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Sep 30, 2024
ePlus Q2 2025 Earnings Report
Second quarter gross profit and gross margin improved year over year.
Key Takeaways
ePlus reported a decrease in net sales by 12.3% to $515.2 million, but an increase in consolidated gross profit by 2.5% to $148.0 million. The consolidated gross margin was 28.7%, up from 24.6% in the previous year. Net earnings decreased by 4.1% to $31.3 million, with a diluted EPS of $1.17. Non-GAAP diluted EPS decreased by 2.9% to $1.36.
Net sales decreased 12.3% to $515.2 million; technology business net sales decreased 13.8% to $493.3 million; service revenues increased 46.0% to $103.7 million.
Technology business gross billings decreased 5.6% to $808.2 million.
Consolidated gross profit increased 2.5% to $148.0 million.
Consolidated gross margin was 28.7%, compared with 24.6% last year.
ePlus
ePlus
Forward Guidance
Fiscal year 2025 net sales are now expected to be similar to fiscal year 2024. The adjusted EBITDA range is now expected to be $195 million to $205 million.
Positive Outlook
- Prioritized investments in key high-growth categories such as AI, security and related software and services to drive long-term sustainable growth.
- Customer relationships are strong.
- Feedback for our AI Ignite offering reinforces our view that clients are at the early stage of adoption for these solutions.
- Well positioned to serve this emerging demand.
- Strong balance sheet supports our ability to build on the success that we have achieved over the past several years.
Challenges Ahead
- Softening in enterprise demand due to prior absorption of purchases.
- Global economic uncertainty.
- 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.