Financial Performance - Total net sales for the three months ended September 30, 2025, reached $608.8 million, a 23.4% increase from $493.4 million in the same period of 2024[17] - Gross profit for the six months ended September 30, 2025, was $310.3 million, compared to $254.2 million for the same period in 2024, reflecting a 22.1% increase[17] - Net earnings from continuing operations for the six months ended September 30, 2025, were $65.3 million, up 48.5% from $44.0 million in the prior year[20] - Earnings per share for continuing operations increased to $2.48 for the six months ended September 30, 2025, compared to $1.65 for the same period in 2024[17] - Net earnings for the three months ended September 30, 2025, were $34.855 million, compared to $31.310 million for the same period in 2024, representing an increase of 8.3%[62] - Basic earnings per share for continuing operations increased to $1.45 for the three months ended September 30, 2025, from $0.75 in the same period of 2024, reflecting a growth of 93.3%[62] - For the six months ended September 30, 2025, net earnings were $72,552,000, compared to $54,678,000 for the same period in 2024, indicating a growth of approximately 32.7%[23] Balance Sheet Highlights - Total liabilities decreased to $720.7 million as of September 30, 2025, down from $907.2 million at the end of the previous fiscal year[14] - Cash and cash equivalents at the end of the period were $402.2 million, an increase from $187.5 million at the end of September 2024[20] - Total stockholders' equity increased to $1,046.1 million as of September 30, 2025, compared to $977.6 million at the end of the previous fiscal year[15] - As of September 30, 2025, ePlus reported total stockholders' equity of $1,046,082,000, an increase from $901,779,000 as of September 30, 2024, representing a year-over-year growth of approximately 15.9%[23] - ePlus's retained earnings reached $916,852,000 as of September 30, 2025, up from $742,978,000 as of September 30, 2024, marking a significant increase of approximately 23.4%[23] Operational Changes - The company completed the sale of its financing business on June 30, 2025, which positions ePlus as a pure-play technology solutions provider, impacting its operational focus moving forward[28] - Cisco Systems accounted for approximately 27% of ePlus's net sales for the six months ended September 30, 2025, down from 37% in the same period of 2024, reflecting a diversification in product sales[31] Cash Flow and Capital Management - The company reported a net cash used in operating activities of continuing operations of $(137.6) million for the six months ended September 30, 2025[20] - ePlus repurchased 60,000 shares of common stock for $4,404,000 during the six months ended September 30, 2025, as part of its capital management strategy[23] - The company repurchased 60,000 shares at a value of $4.4 million during the six months ended September 30, 2025, compared to 250,234 shares at a value of $19.8 million in the same period of 2024[64][65] Foreign Currency and Adjustments - The company experienced a foreign currency translation adjustment loss of $1.2 million for the three months ended September 30, 2025[18] - The company reported a foreign currency translation adjustment of $5,397,000 for the six months ended September 30, 2025, compared to $2,280,000 for the same period in 2024, indicating increased exposure to foreign currency fluctuations[23] - Foreign currency exposure related to transactions has not been significant, although fluctuations in exchange rates may impact financial results[162] Future Outlook and Strategic Initiatives - The company plans to continue focusing on market expansion and new product development to drive future growth[12] - Future revenue expected to be recognized from unsatisfied performance obligations totals $177.7 million, with $59.0 million expected in the remainder of the fiscal year ending March 31, 2026[38] Acquisitions and Intangible Assets - The company acquired Bailiwick Services, LLC for a total consideration of $124.9 million, including $126.2 million in cash at closing[80] - Identified intangible assets from the acquisition include customer relationships valued at $49.3 million and a trade name valued at $8.7 million[81] - Goodwill recognized from the Bailiwick acquisition amounts to $41.3 million, primarily due to expected synergies and an assembled workforce[82] Tax and Compensation - The provision for income tax expense for the three months ended September 30, 2025, was $15.8 million, compared to $7.5 million for the same period in 2024, showing a significant increase of 110.7%[73] - The effective tax rate for the three months ended September 30, 2025, was 29.3%, up from 27.5% in the same period of 2024[73] - Share-based compensation for the six months ended September 30, 2025, amounted to $6,558,000, compared to $5,463,000 for the same period in 2024, showing an increase of approximately 20%[23] - The total share-based compensation expense for the six months ended September 30, 2025, was $6.498 million, up from $5.321 million in the same period of 2024, indicating a year-over-year increase of 22.1%[71] Revenue Segmentation - The product segment generated $485.0 million in revenue for the three months ended September 30, 2025, up from $389.6 million in 2024, reflecting a 24.5% growth[90] - Revenue from the Telecom, Media & Entertainment sector increased to $176.8 million in Q3 2025, compared to $108.9 million in Q3 2024, marking a 62.4% increase[90]

Core Insights - ePlus has shown a solid historical growth rate of 7.3% compounded annually over the last five years, but recent performance indicates a slowdown with flat revenue over the past two years [1][2] - The company reported $2.26 billion in revenue over the past 12 months, positioning it as a mid-sized player in the business services sector, which may limit its competitive advantages compared to larger firms [2] - ePlus has transitioned from a financing company to a full-service technology provider, offering IT solutions, professional services, and financing options [3] Financial Performance - In fiscal 2026, ePlus experienced a strong start with net sales growing 23.4% and diluted EPS increasing nearly 63%, marking a significant milestone with quarterly gross billings exceeding $1 billion for the first time [4] - For Q3 CY2025, ePlus's revenue increased by 18.2% year-on-year to $608.8 million, surpassing Wall Street's expectations by 17.5% [5][6] - The company’s operating margin averaged 7.5% over the last five years, which is considered weak for the business services sector, and it decreased by 1.1 percentage points during this period [9][10] Earnings Analysis - ePlus's EPS grew at a compounded annual growth rate of 10.3% over the last five years, indicating improved profitability on a per-share basis [12] - The company has engaged in stock buybacks, reducing its share count by 1.4%, which has contributed to the increase in EPS, suggesting that the growth in EPS is partly due to financial engineering rather than operational efficiency [13] - In Q3, ePlus reported adjusted EPS of $1.53, up from $1.36 in the same quarter last year, exceeding analysts' estimates [15][17] Market Outlook - Analysts project a revenue decline of 6.2% over the next 12 months, indicating potential demand challenges for ePlus's products and services [6] - Despite a strong quarterly performance, the long-term business quality and valuation will be critical in determining if ePlus is a good investment [18]

Core Insights - ePlus inc. reported strong financial results for the second quarter of fiscal year 2026, with significant year-over-year growth in key metrics, including net sales, gross profit, and net earnings [4][5][22] - The company has increased its fiscal year 2026 guidance for net sales, gross profit, and Adjusted EBITDA, reflecting confidence in continued growth [22][23] Financial Performance - For the second quarter ended September 30, 2025, consolidated net sales increased by 23.4% to $608.8 million, up from $493.4 million in the same quarter last year [5][6] - Gross billings rose by 26.5% to $1,022.7 million, marking a record for the company [5][6] - Consolidated gross profit increased by 27.4% to $162.1 million, with a gross margin of 26.6%, compared to 25.8% in the prior year [5][8] - Net earnings from continuing operations surged by 92.7% to $38.2 million, with diluted earnings per share increasing by 95.9% to $1.45 [11][19] Segment Performance - Product segment sales grew by 24.5% to $485.0 million, driven by higher sales in cloud, networking, and security products [6][13] - Professional services segment revenues increased by 23.3% to $76.3 million, primarily due to the acquisition of Bailiwick Services, LLC [7][14] - Managed services segment revenue rose by 13.5% to $47.4 million, attributed to enhanced maintenance support and cloud services [8][16] Balance Sheet Highlights - As of September 30, 2025, cash and cash equivalents stood at $402.2 million, an increase from $389.4 million as of March 31, 2025 [21] - Total stockholders' equity reached $1,046.1 million, up from $977.6 million as of March 31, 2025 [21] Future Outlook - The company anticipates net sales growth in the mid-teens for fiscal year 2026, building on fiscal year 2025's $2.01 billion from continuing operations [22][23] - ePlus plans to maintain a disciplined capital allocation approach, focusing on investments that enhance its competitive differentiation while ensuring a strong balance sheet [23]

Core Insights - ePlus inc. will release its earnings report on November 6, 2025, for the three and six months ended September 30, 2025, after market close [1] - A conference call and audio webcast will be held at 4:30 p.m. ET on the same day to discuss the financial results [2] Company Overview - ePlus is a customer-first, services-led industry leader providing transformative technology solutions and services [3] - The company offers a comprehensive portfolio including artificial intelligence, security, cloud and data center, networking, and managed services [3] - ePlus has over 2,100 employees and operates in the United States, United Kingdom, Europe, and Asia Pacific [3]

Core Insights - Nearly three-quarters of IT and industry leaders now prioritize revenue growth as the main driver of AI initiatives, surpassing cost savings (54%) and increased customer satisfaction (56%) [1][2] - The survey indicates a significant shift in the perception of AI, evolving from a tool for efficiency to a catalyst for innovation and growth [2] - 81% of respondents express concerns about their current IT infrastructure's ability to support advanced AI applications [2][5] AI Adoption and Challenges - 60% of organizations are still in the early-to-mid stages of AI implementation, while only 8% report fully integrated, mature AI deployments [5] - Security remains a top concern, with 90% of leaders citing data privacy leakage as critical and 68% identifying regulatory compliance as a major barrier [5] - Talent shortages are a significant challenge, with 52% of leaders identifying it as a top issue, second only to security and infrastructure concerns [5] Agentic AI Insights - There is a notable gap in knowledge and readiness for agentic AI, with 41% of respondents only slightly familiar and 23% very familiar with the concept [5] - Only 26% are ready and actively investing in agentic AI, while 33% acknowledge the need for greater understanding before committing resources [5] - Opinions on agentic AI are divided, with 33% believing it's too soon to gauge its impact, 26% considering it useful but risky, and 27% viewing it as highly promising [5] Company Commitment - ePlus is dedicated to helping organizations navigate the complexities of scaling AI beyond pilot projects and building infrastructure that ensures peak performance, security, and reliability [2][3] - The company provides guidance, expertise, and adaptable solutions to empower leaders in overcoming challenges and seizing new opportunities in AI [3]

Core Insights - ePlus inc. has expanded its Managed Services and Enhanced Maintenance Support offerings for the complete Juniper Networks infrastructure, enhancing operational support and visibility across the network [1][2]. Company Offerings - The new solution includes proactive monitoring of Juniper assets, 24x7 issue resolution by Juniper-certified engineers, and integration of lifecycle data into an executive dashboard for a comprehensive view of network wellness [1][2]. - ePlus' Enhanced Maintenance Support now encompasses Juniper Networks devices, allowing customers to offload management tasks and improve their IT operations [2][3]. Partnership and Expertise - ePlus is recognized as a Juniper Global Elite Plus Partner, the highest designation in Juniper's partner program, reflecting a long-standing collaboration to deliver automated and scalable network solutions [2][4]. - The company has over 25 years of experience in providing 24x7x365 Managed Services across various industries, holding multiple compliance attestations, including SSAE 18 and HIPAA [3][4]. Customer Experience - The offerings aim to enhance customer experience by providing faster resolution times and reducing downtime risks, positioning ePlus as a trusted extension of customers' IT teams [2][3].

Summary of ePlus Conference Call Company Overview - ePlus has been in business for over 30 years, initially starting as a finance company focused on IT assets, and has transitioned to a technology segment [2][3] - The company sold its finance segment in June 2025 for $180 million, which provides financial flexibility to focus on technology growth [2][17] Financial Performance - Revenues for the last fiscal year were over $2 billion, with gross billings at $3.2 billion [3] - The company has over 4,600 customers and 2,100 employees [3] - The net sales CAGR over the last five years was 7%, while gross billings CAGR was 10% [17] - Service revenue has grown at a CAGR of 19% over the last five years, now representing nearly 20% of net sales [19][20] - Consolidated gross profit has grown at a CAGR of 10%, with gross margins increasing from 23% in fiscal 2021 to 26% in fiscal 2025 [20][21] - Net earnings and EPS CAGR over the last five years was 12% [21] Strategic Focus - ePlus is focusing on areas such as data center, cloud, artificial intelligence, networking, security, and collaboration [5][8] - The company aims to leverage its cash reserves (approximately $480 million) for acquisitions and growth opportunities [14][24] - A quarterly dividend has been initiated, marking a return of value to shareholders [3][24] Market Position and Competitive Advantage - ePlus differentiates itself by maintaining higher gross margins (400 to 600 basis points higher than competitors) due to its focus on services rather than commodity sales [13][29] - The company is positioned well in the market, focusing on mid-market customers (500 to 10,000 employees) while also serving Fortune 100 clients [15][16] Artificial Intelligence and Infrastructure - The company is in the early stages of AI adoption, conducting envisioning sessions to help customers identify use cases [31] - There is a growing demand for AI-enabled technology infrastructure, with customers upgrading their compute, storage, and networking capabilities [32] Market Demand and Economic Outlook - The supply chain has eased, leading to normalized IT spending, with no significant slowdown observed in the market [33][34] - The company remains optimistic about future growth, driven by ongoing investments in technology and services [38] Conclusion - ePlus is strategically positioned as a pure technology play, focusing on growth in services and technology solutions, with a strong financial foundation to support its initiatives [38]

Financial Data and Key Metrics Changes - The company reported revenue of $415 million for H1 2025, representing a year-on-year growth of 4% [39] - EBITDA for the same period was $185 million, reflecting a significant increase of 1512% year-on-year [38] - Total customer deposits more than doubled to $3.1 billion, with an average deposit per active customer reaching approximately $17,000 [24][38] - The company ended the first half with cash balances of approximately $938 million and no debt [6][41] Business Line Data and Key Metrics Changes - Non-OTC revenues accounted for approximately 13% of the group's total revenue in 2025, up from just 1% when the futures business was acquired in 2021 [23] - The futures business saw customer segregated funds grow to approximately $850 million, a 140% increase from the previous year [25] - 66% of OTC revenue was derived from customers who have been trading with the company for over three years, indicating strong customer retention [8] Market Data and Key Metrics Changes - The company expanded its geographic reach with new offerings in Japan and the conditional acquisition of MetaEquities in India [5] - The UAE and the US were highlighted as key markets driving growth [5] Company Strategy and Development Direction - The company aims to deepen customer engagement and enhance retention through investments in technology and customer service [9] - The strategic roadmap focuses on diversification into non-OTC products and expanding operations in new markets [49] - The company is committed to being carbon negative by 2030 and has moved to a more energy-efficient headquarters [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the structural growth opportunities ahead and the positive momentum in the business [4] - The company is well-positioned to leverage its proprietary technology and regulatory licenses to drive future growth [20][47] Other Important Information - The company announced shareholder returns of $365 million for the year to date, equivalent to 11% of its market capitalization as of June 30, 2025 [6] - Plus500 has been recognized as the best-performing share in the FTSE All Share Index over the last twelve years [7] Q&A Session Summary Question: Impact of regulatory changes in India on MetaEquities - Management views the new regulatory changes in India as positive, as they support a more structured and regulated market environment [54][55] Question: Growth in non-OTC customer deposits - The company has exceeded its initial targets for non-OTC customer deposits, but management emphasizes the importance of balancing growth across both OTC and non-OTC segments [56][57] Question: Dynamics behind growth in customer deposits - Growth in customer deposits is driven by onboarding new institutional customers and introducing brokers, which has led to increased deposits from their customer bases [61][62] Question: Improvements in customer retention - The company has focused on enhancing its technology stack and integrating AI and big data capabilities to improve customer retention and reduce churn rates [64] Question: Future revenue acceleration from non-OTC products - Management anticipates continued growth in revenues from non-OTC products as the company invests in new fundamentals and expands its offerings [67] Question: Marketing efficiency improvements - The company has optimized its marketing strategies, leading to lower customer acquisition costs while increasing the quality of earnings and customer longevity [72]

Financial Data and Key Metrics Changes - The company reported revenue of $415 million for the first half of 2025, representing a year-on-year growth of 4% [40] - EBITDA grew significantly by 1512% year-on-year, reaching $185 million [39] - Total customer deposits more than doubled to $3.1 billion, with an average deposit per active customer increasing to approximately $17,000 [25][39] - The company ended the period with cash balances of approximately $938 million and no debt, indicating a strong financial position [42] Business Line Data and Key Metrics Changes - Non-OTC revenues accounted for approximately 13% of the group's total revenue in 2025, up from just 1% when the futures business was acquired in 2021 [24] - The futures business saw customer segregated funds grow to approximately $850 million, a 140% increase from the previous year [26] - 66% of OTC revenue was derived from customers who have been trading with the company for over three years, highlighting customer retention [9] Market Data and Key Metrics Changes - The company expanded its operations into new markets, including the UAE and Canada, and secured a new license in Japan [10][20] - The acquisition of MetaEquities in India is expected to enhance the company's presence in a significant market [18][14] - The company operates in over 60 countries, serving approximately 32 million registered customers [21] Company Strategy and Development Direction - The company aims to deepen customer engagement and enhance retention through investments in technology and customer service [10] - A strategic roadmap has been established to focus on growth, innovation, and diversification into non-OTC products [48] - The company is committed to maintaining its competitive advantage through proprietary technology and expanding its product offerings [30][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the structural growth opportunities ahead and the positive momentum in the business [4] - The company views regulatory changes in India as positive for long-term growth and market stability [54] - There is a focus on balancing growth between non-OTC and OTC segments to ensure robust returns [57] Other Important Information - The company has returned approximately $365 million to shareholders year-to-date, equivalent to 11% of its market capitalization [6] - Plus500 has been recognized as the best-performing share in the FTSE All Share Index over the last twelve years [7] - The company is committed to being carbon negative by 2030 and has moved to a more energy-efficient headquarters [15] Q&A Session Summary Question: What are the implications of regulatory changes in India for MetaEquities? - Management views the new regulatory changes as positive, as they support a more structured and regulated market, which can attract new customers [55] Question: What is driving the growth in non-OTC customer deposits? - The growth is primarily driven by recruiting introducing brokers, which brings in their customers, thus increasing deposits [63] Question: What strategies have been implemented to improve customer retention? - The company has focused on enhancing its technology stack and integrating AI and big data capabilities to improve customer retention and reduce churn rates [65] Question: When can we expect revenue from non-OTC products to accelerate? - Management anticipates continued growth in revenues as investments in new products and geographies yield results [68] Question: What changes have been made to improve marketing efficiency? - The company has optimized its marketing processes, leading to lower customer acquisition costs while increasing the quality of earnings and customer longevity [71]

Financial Performance - Plus500 announced shareholder returns of $365 million in YTD 2025[8] - Total shareholder returns since IPO in 2013 reached $2.7 billion[10] - H1 2025 revenue increased by 4% to $415.1 million compared to $398.2 million in H1 2024[107, 114] - EBITDA for H1 2025 grew by 1% to $185.1 million from $183.9 million in H1 2024[107, 114] - The company maintains a strong balance sheet with cash balances of over $0.9 billion and no debt[49, 72] Customer Metrics - Average deposit per active customer increased by 105% to approximately $17,250 in H1 2025[14, 107] - Active customers increased by 2% to 179,931 in H1 2025[52, 107] - 89% of OTC revenue in H1 2025 was generated through mobile and tablet offerings[14, 99] - 66% of OTC revenue was derived from customers trading with Plus500 for over three years[14] Strategic Growth - Non-OTC revenue is anticipated to be more than $100 million in FY 2025[61] - Customer segregated funds in the US futures market reached approximately $850 million as of June 30, 2025[67]