disclosures, including ASU 2023-09, effective for annual periods beginning March 31, 2026[34] Other Financial Metrics - The total remaining performance obligations expected to be recognized in the future amount to $172.634 million, with $32.490 million expected in the remainder of the fiscal year ending March 31, 2026[41] - The company recognized a contingent receivable of $12.4 million as of December 31, 2025, adjusted from an initial estimate of $13.5 million due to performance towards achieving targets[80] - The allowance for credit losses decreased from $3,667,000 in 2024 to $3,199,000 in 2025, with a provision for credit losses of $595,000 in 2025 compared to $1,483,000 in 2024[50] - Total amortization expense for other intangible assets was $15.9 million for the nine months ended December 31, 2025, compared to $14.2 million for the same period in 2024[49] - Goodwill as of December 31, 2025, totaled $202.927 million, reflecting only foreign currency translation adjustments during the nine months[44] - The company recognized a gain of $2.3 million in the three months ended December 31, 2025, from the settlement of a legal matter related to discontinued operations[42] - Foreign currency exposure has not significantly impacted the company's operations, although fluctuations in exchange rates may affect financial results[165]
ePlus(PLUS) - 2026 Q3 - Quarterly Results
2026-02-04 21:31
Financial Performance - Consolidated net sales increased 24.6% to $614.8 million in Q3 FY 2026, up from $493.2 million in Q3 FY 2025[5] - Net earnings from continuing operations rose 129.3% to $33.4 million, compared to $14.6 million in the prior year quarter[14] - Adjusted EBITDA increased 97.4% to $53.4 million in Q3 FY 2026, up from $27.0 million in Q3 FY 2025[14] - For the first nine months of FY 2026, consolidated net sales increased 22.2% to $1,860.9 million, from $1,522.2 million in the same period last year[16] - Gross profit for the first nine months of FY 2026 increased 23.7% to $469.0 million, compared to $379.3 million in the prior year[19] - Total net sales for the three months ended December 31, 2025, reached $614.8 million, a 24.6% increase from $493.2 million in the same period of 2024[39] - Product sales accounted for $501.9 million, up 32.3% from $379.6 million year-over-year, while service sales slightly decreased to $112.8 million from $113.6 million[39] - Gross profit for the three months ended December 31, 2025, was $158.7 million, representing a 26.9% increase compared to $125.1 million in the prior year[39] - Operating income surged to $43.5 million, a significant increase from $16.5 million in the same quarter of 2024[39] - Net earnings for the three months ended December 31, 2025, were $35.1 million, compared to $24.1 million in the same period of 2024, marking a 45.5% increase[39] - Earnings per share for continuing operations were $1.28, up from $0.55 in the prior year, while diluted earnings per share increased to $1.33 from $0.91[39] Guidance and Expectations - The company raised its FY 2026 guidance for net sales to increase by 20% to 22% year-over-year, up from previous guidance of mid-teens[26] - Gross profit is now expected to grow at a rate of 19% to 21%, an increase from prior guidance of mid-teens[26] Assets and Liabilities - Cash and cash equivalents were $326.3 million as of December 31, 2025, down from $389.4 million as of March 31, 2025[25] - Total current assets increased to $1.45 billion as of December 31, 2025, compared to $1.36 billion at the end of March 2025[38] - Total liabilities decreased to $768.4 million from $907.2 million, indicating improved financial health[38] - Retained earnings rose to $945.3 million, up from $851.0 million, reflecting strong profitability[38] Inventory and Sales Segments - Inventory increased 100.1% to $241.0 million as of December 31, 2025, compared to $120.4 million as of March 31, 2025[25] - The product segment generated $501.827 million in net sales, reflecting a 32.2% growth compared to $379.472 million in the prior year[40] - Cloud services net sales surged by 50.0% to $175.352 million, up from $116.864 million year-over-year[40] - The managed services segment saw a 10.5% increase in net sales, reaching $48.778 million compared to $44.150 million in the previous year[40] - The company reported a 39.8% increase in net sales from the telecom, media & entertainment sector, totaling $176.405 million compared to $126.201 million in 2024[40] Dividends and Shareholder Returns - ePlus announced a quarterly cash dividend of $0.25 per common share, payable on March 18, 2026[30] Risks and Challenges - The company continues to face risks related to supply chain issues and political instability that may impact future performance[35]