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Dec 31, 2024
ePlus Q3 2025 Earnings Report
ePlus reported a slight increase in net sales and gross profit for the third quarter of fiscal year 2025, driven by strong service revenue growth, despite a decline in product sales.
Key Takeaways
ePlus reported a modest increase in net sales to $511.0 million and a 5.3% increase in consolidated gross profit to $140.9 million for the third quarter of fiscal year 2025. This growth was primarily fueled by a significant 52.2% increase in service revenues, which reached $113.6 million, offsetting a slight decline in technology business net sales. Net earnings and diluted EPS saw a decrease compared to the prior year.
Net sales increased 0.4% to $511.0 million.
Service revenues surged by 52.2% to $113.6 million, driven by organic and inorganic growth.
Consolidated gross profit increased 5.3% to $140.9 million, with gross margin expanding to 27.6%.
Net earnings decreased 11.5% to $24.1 million, and diluted EPS fell 10.8% to $0.91.
ePlus
ePlus
ePlus Revenue by Segment
ePlus Revenue by Geographic Location
Revenue by Segment
Technology Business Revenue
CapyFin.comService Revenues Revenue
CapyFin.comFinancing Business Revenue
CapyFin.comProduct Sales Revenue
CapyFin.comProfessional Services Revenue
CapyFin.comManaged Services Revenue
CapyFin.comRevenue by Geographic Location
Telecom, Media, & Entertainment Revenue
CapyFin.comSLED Revenue
CapyFin.comTechnology Revenue
CapyFin.comHealthcare Revenue
CapyFin.comFinancial Services Revenue
CapyFin.comAll Other Revenue
CapyFin.com Forward Guidance
ePlus expects fiscal year 2025 net sales to be in the range of $2.07 billion to $2.11 billion, and adjusted EBITDA to be between $165.0 million and $171.0 million. The company is confident in its strategy of investing in faster growth offerings like AI, cybersecurity, and cloud.
Positive Outlook
- Continued investment in faster growth offerings such as AI, cybersecurity, and cloud.
- Strong positioning to advance organic and inorganic growth strategy.
- Healthy balance sheet provides flexibility for growth initiatives.
- Focus on customer-facing headcount and acquisitions.
- Confidence in meeting customer requirements in fast-growing categories.
Challenges Ahead
- Inability to predict the ultimate outcome of unusual gains and losses.
- Uncertainty regarding GAAP tax impacts.
- Fluctuations in interest expense or income.
- Variability in share-based compensation.
- Potential acquisition-related expenses impacting results.
Revenue & Expenses
Visualization of income flow from segment revenue to net income