ePlus Announces Initiation of Quarterly Cash Dividend
Rhea-AI Summary
ePlus (NASDAQ: PLUS) has announced its first-ever quarterly cash dividend program, marking a significant milestone in the company's capital allocation strategy. The initial dividend of $0.25 per common share will be paid on September 17, 2025, to shareholders of record as of August 26, 2025.
CEO Mark Marron emphasized that this initiative demonstrates the company's commitment to enhancing shareholder value, supported by ePlus's strong cash generation capabilities. The company will maintain its share repurchase program while continuing to pursue organic growth investments and strategic M&A opportunities.
Positive
- Introduction of first-ever quarterly dividend of $0.25 per share
- Maintaining existing share repurchase program alongside new dividend
- Strong cash generation capabilities supporting dividend payments
- Balanced capital allocation strategy including organic growth and M&A opportunities
Negative
- Potential impact on available capital for strategic investments
- Exposure to various market risks including interest rates and currency fluctuations
- Vulnerability to cybersecurity threats and IT system disruptions
- Dependencies on key personnel and vendor relationships
News Market Reaction
On the day this news was published, PLUS gained 9.42%, reflecting a notable positive market reaction. Argus tracked a peak move of +7.8% during that session. Our momentum scanner triggered 21 alerts that day, indicating elevated trading interest and price volatility. This price movement added approximately $165M to the company's valuation, bringing the market cap to $1.92B at that time. Trading volume was elevated at 2.7x the daily average, suggesting notable buying interest.
Data tracked by StockTitan Argus on the day of publication.
"The Board's approval of a quarterly cash dividend reflects our ongoing commitment to enhancing shareholder value as part of a balanced capital allocation strategy," stated Mark Marron, president and CEO of ePlus. "The Company's strategic initiatives underscore our confidence in our growth potential and our newly initiated dividend is well-supported by the cash generation capabilities of the Company. We will also continue with a share repurchase program, and will consider organic investments in the business and targeted M&A, to drive additional shareholder value."
Forward-looking statements
Statements in this press release that are not historical facts may be deemed to be "forward-looking statements," including, among other things, statements regarding the future financial performance of ePlus. Actual and anticipated future results may vary materially due to certain risks and uncertainties, including, without limitation, financial losses resulting from national and international political instability fostering uncertainty and volatility in the global economy including changes in interest rates, tariffs, inflation, export requirements applicable to products we sell, sanctions and exposure to foreign currency losses; significant adverse changes in our relationship with one or more of our larger customer accounts or vendors, including decreased account profitability, reductions in contracted services, or a loss of such relationships; increases to our costs including wages and our ability to increase our prices to our customers as a result, or experience negative financial impacts due the pricing arrangements we have with our customers; a material decrease in the credit quality of our customer base, or a material increase in our credit losses,; the possibility of a reduction of vendor incentives provided to us; our inability to identify acquisition candidates, perform sufficient due diligence prior to completing an acquisition, successfully integrate a completed acquisition, or identify an opportunity for or successfully completing a business disposition, may affect our earnings; our ability to remain secure during a cybersecurity attack or other information technology ("IT") outage, including disruptions in our, our vendors or a third party's IT systems and data and audio communication networks; our ability to secure our own and our customers' electronic and other confidential information, while maintaining compliance with evolving data privacy and cybersecurity regulatory laws and regulations and appropriately providing required notice and disclosure of cybersecurity incidents when and if necessary; our dependence on key personnel to maintain certain customer relationships, and our ability to hire, train, and retain sufficient qualified personnel by recruiting and retaining highly skilled, competent personnel with needed vendor certifications; risks relating to artificial intelligence ("AI"), including the use or capabilities of AI and emerging laws, rules and regulations related to AI; our ability to manage a diverse product set of solutions, including AI products and services, in highly competitive markets with a number of key vendors; changes in the IT industry and/or rapid changes in product offerings, including the proliferation of the cloud, infrastructure as a service ("IaaS"), software as a service ("SaaS"), platform as a service ("PaaS"), and AI which may affect our financial results; supply chain issues, including a shortage of IT component parts and products, may increase our costs or cause a delay in fulfilling customer orders, or increase our need for working capital, or delay completing professional services, or purchasing IT products or services needed to support our internal infrastructure or operations, resulting in an adverse impact on our financial results; ongoing remote work trends, and the increase in cybersecurity attacks that have occurred while employees work remotely and our ability to adequately train our personnel to prevent a cyber event; our ability to raise capital, maintain or increase as needed our lines of credit with vendors or our floor plan facility, or the effect of those changes on our common stock price; our ability to predictably meet expectations of the investor and analyst community, including relative to our financial performance guidance that we provide; and our ability to implement comprehensive plans for the integration of sales forces, cost containment, asset rationalization, systems integration, and other key strategies following acquisitions; and other risks or uncertainties detailed in our reports filed with the Securities and Exchange Commission.
The declaration and payment of future dividends are subject to the sole discretion of the Board of Directors.
All information set forth in this press release is current as of the date of this release and ePlus undertakes no duty or obligation to update this information either as a result of new information, future events or otherwise, except as required by applicable
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SOURCE EPLUS INC.
FAQ
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