ePlus Reports First Quarter Fiscal Year 2027 Financial Results (Form 8-K)

ePlus Reports First Quarter Fiscal Year 2027 Financial Results

Managed Services Delivers Strong Performance and Increases Recurring Revenue

~ Reiterates Fiscal 2027 Guidance ~

First Quarter of Fiscal Year 2027

HERNDON, VA - August 4, 2026 - ePlus inc. (NASDAQ: PLUS), a leading provider of technology solutions, today announced financial results for the three months ended June 30, 2026, or the first quarter of its 2027 fiscal year.

Management Comment

"The first quarter reflected strong execution against a challenging year over year comparison. We had record sales and saw a significant increase in booked and open orders which we believe positions us for a strong second half. During the quarter, we saw product shipment delays and lead times extended by the ongoing memory chip shortage." commented Mark Marron, President and CEO of ePlus. "We continued to see strong growth in security, managed services, and within our mid-market customer base overall. Managed services delivered its first $50 million revenue quarter and provides a reliable revenue stream which affirms our services-led, value-add approach for customers."

"We ended the quarter with $449 million of cash on our balance sheet. This strong cash position provides us with the financial flexibility to continue investing in our business, pursue M&A and return value to shareholders via dividends and share repurchases. As we look ahead, we remain focused on executing our strategic priorities and are confident in our ability to deliver sustainable long-term value for our shareholders."

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First Quarter Fiscal Year 2027 Results

For the first quarter ended June 30, 2026, as compared to the first quarter ended June 30, 2025:

Net sales increased 1.0% to $649.1 million, from $642.8 million due to higher product sales and higher service revenue. Gross billings increased 0.5% to $957.1 million from $952.8 million.

Product segment sales increased 0.6% to $529.6 million from $526.4 million due to increases in revenue from networking, security, and collaboration products, offset by a decrease in cloud products. Product segment gross profit margin was 21.0%, down from 21.3% last year due to a shift in product mix and a lower proportion of sales that were sales of third-party maintenance and subscriptions which are recorded on a net basis.

Professional services segment revenues decreased 5.1% year over year to $68.1 million from $71.7 million, primarily due to decreases in revenues from project services and staff augmentation. Gross profit margin from our professional services segment decreased to 36.9% from 39.2% during the same period last year due to a shift in services mix.

Managed services segment revenue increased 15.1% to $51.3 million primarily due to additional revenue from cloud managed services. Gross profit from managed services increased 11.3% from last year due to the increase in revenue, offset by a decrease in gross profit margin from managed services to 29.4% from 30.4% in the prior year quarter.

Gross profit decreased 1.5% to $151.3 million, from $153.7 million, due to a decrease in gross profit from the product segment and professional services segment, offset by an increase in the managed services segment. Gross profit margin was 23.3%, compared with 23.9% in the prior year quarter, due to lower gross profit margin in all three segments.

Operating expenses were $112.5 million, up 1.6% from $110.7 million last year, primarily due to an increase in general and administrative expenses and salary and benefits.

Operating income decreased 9.6% to $38.8 million. Other income, net was $3.1 million compared to $0.6 million in the prior year due to higher interest income and lower foreign currency transaction losses being recognized in the current year quarter. Earnings from continuing operations before taxes decreased 3.7% to $42.0 million.

The effective tax rate for the current quarter was 27.8%, which was higher than the prior year quarter of 26.5% due to higher state income taxes and non-deductible expenses.

Net earnings from continuing operations decreased 5.4% to $30.3 million from $32.0 million in the prior year quarter. Adjusted EBITDA decreased 9.2% to $47.8 million from $52.7 million in the prior year quarter. Net earnings from continuing operations per common share-diluted was $1.16, compared with $1.21 in the prior year quarter. Non-GAAP net earnings from continuing operations per common share - diluted was $1.28, compared with $1.41 in the prior year quarter. Total shares outstanding were 26.1 million and 26.3 million on June 30, 2026 and March 31, 2026, respectively.

Net earnings were $30.3 million as compared to $42.6 million in the prior year quarter, which included $10.6 million from discontinued operations. Net earnings from discontinued operations per common share - diluted for the three months ended June 30, 2025, was $0.40. There were no transactions for discontinued operations for the three months ended June 30, 2026.

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Balance Sheet Highlights

As of June 30, 2026, cash and cash equivalents were $448.9 million, up from $410.8 million as of March 31, 2026. Inventory decreased 27.3% to $146.0 million as of June 30, 2026 compared with $200.9 million as of March 31, 2026 due to a reduction of projects in process. Accounts receivable-trade, net increased 14.8% to $746.0 million as of June 30, 2026 from $650.0 million as of March 31, 2026. Total stockholders' equity was $1,072.0 million as of June 30, 2026, compared with $1,069.0 million as of March 31, 2026.

Fiscal Year Guidance

ePlus is reiterating its fiscal year 2027 guidance of year over year growth in the 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

"Our customers operate in areas with strong expansion potential, and our growth is underscored by our close customer relationships as they look to us for help to expand their businesses, optimize internal efficiencies, and operate their IT securely. As technology investment continues to accelerate, we are well-positioned to capitalize on the significant long-term growth opportunities across artificial intelligence, data centers, cybersecurity and other mission-critical markets. Supported by our strong balance sheet and disciplined approach to capital allocation, we will continue investing in our capabilities, for both products and services, while executing on our strategy to deliver long-term sustainable growth and shareholder value. Reflecting our confidence in the business and the visibility into our open orders we have today, we are reaffirming our fiscal 2027 guidance," concluded Mr. Marron.

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 September 16, 2026, to shareholders of record as of the close of business on August 25, 2026.

ePlus Announces New Stock Repurchase Program

ePlus today announced that its Board of Directors has authorized ePlus to repurchase up to 1,500,000 shares of ePlus' outstanding common stock over a 12-month period commencing August 11, 2026. ePlus' current repurchase plan expires on August 10, 2026.

The purchases under the new stock repurchase program may be made from time to time in the open market, or in privately negotiated transactions, subject to availability. Any repurchased shares will have the status of treasury shares and may be used, if and when needed, for general corporate purposes. ePlus has no obligation to repurchase shares under the authorization, and the timing, actual number and value of the shares which are repurchased will be at the discretion of management and will depend on a number of factors, including the price of ePlus' common stock. ePlus may suspend or discontinue repurchases at any time.

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Recent Corporate Developments/Recognitions

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

Conference Call Information

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

A replay of the call will be available approximately two hours after the call through August 11, 2026.

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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 [email protected]. Connect with ePlus on LinkedIn, Facebook, and Instagram.

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