Third Quarter Gross Profit Increased 5.3% And Gross Margin Expanded Year Over Year  Third Quarter Fiscal Year 2025 •           Net sales increased 0.4% to $511.0 million; technology business net sales declined 0.2% to $493.1 million; service revenues increased 52.2% to $113.6 million. •           Technology business gross billings increased 6.6% to $849.5 million. •           Consolidated gross profit increased 5.3% to $140.9 million. •           Consolidated gross margin was 27.6%, com ...

Cloud-native solution leverages AI and machine learning to deliver exceptional user experiences and simplified IT operations HERNDON, Va., Feb. 4, 2025 /PRNewswire/ -- ePlus inc. (NASDAQ: PLUS – news) today announced that it has expanded its Managed Services portfolio with proactive monitoring, management, and support for Juniper Mist wireless, wired, and SD-WAN infrastructure devices. The offering complements ePlus' current best-of-breed infrastructure monitoring with Juniper Marvis AI virtual network assi ...

HERNDON, Va., Jan. 29, 2025 /PRNewswire/ -- ePlus inc. (NASDAQ NGS: PLUS – news) today announced that on February 5, 2025, it will release earnings and host a conference call regarding its financial results for the three and nine months ended December 31, 2024.  Earnings will be released after the market closes, and management will hold a conference call and audio webcast at 4:30 p.m. ET. Date:Time: Audio Webcast (Live & Replay):     February 5, 20254:30 p.m. EThttps://events.q4inc.com/attendee/4129246 ...

76% of IT leaders believe their organizations have yet to achieve AI maturity, highlighting a significant gap in meeting AI goals HERNDON, Va., Jan. 29, 2025 /PRNewswire/ -- ePlus inc. (NASDAQ: PLUS – news) today revealed the launch of its inaugural AI Readiness survey, which reveals critical insights into the current state of AI adoption and the universal challenges faced by organizations across sectors. The survey, which polled 200 IT professionals during The 2024 AI Summit New York, highlights the ongoin ...

HERNDON, Va., Jan. 7, 2025 /PRNewswire/ -- ePlus inc. (NASDAQ: PLUS) (news) today announced that Melissa Ballenger, Adjunct Professor at the Raymond A. Mason School of Business at William & Mary, has been appointed as a member of its Board of Directors. Ms. Ballenger has also been appointed as a member of the Audit Committee of the ePlus Board of Directors. From 2020 to 2023, Ms. Ballenger served as the Chief Financial Officer of Mosaic, a financial technology platform for sustainable home improvements. Fro ...

As-a-Service Artificial Intelligence solution helps support GenAI use cases by building a business proof of concept for transformation and speeding AI adoption HERNDON, Va., Dec. 17, 2024 /PRNewswire/ -- ePlus inc. (NASDAQ NGS: PLUS – news) today announced its Secure GenAI Accelerator offering. Part of the ePlus AI Ignite portfolio, this hosted proof of concept (POC) engagement allows organizations to test a private Generative AI (GenAI) chatbot to explore and refine ideas, use metrics to identify key insi ...

EPlus (PLUS) came out with quarterly earnings of $1.36 per share, missing the Zacks Consensus Estimate of $1.39 per share. This compares to earnings of $1.40 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -2.16%. A quarter ago, it was expected that this computer products reseller would post earnings of $1.17 per share when it actually produced earnings of $1.13, delivering a surprise of -3.42%.Over the last four quarters, the ...

Financial Data and Key Metrics - Consolidated net sales decreased by 12.3% YoY to $515.2 million, primarily due to a decline in product sales, which was partially offset by strong growth in higher-margin services revenues [9][22] - Gross profit increased by 2.5% YoY to $148 million, driven by strength in services and higher product margins, with gross margins expanding by 410 basis points to 28.7% [10][27] - Operating income decreased by 4.8% to $42.7 million, and net earnings declined by 4.1% to $31.3 million, or $1.17 per diluted share [29][30] - Adjusted EBITDA for the quarter was $52.1 million, down from $53.6 million in the prior year [30] Business Line Performance - Technology business net sales declined by 13.8% YoY to $493.3 million, reflecting lower product sales, particularly in hardware, due to softer demand and a tough comparison with the prior year [22][23] - Service revenues grew by 46% YoY to $104 million, driven by both professional and managed services, with managed services revenue up 28% YoY [12][24] - Financing segment net sales increased to $21.9 million, up from $15.7 million in the prior year, primarily due to higher transactional gains [26] Market and Customer Vertical Performance - Sales in the technology business were broad-based, with telecom, media, and entertainment accounting for 25% of net sales, while technology verticals represented 18% [25] - SLED, healthcare, and financial services accounted for 15%, 13%, and 9% of net sales, respectively, with the remaining 20% spread across other end markets [25] Strategic Initiatives and Industry Competition - The company continues to focus on AI, cloud, networking, data, and security, with the acquisition of Bailiwick enhancing its IT integration services and expanding its footprint in North America [7][14][15] - The AI Ignite program and the launch of the AI experience center with Digital Realty are key initiatives to position the company for AI market opportunities [17][18] - Security gross billings grew by 15.8% in the quarter, now representing 21.4% of trailing 12-month gross billings, reflecting continued customer investment in data security and governance [20] Management Commentary on Operating Environment and Future Outlook - Management noted a shift towards ratable revenue models and netted down revenues, which impacted product sales but contributed to higher gross margins [8][10] - The company expects positive comparisons for sales and earnings in fiscal 2025, with adjusted EBITDA guidance revised to $195 million to $205 million [38] - Economic uncertainty, election impacts, and AI-related sales cycle elongation were cited as headwinds, but the company remains optimistic about long-term growth opportunities in AI and security [41][50] Other Important Information - The company repurchased 250,234 shares during the first half of the fiscal year at a cost of $19.8 million [36] - Cash and cash equivalents declined to $187.5 million, reflecting working capital needs, the Bailiwick acquisition, and share repurchases [34] - Inventory turns improved to 12 days, reducing the cash conversion cycle to 32 days compared to 51 days in the prior year [35] Q&A Session Summary Question: Product demand and macro environment impact [40] - Product sales were softer than expected due to economic uncertainty, delayed enterprise spending, and AI-related decision-making delays [41][42] - Gross to net adjustments for product billings increased by 940 basis points, impacting revenue by approximately $60 million [42] Question: Bailiwick acquisition impact on revenue and margins [43] - Bailiwick is expected to contribute approximately $85 million in revenue in the second half of the fiscal year, with margins in line with the company's existing profile [43][44] - Organic professional services growth was in the 6% to 8% range, with managed services up 28% YoY [45] Question: OpEx impact from Bailiwick acquisition [46] - OpEx is expected to increase in Q3 due to full-quarter headcount and acquisition-related expenses [47] Question: Gross margin outlook [48] - Gross margins are expected to tighten in the second half, with product sales and services both expected to increase [48] Question: Macro assumptions in updated outlook [49] - The company expects hardware challenges in Q3, with potential impacts from elections, tariffs, and interest rates, while AI spending remains a headwind in the near term [50] Question: Early client feedback on Bailiwick acquisition [51] - Internal feedback on Bailiwick has been positive, with excitement about the team, offerings, and customer base [51]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from____ to ____. Commission file number: 1-34167 ePlus inc. (Exact name of registrant as specified in its charter) Delaware 54-1817218 (State or other jurisdiction of in ...

Second Quarter Gross Profit And Gross Margin Improved Year Over Year Second Quarter Fiscal Year 2025 •           Net sales decreased 12.3% to $515.2 million; technology business net sales decreased 13.8% to $493.3 million; service revenues increased 46.0% to $103.7 million. •           Technology business gross billings decreased 5.6% to $808.2 million. •           Consolidated gross profit increased 2.5% to $148.0 million. •           Consolidated gross margin was 28.7%, compared with ...