ePlus Reports Fourth Quarter and Fiscal Year 2026 Financial Results (Form 8-K)

ePlus Reports Fourth Quarter and Fiscal Year 2026 Financial Results

Double Digit Growth Year Over Year Across Key Metrics

Including Net Sales, Gross Profit and Earnings Per Share

~ Initiates Fiscal 2027 Guidance and Announces Increased Common Stock Dividend of $0.27 Per Share ~

HERNDON, VA - May 28, 2026 - ePlus inc. (NASDAQ: PLUS), a leading provider of technology solutions, today announced financial results for the three months and fiscal year ended March 31, 2026, or the fourth quarter of its 2026 fiscal year.

Management Comment

"In the fourth quarter, we achieved double digit growth across both net sales and gross billings, demonstrating expanding market share, and underscoring the durability and resilience of our business, " said Mark Marron, president and CEO of ePlus. "We had a very strong fiscal 2026 signaling strong execution from our team. We saw revenue grow 22% to $2.4 billion and gross billings expand to $3.8 billion, an increase of 17% while generating adjusted EBITDA of $205 million, an increase of 50%, delivering meaningful operating leverage for the year. With a healthy balance sheet, including cash of $411 million, we continued to enhance shareholder value through a share repurchase plan and are increasing our quarterly dividend by 8% to $0.27 per common share.

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"ePlus' services-led strategy, especially as it relates to the leveraging of our AI consulting services capabilities, makes us nimble enough to capture emerging opportunities and large enough to scale solutions for large enterprises, enabling us to help our customers in a rapidly evolving IT environment. We believe we are well positioned to capture market opportunity and scale growth over the long term," Mr. Marron concluded.

Fourth Quarter Fiscal Year 2026 Results

On June 30, 2025, we completed the sale of our domestic financing business. Consequently, alongside the results of our continuing operations, we are retrospectively presenting the results of our domestic financing business as discontinued operations, for all prior periods.

For the fourth quarter ended March 31, 2026, as compared to the fourth quarter ended March 31, 2025:

Net sales increased 20.6% to $576.2 million, from $477.9 million due to higher product sales and higher service revenue. Gross billings increased 11.7% to $881.0 million from $789.0 million.

Product segment sales increased 25.0% to $466.1 million from $373.0 million due to increases in revenue from networking, cloud, security, and collaboration products. Product segment gross margin was 22.2%, down from 24.7% last year due to a shift in product mix along with a decrease in the proportion of sales recorded on a net basis.

Professional services segment revenues increased 1.6% year over year to $61.3 million from $60.4 million, primarily due to increases in project services revenue, offset by decreases in consulting and staff augmentation revenues. Gross margin increased to 38.3% from 35.9% during the same period last year due to a shift in mix.

Managed services segment revenue increased 9.3% to $48.7 million primarily due to additional revenue from cloud services. Gross profit from our managed services segment increased 14.3% from last year due to the increase in revenue and an increase in gross margin to 30.5% from 29.1% in the prior year quarter.

Gross profit increased 11.6% to $141.6 million, from $126.9 million, due to increases in all three segments. Gross margin was 24.6%, compared with 26.5% in the prior year quarter, due to lower gross margin from our product segment.

Operating expenses were $110.7 million, up 2.4% from $108.1 million last year, primarily due to an increase in variable compensation and share-based compensation.

Operating income increased 64.7% to $30.9 million. Other income (expense), net was an expense of $0.6 million compared to income of $1.0 million last year as this year's quarter included a charge of $3.0 million relating to the disposition of our financing business offset by interest income of $2.4 million. Earnings from continuing operations before taxes increased 53.6% to $30.3 million.

Our effective tax rate for the current quarter was 32.2%, which was higher than the prior year quarter of 31.4% due to higher state income taxes and non-deductible expenses.

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Net earnings from continuing operations increased 51.7% to $20.5 million from $13.5 million in the prior year quarter. Adjusted EBITDA increased 40.2% to $40.1 million from $28.6 million in the prior year quarter. Net earnings from continuing operations per common share-diluted was $0.78, compared with $0.51 in the prior year quarter. Non-GAAP net earnings per common share from continuing operations was $1.00, compared with $0.69 in the prior year quarter.

Net earnings (loss) from discontinued operations for the three months ending March 31, 2026, was ($0.4) million, as compared to $3.9 million for the same three-month period in the prior year. Net earnings (loss) from discontinued operations per common share-diluted was ($0.02), compared with $0.15 in the prior year quarter.

Fiscal Year 2026 Results

For the fiscal year ended March 31, 2026, as compared to the fiscal year ended March 31, 2025:

Net sales increased 22.1% to $2,442.5 million, from $2,000.2 million due to higher product sales and higher services revenue. Gross billings increased 17.0% to $3,838.5 million from $3,280.4 million.

Product segment sales increased 23.8% to $1,979.3 million from $1,599.4 million due to increases in revenue from cloud, networking, and security products, offset by a decline in collaboration products. Product segment gross margin was 22.9%, down from 23.1% last year due to a shift in mix.

Professional services segment revenues increased 19.4% year over year to $273.4 million from $229.0 million, primarily due to the acquisition of Bailiwick Services, LLC, on August 19, 2024. Professional services gross margin declined to 38.7% from 39.5% last year due to the addition of Bailiwick Services, LLC, which has services margins that are generally lower than our legacy professional services.

Managed services segment revenue increased 10.6% to $189.4 million, primarily due to additional sales of cloud services and enhanced maintenance support. Gross profit from the managed services segment increased 10.1% from last year due to the increase in revenue, offset by a slight decline in gross margin to 29.8% from 29.9% in the prior year.

Gross profit increased 20.3% to $616.1 million, from $512.1 million, due to increases from all segments. Gross margin was 25.2%, compared with last year's 25.6%, due to lower gross margin from our product segment as a result of a shift in mix.

Operating expenses were $449.9 million, up 9.1% from $412.4 million last year, primarily due to increases in variable compensation commensurate with the increase in our gross profit, as well as additional fringe benefits and general and administrative costs.

Operating income increased 66.7% to $166.1 million. Other income was $7.3 million compared to $6.4 million last year, as higher interest income was offset by adjustments to the fair value of a contingent consideration receivable. Earnings from continuing operations before taxes increased 63.4% to $173.4 million.

Our effective tax rate for the fiscal year ended March 31, 2026, was 28.4%, higher than the prior fiscal year of 28.0%, due to higher state income taxes and non-deductible expenses.

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Net earnings from continuing operations increased 62.4% to $124.1 million from $76.4 million in the prior year. Adjusted EBITDA increased 49.5% to $204.8 million from $137.0 million in the prior year period. Net earnings from continuing operations per common share-diluted was $4.71, compared with $2.87 in the prior year. Non-GAAP net earnings from continuing operations per common share-diluted was $5.39, compared with $3.53 in the prior year.

Net earnings from discontinued operations for the fiscal year ended March 31, 2026, were $8.5 million, a decrease of $19.6 million, as compared to $28.1 million in the prior year. The decrease was due to the sale of our domestic financing business on June 30, 2025. Net earnings from discontinued operations per common share-diluted was $0.32, compared with $1.06 in the prior year.

Balance Sheet Highlights

As of March 31, 2026, cash and cash equivalents were $410.8 million, up from $389.4 million last year, as proceeds from the sale of our domestic financing business were offset by working capital needs. Inventory increased 66.8% to $200.9 million as of March 31, 2026 compared with $120.4 million as of March 31, 2025 due to an increase in projects in process. Accounts receivable-trade, net increased 31.4% to $667.8 million as of March 31, 2026 from $508.3 million as of March 31, 2025. Total stockholders' equity was $1,069.0 million as of March 31, 2026, compared with $970.7 million as of March 31, 2025. Total shares outstanding were 26.3 million and 26.5 million on March 31, 2026 and March 31, 2025, respectively.

Fiscal Year Guidance

ePlus is initiating fiscal year 2027 guidance for percentage growth over the prior fiscal year of mid-single digits for net sales, gross profit and 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 to adjusted EBITDA for the full fiscal year 2027 forecast.

Summary and Outlook

"As we look ahead to fiscal 2027, we are operating from a position of strength with solid industry fundamentals that support growth for the coming year. Our long-term strategy includes expanding and enhancing our solutions, services and footprint, and deepening our customer relationships all while delivering solid financial performance. We have a strong financial position and healthy liquidity, enabling a disciplined capital allocation approach that fuels long-term growth organically and with M&A opportunities. We remain committed to enhancing shareholder returns over time," concluded Mr. Marron.

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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 June 30, 2026, to shareholders of record as of the close of business on June 17, 2026.

Recent Corporate Developments/Recognitions

In the fourth quarter of its 2026 fiscal year:

Conference Call Information

ePlus will hold a conference call and webcast at 4:30 p.m. ET on May 28, 2026:

Date:	May 28, 2026
Time:	4:30 p.m. ET
Audio Webcast (Live & Replay):	https://events.q4inc.com/attendee/661235710
Live Call:	(888) 596-4144 (toll-free/domestic)
	(646) 968-2525 (international)
Archived Call:	(800) 770-2030 (toll-free/domestic)
	(609) 800-9909 (international)
Conference ID:	8293082# (live call and replay)

A replay of the call will be available approximately two hours after the call through June 4, 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 approximately 2,150 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 [email protected]. Connect with ePlus on LinkedIn, X, Facebook, and Instagram.

ePlus, Where Technology Means More®.

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