Latest news with #ePlus
Yahoo
08-08-2025
- Business
- Yahoo
ePlus (NASDAQ:PLUS) Delivers Strong Q2 Numbers
IT solutions provider ePlus (NASDAQ:PLUS) reported Q2 CY2025 results beating Wall Street's revenue expectations , with sales up 17% year on year to $637.3 million. Its GAAP profit of $1.43 per share was 55.4% above analysts' consensus estimates. Is now the time to buy ePlus? Find out in our full research report. ePlus (PLUS) Q2 CY2025 Highlights: Revenue: $637.3 million vs analyst estimates of $516.7 million (17% year-on-year growth, 23.3% beat) EPS (GAAP): $1.43 vs analyst estimates of $0.92 (55.4% beat) Adjusted EBITDA: $46.7 million vs analyst estimates of $43.15 million (7.3% margin, 8.2% beat) Operating Margin: 5.7%, in line with the same quarter last year Market Capitalization: $1.67 billion "Fiscal 2026 is off to a strong start both financially and strategically. We reported double digit growth across key financial metrics, including revenue, gross profit, and earnings per share. Our services business continues to be a standout, increasing nearly 50% in the quarter," commented Mark Marron, president and CEO of ePlus. Company Overview Starting as a financing company in 1990 before evolving into a full-service technology provider, ePlus (NASDAQ:PLUS) provides comprehensive IT solutions, professional services, and financing options to help organizations optimize their technology infrastructure and supply chain processes. Revenue Growth A company's long-term sales performance is one signal of its overall quality. Any business can have short-term success, but a top-tier one grows for years. With $2.16 billion in revenue over the past 12 months, ePlus is a mid-sized business services company, which sometimes brings disadvantages compared to larger competitors benefiting from better economies of scale. On the bright side, it can still flex high growth rates because it's working from a smaller revenue base. As you can see below, ePlus's 7.4% annualized revenue growth over the last five years was solid. This shows it had high demand, a useful starting point for our analysis. We at StockStory place the most emphasis on long-term growth, but within business services, a half-decade historical view may miss recent innovations or disruptive industry trends. ePlus's recent performance shows its demand has slowed as its revenue was flat over the last two years. This quarter, ePlus reported year-on-year revenue growth of 17%, and its $637.3 million of revenue exceeded Wall Street's estimates by 23.3%. Looking ahead, sell-side analysts expect revenue to grow 3.6% over the next 12 months. While this projection implies its newer products and services will spur better top-line performance, it is still below average for the sector. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. Operating Margin Operating margin is an important measure of profitability as it shows the portion of revenue left after accounting for all core expenses – everything from the cost of goods sold to advertising and wages. It's also useful for comparing profitability across companies with different levels of debt and tax rates because it excludes interest and taxes. ePlus's operating margin might fluctuated slightly over the last 12 months but has generally stayed the same, averaging 7.3% over the last five years. This profitability was paltry for a business services business and caused by its suboptimal cost structure. Looking at the trend in its profitability, ePlus's operating margin might fluctuated slightly but has generally stayed the same over the last five years. This raises questions about the company's expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability. This quarter, ePlus generated an operating margin profit margin of 5.7%, in line with the same quarter last year. This indicates the company's overall cost structure has been relatively stable. Earnings Per Share Revenue trends explain a company's historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions. ePlus's EPS grew at a remarkable 11.1% compounded annual growth rate over the last five years, higher than its 7.4% annualized revenue growth. However, this alone doesn't tell us much about its business quality because its operating margin didn't improve. Like with revenue, we analyze EPS over a shorter period to see if we are missing a change in the business. For ePlus, its two-year annual EPS declines of 4.7% mark a reversal from its (seemingly) healthy five-year trend. We hope ePlus can return to earnings growth in the future. In Q2, ePlus reported EPS at $1.43, up from $1.02 in the same quarter last year. This print easily cleared analysts' estimates, and shareholders should be content with the results. We also like to analyze expected EPS growth based on Wall Street analysts' consensus projections, but there is insufficient data. Key Takeaways from ePlus's Q2 Results We were impressed by how significantly ePlus blew past analysts' EPS expectations this quarter. We were also excited its revenue outperformed Wall Street's estimates by a wide margin. Zooming out, we think this quarter featured some important positives. The stock traded up 4% to $66.01 immediately following the results. Sure, ePlus had a solid quarter, but if we look at the bigger picture, is this stock a buy? When making that decision, it's important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it's free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
07-08-2025
- Business
- Globe and Mail
ePlus (PLUS) Q1 Revenue Jumps 19%
Key Points GAAP revenue of $637.3 million exceeded estimates by 21.6% in Q1 FY2026, setting a new quarterly record. Non-GAAP EPS of $1.26 topped expectations by $0.20 in Q1 FY2026 and rose 24.8% year over year (non-GAAP). First-ever dividend of $0.25 per share was declared, and a new 1.5 million share buyback was authorized. These 10 stocks could mint the next wave of millionaires › ePlus (NASDAQ:PLUS), a technology solutions provider specializing in IT infrastructure, announced results for Q1 FY2026 on August 7, 2025. The company posted GAAP revenue of $637.3 million, beating analyst estimates of $523.9 million (GAAP), while delivering Non-GAAP earnings per share (EPS) of $1.26, well above the $1.06 non-GAAP expectation. Both revenue (GAAP) and EPS (non-GAAP) marked double-digit percentage growth compared to the prior year's quarter. These results also set all-time quarterly records for gross billings and net sales. In a pivotal move, ePlus initiated its first-ever quarterly dividend and launched a new share repurchase program. Overall, the quarter showed broad-based revenue expansion driven mainly by services and an enhanced capital return profile. Metric Q1 FY26(3 months ended June 30, 2025) Q1 FY26 Estimate Q1 FY25(3 months ended June 30, 2024) Y/Y Change EPS (Non-GAAP) $1.26 $1.06 $1.01 24.8% Revenue (GAAP) $637.3 million $523.9 million $535.7 million 19.0% Adjusted EBITDA $46.7 million $39.1 million 19.4% Gross Profit $148.2 million $126.9 million 16.8% Net Earnings from Continuing Operations $27.1 million N/A N/A Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q4 2025 earnings report. ePlus Inc. Business Model and Key Focuses ePlus Inc. delivers a range of technology solutions, including consulting, cloud, security, managed services, and IT infrastructure products for commercial, healthcare, education, and government customers. The company forms strategic partnerships with major technology vendors like AWS, Cisco, Microsoft, and VMware, enabling it to provide multi-vendor solutions tailored to diverse customer needs. Recently, ePlus has focused on expanding and integrating its professional and managed services, with a strong emphasis on emerging technologies like cloud computing, security, and AI (artificial intelligence). The company also completed the sale of its financing business to concentrate fully on higher-growth technology solutions. Key success factors include maintaining strong vendor certifications, a diversified customer base, and adapting to rapid changes in the IT market. What Drove the Quarter: Financial and Service Results Revenue set a quarterly record as services growth accelerated, underpinned by the recent Bailiwick Services acquisition and existing core business demand. Services revenue rose 48.8% from a year before, reaching $116.3 million. Within this, professional services nearly doubled with a 92.4% increase, driven mainly by integrating Bailiwick's operations. Managed services were up 9.0%, showing continued momentum in cloud and enhanced maintenance contracts. In the product business, net sales (GAAP) rose 13.9%, led by rapid adoption in cloud and security product lines. Cloud-related net sales (GAAP) climbed 50.8% to $206.996 million, and security product sales advanced 27.3% (GAAP). Networking and collaboration products, however, declined by 7.0% and 43.7%, respectively, as customers continued to digest equipment from the prior supply chain surge. Segment margins and mix continued to evolve. Professional services gross profit increased 82.2% to $28.2 million (GAAP), but the gross margin within this category dipped to 39.2% from 41.5% in the prior year, as the newly acquired lower-margin business blended with existing operations. Managed services margin also slipped to 30.4%. The product segment gross margin softened to 20.4%, due to a lower share of third-party maintenance and services. Overall company gross margin (GAAP) narrowed to 23.3%, compared with 23.7% a year earlier. Operating expenses grew 17.4%, reflecting a 275-person headcount expansion, primarily in customer-facing roles and related compensation. Operating income from continuing operations (GAAP) was up 15.1%. Adjusted EBITDA increased 19.6% and Non-GAAP EPS increased 24.8% year-over-year. Cash provided by the sale of the financing business bolstered the balance sheet, with cash and equivalents totaling $480.2 million, up from $389.4 million as of Q4 FY2025. Customer vertical performance was mixed. Telecom, Media, and Entertainment end-market sales surged 57.4% to $184,979,000, and the "All Other" category rose 71.1% year-over-year (GAAP). In contrast, technology, healthcare, and financial services saw declines or near-flat results, indicating shifts in where IT spending occurred this quarter. Strategic actions featured prominently. The company's exit from its US financing business completed its transition to a pure technology solutions company. In a new move for shareholder returns, management declared a quarterly dividend and announced approval of a 1.5 million share repurchase program. Inventory was reduced by 16.1% compared to Q4 FY2025, while trade receivables (GAAP) increased by 35.6%. The period did not include a previously declared dividend. On the product side, ePlus's offerings range from cloud solutions (helping customers move computing workloads onto remote data centers), security products (protecting digital assets from cyber threats), networking equipment (for building large computer networks), and collaboration tools (such as video and messaging platforms). Managed services involve outsourcing IT support and monitoring, while professional services provide technical consulting, project management, and system integration. Outlook and Investor Considerations For fiscal 2026, management raised its financial outlook. It now expects net sales and gross profit both to grow in the upper single-digit percentage range over the prior fiscal year, while adjusted EBITDA should rise in the mid-teens. This is an increase from earlier projections. Leadership noted that demand in cloud, security, and data center markets remains strong. In the period ahead, investors may want to watch for further changes in business mix, especially service margins as recently acquired businesses are integrated. Receivables growth and working capital management will also be important, given the 35.6% jump in trade accounts receivable. The company's pivot to pure-play technology, enhanced capital return plans, and expanded vendor awards position it to continue benefiting from secular trends in cloud, AI, and security. PLUS does pay a dividend. The quarterly dividend was introduced at $0.25 per share. Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted. Where to invest $1,000 right now When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor's total average return is 1,046%* — a market-crushing outperformance compared to 181% for the S&P 500. They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor. *Stock Advisor returns as of August 4, 2025
Yahoo
10-07-2025
- Business
- Yahoo
ePlus Honored as Digital Realty's 2024 Rising Star Partner, Shows AI Innovation
ePlus Inc. (NASDAQ:PLUS) is one of the most undervalued small-cap stocks to buy according to analysts. On July 8, ePlus announced that it has been recognized as Digital Realty's 2024 Rising Star Partner of the Year. The award acknowledges ePlus's expertise in AI innovation. In November 2024, ePlus and Digital Realty collaborated to launch an AI Experience Center, which is located in Digital Realty's Innovation Lab in Ashburn, VA. This center provides organizations the ability to explore AI technologies within data center facilities for AI-optimized infrastructure. A close-up of a technician's hands assembling a hardware component of an IT solution. The companies can then demonstrate the full lifecycle of AI infrastructure deployment, monitoring, and management. ePlus Inc. (NASDAQ:PLUS) provides IT solutions that enable organizations to optimize their IT environment and supply chain processes in the US and internationally. While we acknowledge the potential of PLUS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the . READ NEXT: and . Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
04-07-2025
- Business
- Yahoo
PEAC Solutions completes acquisition of ePlus Finance subsidiaries
PEAC Solutions, the multinational asset finance platform, has confirmed the completion of its acquisition of the domestic subsidiaries of ePlus inc., for an undisclosed amount, marking a significant step in its strategic expansion across the United States. The transaction, originally announced earlier this year, formally closed on 30 June 2025. Under the terms of the deal, Marlin Leasing Corporation, trading as PEAC Solutions, acquired the key entities that comprised the bulk of ePlus's Finance Segment. The move is expected to bolster PEAC's growing IT finance portfolio and broaden its reach within the US Federal, State and Local government sectors. 'This transaction represents a strong strategic fit,' said William Stephenson, Global CEO of PEAC Solutions. He added that the company is 'pleased to formally welcome the ePlus Finance team' and remains committed to 'the continued growth and success of this collaboration'. ePlus Finance customers and partners will continue working with many of their existing relationship contacts, PEAC noted, while gaining access to a wider range of financing structures and asset classes. PEAC Solutions operates across North America, Europe and the United Kingdom, offering finance solutions to equipment manufacturers, dealers and distributors. The firm focuses on flexible leasing and lending products tailored to business growth and operational efficiency. "PEAC Solutions completes acquisition of ePlus Finance subsidiaries" was originally created and published by Leasing Life, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Yahoo
24-06-2025
- Business
- Yahoo
ePlus Recognized as Innovator Partner of the Year at Pure Storage Annual Pure/Partner Forum
HERNDON, Va., June 24, 2025 /PRNewswire/ -- ePlus inc. (NASDAQ NGS: PLUS – news) today announced that it has been recognized by Pure Storage as its 2024 Innovator Partner of the Year at Pure Storage's annual Pure//Partner Forum in Las Vegas. The Innovator Partner of the Year award was presented to ePlus for fully embracing innovation with Pure—and demonstrating leadership in selling the platform, AI, developing joint solutions, launching standout marketing campaigns, or achieving exceptional customer results. ePlus Storage-as-a-Service (STaaS) is a powerful offering that combines Pure Storage Evergreen//One with ePlus' managed services capabilities, including technical expertise, around the clock support, and dedicated customer success resources. Pioneered by ePlus in collaboration with Pure Storage, it allows organizations to leverage enterprise storage platforms without making upfront capital investments, simplifying data storage planning by providing a flexible, customized, utilization-based subscription model. "We are ecstatic to receive the Innovator Partner of the Year Award from Pure Storage, which is tremendous validation of the innovative work we have done to provide creative data solutions to our customers," said Ken Farber, president of ePlus Software, leading partnerships, marketing, and strategy at ePlus. "Organizations have unique requirements when it comes to consuming and procuring technology, especially where data access and storage is concerned. The beauty of ePlus STaaS is that it provides a simplified and efficient way to achieve what they need now without having to predict the future. We're thankful to Pure Storage for their support and partnership as we continue to push the boundaries for our customers." "At Pure Storage, we believe partnership is the catalyst for innovation and growth. This year's award winners have set a new standard by delivering transformative solutions and unlocking powerful business outcomes for our joint customers. We're proud to collaborate with such visionary partners who share our commitment to redefining what's possible in data storage and management." - Amy Fowler, GM Commercial, Pure Storage. Pure Storage collaborates with partners around the world to help organizations modernize their data infrastructure and unlock the full value of their data. Each year, Pure Storage honors partners who go above and beyond—demonstrating exceptional commitment, delivering impactful solutions, and driving meaningful results for our shared customers. For more information about the ePlus and Pure Storage partnership please visit: 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 2,200 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 call 888-482-1122, or email info@ Connect with ePlus on LinkedIn, X, Facebook, and Instagram. ePlus®, Where Technology Means More®, and ePlus products referenced herein are either registered trademarks or trademarks of ePlus inc. in the United States and/or other countries. The names of other companies, products, and services mentioned herein may be the trademarks of their respective owners. View original content to download multimedia: SOURCE EPLUS INC. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
