ePlus Inc. Reports Impressive Financial Growth
In a recent announcement, ePlus Inc. (NASDAQ: PLUS) revealed its financial results for the third quarter of fiscal year 2026, marking a pivotal moment in the company’s performance trajectory. With a remarkable increase in net sales and adjusted earnings, ePlus has set a positive outlook for its stakeholders and investors.
Strong Financial Metrics in Q3 of Fiscal Year 2026
Key Performance Indicators
During the third quarter, ePlus achieved a consolidated net sales increase of 24.6%, amounting to $614.8 million. This growth is driven by a combination of robust product demand across various segments while service revenue faced a slight decline of 0.7% to $112.8 million. This trend underlined a significant growth in gross billings, which increased by 15.6% to $982.1 million.
The company also reported that gross profit surged by 26.8% to reach $158.7 million, indicating a slight increase in margin as it rose to 25.8% compared to 25.4% during the same quarter last year. Furthermore, net earnings from continuing operations doubled, showing a staggering increase of 129.3%, which brought the total to $33.4 million.
Adjusted EBITDA Performance
The adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) also saw significant growth, rising 97.4% to $53.4 million. Moreover, earnings per diluted share from continuing operations showcased a similar upward trajectory, increasing by 130.9% to $1.27.
Year-to-Date Performance Overview
First Nine Months of Fiscal Year 2026
As for the first nine months of fiscal year 2026, ePlus reported a robust net sales increase of 22.2%, totaling $1,860.9 million. This growth was complemented by a 19.4% increase in service revenues, which reached $352.9 million. Gross billings improved by 18.7%, amounting to $2,957.5 million. The company’s gross margin for this period was recorded at 25.2%, compared to 24.9% in the previous year.
Continuing operations also showed a dramatic boost, with net earnings rising by 68.5% to $98.7 million and a significant increase of 55% in adjusted EBITDA, which reached $158.8 million. The diluted earnings per share increased to $3.74, compared to $2.19 the prior year.
Management's Insights and Future Outlook
Mark Marron, the CEO of ePlus, emphasized the consistent demand from AI-driven solutions as a key factor fueling revenue growth. He noted that larger enterprise clients have contributed significantly as they modernize their infrastructure to better support AI initiatives. The mid-market segment has also witnessed a strong demand for ePlus’s evolving product and service solutions.
The company has responded to this momentum by raising its fiscal year 2026 guidance for net sales, gross profit, and adjusted EBITDA. It now expects net sales growth in the range of 20% to 22% year-over-year, which is an upgrade from their previous mid-teens estimates.
Recent Developments and Corporate Milestones
Quarterly Dividend Announcement
In addition to its strong financial results, ePlus also declared a quarterly cash dividend of $0.25 per common share, scheduled for payment. This declaration underlines the company's commitment to providing shareholder value.
Acknowledgments and Expansions
In an exciting development, ePlus has enhanced its leadership team by appointing Mike Portegello to its Board of Directors. Additionally, the company’s technology subsidiary, Bailiwick, received recognition at the National Retail Federation Innovators Showcase for its advanced digital lock technology. Furthermore, Dori White, Vice President of ePlus, was honored as a top marketing executive in the 2025 Women of the Year Awards by CRN.
Frequently Asked Questions
What were ePlus Inc.'s net sales growth percentage for Q3 2026?
ePlus reported a net sales growth of 24.6% for the third quarter of fiscal year 2026.
The company raised its fiscal year 2026 guidance. What is expected range for net sales growth?
ePlus expects net sales growth to be in the range of 20% to 22% year-over-year.
What is the amount of the quarterly dividend declared by ePlus?
ePlus announced a quarterly cash dividend of $0.25 per common share.
Who was appointed to the Board of Directors of ePlus recently?
Mike Portegello has been appointed to ePlus's Board of Directors.
What honor did ePlus Vice President Dori White receive?
Dori White was recognized as a Solution Provider Marketing Executive of the Year in CRN's 2025 Women of the Year Awards.
