ePlus inc. Earnings Call Transcripts
Fiscal Year 2026
-
Delivered record fiscal 2026 results with double-digit growth in revenue, operating metrics, and gross billings, driven by strong demand in AI, cloud, and security. Guidance for fiscal 2027 is conservative due to memory chip shortages and geopolitical risks.
-
Q3 and year-to-date results showed robust double-digit growth in sales, earnings, and margins, driven by strong demand in AI, cloud, networking, and security. Full-year guidance was raised, though management remains cautious about memory chip shortages impacting future deployments.
-
Record quarterly gross billings surpassed $1 billion, with net sales up 23.4% and adjusted EBITDA up 61.6% year-over-year. Security, networking, and cloud segments drove growth, and guidance for fiscal 2026 was raised to mid-teens for net sales and gross profit.
-
Double-digit growth in net sales, gross profit, and adjusted EBITDA was achieved, driven by strong demand in AI, security, and cloud. The sale of the financing business and new capital return initiatives position the company for long-term growth and flexibility.
Fiscal Year 2025
-
Divestiture of the finance segment has enabled a sharper focus on technology, increased financial flexibility, and new shareholder returns. Services and managed offerings are driving margin expansion, with AI and security as key growth areas. Guidance calls for upper single-digit sales and gross profit growth, and mid-teens adjusted EBITDA for fiscal 2025.
-
Gross profit and margins expanded in fiscal 2025 despite lower net sales, driven by rapid growth in services and strategic investments in AI, cloud, and security. Fiscal 2026 guidance anticipates low single-digit net sales growth and mid-single-digit profit gains.
-
Q3 saw flat revenue but strong growth in services and gross profit, with a 52% year-over-year increase in services revenue and a 5.3% rise in gross profit. Fiscal 2025 guidance was lowered due to higher gross-to-net adjustments and ongoing product demand softness.
-
Q2 FY25 saw a 12.3% sales decline but gross profit rose 2.5% as services and margins expanded. Bailiwick acquisition and managed services growth offset weaker product sales. FY25 guidance calls for stable sales and $195–$205M Adjusted EBITDA, with tighter margins expected.
-
Fiscal Q1 2025 saw a 5.2% net sales decline year-over-year due to tough comparisons, but service revenues grew 15.8% and managed services bookings surged 70%. Guidance for 3%-6% net sales growth and $200-$215 million adjusted EBITDA is reiterated, with growth expected in the year's second half.
Fiscal Year 2024
-
The company continues to grow through a services-led strategy, with strong managed services and financial performance. AI and cloud remain key focus areas, supported by robust cash reserves and an active M&A pipeline. Guidance projects steady revenue and EBITDA growth.