ePlus Reports Fourth Quarter and Fiscal Year 2025 Financial Results

Fourth Quarter And Full Year Gross Profit And Gross Margin Improved Year Over Year; Double Digit EPS Growth for Fourth Quarter Fourth Quarter Fiscal Year 2025 • Net sales decreased 10.2% to $498.1 million from last year's fourth quarter; Technology business net sales decreased 10.4% to $487.2 million; service revenues increased 33.0% to $104.9 million. • Technology business gross billings decreased 5.4% to $789.0 million. • Consolidated gross profit increased 11.8% to $145.8 million. • Consolidated gross margin was 29.3%, compared to 23.5% last year. • Net earnings increased 14.6% to $25.2 million. • Adjusted EBITDA increased 19.1% to $43.8 million. • Diluted earnings per share increased 15.9% to $0.95. Non-GAAP diluted net earnings per common share increased 19.4% to $1.11. Fiscal Year 2025 • Net sales decreased 7.0% to $2,068.8 million; Technology business net sales decreased 7.7% to $2,009.1 million; service revenues increased 37.1% to $400.4 million. • Technology business gross billings decreased 1.5% to $3,280.4 million. • Consolidated gross profit increased 3.3% to $569.1 million. • Consolidated gross margin was 27.5%, compared to 24.8% for fiscal year 2024. • Net earnings decreased 6.7% to $108.0 million. • Adjusted EBITDA decreased 6.4% to $178.2 million. • Diluted earnings per share decreased 6.5% to $4.05. Non-GAAP diluted net earnings per share decreased 5.1% to $4.67. , /PRNewswire/ -- ePlus inc. (NASDAQ: PLUS), a leading provider of technology and financing solutions, today announced financial results for the three months and fiscal year ended March 31, 2025. Management Comment "During the fourth quarter, we delivered double digit growth across several key metrics, including gross profit, net earnings and EPS," commented Mark Marron, president and CEO of ePlus. "We are benefiting from evolving industry trends of increased ratable and subscription revenue models, which are driving a greater gross to net percentage and can provide long term visibility and profitability. Our services-led approach resulted in services revenue increasing 33% in the quarter and 37% for the full year. This contributed to significant gross margin expansion. Through both organic initiatives and acquisitions, our business is expanding to serve diverse end markets with long-term secular demand drivers, including AI, cyber security and cloud, among others." Fourth Quarter Fiscal Year 2025 Results For the fourth quarter ended March 31, 2025, as compared to the fourth quarter ended March 31, 2024: Consolidated net sales decreased 10.2% to $498.1 million, from $554.5 million. Technology business net sales decreased to $487.2 million from $544.1 million as lower product sales were partially offset by higher service revenues. Technology business gross billings decreased 5.4% to $789.0 million from $834.3 million. Product sales decreased 17.8% to $382.4 million from $465.2 million due to decreases in net sales of networking and collaboration products, partially offset by increases in cloud and security products. Product margin was 26.6%, up from 19.3% last year due to a higher proportion of third-party maintenance, software subscriptions, and services sold in the current quarter, which are recorded on a net basis. Professional service revenues increased 48.4% from last year to $60.4 million from $40.7 million, primarily due to the acquisition of Bailiwick Services, LLC. Gross margin declined to 35.9% from 50.0% due to the addition of Bailiwick Services, LLC and a shift in the mix of services provided. Managed service revenues increased 16.6% to $44.5 million due to ongoing growth in these offerings, including Enhanced Maintenance Support and Cloud services. Gross profit from managed services increased 11.3% from last year due to the increase in revenues, offset by a decline in gross margin. Managed service gross margin declined to 29.1% from 30.5%. Financing business segment net sales increased 4.9% to $10.9 million, from $10.4 million due to increases in transactional gains and portfolio earnings, offset by lower post-contract earnings. Gross profit in the financing business segment increased $0.7 million from $8.8 million last year to $9.5 million this year, due to the increase in net sales. Consolidated gross profit increased 11.8% to $145.8 million, from $130.3 million. Consolidated gross margin was 29.3%, compared with last year 23.5%. Operating expenses were $111.0 million, up 9.6% from $101.3 million last year, primarily due to increases in salaries and benefits from additional headcount, general and administrative expenses, and acquisition-related depreciation and amortization expenses, partially offset by a decrease in variable compensation. Our headcount at the end of the quarter was 2,199, up 299 from a year ago, primarily due to the acquisition of Bailiwick Services, LLC on August 19, 2024. Of this year's 299 additional employees, 272 are customer-facing employees. Consolidated operating income increased 19.6% to $34.7 million and earnings before tax increased 14.9% to $35.8 million. Other income was $1.1 million compared to $2.2 million last year, due to foreign currency transaction losses being recognized in the current year quarter while foreign currency transaction gains were recognized in the prior year quarter, offset by higher interest income. Our effective tax rate for the current quarter was 29.7%, slightly higher than the prior year quarter of 29.5%. Net earnings increased 14.6% to $25.2 million. Adjusted EBITDA in the technology business increased 21.1% and increased 4.6% in the financing business segment, and when combined, resulted in an increase of 19.1% to $43.8 million. Diluted earnings per share was $0.95, compared with $0.82 in the prior year quarter. Non-GAAP diluted earnings per share was $1.11, compared with $0.93 in the prior year quarter. Fiscal Year 2025 Results For the fiscal year ended March 31, 2025, as compared to the prior fiscal year ended March 31, 2024: Consolidated net sales decreased 7.0% to $2,068.8 million, from $2,225.3 million. Technology business net sales decreased 7.7% to $2,009.1 million, from $2,175.9 million due to lower product sales, partially offset by higher service revenues. Technology business gross billings decreased 1.5% to $3,280.4 million from $3,329.8 million. Product sales decreased 14.6% to $1,608.8 million due to declines in customer demand, as well as a shift in product mix. Gross profit from sales of products decreased 6.1% to $373.6 million from $397.6 million due to lower sales combined with a shift in mix towards third-party maintenance and services, which are recorded on a net basis. Professional service revenues increased 48.2% primarily due to the acquisition of Bailiwick Services, LLC. Gross margin declined to 39.5% from 44.1% for the same period in the prior year. Managed service revenues increased 24.6% to $171.3 million from $137.5 million due to ongoing growth in these offerings, including Enhanced Maintenance Support, Cloud services, and Service Desk services. Gross profit from managed services increased 20.3% to $51.3 million from $42.7 million due to the increase in revenues. Gross margin declined slightly to 29.9% from 31.0% last year. Financing business segment net sales increased 20.7% to $59.6 million from $49.4 million due to higher transactional gains and portfolio earnings offset by lower post-contract earnings. Gross profit in the Financing business segment increased $11.4 million primarily due to the increase in net sales. Consolidated gross profit increased to $569.1 million from $550.8 million. Consolidated gross margin was 27.5%, compared with last year's gross margin of 24.8%, due to higher product gross margin, offset by lower service gross margin. Operating expenses were $427.7 million, up 9.0% from $392.5 million last year, primarily due to increases in salaries and benefits and general and administrative costs, both of which were due to increases in personnel. The increases in depreciation and amortization and acquisition-related amortization and expenses were due to the acquisition of Bailiwick Services, LLC. Consolidated operating income decreased 10.6% to $141.4 million. Earnings before tax decreased 7.6% to $148.8 million. Other income was $7.4 million compared to $2.8 million last year, primarily due to higher interest income, partially offset by higher foreign currency transaction losses. Our effective tax rate for the current year period was 27.5%, lower than last year's 28.1%, primarily due to lower state taxes. Net earnings decreased 6.7% to $108.0 million. Adjusted EBITDA decreased 6.4% to $178.2 million. Diluted earnings per common share was $4.05, compared with $4.33 in the prior year. Non-GAAP diluted earnings per common share was $4.67, compared with $4.92 in the prior year. Please see the included financial tables for a reconciliation of the following non-GAAP financial measures: (i) Adjusted EBITDA, (ii) Adjusted EBITDA for business segments, (iii) non-GAAP Net Earnings and (iv) non-GAAP Net Earnings per Common Share - Diluted. Balance Sheet Highlights As of March 31, 2025, cash and cash equivalents were $389.4 million, up from $253.0 million as of March 31, 2024, as cash provided by operations was partially offset by funds used for the acquisition of Bailiwick Services, LLC and repurchases of our common stock. Inventory decreased 13.8% to $120.4 million compared with $139.7 million as of March 31, 2024. Accounts receivable—trade, net decreased 19.8% to $517.1 million from $644.6 million as of March 31, 2024. Total stockholders' equity as of March 31, 2025, was $977.6 million, compared with $901.8 million as of March 31, 2024. Total shares outstanding were 26.5 million as of March 31, 2025, and 27.0 million as of March 31, 2024. Fiscal Year Guidance ePlus is initiating fiscal year 2026 guidance over the prior fiscal year for net sales growth of low single digits, and gross profit and adjusted EBITDA in the mid single digits. This guidance assumes some level of impact from economic uncertainty but 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-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 year 2026 forecast. Summary and Outlook "We are excited about the year ahead. We remain focused on engaging with our customers to deepen our relationships, the continued evolution of our service and product offerings, and our ability to attract new customers. Our industry is evolving, and we are well positioned in our fast-growing focus areas of AI, cloud, security, and networking. We continue to generate cash and will remain balanced and thoughtful in how we allocate our capital. While there are still many unknowns for fiscal 2026, including the evolving macro environment, I am confident in our teams' ability to continue making progress on our strategic priorities while driving profitability and accelerating shareholder value," concluded Mr. Marron. Recent Corporate Developments/Recognitions In the month of February: Expanded Managed Services Portfolio with Support for Juniper Mist Launched GRIT: Girls Re-Imagining Tomorrow 2025 Program Named to CRN's MSP Elite 150 List for 2025 In the month of March: Recognized on CRN's Tech Elite 250 List Named F5's 2024 North America BeF5 Partner of the Year In the month of April: Named the 2024 VMware Fastest Growth Partner by Broadcom Earned NVIDIA DGX SuperPOD Specialization Partner Status Conference Call Information ePlus will hold a conference call and webcast at 4:30 p.m. ET on May 22, 2025: Date: May 22, 2025 Time: 4:30 p.m. ET Audio Webcast (Live & Replay): https://events.q4inc.com/attendee/629736857 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: 5394845# (live call and replay) A replay of the call will be available approximately two hours after the call through May 29, 2025. A transcript of the call will also be available on the ePlus Investor Relations website at https://www.eplus.com/investors. 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 2,200 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 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®. 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 exposure to losses upon translation of foreign currency rates, due to changing interest rates, tariffs, and due to inflation, including as a result of national and international political instability fostering uncertainty and volatility in the global economy; 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 to our fixed customer pricing commitments; the loss of our key lenders or constricting credit availability as a result of changing interest rates or other economic conditions, which may result in adverse changes in our results of operations and financial position; 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; a material decrease in the credit quality of our customer base, or a material increase in our credit losses, including by the federal government's actual or attempted termination for convenience, other contract termination or non-performance; 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; 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; the possibility of a reduction of vendor incentives provided to us; 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, and vendor certifications; risks relating to use or capabilities of artificial intelligence ("AI") including social and ethical risks; 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; 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; 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 raise capital, maintain or increase as needed our lines of credit with vendors or our floor plan facility, obtain debt for our financing transactions, or the effect of those changes on our common stock price; 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. 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 CONSOLIDATED BALANCE SHEETS (in thousands, except per share amounts) March 31, 2025 March 31, 2024 ASSETS Current assets: Cash and cash equivalents $389,375 $253,021 Accounts receivable—trade, net 517,114 644,616 Accounts receivable—other, net 53,803 46,884 Inventories 120,440 139,690 Financing receivables—net, current 169,025 102,600 Deferred costs 66,769 59,449 Other current assets 47,264 27,269 Total current assets 1,363,790 1,273,529 Financing receivables and operating leases—net 127,518 79,435 Deferred tax asset 3,658 5,620 Property, equipment and other assets—net 104,974 89,289 Goodwill 202,858 161,503 Other intangible assets—net 82,007 44,093 TOTAL ASSETS $1,884,805 $1,653,469 LIABILITIES AND STOCKHOLDERS' EQUITY LIABILITIES Current liabilities: Accounts payable $451,734 $315,676 Accounts payable—floor plan 89,527 105,104 Salaries and commissions payable 45,031 43,696 Deferred revenue 152,780 134,596 Non-recourse notes payable—current 27,456 23,288 Other current liabilities 31,355 34,630 Total current liabilities 797,883 656,990 Non-recourse notes payable—long-term 11,317 12,901 Deferred tax liability 1,454 - Other liabilities 96,528 81,799 TOTAL LIABILITIES 907,182 751,690 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; 50,000 shares authorized; 26,526 outstanding at March 31, 2025 and 26,952 outstanding at March 31, 2024 276 274 Additional paid-in capital 193,698 180,058 Treasury stock, at cost, 1,056 shares at March 31, 2025 and 447 shares at March 31, 2024 (70,748) (23,811) Retained earnings 850,956 742,978 Accumulated other comprehensive income—foreign currency translation adjustment 3,441 2,280 Total Stockholders' Equity 977,623 901,779 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $1,884,805 $1,653,469 ePlus inc. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) Three Months Ended March 31, Year Ended March 31, 2025 2024 2025 2024 Net sales Product $393,240 $475,589 $1,668,412 $1,933,225 Services 104,874 78,872 400,377 292,077 Total 498,114 554,461 2,068,789 2,225,302 Cost of sales Product 282,088 377,247 1,241,115 1,493,293 Services 70,262 46,869 258,553 181,216 Total 352,350 424,116 1,499,668 1,674,509 Gross profit 145,764 130,345 569,121 550,793 Selling, general, and administrative 102,984 95,403 399,744 367,734 Depreciation and amortization 7,493 5,204 25,753 21,025 Interest and financing costs 572 723 2,211 3,777 Operating expenses 111,049 101,330 427,708 392,536 Operating income 34,715 29,015 141,413 158,257 Other income (expense), net 1,124 2,163 7,426 2,836 Earnings before taxes 35,839 31,178 148,839 161,093 Provision for income taxes 10,643 9,195 40,861 45,317 Net earnings $25,196 $21,983 $107,978 $115,776 Net earnings per common share—basic $0.96 $0.83 $4.07 $4.35 Net earnings per common share—diluted $0.95 $0.82 $4.05 $4.33 Weighted average common shares outstanding—basic 26,307 26,644 26,503 26,610 Weighted average common shares outstanding—diluted 26,422 26,806 26,666 26,717 Technology Business Three Months Ended March 31, Year Ended March 31, 2025 2024 Change 2025 2024 Change (in thousands) (in thousands) Net sales Product $382,371 $465,228 (17.8 %) $1,608,768 $1,883,809 (14.6 %) Professional services 60,354 40,679 48.4 % 229,030 154,549 48.2 % Managed services 44,520 38,193 16.6 % 171,347 137,528 24.6 % Total 487,245 544,100 (10.4 %) 2,009,145 2,175,886 (7.7 %) Gross profit Product 101,647 89,559 13.5 % 373,557 397,618 (6.1 %) Professional services 21,638 20,342 6.4 % 90,517 68,194 32.7 % Managed services 12,974 11,661 11.3 % 51,307 42,667 20.3 % Total 136,259 121,562 12.1 % 515,381 508,479 1.4 % Selling, general, and administrative 98,760 91,846 7.5 % 383,335 353,540 8.4 % Depreciation and amortization 7,493 5,204 44.0 % 25,753 20,951 22.9 % Interest and financing costs - - - - 1,428 (100.0 %) Operating expenses 106,253 97,050 9.5 % 409,088 375,919 8.8 % Operating income $30,006 $24,512 22.4 % $106,293 $132,560 (19.8 %) Gross billings $788,965 $834,313 (5.4 %) $3,280,447 $3,329,764 (1.5 %) Adjusted EBITDA $39,040 $32,239 21.1 % $142,843 $164,409 (13.1 %) Technology Business Gross Billings by Type Three Months Ended March 31, Year Ended March 31, 2025 2024 Change 2025 2024 Change (in thousands) (in thousands) Networking $213,621 $332,636 (35.8 %) $929,708 $1,172,274 (20.7 %) Cloud 220,967 183,008 20.7 % 865,855 824,128 5.1 % Security 177,341 145,233 22.1 % 683,597 625,392 9.3 % Collaboration 18,295 23,849 (23.3 %) 120,369 120,960 (0.5 %) Other 51,347 58,634 (12.4 %) 244,997 262,439 (6.6 %) Product gross billings 681,571 743,360 (8.3 %) 2,844,526 3,005,193 (5.3 %) Service gross billings 107,394 90,953 18.1 % 435,921 324,571 34.3 % Total gross billings $788,965 $834 313 (5.4 %) $3,280,447 $3,329,764 (1.5 %) Technology Business Net Sales by Type Three Months Ended March 31, Year Ended March 31, 2025 2024 Change 2025 2024 Change (in thousands) (in thousands) Networking $178,820 $281,919 (36.6 %) $781,703 $1,005,679 (22.3 %) Cloud 134,343 118,976 12.9 % 509,774 546,341 (6.7 %) Security 48,739 37,452 30.1 % 191,872 193,956 (1.1 %) Collaboration 8,205 12,067 (32.0 %) 55,483 65,714 (15.6 %) Other 12,264 14,814 (17.2 %) 69,936 72,119 (3.0 %) Total product 382,371 465,228 (17.8 %) 1,608,768 1,883,809 (14.6 %) Professional services 60,354 40,679 48.4 % 229,030 154,549 48.2 % Managed services 44,520 38,193 16.6 % 171,347 137,528 24.6 % Total net sales $487,245 $544,100 (10.4 %) $2,009,145 $2,175,886 (7.7 %) Technology Business Net Sales by Customer End Market Three Months Ended March 31, Year Ended March 31, 2025 2024 Change 2025 2024 Change (in thousands) (in thousands) Telecom, Media, & Entertainment $101,268 $142,333 (28.9 %) $453,892 $547,525 (17.1 %) SLED 72,176 65,198 10.7 % 333,371 329,617 1.1 % Technology 65,078 111,418 (41.6 %) 300,465 379,720 (20.9 %) Healthcare 74,289 64,711 14.8 % 286,474 278,893 2.7 % Financial Services 44,097 69,239 (36.3 %) 174,798 243,630 (28.3 %) All other 130,337 91,201 42.9 % 460,145 396,501 16.1 % Total net sales $487,245 $544,100 (10.4 %) $2,009,145 $2,175,886 (7.7 %) Financing Business Segment Three Months Ended March 31, Year Ended March 31, 2025 2024 Change 2025 2024 Change (in thousands) (in thousands) Portfolio earnings $4,738 $3,824 23.9 % $18,229 $13,937 30.8 % Transactional gains 4,594 2,681 71.4 % 28,866 19,016 51.8 % Post-contract earnings 1,132 2,944 (61.5 %) 11,295 14,301 (21.0 %) Other 405 912 (55.6 %) 1,254 2,162 (42.0 %) Net sales 10,869 10,361 4.9 % 59,644 49,416 20.7 % Gross profit 9,505 8,783 8.2 % 53,740 42,314 27.0 % Selling, general, and administrative 4,224 3,557 18.8 % 16,409 14,194 15.6 % Depreciation and amortization - - - - 74 (100.0 %) Interest and financing costs 572 723 (20.9 %) 2,211 2,349 (5.9 %) Operating expenses 4,796 4,280 12.1 % 18,620 16,617 12.1 % Operating income $4,709 $4,503 4.6 % $35,120 $25,697 36.7 % Adjusted EBITDA $4,779 $4,566 4.6 % $35,391 $26,032 36.0 % ePlus inc. AND SUBSIDIARIESRECONCILIATION OF NON-GAAP INFORMATION We included reconciliations below for the following non-GAAP financial measures: (i) Adjusted EBITDA, (ii) Adjusted EBITDA for business segments, (iii) non-GAAP Net Earnings and (iv) non-GAAP Net Earnings per Common Share - Diluted. We define Adjusted EBITDA as net earnings calculated in accordance with US GAAP, adjusted for the following: interest expense, depreciation and amortization, share-based compensation, acquisition and integration expenses, provision for income taxes, and other income (expense). Adjusted EBITDA presented for the technology business segments and the financing business segment is defined as operating income calculated in accordance with US GAAP, adjusted for interest expense, share-based compensation, acquisition and integration expenses, and depreciation and amortization. We consider the interest on notes payable from our financing business segment and depreciation expense presented within cost of sales, which includes depreciation on assets financed as operating leases, to be operating expenses. As such, they are not included in the amounts added back to net earnings in the Adjusted EBITDA calculation. Non-GAAP Net earnings and non-GAAP Net earnings per common share – diluted are based on net earnings calculated in accordance with US GAAP, adjusted to exclude other (income) expense, share based compensation, and acquisition related amortization and acquisition integration expenses, 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 such non-GAAP financial measures provide management and investors 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 you should not consider them in isolation or as substitutes for analysis of our financial results as reported under GAAP. In addition, other companies, including companies in our industry, might calculate adjusted EBITDA, non-GAAP net earnings and non-GAAP net earnings per common share or similarly titled measures differently, which may reduce their usefulness as comparative measures. Three Months Ended March 31, Year Ended March 31, 2025 2024 2025 2024 (in thousands) Consolidated GAAP: Net earnings $25,196 $21,983 $107,978 $115,776 Provision for income taxes 10,643 9,195 40,861 45,317 Share based compensation 1,611 2,586 9,996 9,731 Depreciation and amortization [1] 7,493 5,204 25,753 21,025 Acquisition related expenses - - 1,072 - Interest and financing expense - - - 1,428 Other (income) expense, net [2] (1,124) (2,163) (7,426) (2,836) Adjusted EBITDA $43,819 $36,805 $178,234 $190,441 Technology Business Segment GAAP: Operating income $30,006 $24,512 $106,293 $132,560 Share based compensation 1,541 2,523 9,725 9,470 Depreciation and amortization [1] 7,493 5,204 25,753 20,951 Acquisition related expenses - - 1,072 - Interest and financing costs - - - 1,428 Adjusted EBITDA $39,040 $32,239 $142,843 $164,409 Financing Business Segment GAAP: Operating income $4,709 $4,503 $35,120 $25,697 Share based compensation 70 63 271 261 Depreciation and amortization [1] - - - 74 Adjusted EBITDA $4,779 $4,566 $35,391 $26,032 Three Months Ended March 31, Year Ended March 31, 2025 2024 2025 2024 (in thousands) GAAP: Earnings before taxes $35,839 $31,178 $148,839 $161,093 Share based compensation 1,611 2,586 9,996 9,731 Acquisition related expenses - - 1,072 - Acquisition related amortization expense [3] 5,749 3,832 19,929 15,180 Other (income) expense, net [2] (1,124) (2,163) (7,426) (2,836) Non-GAAP: Earnings before provision for income taxes 42,075 35,433 172,410 183,168 GAAP: Provision for income taxes 10,643 9,195 40,861 45,317 Share based compensation 479 767 2,742 2,772 Acquisition related expenses - - 300 - Acquisition related amortization expense [3] 1,707 1,133 5,495 4,306 Other (income) expense, net [2] (334) (641) (1,990) (831) Tax benefit (expense) on restricted stock 14 51 527 277 Non-GAAP: Provision for income taxes 12,509 10,505 47,935 51,841 Non-GAAP: Net earnings $29,566 $24,928 $124,475 $131,327 Three Months Ended March 31, Year Ended March 31, 2025 2024 2025 2024 GAAP: Net earnings per common share – diluted $0.95 $0.82 $4.05 $4.33 Share based compensation 0.04 0.07 0.27 0.27 Acquisition related expenses - - 0.03 - Acquisition related amortization expense [3] 0.15 0.10 0.54 0.40 Other (income) expense, net [2] (0.03) (0.06) (0.20) (0.07) Tax benefit (expense) on restricted stock - - (0.02) (0.01) Total non-GAAP adjustments – net of tax 0.16 0.11 0.62 0.59 Non-GAAP: Net earnings per common share – diluted $1.11 $0.93 $4.67 $4.92 [1] Amount consists of depreciation and amortization for assets used internally. [2] Interest income and foreign currency transaction gains and losses. [3] Amount consists of amortization of intangible assets from acquired businesses. SOURCE EPLUS INC. WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

ePlus Reports Fourth Quarter and Fiscal Year 2025 Financial Results

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