ePlus Reports Second Quarter and First Half Financial Results Fiscal Year 2027

Product sales growth contrasted with declining professional services revenue and lower margins in both services segments.

Rhea-AI Summary

ePlus (NASDAQ: PLUS) reported fiscal second-quarter net sales growth of 9.7% year over year and raised its fiscal 2027 guidance. For the quarter ended September 30, 2026, sales reached $667.9 million, gross billings rose 4.3% to $1,066.8 million, and continuing-operations diluted earnings increased to $1.56 from $1.45. Gross margin improved to 27.0% from 26.6%, although professional services revenue fell 11.3% amid retail customer delays.

First-half sales rose 5.2% to $1,317.0 million; net earnings declined to $70.7 million from $77.4 million, reflecting prior-year discontinued-operations earnings. ePlus now expects upper-single-digit sales and gross profit growth and low-double-digit adjusted EBITDA growth for fiscal 2027. It acquired certain Daymark Solutions assets and liabilities during the quarter. Cash fell to $380.9 million from $410.8 million at March 31. A $0.27 quarterly dividend is payable December 16, 2026.

26 points · 1 major

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0 major · 15 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major point. Forward-looking: it has not happened yet and may not happen.Fiscal 2027 guidance raised to upper-single-digit sales and gross profit growth and low-double-digit adjusted EBITDA growth.
• Moderate pointSecond-quarter net sales increased 9.7% to $667.9 million year over year.
• Moderate pointSecond-quarter gross billings increased 4.3% to $1,066.8 million year over year.
• Moderate pointSecond-quarter gross profit rose 11.2% to $180.3 million; gross margin increased to 27.0% from 26.6%.
• Moderate pointSecond-quarter continuing-operations net earnings rose 5.8% to $40.4 million; diluted EPS increased 7.6% to $1.56.
• Moderate pointSecond-quarter adjusted EBITDA, an adjusted earnings measure, increased 14.3% to $67.1 million year over year.
• Moderate pointSecond-quarter operating income increased 15.8% to $56.5 million year over year.

19 minor points

• Minor pointSecond-quarter non-GAAP continuing-operations diluted EPS increased 19.0% to $1.82 year over year.
• Minor pointSecond-quarter product sales rose 12.8% to $547.1 million; segment gross margin increased to 25.8% from 24.5%.
• Minor pointSecond-quarter managed services revenue increased 11.9% to $53.1 million; segment gross profit rose 9.4%.
• Minor pointSecond-quarter continuing-operations pretax earnings increased 3.7% to $56.0 million year over year.
• Minor pointSecond-quarter effective tax rate fell to 27.9% from 29.3% a year earlier.
• Minor pointSecond-quarter total net earnings increased to $40.4 million from $34.9 million a year earlier.
• Minor pointFirst-half net sales increased 5.2% to $1,317.0 million year over year.
• Minor pointFirst-half gross billings increased 2.5% to $2,023.9 million year over year.
• Minor pointFirst-half gross profit increased 5.0% to $331.6 million year over year.
• Minor pointFirst-half continuing-operations net earnings rose 0.7% to $70.7 million; diluted EPS increased 2.3% to $2.72.
• Minor pointFirst-half adjusted EBITDA increased 3.2% to $114.9 million year over year.
• Minor pointFirst-half non-GAAP continuing-operations diluted EPS increased 5.1% to $3.11 year over year.
• Minor pointFirst-half product sales rose 6.5% to $1,076.7 million; segment gross margin increased to 23.4% from 22.8%.
• Minor pointFirst-half managed services revenue increased 13.4% to $104.4 million; segment gross profit rose 10.3%.
• Minor pointFirst-half operating income increased 3.9% to $95.4 million year over year.
• Minor pointFirst-half continuing-operations pretax earnings increased 0.4% to $98.0 million year over year.
• Minor pointFirst-half effective tax rate fell to 27.9% from 28.1% a year earlier.
• Minor pointDaymark Solutions acquisition completed for certain assets and liabilities during the second quarter.
• Minor pointStockholders' equity increased to $1,096.4 million at September 30 from $1,069.0 million at March 31, 2026.

Negative

• Moderate pointSecond-quarter services revenue decreased 2.4% to $120.8 million year over year.
• Moderate pointSecond-quarter operating expenses increased 9.2% to $123.8 million, including compensation and acquisition-related expenses.
• Moderate pointFirst-half total net earnings fell to $70.7 million from $77.4 million; prior-year discontinued operations contributed $7.3 million.
• Minor pointSecond-quarter professional services revenue fell 11.3% to $67.8 million, reflecting project-related retail customer delays.
• Minor pointSecond-quarter professional services gross margin declined to 35.4% from 38.2% a year earlier.

10 minor points

• Minor pointSecond-quarter managed services gross margin declined to 28.8% from 29.4% a year earlier.
• Minor pointSecond-quarter other income turned to $0.5 million net expense from $5.2 million net income a year earlier.
• Minor pointFirst-half professional services revenue decreased 8.3% to $135.8 million year over year.
• Minor pointFirst-half professional services gross margin declined to 36.2% from 38.7% a year earlier.
• Minor pointFirst-half managed services gross margin fell to 29.1% from 29.9%, mainly reflecting increased third-party costs.
• Minor pointFirst-half operating expenses increased 5.5% to $236.3 million year over year.
• Minor pointFirst-half other net income declined to $2.6 million from $5.8 million a year earlier.
• Minor pointContingent consideration receivable from the domestic financing business sale had a $3.5 million fair-value reduction.
• Minor pointCash declined to $380.9 million at September 30 from $410.8 million at March 31, 2026.
• Minor point. Forward-looking: it has not happened yet and may not happen.Fiscal 2027 growth guidance excludes recessionary conditions and other unexpected developments.

News Explained

ePlus reported 26.0 million common shares outstanding at September 30, 2026, down from 26.3 million at March 31, 2026; with fewer shares outstanding, an unchanged holding represents a larger fraction of the company, all else equal.

Key Figures

Q2 net sales: $667.9 million, up 9.7% Q2 services revenues: $120.8 million, down 2.4% Q2 gross billings: $1,066.8 million, up 4.3% +3 more

Q2 net sales

$667.9 million, up 9.7%

Second quarter fiscal 2027

Q2 services revenues

$120.8 million, down 2.4%

Second quarter fiscal 2027

Q2 gross billings

$1,066.8 million, up 4.3%

Second quarter fiscal 2027

Q2 adjusted EBITDA

$67.1 million, up 14.3%

Second quarter fiscal 2027

Fiscal 2027 guidance

Upper single-digit year-over-year growth for net sales and gross profit; low double-digit growth for adjusted EBITDA

Company increased full-year guidance

Quarterly cash dividend

$0.27 per common share

Payable December 16, 2026

Previous Earnings Reports

2 past events · Latest: May 28

Same Type 2 events

1. May 28

   FY26 earnings

   24h Move

   -7.4%

   Fiscal 2027 guidance began at mid-single-digit growth for net sales, gross profit, and adjusted EBITDA.

2. Nov 06

   Q2 FY26 earnings

   24h Move

   +15.7%

   Comparable second-quarter results included raised fiscal-year guidance after double-digit growth.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

adjusted ebitda, non-gaap, gaap, share-based compensation

4 terms

adjusted ebitda financial

"Adjusted EBITDA increased 14.3% to $67.1 million"

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

non-gaap financial

"Non-GAAP net earnings from continuing operations per common share diluted was $1.82"

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

View in glossary

gaap financial

"reconciliation of GAAP net earnings from continuing operations to Adjusted EBITDA"

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

View in glossary

share-based compensation financial

"fluctuations in interest expense or interest income and share-based compensation"

Share-based compensation is when a company pays employees, executives or directors with its own stock or rights to buy stock instead of, or in addition to, cash. Think of it like receiving store gift cards instead of extra paycheck — it can motivate staff to boost the company’s value, but it also increases the number of shares outstanding and can shrink each existing owner’s slice of profits and voting power. Investors watch it because it affects reported earnings, share count and the alignment between management and shareholders.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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~ Strong Second Quarter Performance Across Key Metrics ~
~ Record Quarterly Gross Billings Exceeded $1 Billion ~
~ Increasing Fiscal 2027 Guidance ~

Second Quarter Fiscal Year 2027
•	Net sales increased 9.7% to $667.9 million; services revenues decreased 2.4% to $120.8 million.
•	Gross billings increased 4.3% to $1,066.8 million.
•	Gross profit increased 11.2% to $180.3 million.
•	Gross margin was 27.0%, compared to 26.6% for last fiscal year's second quarter.
•	Net earnings from continuing operations increased 5.8% to $40.4 million.
•	Adjusted EBITDA increased 14.3% to $67.1 million.
•	Net earnings from continuing operations per common share-diluted increased 7.6% to $1.56. Non-GAAP: net earnings from continuing operations per common share-diluted increased 19.0% to $1.82.

 

First Half Fiscal Year 2027
•	Net sales increased 5.2% to $1,317.0 million; services revenues remained consistent at $240.2 million.
•	Gross billings increased 2.5% to $2,023.9 million.
•	Gross profit increased 5.0% to $331.6 million.
•	Gross margin remained consistent to last year's first half of 25.2%.
•	Net earnings from continuing operations increased 0.7% to $70.7 million.
•	Adjusted EBITDA increased 3.2% to $114.9 million.
•	Net earnings from continuing operations per common share-diluted increased 2.3% to $2.72. Non-GAAP: net earnings from continuing operations per common share-diluted increased 5.1% to $3.11.

HERNDON, Va., Nov. 5, 2026 /PRNewswire/ -- ePlus inc. (NASDAQ: PLUS), a leading provider of technology solutions, today announced financial results for the three months and six months ended September 30, 2026, or the second quarter of its 2027 fiscal year.

Management Comment

"We delivered robust top line growth, improved profitability, and experienced growth against key metrics in the second quarter.  Record gross billings surpassed the prior year's record showing strong momentum reflecting our customer-first approach as we provide the products and services our clients require, particularly for Artificial Intelligence (AI) and Cybersecurity," commented Mark Marron, President and CEO.  "Overall, our solid performance in the second quarter and year to date reflect consistent execution and the strength and breadth of our diversified business model.

"Our strong balance sheet represents a competitive advantage, with our cash position at $381 million at quarter end.  During the second quarter we advanced our acquisition strategy with the purchase of certain assets and liabilities of Daymark Solutions, a provider of critical IT solutions and professional services focused on implementing and supporting complex hybrid cloud, cybersecurity, compliance, and data centers.  We remain disciplined in our approach to capital allocation, balancing acquisitions with other growth investments and returning capital to shareholders via share repurchases and dividend payments."

Second Quarter Fiscal Year 2027 Results

For the second quarter ended September 30, 2026, as compared to the second quarter ended September 30, 2025:

Net sales increased 9.7% to $667.9 million, from $608.8 million due to higher product sales, partially offset by lower service revenue. Gross billings increased 4.3% to $1,066.8 million from $1,022.7 million.   

Product segment sales increased 12.8% to $547.1 million from $485.0 million due to increases in revenue from cloud, security, collaboration and other products, partially offset by a decrease in networking products. Product segment gross margin was 25.8%, up from 24.5% last year due to a shift in product mix, and an increase in sales of third-party maintenance, subscriptions and services that are recognized on a net basis.

Professional services segment revenues decreased 11.3% year over year to $67.8 million from $76.3 million, and gross margin declined to 35.4% from 38.2% during the same period last year due to decreases in revenue and gross profit from project-related services due to delays from retail customers.

Managed services segment revenue increased 11.9% to $53.1 million primarily due to additional revenue from cloud managed services. Gross profit from managed services increased 9.4% year over year due to the increase in revenue, offset by a decrease in gross margin to 28.8% from 29.4% in the prior year quarter.

Gross profit increased 11.2% to $180.3 million, from $162.1 million, due to an increase in gross profit from the product segment and managed services segment, offset by a decrease in the professional services segment. Gross margin was 27.0%, compared with 26.6% in the prior year quarter, due to higher gross margin in the product segment, offset by lower gross margin in the managed services segment and professional services segment.

Operating expenses were $123.8 million, up 9.2% from $113.3 million last year, primarily due to increases in variable compensation commensurate with the increase in gross profit, as well as additional salaries and benefits, general and administrative costs, and expenses related to the acquisition of assets of Daymark Solutions, Inc.("Daymark").

Operating income increased 15.8% to $56.5 million. Other income (expense), net was $(0.5) million compared to $5.2 million in the prior year due to a reduction of $3.5 million in the fair value of the contingent consideration receivable recorded as a result of the sale of our domestic financing business, lower interest income and foreign currency transaction losses being recognized in the current year quarter compared to foreign exchange gains in the prior year quarter. Earnings from continuing operations before taxes increased 3.7% to $56.0 million.

The effective tax rate for the current quarter was 27.9%, which was lower than the prior year quarter of 29.3% primarily due to lower state and local income taxes and lower non-deductible expenses.

Net earnings from continuing operations increased 5.8% to $40.4 million from $38.2 million in the prior year quarter. Adjusted EBITDA increased 14.3% to $67.1 million from $58.7 million in the prior year quarter. Net earnings from continuing operations per common share-diluted was $1.56, up from $1.45 in the prior year quarter. Non-GAAP net earnings from continuing operations per common share diluted was $1.82, compared with $1.53 in the prior year quarter. Total shares outstanding were 26.0 million and 26.3 million on September 30, 2026, and March 31, 2026, respectively.

Net earnings were $40.4 million as compared to $34.9 million in the prior year quarter. Last year, earnings from discontinued operations, net of taxes, for the three months ended September 30, 2025, was a loss of $3.3 million and net (loss) from discontinued operations per common share diluted for the three months ended September 30, 2025, was $(0.13). There were no transactions for discontinued operations for the three months ended September 30, 2026.

First Half Fiscal Year 2027 Results

For the six months ended September 30, 2026, as compared to the six months ended September 30, 2025:

Net sales increased 5.2% to $1,317.0 million, from $1,251.6 million due to higher product sales. Gross billings increased 2.5% to $2,023.9 million from $1,975.4 million.   

Product segment sales increased 6.5% to $1,076.7 million from $1,011.4 million due to increases in revenue from cloud, security, and collaboration products, offset by a decrease in networking products.  Product segment gross margin was 23.4%, up from 22.8% last year due to a shift in product mix, and an increase in sales of third-party maintenance and subscriptions.

Professional services segment revenues decreased 8.3% year over year to $135.8 million from $148.1 million, and gross margin declined to 36.2% from 38.7% during the same period last year, both primarily due to decreases in revenue from project services, and staff augmentation.

Managed services segment revenue increased 13.4% to $104.4 million primarily due to additional sales of cloud services. Gross profit from managed services segment increased 10.3% year on year due to the increase in revenue, offset by a decline in gross margin to 29.1% from 29.9%, mainly driven by increased third-party costs.

Gross profit increased 5.0% to $331.6 million, from $315.8 million due to an increase in gross profit from the product segment and managed services segment, offset by a decrease in the professional services segment. Gross margin remained consistent at 25.2%, compared to the six-month period in the prior year.

Operating expenses were $236.3 million, up 5.5% from $224.0 million last year, primarily due to increases in variable compensation commensurate with the increase in gross profit, as well as additional salaries and benefits, general and administrative costs, and expenses related to the acquisition of assets of Daymark.

Operating income increased 3.9% to $95.4 million. Other income (expense), net was $2.6 million compared to $5.8 million last year, due to the reduction of contingent consideration receivable of $3.5 million, offset by decreased foreign exchange losses and increased interest income during the current six-month period. Earnings from continuing operations before taxes increased 0.4% to $98.0 million.

The effective tax rate for the six months ended September 30, 2026, was 27.9%, which was lower than the same six-month period in the prior year of 28.1% primarily due to state and local taxes and lower non-deductible expenses.

Net earnings from continuing operations increased 0.7% to $70.7 million from $70.2 million in the prior year. Adjusted EBITDA increased 3.2% to $114.9 million from $111.4 million in the prior year six-month period. Net earnings from continuing operations per common share-diluted was $2.72, compared with $2.66 in the prior year. Non-GAAP: Net earnings from continuing operations per common share-diluted was $3.11, compared with $2.96 in the prior year.

Net earnings were $70.7 million as compared to $77.4 million in the prior year. Earnings from discontinued operations, net of taxes, for the six months ended September 30, 2025, was $7.3 million. Net earnings from discontinued operations per common share - diluted for the six months ended September 30, 2025, was $0.28. There were no transactions for discontinued operations for the six months ended September 30, 2026.

Balance Sheet Highlights

As of September 30, 2026, cash and cash equivalents were $380.9 million, down from $410.8 million as of March 31, 2026. Inventory increased 35.1% to $271.4 million as of September 30, 2026, compared with $200.9 million as of March 31, 2026, due to several ongoing projects. Accounts receivable—trade, net increased 14.9% to $746.9 million as of September 30, 2026 from $650.0 million as of March 31, 2026. Total stockholders' equity was $1,096.4 million as of September 30, 2026, compared with $1,069.0 million as of March 31, 2026.

Fiscal Year Guidance

ePlus is increasing its fiscal year 2027 guidance of year over year growth to the upper single digits for net sales and gross profit, and the low double digits for adjusted EBITDA.

This guidance does not factor in recessionary conditions, or other unexpected developments.  ePlus cannot predict with reasonable certainty and without unreasonable effort, the ultimate outcome of unusual gains and losses, the occurrence of matters creating GAAP tax impacts, fluctuations in interest expense or interest income and share-based compensation, and acquisition- or disposition-related expenses. These items are uncertain, depend on various factors, and could be material to ePlus' results computed in accordance with GAAP. Accordingly, ePlus is unable to provide a reconciliation of GAAP net earnings from continuing operations to Adjusted EBITDA for the full fiscal year 2027 forecast.

ePlus Announces Quarterly Dividend

ePlus announced today that its Board of Directors has declared a quarterly cash dividend of $0.27 per common share which will be paid on December 16, 2026, to shareholders of record as of the close of business on November 24, 2026. 

Summary and Outlook

"The accelerating adoption of AI, increasing demand for advanced data center infrastructure and growing emphasis on cybersecurity and digital transformation continue to reshape the technology landscape, creating significant opportunities for long-term growth for ePlus.  As organizations accelerate investments in modernizing their IT networks and strengthening cybersecurity, our deep customer relationships and broad portfolio of products and services position us well to meet demand and support our customers' growth.  These factors, combined with our strong performance year to date, support our confidence in the sustainability of our business trends and our increased full year fiscal 2027 guidance," concluded Mr. Marron.

Recent Corporate Developments/Recognitions

In the second quarter of its 2027 fiscal year, ePlus:

• Acquired certain assets and liabilities of Daymark Solutions
• Achieved Exclusive Ambassador Partner Status with Everpure
• Named NetApp North America Flash Partner of the Year

Conference Call Information
Date:	November 5, 2026
Time:	4:30 p.m. ET
Audio Webcast (live/archive):	https://events.q4inc.com/attendee/420015883
Online Pre-Registration:	https://events.q4inc.com/analyst/420015883?pwd=SlTLm6iZ
Operator Assisted Registration:	https://events.q4inc.com/attendee/420015883
Live Call:	(833) 461-5787 (toll-free/domestic)
	(585) 542-9983  (international)
Archived Call:	(833) 309-1852 (toll-free/domestic)
	(929) 828-5978 (international)
Conference ID:	420015883# (live call and replay)
A replay of the call will be available approximately two hours after the call through November 12, 2026.

About ePlus inc.

ePlus is a customer-first, services-led, and results-driven industry leader offering transformative technology solutions and services to provide the best customer outcomes. Offering a full portfolio of solutions, including artificial intelligence, security, cloud and data center, networking and collaboration, as well as managed, consultative and professional services, ePlus works closely with organizations across many industries to successfully navigate business challenges. With a long list of industry-leading partners and more than 2,170 employees, our expertise has been honed over more than three decades, giving us specialized yet broad levels of experience and knowledge. ePlus is headquartered in Virginia, with locations in the United States, United Kingdom, Europe, and Asia‐Pacific. For more information, visit www.eplus.com, call 888-482-1122, or email info@eplus.com.  Connect with ePlus on LinkedIn, Facebook, and Instagram. 

ePlus, Where Technology Means More®.

ePlus® and ePlus products referenced herein are either registered trademarks or trademarks of ePlus inc. in the United States and/or other countries.

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 rate changes; supply chain issues, including a shortage of information technology ("IT") component parts and products, and our vendors' corresponding rapid and unpredictable price fluctuations, or a customer's or vendor's cancellation of orders such as for, but not limited to, memory chips, which may increase our and our customer's costs, decrease gross profit, cause a delay in fulfilling or inability to fulfill customer orders, increase our need for working capital, delay the completion of professional services, or require the purchase of IT products or services needed to support our internal infrastructure or operations, resulting in an adverse impact on our financial results; 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; 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; our ability to remain secure during a cybersecurity attack or other IT outage, including disruptions in our, our vendors or a third party's IT systems and data and audio communication networks; a material decrease in the credit quality of our customer base, or a material increase in our credit losses; increases in our costs including wages and our ability to increase our prices to our customers as a result, or negative financial impacts due to the pricing arrangements we have with our customers; reliance on third parties to perform some of our service obligations to our customers, and the reliance on a small number of key vendors in our supply chain with whom we do not have long-term supply agreements, guaranteed price agreements, or assurance of stock availability; the possibility of a reduction of vendor consideration provided to us; our inability to identify merger and acquisition candidates, perform sufficient due diligence prior to completing mergers and acquisitions, successfully complete merger and acquisition transactions (including on favorable terms), successfully integrate a completed merger and/or acquisition, identify an opportunity for, or successfully complete a business disposition, or achieve the operational and financial results we anticipate after a disposition; our ability to secure our own and our customers' electronic and other confidential information, while maintaining compliance with evolving data privacy and cybersecurity 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; inadequate design or maintenance of our IT platforms for internal use or solutions we offer to our customers or our inability to effectively and timely capitalize on the opportunities made available by the adoption of AI and not having adequate or competent IT personnel to support our business; cybersecurity attacks that may occur 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 related effect of those matters 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, including based on the continuation of our regular dividend issuance and share repurchases; our ability to create and implement comprehensive plans for the integration of sales forces, cost containment, asset rationalization, systems integration, and other key strategies following mergers and 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 our 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 U.S. securities law.

 

ePlus inc. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED BALANCE SHEETS
(in thousands, except per share amounts)
		September 30, 2026			March 31, 2026
ASSETS
Current assets:
Cash and cash equivalents	$	380,891		$	410,769
Accounts receivable—trade, net		746,906			650,021
Accounts receivable—other, net		45,515			38,896
Inventories		271,353			200,888
Deferred costs		78,296			77,748
Other current assets		86,216			49,412
Total current assets		1,609,177			1,427,734
Deferred tax asset		8,952			8,955
Property, equipment and other assets—net		105,334			100,039
Goodwill		212,093			202,880
Other intangible assets—net		59,830			61,344
TOTAL ASSETS	$	1,995,386		$	1,800,952
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Current liabilities:
Accounts payable	$	383,412		$	264,605
Accounts payable—floor plan		139,227			119,693
Salaries and commissions payable		51,896			48,590
Contract liabilities		180,794			157,074
Other current liabilities		52,992			48,181
Total current liabilities		808,321			638,143
Contract liabilities—long-term		77,344			83,010
Other liabilities		13,303			10,829
TOTAL LIABILITIES		898,968			731,982
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Preferred stock, $0.01 per share par value; 2,000 shares authorized; none      outstanding		-			-
Common stock, $0.01 per share par value; 75,000 shares authorized;      27,919 shares issued and 26,000 outstanding at September 30, 2026,      and 27,765 shares issued and 26,299 outstanding at March 31, 2026		279			278
Additional paid-in capital		219,330			210,274
Treasury stock, at cost, 1,919 shares at September 30, 2026, and 1,466      shares at March 31, 2026		(140,226)			(101,944)
Retained earnings		1,012,561			956,000
Accumulated other comprehensive income—foreign currency translation      adjustment		4,474			4,362
Total Stockholders' Equity		1,096,418			1,068,970
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	1,995,386		$	1,800,952

 

ePlus inc. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
	Three months ended September 30,						Six months ended September 30,
	2026			2025			2026			2025
Net sales
Product	$	547,117		$	485,065		$	1,076,847		$	1,011,531
Services		120,807			123,761			240,190			240,070
Total		667,924			608,826			1,317,037			1,251,601
Cost of sales
Product		406,112			366,066			824,722			780,543
Services		81,527			80,636			160,701			155,258
Total		487,639			446,702			985,423			935,801
Gross profit		180,285			162,124			331,614			315,800
Selling, general, and administrative		118,032			106,479			224,653			210,146
Depreciation and amortization		5,726			6,810			11,602			13,879
Operating expenses		123,758			113,289			236,255			224,025
Operating income		56,527			48,835			95,359			91,775
Other income (expense), net		(527)			5,163			2,603			5,775
Earnings from continuing operations before tax		56,000			53,998			97,962			97,550
Provision for income taxes		15,617			15,838			27,300			27,376
Net earnings from continuing operations		40,383			38,160			70,662			70,174
Earnings (loss) from discontinued operations, net of tax		-			(3,305)			-			7,264
Net earnings	$	40,383		$	34,855		$	70,662		$	77,438
Earnings per common share—basic
Continuing operations	$	1.56		$	1.45		$	2.73		$	2.67
Discontinued operations		-			(0.13)			-			0.28
Earnings per common share—basic	$	1.56		$	1.32		$	2.73		$	2.95
Earnings per common share—diluted
Continuing operations	$	1.56		$	1.45		$	2.72		$	2.66
Discontinued operations		-			(0.13)			-			0.28
Earnings per common share—diluted	$	1.56		$	1.32		$	2.72		$	2.94
Weighted average common shares outstanding—basic		25,835			26,362			25,887			26,316
Weighted average common shares outstanding—diluted		25,911			26,406			25,997			26,407

 

Segment results
	Three months ended								Six months ended
	September 30,								September 30,
	2026			2025			Change		2026			2025			Change
Net sales
Product segment	$	547,117		$	485,014		12.8 %		$	1,076,720		$	$1,011,369		6.5 %
Professional services segment		67,752			76,344		(11.3 %)			135,833			148,073		(8.3 %)
Managed services segment		53,055			47,417		11.9 %			104,357			91,997		13.4 %
Total reportable segments		667,924			608,775		9.7 %			1,316,910			1,251,439		5.2 %
Other		-			51		(100.0 %)			127			162		(21.6 %)
Total	$	667,924		$	608,826		9.7 %		$	1,317,037		$	$1,251,601		5.2 %
Gross profit
Product segment	$	141,005		$	119,013		18.5 %		$	252,072		$	230,955		9.1 %
Professional services segment		24,014			29,172		(17.7 %)			49,158			57,325		(14.2 %)
Managed services segment		15,266			13,953		9.4 %			30,331			27,487		10.3 %
Total reportable segments		180,285			162,138		11.2 %			331,561			315,767		5.0 %
Other		-			(14)		(100.0 %)			53			33		60.6 %
Total	$	180,285		$	162,124		11.2 %		$	331,614		$	315,800		5.0 %
Gross Billings by Type
Networking	$	286,256		$	315,189		(9.2 %)		$	544,984		$	583,921		(6.7 %)
Security		272,182			255,158		6.7 %			491,949			445,203		10.5 %
Cloud		270,003			202,828		33.1 %			558,845			514,845		8.5 %
Collaboration		43,519			41,286		5.4 %			69,236			64,063		8.1 %
Other		75,710			76,917		(1.6 %)			123,567			128,363		(3.7 %)
Product segment		947,670			891,378		6.3 %			1,788,581			1,736,395		3.0 %
Services		119,141			131,277		(9.2 %)			235,365			239,025		(1.5 %)
Total	$	1,066,811		$	1,022,655		4.3 %		$	2,023,946		$	1,975,420		2.5 %
Net Sales by Type
Product segment
Networking	$	234,382		$	258,156		(9.2 %)		$	458,103		$	476,358		(3.8 %)
Cloud		178,599			128,270		39.2 %			359,347			335,266		7.2 %
Security		72,693			65,889		10.3 %			150,958			126,996		18.9 %
Collaboration		18,422			16,558		11.3 %			33,914			28,315		19.8 %
Other		43,021			16,141		166.5 %			74,398			44,434		67.4 %
Total products segment		547,117			485,014		12.8 %			1,076,720			1,011,369		6.5 %
Professional services segment		67,752			76,344		(11.3 %)			135,833			148,073		(8.3 %)
Managed services segment		53,055			47,417		11.9 %			104,357			91,997		13.4 %
Total reportable segments	$	667,924		$	608,775		9.7 %		$	1,316,910		$	1,251,439		5.2 %
Net Sales by Customer End Market
Telecom, media & entertainment	$	153,884		$	176,772		(12.9 %)		$	292,581		$	361,751		(19.1 %)
Healthcare		100,413			82,285		22.0 %			179,610			156,576		14.7 %
Financial services		93,521			63,079		48.3 %			166,907			110,579		50.9 %
SLED		91,902			87,246		5.3 %			171,758			177,808		(3.4 %)
Technology		69,434			69,549		(0.2 %)			187,433			152,296		23.1 %
Retail		34,962			40,062		(12.7 %)			69,885			72,033		(3.0 %)
All others		123,808			89,782		37.9 %			248,736			220,396		12.9 %
Total reportable segments	$	667,924		$	608,775		9.7 %		$	1,316,910		$	1,251,439		5.2 %

Amounts presented for the three and six months ended September 30, 2026, have been revised to reflect the correction of certain misstatements in previously issued financial statements, which we determined are not material either individually or in the aggregate. See our Form 10-Q for the quarter ended September 30, 2026, including Note 2 to the Consolidated Financial Statements, for more information.

ePlus inc. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP INFORMATION

We included reconciliations below for the following non-GAAP financial measures: (i) Adjusted EBITDA, (ii) Non-GAAP: Net earnings from continuing operations and (iii) Non-GAAP Net earnings from continuing operations per common share diluted.

We define Adjusted EBITDA as net earnings from continuing operations calculated in accordance with US GAAP, adjusted for the following: depreciation and amortization, share-based compensation, acquisition related expenses, provision for income taxes, and other (income) expense, net.  

Non-GAAP: Net earnings from continuing operations and Non-GAAP Net earnings from continuing operations per common share diluted are based on net earnings from continuing operations calculated in accordance with US GAAP, adjusted to exclude other (income) expense, net, share-based compensation, acquisition related expense, acquisition related amortization expense, and the related tax effects.

We use the above non-GAAP financial measures as supplemental measures of our performance to gain insight into our operating performance and performance trends. We believe that these financial measures provide management and investors with a useful measure for period-to-period comparisons of our business and operating results by excluding items that management believes are not reflective of our underlying operating performance. Accordingly, we believe that such non-GAAP financial measures provide useful information to investors and others in understanding and evaluating our operating results.

Our use of non-GAAP information as analytical tools has limitations, and should not be considered in isolation or as substitutes for analysis of our financial results as reported under US GAAP. In addition, other companies, including companies in our industry, might calculate Adjusted EBITDA, Non-GAAP: Net earnings from continuing operations and Non-GAAP: Net earnings from continuing operations per common share-diluted, or similarly titled measures differently, which may reduce their usefulness as comparative measures.

The amounts in the tables below are results from our continuing operations (in thousands):

(i) Reconciliation of Adjusted EBITDA

	Three months ended September 30,						Six months ended September 30,
	2026			2025			2026			2025
GAAP: Net earnings from continuing operations	$	40,383		$	38,160		$	70,662		$	70,174
Provision for income taxes		15,617			15,838			27,300			27,376
Share-based compensation		4,102			3,058			7,223			5,721
Acquisition related expenses		746			-			746			-
Depreciation and amortization [1]		5,726			6,810			11,602			13,879
Other (income) expense, net [2]		527			(5,163)			(2,603)			(5,775)
Non-GAAP: Adjusted EBITDA	$	67,101		$	58,703		$	114,930		$	111,375

(ii) Reconciliation of Non-GAAP: Net earnings from continuing operations

	Three months ended September 30,						Six months ended September 30,
	2026			2025			2026			2025
GAAP: Net earnings from continuing operations before tax	$	56,000		$	53,998		$	97,962		$	97,550
Share-based compensation		4,102			3,058			7,223			5,721
Acquisition related expenses		746			-			746			-
Acquisition related amortization expense [3]		4,449			5,313			9,014			10,861
Other (income) expense, net [2]		527			(5,163)			(2,603)			(5,775)
Non-GAAP: Earnings from continuing operations before provision for income taxes		65,824			57,206			112,342			108,357
GAAP: Provision for income taxes		15,617			15,838			27,300			27,376
Share-based compensation		1,149			896			2,034			1,608
Acquisition related expenses		209			-			209			-
Acquisition related amortization expense [3]		1,246			1,552			2,541			3,025
Other (income) expense, net [2]		148			(1,512)			(740)			(1,675)
Tax benefit (expense) on restricted stock		61			(25)			279			89
Non-GAAP: Provision for income taxes		18,430			16,749			31,623			30,423
Non-GAAP: Net earnings from continuing operations	$	47,394		$	40,457		$	80,719		$	77,934

(iii) Reconciliation of Non-GAAP: Net earnings from continuing operations per common share - diluted

	Three months ended September 30,						Six months ended September 30,
	2026			2025			2026			2025
GAAP: Net earnings from continuing operations per common share - diluted	$	1.56		$	1.45		$	2.72		$	2.66
Share-based compensation		0.11			0.08			0.20			0.16
Acquisition related expenses		0.02			-			0.02			-
Acquisition related amortization expense [3]		0.12			0.14			0.25			0.30
Other (income) expense, net [2]		0.01			(0.14)			(0.07)			(0.16)
Tax benefit (expense) on restricted stock		-			-			(0.01)			-
Total non-GAAP adjustments - net of tax		0.26			0.08			0.39			0.30
Non-GAAP: Net earnings from continuing operations per common share - diluted	$	1.82		$	1.53		$	3.11		$	2.96

[1] Amount consists of depreciation and amortization for assets used internally.

[2] Interest income and foreign currency transaction gains and losses, and adjustments to the fair value of contingent consideration.

[3] Amount consists of amortization of intangible assets from acquired businesses.

 

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SOURCE EPLUS INC.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were ePlus PLUS fiscal second-quarter 2027 earnings and sales?

ePlus reported net sales of $667.9 million and continuing-operations diluted earnings of $1.56 per share for the quarter ended September 30, 2026. Sales increased 9.7% and continuing-operations diluted earnings per share increased 7.6% year over year.

What is ePlus PLUS fiscal 2027 growth guidance?

ePlus raised its fiscal 2027 outlook to upper-single-digit year-over-year growth in net sales and gross profit and low-double-digit growth in adjusted EBITDA. The outlook does not factor in recessionary conditions or other unexpected developments.

What is the record date for ePlus PLUS December 2026 dividend?

The record date for ePlus's $0.27 per common share quarterly cash dividend is the close of business on November 24, 2026. Payment is scheduled for December 16, 2026.

Why did ePlus PLUS inventory and trade receivables increase in the first half of fiscal 2027?

Inventory increased because of several ongoing projects; no specific reason was given for the trade receivables increase. Inventory rose 35.1% to $271.4 million at September 30, 2026, from $200.9 million at March 31, 2026. Net trade receivables increased 14.9% to $746.9 million from $650.0 million over the same period.