ePlus(PLUS) - 2026 Q3 - Quarterly Results

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]