ePlus(US:PLUS)2025-05-22 20:18Financial Performance - Consolidated net sales for Q4 FY 2025 decreased 10.2% to $498.1 million from $554.5 million, while service revenues increased 33.0% to $104.9 million[5]. - Consolidated gross profit increased 11.8% to $145.8 million, with a gross margin of 29.3%, up from 23.5% in the prior year[5]. - Net earnings for Q4 FY 2025 increased 14.6% to $25.2 million, with diluted earnings per share rising 15.9% to $0.95[5]. - For FY 2025, consolidated net sales decreased 7.0% to $2,068.8 million, while service revenues increased 37.1% to $400.4 million[5]. - Total net sales for the three months ended March 31, 2025, were $498,114, a decrease of 10.4% compared to $554,461 for the same period in 2024[40]. - Product net sales decreased by 17.8% to $382,371 for the three months ended March 31, 2025, compared to $465,228 in the prior year[41]. - Professional services net sales increased by 48.4% to $60,354 for the three months ended March 31, 2025, compared to $40,679 in the prior year[43]. - Operating income for the three months ended March 31, 2025, was $34,715, compared to $29,015 for the same period in 2024, reflecting an increase of 19.0%[40]. - Net earnings for the three months ended March 31, 2025, were $25,196, an increase of 14.0% from $21,983 in the same period of 2024[40]. - Adjusted EBITDA for the consolidated entity was $43,819 for the three months ended March 31, 2025, compared to $36,805 in 2024, reflecting a growth of 19.0%[51]. - Non-GAAP net earnings for the year ended March 31, 2025, were $124,475, a decrease of 5.2% from $131,327 in 2024[52]. - The diluted non-GAAP net earnings per common share for the year ended March 31, 2025, was $4.67, compared to $4.92 in 2024, reflecting a decrease of 5.1%[52]. Revenue Breakdown - Professional service revenues increased 48.4% to $60.4 million, primarily due to the acquisition of Bailiwick Services, LLC[8]. - Managed service revenues increased 24.6% to $171.3 million, driven by growth in Enhanced Maintenance Support and Cloud services[20]. - The Telecom, Media, & Entertainment segment saw a significant decline in sales, dropping 28.9% to $101,268 for the three months ended March 31, 2025, compared to $142,333 in 2024[44]. - The Healthcare segment experienced a 14.8% increase in sales, reaching $74,289 for the three months ended March 31, 2025, compared to $64,711 in 2024[44]. - The Financial Services segment's sales decreased by 36.3% to $44,097 for the three months ended March 31, 2025, down from $69,239 in 2024[44]. - The Financing Business Segment reported a 4.9% increase in net sales to $10,869 for the three months ended March 31, 2025, up from $10,361 in 2024[45]. - The company achieved a gross profit of $9,505 for the Financing Business Segment for the three months ended March 31, 2025, an increase of 8.2% from $8,783 in 2024[45]. Assets and Equity - Cash and cash equivalents as of March 31, 2025, were $389.4 million, up from $253.0 million a year ago[28]. - Total stockholders' equity increased to $977.6 million as of March 31, 2025, compared to $901.8 million a year earlier[28]. - Total assets increased to $1,884,805 as of March 31, 2025, from $1,653,469 as of March 31, 2024, representing a growth of 13.9%[39]. - Total liabilities rose to $907,182 as of March 31, 2025, compared to $751,690 as of March 31, 2024, an increase of 20.7%[39]. - Cash and cash equivalents increased to $389,375 as of March 31, 2025, from $253,021 as of March 31, 2024, a growth of 53.8%[39]. Future Outlook - ePlus is initiating FY 2026 guidance for net sales growth of low single digits and gross profit and adjusted EBITDA in the mid-single digits[29]. - The company remains focused on AI, cloud, security, and networking as key growth areas for the future[30].