ePlus inc. (NASDAQ: PLUS) Q4 2025 Earnings Call | 05/23/2025

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ePlus inc. (NASDAQ: PLUS) reported its Q4 2025 results on May 23, 2025, showcasing double-digit growth in key profitability metrics despite a decline in net sales. For the quarter ended March 31, 2025, net sales decreased 10.2% year-over-year to $498.1 million, primarily due to lower product sales as the company strategically shifted focus toward higher-margin services and subscription-based offerings. However, consolidated gross profit rose 11.8% to $145.8 million, and gross margin expanded sharply to 29.3% from 23.5% a year ago, reflecting the success of this services-led approach. Service revenues soared 33% to $104.9 million, with professional services revenue up 48.4% and managed services revenue up 17%, driven by organic growth and the acquisition of Bailiwick Services, LLC. Net earnings for the quarter increased 14.6% to $25.2 million, with diluted earnings per share (EPS) rising 15.9% to $0.95 and non-GAAP diluted EPS up 19.4% to $1.11, surpassing analyst expectations. Adjusted EBITDA grew 19.1% to $43.8 million, underscoring improved operational efficiency and profitability. For the full fiscal year 2025, net sales declined 7.0% to $2.07 billion, but consolidated gross profit increased 3.3% to $569.1 million, and gross margin improved to 27.5% from 24.8% in fiscal 2024. Annual net earnings were $108.0 million, with diluted EPS of $4.05. ePlus ended the year with a robust cash position of $389.4 million, up from $253 million the previous year, and generated $302.1 million in operating cash flow. The company’s workforce grew to 2,199 employees, reflecting ongoing investment in talent to support growth in AI, cybersecurity, cloud, and managed services. Management emphasized the company’s ability to deliver long-term visibility and profitability through its transition to recurring revenue models and its expansion into diverse end markets. Outlook: Management expects continued growth in services and managed offerings, with a focus on expanding recurring revenue and profitability. Fiscal 2026 guidance suggests low single-digit sales growth, with ongoing investments in AI, cloud, and cybersecurity solutions to drive future performance. ePlus remains committed to organic growth and strategic acquisitions to strengthen its competitive position. About Inside Ticker: For more expert analysis and real-time updates on ePlus inc. (NASDAQ: PLUS) and other market movers, follow Inside Ticker and visit InsideTicker.com for in-depth reports, financial insights, and the latest news on leading companies. #ePlus #PLUS #EarningsCall #Q42025 #TechServices #Cloud #Cybersecurity #ManagedServices #FinancialResults #StockMarket #InsideTicker