In the news release, ePlus Reports Third Quarter and First Nine Months Financial Results of Fiscal Year 2026, issued 04-Feb-2026 by EPLUS INC. over PR Newswire, we are advised by the company that the Audio Webcast link has been updated. The complete, corrected release follows:
ePlus Reports Third Quarter and First Nine Months Financial Results of Fiscal Year 2026
Double Digit Growth Year Over Year Across Key Metrics
Including Net Sales, Gross Profit and Earnings Per Share
Raises Fiscal 2026 Guidance
and Announces Common Stock Quarterly Dividend of $0.25 Per Share
Third Quarter of Fiscal Year 2026
-- Consolidated net sales increased 24.6% to $614.8 million; services
revenues decreased 0.7% to $112.8 million.
-- Gross billings increased 15.6% to $982.1 million.
-- Consolidated gross profit increased 26.8% to $158.7 million.
-- Consolidated gross margin was 25.8%, compared to 25.4% for last fiscal
year's third quarter.
-- Net earnings from continuing operations increased 129.3% to $33.4
million.
-- Adjusted EBITDA increased 97.4% to $53.4 million.
-- Net earnings from continuing operations per common share- diluted
increased 130.9% to $1.27. Non-GAAP: net earnings from continuing
operations per common share - diluted increased 104.2% to $1.45.
First Nine Months of Fiscal Year 2026
-- Consolidated net sales increased 22.2% to $1,860.9 million; services
revenues increased 19.4% to $352.9 million.
-- Gross billings increased 18.7% to $2,957.5 million.
-- Consolidated gross profit increased 23.7% to $469.0 million.
-- Consolidated gross margin was 25.2%, compared with 24.9% for last fiscal
year's first nine months.
-- Net earnings from continuing operations increased 68.5% to $98.7 million.
-- Adjusted EBITDA increased 55.0% to $158.8 million.
-- Net earnings from continuing operations per common share - diluted
increased 70.8% to $3.74. Non-GAAP: Net earnings per common share -
diluted increased 59.0% to $4.23.
HERNDON, Va., Feb. 4, 2026 /PRNewswire/ -- ePlus inc. $(PLUS)$, a leading provider of technology solutions, today announced financial results for the three months and nine months ended December 31, 2025, or the third quarter of its 2026 fiscal year.
Management Comment
"We continued to experience strong momentum in our third fiscal quarter as we achieved robust growth, with net sales increasing 24.6% and net earnings from continuing operations more than doubling year over year," said Mark Marron, president and CEO of ePlus. "The scalability of our operating platform has provided operating leverage which is reflected in our growth in gross profit, operating income, adjusted EBITDA and earnings per share."
"Our solid revenue growth reflects, in part, demand for AI that is fueling spend across all of our solution sets including cloud, compute, storage and networking. We continued to see strong revenue growth from our largest enterprise customers, who are modernizing their infrastructure to support their AI initiatives. We also saw strong demand from our mid-market customer base where we have continued to evolve and expand our product and services solutions to meet our customers' needs in today's market," Mr. Marron concluded.
Third Quarter Fiscal Year 2026 Results
On June 30, 2025, we completed the sale of our domestic financing business. Consequently, alongside the results of our continuing operations, we are retrospectively presenting the results of our domestic financing business as discontinued operations, for all prior periods.
For the third quarter ended December 31, 2025, as compared to the third quarter ended December 31, 2024:
Consolidated net sales increased 24.6% to $614.8 million, from $493.2 million due to higher product sales, offset by lower service revenue. Gross billings increased 15.6% to $982.1 million from $849.5 million.
Product segment sales increased 32.2% to $501.8 million from $379.5 million due to increases in revenue from networking, cloud, security, and collaboration products. Product segment margin was 23.8%, up from 22.1% last year due to a shift in product mix offset by a decrease in the proportion of sales recorded on a net basis.
Professional services segment revenues decreased 7.8% year over year to $64.1 million from $69.5 million, primarily due to project delays by certain retail and consumer customers, offset by increases in consulting revenue. Gross margin decreased to 39.2% from 40.1% during the same period last year due to a shift in the mix of services provided.
Managed services segment revenue increased 10.5% to $48.8 million primarily due to additional revenue from cloud services. Gross profit from our managed services segment increased 7.5% from last year due to the increase in revenue, offset by a decline in gross margin to 29.0% from 29.8% in the prior year quarter.
Consolidated gross profit increased 26.8% to $158.7 million, from $125.1 million. Consolidated gross margin was 25.8%, compared with 25.4% in the prior year quarter.
Consolidated operating expenses were $115.2 million, up 6.1% from $108.6 million last year, primarily due to an increase in variable compensation commensurate with the increase in gross profit.
Consolidated operating income increased 163.9% to $43.5 million. Other income was $2.1 million compared to $3.4 million last year. Earnings from continuing operations before taxes increased 128.9% to $45.6 million.
Our effective tax rate for the current quarter was 26.7%, which was lower than the prior year quarter of 26.9%.
Net earnings from continuing operations increased 129.3% to $33.4 million from $14.6 million in the prior year quarter. Adjusted EBITDA increased 97.4% to $53.4 million from $27.0 million in the prior year quarter. Net earnings from continuing operations per common share-diluted was $1.27, compared with $0.55 in the prior year quarter. Non-GAAP net earnings per common share from continuing operations was $1.45, compared with $0.71 in the prior year quarter.
Net earnings from discontinued operations, for the three months ending December 31, 2025, was $1.7 million primarily due to the settlement of a legal matter, as compared to $9.6 million for the same three-month period in the prior year. Net earnings from discontinued operations per common share-diluted was $0.06, compared with $0.36 in the prior year quarter.
First Nine Months of Fiscal Year 2026 Results
For the nine months ended December 31, 2025, as compared to the nine months ended December 31, 2024:
Consolidated net sales increased 22.2% to $1,860.9 million, from $1,522.2 million due to higher product sales and higher services revenue. Gross billings increased 18.7% to $2,957.5 million from $2,491.5 million.
Product segment sales increased 22.9% to $1,507.7 million from $1,226.4 million due to increases in revenue from cloud, networking, and security products, offset by a decline in collaboration products. Product segment margin was 22.9%, up from 22.2% last year due to a shift in product mix.
Professional services segment revenues increased 25.8% year over year to $212.1 million from $168.7 million, primarily due to the acquisition of Bailiwick Services, LLC, on August 19, 2024. Professional services gross margin declined to 38.9% from 40.8% during the same period last year due to the addition of Bailiwick Services, LLC, which has services margins that are generally lower than our legacy professional services.
Managed services segment revenue increased 11.0% to $140.8 million, primarily due to additional sales of enhanced maintenance support and cloud services. Gross profit from the managed services segment increased 8.6% from last year due to the increase in revenue, offset by a decline in gross margin to 29.6% from 30.2% in the prior year nine-month period.
Consolidated gross profit increased 23.7% to $469.0 million, from $379.3 million. Consolidated gross margin was 25.2%, compared with last year's 24.9%.
Consolidated operating expenses were $340.5 million, up 11.9% from $304.3 million last year, primarily due to increases in variable compensation commensurate with the increase in our gross profit, as well as additional salaries and benefits and general and administrative costs.
Consolidated operating income increased 71.5% to $128.5 million. Other income was $7.9 million compared to $5.5 million last year, due to increased interest income. Earnings from continuing operations before taxes increased 69.7% to $136.4 million.
Our effective tax rate for the nine months ended December 31, 2025, was 27.6%, higher than the same nine-month period in the prior year of 27.2%.
Net earnings from continuing operations increased 68.5% to $98.7 million from $58.6 million in the prior year. Adjusted EBITDA increased 55.0% to $158.8 million from $102.4 million in the prior year nine-month period. Net earnings from continuing operations per common share-diluted was $3.74, compared with $2.19 in the prior year. Non-GAAP net earnings from continuing operations per common share-diluted was $4.23, compared with $2.66 in the prior year.
Net earnings from discontinued operations, for the nine months ended December 31, 2025, were $8.9 million, a decrease of $15.3 million, as compared to $24.2 million for the same nine-month period in the prior year. The decrease was due to the sale of our domestic financing business on June 30, 2025. Net earnings from discontinued operations per common share-diluted was $0.34, compared with $0.91 in the prior year nine-month period.
Balance Sheet Highlights
As of December 31, 2025, cash and cash equivalents were $326.3 million, down from $389.4 million as of March 31, 2025. Inventory increased 100.1% to $241.0 million as of December 31, 2025 compared with $120.4 million as of March 31, 2025 due to an increase in projects in process. Accounts receivable--trade, net increased 35.0% to $698.0 million as of December 31, 2025 from $516.9 million as of March 31, 2025. Total stockholders' equity was $1,063.3 million as of December 31, 2025, compared with $977.6 million as of March 31, 2025. Total shares outstanding were 26.4 million and 26.5 million on December 31, 2025 and March 31, 2025, respectively.
Fiscal Year Guidance
Based on our strong performance year to date and the momentum we see ahead, the Company is raising its fiscal year 2026 guidance for net sales, gross profit, and Adjusted EBITDA. Net sales is now expected to increase 20% to 22% year-over-year, an increase from the prior guidance of mid-teens. This increase is against Fiscal Year 2025's $2.01B from continuing operations. Gross profit is expected to grow at a rate of 19% to 21% now, as compared to the prior guidance of mid-teens from fiscal year 2025's $515.5 million from continuing operations. We now expect Adjusted EBITDA to increase 41% to 43% over our Fiscal Year 2025 Adjusted EBITDA of $141M from continuing operations. This is an increase from our prior guidance that was twice the pace of net sales when net sales was expected to be in the mid-teens.
This guidance does not factor in recessionary conditions or other unexpected developments. ePlus cannot predict with reasonable certainty and without unreasonable effort, the ultimate outcome of unusual gains and losses, the occurrence of matters creating GAAP tax impacts, fluctuations in interest expense or interest income and share-based compensation, and acquisition-related expenses. These items are uncertain, depend on various factors, and could be material to ePlus' results computed in accordance with GAAP. Accordingly, ePlus is unable to provide a reconciliation of GAAP net earnings to adjusted EBITDA for the full fiscal year 2026 forecast.
Summary and Outlook
"As a result of our strong third quarter and nine-month results, we are raising our fiscal year 2026 guidance.
"Our teams remain committed to executing on our long-term strategy centered on expanding services and value-added solutions, delivering consistent growth, maintaining strong financial discipline and returning capital to shareholders in the form of dividends and share repurchases. We will continue to take a disciplined approach to capital deployment, prioritizing investments in our core business, strengthening our capabilities, and focusing on areas where we can achieve sustainable competitive advantages, all while preserving a healthy balance sheet. We are executing from a position of strength, delivering solid near-term performance while investing strategically for the future. All of this positions us well to deliver sustainable growth over the long term and lasting value for our shareholders," concluded Mr. Marron.
ePlus Announces Quarterly Dividend
ePlus announced today that its Board of Directors has declared a quarterly cash dividend of $0.25 per common share which will be paid on March 18, 2026, to shareholders of record as of the close of business on February 24, 2026.
Recent Corporate Developments/Recognitions
In the third quarter of its 2026 fiscal year:
-- ePlus appointed Mike Portegello to its Board of Directors
-- ePlus Technology subsidiary Bailiwick was selected for the prestigious
National Retail Federation Innovators Showcase for digital lock
technology
-- ePlus Vice President, Dori White, was named Solution Provider Marketing
Executive of the Year in CRN's 2025 Women of the Year Awards
Conference Call Information
ePlus will hold a conference call and webcast at 4:30 p.m. ET on February 4,
2026:
Date: February 4, 2026
Time: 4:30 p.m. ET
Audio Webcast (Live & Replay): https://events.q4inc.com/attendee/464506706
Live Call: (888) 596-4144 (toll-free/domestic)
(646) 968-2525 (international)
Archived Call: (800) 770-2030 (toll-free/domestic)
(609) 800-9909 (international)
Conference ID: 5394845# (live call and replay)
A replay of the call will be available approximately two hours after the call
through February 11, 2026.
About ePlus inc.
ePlus is a customer-first, services-led, and results-driven industry leader offering transformative technology solutions and services to provide the best customer outcomes. Offering a full portfolio of solutions, including artificial intelligence, security, cloud and data center, networking, and collaboration, as well as managed, consultative and professional services, ePlus works closely with organizations across many industries to successfully navigate business challenges. With a long list of industry-leading partners and approximately 2,160 employees, our expertise has been honed over more than three decades, giving us specialized yet broad levels of experience and knowledge. ePlus is headquartered in Virginia, with locations in the United States, United Kingdom, Europe, and Asia--Pacific. For more information, visit www.eplus.com, call 888-482-1122, or email info@eplus.com. Connect with ePlus on LinkedIn, X, Facebook, and Instagram.
ePlus, Where Technology Means More$(R)$.
ePlus(R) and ePlus products referenced herein are either registered trademarks or trademarks of ePlus inc. in the United States and/or other countries.
Forward-looking statements
Statements in this press release that are not historical facts may be deemed to be "forward-looking statements," including, among other things, statements regarding the future financial performance of ePlus. Actual and anticipated future results may vary materially due to certain risks and uncertainties, including, without limitation, financial losses resulting from national and international political instability fostering uncertainty and volatility in the global economy including changes in interest rates, tariffs, inflation, export requirements applicable to products we sell, sanctions and exposure to foreign currency rate changes; supply chain issues, including a shortage of IT component parts and products, and our vendors' rapid and unpredictable price fluctuations relating thereto, or a customer's or vendor's cancellation of orders such as for, but not limited to, memory chips, which may increase our and the customer's costs, decrease gross profit, cause a delay in fulfilling or inability to fulfill customer orders, increase our need for working capital, delay completing professional services, or purchase IT products or services needed to support our internal infrastructure or operations, resulting in an adverse impact on our financial results; significant adverse changes in our relationship with one or more of our larger customer accounts or vendors, including decreased account profitability, reductions in contracted services, or a loss of such relationships; increases to our costs including wages and our ability to increase our prices to our customers as a result, or we experience negative financial impacts due to the pricing arrangements we have with our customers; a material decrease in the credit quality of our customer base, or a material increase in our credit losses; reliance on third parties to perform some of our service obligations to our customers, and the reliance on a small number of key vendors in our supply chain with whom we do not have long-term supply agreements, guaranteed price agreements, or assurance of stock availability; the possibility of a reduction of vendor incentives provided to us; our inability to identify merger and acquisition candidates, perform sufficient due diligence prior to completing mergers and acquisitions, successfully integrate a completed merger and/or acquisition, successfully complete merger and acquisition transactions, including on favorable terms, or identify an opportunity for or successfully completing a business disposition; our ability to remain secure during a cybersecurity attack or other information technology ("IT") outage, including disruptions in our, our vendors or a third party's IT systems and data and audio communication networks; our ability to secure our own and our customers' electronic and other confidential information, while maintaining compliance with evolving data privacy and cybersecurity laws and regulations and appropriately providing required notice and disclosure of cybersecurity incidents when and if necessary; our dependence on key personnel to maintain certain customer relationships, and our ability to hire, train, and retain sufficient qualified personnel by recruiting and retaining highly skilled, competent personnel with needed vendor certifications; risks relating to artificial intelligence ("AI"), including the use or capabilities of AI and emerging laws, rules and regulations related to AI; our ability to manage a diverse product set of solutions, including AI products and services, in highly competitive markets with a number of key vendors; changes in the IT industry and/or rapid changes in product offerings, including the proliferation of the cloud, infrastructure as a service ("IaaS"), software as a service ("SaaS"), platform as a service ("PaaS"), and AI which may affect our financial results; ongoing remote work trends, and the increase in cybersecurity attacks that have occurred while employees work remotely and our ability to adequately train our personnel to prevent a cyber event; our ability to raise capital, maintain or increase, as needed, our lines of credit with vendors or our floor plan facility, or the effect of those matters on our common stock price; our ability to predictably meet expectations of the investor and
analyst community, including relative to our financial performance guidance that we provide; our ability to implement comprehensive plans for the integration of sales forces, cost containment, asset rationalization, systems integration, and other key strategies following mergers and acquisitions; and other risks or uncertainties detailed in our reports filed with the Securities and Exchange Commission.
The declaration and payment of future dividends are subject to the sole discretion of our Board of Directors.
All information set forth in this press release is current as of the date of this release and ePlus undertakes no duty or obligation to update this information either as a result of new information, future events or otherwise, except as required by applicable U.S. securities law.
ePlus inc. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED BALANCE
SHEETS
(in thousands, except per share
amounts)
December 31, 2025 March 31, 2025
----------------- --------------
ASSETS
Current assets:
Cash and cash equivalents $ 326,291 $ $389,375
Accounts receivable--trade, net 697,989 516,925
Accounts receivable--other, net 43,521 19,382
Inventories 240,979 120,440
Deferred costs 76,533 66,769
Other current assets 68,902 28,500
Current assets of discontinued
operations - 222,399
----------------- --------------
Total current assets 1,454,215 1,363,790
Deferred tax asset 9,048 3,658
Property, equipment and other
assets--net 99,381 98,657
Goodwill 202,927 202,858
Other intangible assets--net 66,113 82,007
Non-current assets of discontinued
operations - 133,835
----------------- --------------
TOTAL ASSETS $ 1,831,684 $ $1,884,805
================= ==============
LIABILITIES AND STOCKHOLDERS'
EQUITY
LIABILITIES
Current liabilities:
Accounts payable $ 291,378 $ $324,580
Accounts payable--floor plan 133,150 89,527
Salaries and commissions payable 53,405 42,219
Deferred revenue 168,282 152,631
Other current liabilities 35,875 22,463
Current liabilities of
discontinued operations - 166,463
----------------- --------------
Total current liabilities 682,090 797,883
Deferred tax liability--long-term - 1,454
Deferred revenue--long-term 74,721 81,759
Other liabilities 11,575 13,540
Non-current liabilities of
discontinued operations - 12,546
-----------------
TOTAL LIABILITIES 768,386 907,182
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Preferred stock, $0.01 per share
par value; 2,000 shares authorized;
none outstanding - -
Common stock, $0.01 per share par
value; 50,000 shares authorized;
26,391 outstanding at December
31, 2025 and 26,526 outstanding at
March 31, 2025 278 276
Additional paid-in capital 207,285 193,698
Treasury stock, at cost, 1,376
shares at December 31, 2025 and
1,056 shares at March 31, 2025 (95,063) (70,748)
Retained earnings 945,305 850,956
Accumulated other comprehensive
income--foreign currency
translation adjustment 5,493 3,441
Total Stockholders' Equity 1,063,298 977,623
----------------- --------------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $ 1,831,684 $ $1,884,805
================= ==============
ePlus inc. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
Three Months Ended Nine Months Ended
December 31, December 31,
------------------ ----------------------
2025 2024 2025 2024
-------- -------- ---------- ----------
Net sales
Product $501,931 $379,574 $1,508,002 $1,226,742
Services 112,843 113,647 352,913 295,503
------- ------- --------- ---------
Total 614,774 493,221 1,860,915 1,522,245
Cost of sales
Product 382,549 295,497 1,163,092 954,700
Services 73,571 72,646 228,829 188,291
------- ------- --------- ---------
Total 456,120 368,143 1,391,921 1,142,991
Gross profit 158,654 125,078 468,994 379,254
Selling, general,
and administrative 108,695 100,932 320,121 286,069
Depreciation and
amortization 6,493 7,676 20,372 18,260
Operating expenses 115,188 108,608 340,493 304,329
Operating income 43,466 16,470 128,501 74,925
Other income, net 2,123 3,447 7,898 5,474
------- ------- --------- ---------
Earnings from
continuing
operations before
tax 45,589 19,917 136,399 80,399
Provision for income
taxes 12,189 5,351 37,711 21,841
------- ------- --------- ---------
Net earnings from
continuing
operations 33,400 14,566 98,688 58,558
Earnings from
discontinued
operations, net of
tax (Note 4) 1,652 9,567 8,916 24,224
Net earnings $ 35,052 $ 24,133 $ 107,604 $ 82,782
======= ======= ========= =========
Earnings per common
share--basic
Continuing
operations $ 1.28 $ 0.55 $ 3.76 $ 2.20
Discontinued
operations 0.06 0.36 0.34 0.92
------- ------- --------- ---------
Earnings per common
share--basic $ 1.34 $ 0.91 $ 4.10 $ 3.12
======= ======= ========= =========
Earnings per common
share--diluted
Continuing
operations $ 1.27 $ 0.55 $ 3.74 $ 2.19
Discontinued
operations 0.06 0.36 0.34 0.91
------- ------- --------- ---------
Earnings per common
share--diluted $ 1.33 $ 0.91 $ 4.08 $ 3.10
======= ======= ========= =========
Weighted average
common shares
outstanding--basic 26,174 26,495 26,269 26,568
Weighted average
common shares
outstanding--diluted 26,288 26,620 26,388 26,727
Segment results
-------------------------------------------------------------------------------------
Three Months Ended Nine Months Ended
December 31, December 31,
------------------ -----------------------
2025 2024 Change 2025 2024 Change
-------- -------- -------- ---------- ----------- --------
Net sales
Product segment $501,827 $379,472 32.2 % $1,507,736 $$1,226,397 22.9 %
Professional
services
segment 64,065 69,497 (7.8 %) 212,138 168,676 25.8 %
Managed services
segment 48,778 44,150 10.5 % 140,775 126,827 11.0 %
Other 104 102 2.0 % 266 345 (22.9 %)
Total $614,774 $493,221 24.6 % $1,860,915 $ 1,522,245 22.2 %
======= ======= ========= ==========
Gross profit
Product segment $119,321 $ 84,046 42.0 % $ 344,816 $ 271,910 26.8 %
Professional
services
segment 25,121 27,841 (9.8 %) 82,446 68,879 19.7 %
Managed services
segment 14,151 13,160 7.5 % 41,638 38,333 8.6 %
Other 61 31 96.8 % 94 132 (28.8 %)
Total $158,654 $125,078 26.8 % $ 468,994 $ 379,254 23.7 %
======= ======= ========= ==========
Gross Billings by
Type
--------------------
Networking $300,075 $214,762 39.7 % $ 883,996 $ 716,087 23.4 %
Cloud 257,848 207,762 24.1 % 772,693 644,888 19.8 %
Security 221,971 190,808 16.3 % 667,174 506,256 31.8 %
Collaboration 22,606 22,381 1.0 % 86,669 102,074 (15.1 %)
Other 72,358 76,513 (5.4 %) 200,721 193,650 3.7 %
Product segment 874,858 712,226 22.8 % 2,611,253 2,162,955 20.7 %
Services 107,223 137,320 (21.9 %) 346,248 328,527 5.4 %
Total $982,081 $849,546 15.6 % $2,957,501 $ 2,491,482 18.7 %
======= ======= ========= ==========
Net Sales by Type
--------------------
Product segment
Networking $230,886 $181,367 27.3 % $ 707,244 $ 602,883 17.3 %
Cloud 175,352 116,864 50.0 % 510,618 375,431 36.0 %
Security 61,055 53,919 13.2 % 188,051 143,133 31.4 %
Collaboration 13,418 8,391 59.9 % 41,733 47,278 (11.7 %)
Other 21,116 18,931 11.5 % 60,090 57,672 4.2 %
------- ------- --------- ----------
Total products
segment 501,827 379,472 32.2 % 1,507,736 1,226,397 22.9 %
Professional
services segment 64,065 69,497 (7.8 %) 212,138 168,676 25.8 %
Managed services
segment 48,778 44,150 10.5 % 140,775 126,827 11.0 %
Other 104 102 2.0 % 266 345 (22.9 %)
Total net sales $614,774 $493,221 24.6 % $1,860,915 $ 1,522,245 22.2 %
======= ======= ========= ==========
Net Sales by
Customer End Market
--------------------
Telecom, media &
entertainment $176,405 $126,201 39.8 % $ 538,156 $ 352,624 52.6 %
Technology 89,368 71,293 25.4 % 241,664 235,387 2.7 %
Healthcare 81,460 58,670 38.8 % 238,036 212,185 12.2 %
Financial services 66,104 46,217 43.0 % 176,683 130,701 35.2 %
SLED 59,946 71,412 (16.1 %) 237,754 261,195 (9.0 %)
Retail 34,394 33,785 1.8 % 106,427 67,754 57.1 %
All other 107,097 85,643 25.1 % 322,195 262,399 22.8 %
Total net sales $614,774 $493,221 24.6 % $1,860,915 $ 1,522,245 22.2 %
======= ======= ========= ==========
ePlus inc. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP INFORMATION
We included reconciliations below for the following non-GAAP financial measures: (i) Adjusted EBITDA, (ii) Non-GAAP: Net earnings from continuing operations and (iii) Non-GAAP Net earnings from continuing operations per common share - diluted.
We define Adjusted EBITDA as net earnings from continuing operations calculated in accordance with US GAAP, adjusted for the following: interest expense, depreciation and amortization, share-based compensation, acquisition related and integration expenses, provision for income taxes, and other income (expense).
Non-GAAP: Net earnings from continuing operations and Non-GAAP Net earnings from continuing operations per common share -- diluted are based on net earnings from continuing operations calculated in accordance with US GAAP, adjusted to exclude other (income) expense, share-based compensation, and acquisition related amortization and integration expenses, and the related tax effects.
We use the above non-GAAP financial measures as supplemental measures of our performance to gain insight into our operating performance and performance trends. We believe that these financial measures provide management and investors with a useful measure for period-to-period comparisons of our business and operating results by excluding items that management believes are not reflective of our underlying operating performance. Accordingly, we believe that such non-GAAP financial measures provide useful information to investors and others in understanding and evaluating our operating results.
Our use of non-GAAP information as analytical tools has limitations, and should not be considered in isolation or as substitutes for analysis of our financial results as reported under US GAAP. In addition, other companies, including companies in our industry, might calculate Adjusted EBITDA, Non-GAAP: Net earnings from continuing operations and Non-GAAP: Net earnings from continuing operations per common share-diluted, or similarly titled measures differently, which may reduce their usefulness as comparative measures.
The amounts in the tables below are results from our continuing operations (in thousands):
(i) Reconciliation of Adjusted EBITDA
Three Months Ended Nine Months Ended
December 31, December 31,
---------------------- ---------------------
2025 2024 2025 2024
----------- --------
GAAP: Net earnings
from continuing
operations $ 33,400 $14,566 $ 98,688 $58,558
Provision for income
taxes 12,189 5,351 37,711 21,841
Share-based
compensation 3,424 2,863 9,922 8,184
Acquisition related
expenses - 29 - 1,072
Depreciation and
amortization [1] 6,493 7,676 20,372 18,260
Other (income)
expense, net [2] (2,123) (3,447) (7,898) (5,474)
-------- ------- ------- -------
Non-GAAP: Adjusted
EBITDA $ 53,383 $27,038 $ 158,795 $102,441
======== ======= ======= =======
(ii) Reconciliation of Non-GAAP: Net earnings from continuing
operations
Three Months Ended Nine Months Ended
December 31, December 31,
---------------------- ---------------------
2025 2024 2025 2024
----------- --------
GAAP: Earnings from
continuing
operations before
tax $ 45,589 $ 19,917 $ 136,399 $ 80,399
Share-based
compensation 3,424 2,863 9,922 8,184
Acquisition related
expenses - 29 - 1,072
Acquisition related
amortization expense
[3] 5,006 5,983 15,867 14,180
Other (income)
expense, net [2] (2,123) (3,447) (7,898) (5,474)
-------- ------- ------- -------
Non-GAAP: Earnings
from continuing
operations before
tax 51,896 25,345 154,290 98,361
GAAP: Provision for
income taxes 12,189 5,351 37,711 21,841
Share-based
compensation 916 772 2,728 2,266
Acquisition related
expenses - 7 - 300
Acquisition related
amortization expense
[3] 1,338 1,495 4,363 3,788
Other (income)
expense, net [2] (568) (930) (2,243) (1,498)
Tax benefit (expense)
on restricted stock 12 21 101 513
-------- ------- ------- -------
Non-GAAP: Provision
for income taxes 13,887 6,716 42,660 27,210
Non-GAAP: Net
earnings from
continuing
operations $ 38,009 $ 18,629 $ 111,630 $ 71,151
======== ======= ======= =======
(iii) Reconciliation of Non-GAAP: Net earnings from continuing
operations per common share - diluted
Three Months Ended Nine Months Ended
December 31, December 31,
---------------------- ---------------------
2025 2024 2025 2024
----------- --------
GAAP: Net earnings
from continuing
operations per
common share -
diluted $ 1.27 $ 0.55 $ 3.74 $ 2.19
Share-based
compensation 0.10 0.08 0.27 0.22
Acquisition related
expenses - - - 0.03
Acquisition related
amortization expense
[3] 0.14 0.17 0.43 0.39
Other (income)
expense, net [2] (0.06) (0.09) (0.21) (0.15)
Tax benefit (expense)
on restricted stock - - - (0.02)
-------- ------- ------- -------
Total non-GAAP
adjustments - net of
tax 0.18 0.16 0.49 0.47
Non-GAAP: Net
earnings from
continuing
operations per
common share -
diluted $ 1.45 $ 0.71 $ 4.23 $ 2.66
======== ======= ======= =======
[1] Amount consists of depreciation and amortization for assets used
internally.
[2] Interest income and foreign currency transaction gains and losses.
[3] Amount consists of amortization of intangible assets from acquired
businesses.
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SOURCE EPLUS INC.
(END) Dow Jones Newswires
February 04, 2026 17:57 ET (22:57 GMT)