ePlus Inc. Reports Strong Margin Growth Amid Sales Decline

Eplus Inc ( (PLUS) ) has released its Q4 earnings. Here is a breakdown of the information Eplus Inc presented to its investors.

ePlus Inc. is a leading provider of technology and financing solutions, specializing in transformative technology services across sectors such as AI, cybersecurity, and cloud computing. The company recently announced its financial results for the fourth quarter and fiscal year 2025, highlighting significant improvements in gross profit and gross margin despite a decline in net sales. During the fourth quarter, ePlus Inc. reported a 10.2% decrease in net sales to $498.1 million, while service revenues increased by 33.0% to $104.9 million. The company achieved a consolidated gross profit increase of 11.8% to $145.8 million, with a gross margin of 29.3%. Net earnings rose by 14.6% to $25.2 million, and diluted earnings per share grew by 15.9% to $0.95. For the fiscal year 2025, ePlus Inc. experienced a 7.0% decrease in net sales to $2,068.8 million, with a notable 37.1% increase in service revenues. Despite a decrease in net earnings by 6.7% to $108.0 million, the company saw a rise in its gross margin to 27.5%. The acquisition of Bailiwick Services, LLC contributed to the growth in professional service revenues. Looking ahead, ePlus Inc. remains optimistic about its growth prospects, focusing on expanding its service and product offerings in fast-growing areas such as AI, cloud, and security. The company aims to maintain profitability and enhance shareholder value amid evolving industry trends and economic uncertainties.