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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.
Revenue by Segment
Revenue by Geographic Location
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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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