ePlus Inc. Shows Mixed Financial Performance Amid Strategic Shift

Eplus Inc ( (PLUS) ) has released its Q2 earnings. Here is a breakdown of the information Eplus Inc presented to its investors.

ePlus Inc., a leader in technology and financing solutions, operates primarily in the IT sector, offering a comprehensive range of services, including AI, security, cloud solutions, and managed services across various industries. In its second quarter of fiscal year 2025, ePlus Inc. reported a mixed financial performance with a decline in net sales by 12.3% to $515.2 million, while service revenues saw a significant increase of 46% to $103.7 million, highlighting a strategic shift towards services and subscription-based models. Despite a decrease in technology business net sales by 13.8%, the company’s consolidated gross profit improved by 2.5% to $148 million, and gross margin rose to 28.7%. However, net earnings dropped by 4.1% to $31.3 million. The acquisition of Bailiwick Services, LLC, contributed to increased service revenues and professional service margins, supporting the company’s strategic focus on expanding its services portfolio. The financing business segment also showed robust growth, with net sales increasing by 39.7% and gross profit up by 52%. Looking ahead, ePlus Inc. remains optimistic about its growth prospects, with plans to capitalize on high-growth areas such as AI and security, despite global economic uncertainties affecting enterprise demand. The company maintains a strong balance sheet, positioning it well for future acquisitions and investments to enhance shareholder value.