ePlus Inc. Reports 19% Revenue Growth to $637.3 Million in Latest Quarter

ePlus Inc. reported significant financial growth in its latest quarterly results, with net sales reaching $637.3 million for the three months ended June 30, 2025, a 19% increase from $535.7 million in the same period last year. The company's gross profit also rose to $148.2 million, up from $126.9 million, although the gross profit margin slightly decreased to 23.3% from 23.7%. Operating income increased to $36.2 million, compared to $31.5 million in the prior year, while net earnings surged to $37.7 million, a 38% increase from $27.3 million.

The financial performance was bolstered by a notable increase in sales across various segments, particularly in the product segment, which generated $520.9 million, up from $457.3 million. The professional services segment also saw substantial growth, with sales rising to $71.7 million from $37.3 million, largely attributed to the acquisition of Bailiwick Services, LLC in August 2024. The managed services segment reported $44.6 million in sales, a slight increase from $40.9 million, reflecting ongoing expansion in service offerings.

A key strategic development for ePlus was the completion of the sale of its domestic financing business, Expo Holdings, LLC, to Marlin Leasing Corporation on June 30, 2025. This divestiture positions ePlus as a pure-play technology solutions provider, allowing it to focus on its core segments: product, professional services, and managed services. The sale generated net cash proceeds of approximately $156.7 million, which will support future growth initiatives. Following the divestiture, the company reported its financing business results as discontinued operations.

Operationally, ePlus increased its employee headcount to 2,182 as of June 30, 2025, up from 1,907 a year earlier, primarily due to the acquisition of Bailiwick. The company also reported a decrease in its cash conversion cycle to 26 days, down from 37 days, indicating improved efficiency in managing working capital. However, the company faced challenges, including increased provisions for credit losses and a slight decline in gross margins due to shifts in product mix and pricing pressures.

Looking ahead, ePlus anticipates continued growth driven by demand for IT solutions, particularly in cloud services, security, and digital transformation. The company remains focused on leveraging its expertise to meet evolving customer needs while navigating potential economic uncertainties and market conditions. The management expressed confidence in its strategic direction and operational capabilities, aiming to enhance shareholder value through ongoing investments and potential acquisitions.