ePlus Inc. reported significant financial growth in its latest quarterly results, with net sales reaching $608.8 million for the three months ended September 30, 2025, a 23.4% increase from $493.4 million in the same period last year. For the six months ending September 30, 2025, total sales were $1.25 billion, up from $1.03 billion in the prior year, marking a 21% increase. The company's gross profit also saw a notable rise, reaching $162.1 million for the quarter, compared to $127.3 million a year earlier, driven by improved product margins and a favorable shift in product mix.
The company’s operating income for the third quarter was $48.8 million, nearly doubling from $27 million in the previous year, while net earnings from continuing operations increased to $38.2 million, up from $19.8 million. This growth in profitability was attributed to increased sales across various sectors, particularly in telecom, media, healthcare, and financial services, although sales to state and local government and educational institutions (SLED) saw a decline. The earnings per share for the quarter were $1.32, compared to $1.18 in the same quarter last year.
A significant strategic development for ePlus was the divestiture of its domestic financing business, Expo Holdings, LLC, completed on June 30, 2025. This sale, which generated net cash proceeds of approximately $156.7 million, allows ePlus to focus on its core technology solutions business. Following this transaction, the company has restructured its reporting segments to include Product, Professional Services, and Managed Services, reflecting its shift to a pure-play technology solutions provider.
Operationally, ePlus reported a decrease in total current liabilities, which fell to $628.1 million from $797.9 million, largely due to the sale of its financing business. The company also noted an increase in accounts receivable, which rose to $676.8 million, indicating strong sales performance. The cash conversion cycle improved to 30 days, down from 32 days a year prior, reflecting better management of working capital. The company’s employee headcount remained stable, supporting its operational needs as it continues to expand its service offerings.
Looking ahead, ePlus expressed optimism about its growth trajectory, particularly in the areas of cloud solutions, security, and artificial intelligence, which are expected to drive demand for its services. The company plans to leverage its recent divestiture to enhance its focus on technology solutions and expand its market presence. However, management acknowledged potential risks, including economic uncertainties and changes in customer spending patterns, which could impact future performance.
About EPLUS INC
ePlus Inc. provides integrated IT solutions, including hardware, software, professional, and managed services, to commercial, government, and educational markets. Its offerings span security, cloud, data center, networking, AI, and collaboration technologies, supported by vendor partnerships and advanced certifications. The company also offers financing for IT equipment and services, serving middle to large enterprises globally with a focus on innovation, customer trust, and comprehensive technology management.
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