ePlus Reports Fiscal Year 2026 Second Quarter and First Half Financial Results

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]