Double Digit Growth Year Over Year Across Key Metrics
Including Net Sales, Gross Profit and Earnings Per Share
~ Initiates Fiscal 2027 Guidance and Announces Increased Common Stock Dividend of $0.27 Per Share ~
Fourth Quarter of Fiscal Year 2026
- Net sales increased 20.6% to $576.2 million; services revenues increased 4.9% to $110.0 million.
- Gross billings increased 11.7% to $881.0 million.
- Gross profit increased 11.6% to $141.6 million.
- Gross margin was 24.6%, compared to 26.5% for last fiscal year's fourth quarter.
- Net earnings from continuing operations increased 51.7% to $20.5 million.
- Adjusted EBITDA increased 40.2% to $40.1 million.
- Net earnings from continuing operations per common share- diluted increased 52.9% to $0.78. Non-GAAP: net earnings from continuing operations per common share - diluted increased 44.9% to $1.00.
Fiscal Year 2026
- Net sales increased 22.1% to $2,442.5 million; services revenues increased 15.6% to $462.9 million.
- Gross billings increased 17.0% to $3,838.5 million.
- Gross profit increased 20.3% to $616.1 million.
- Gross margin was 25.2%, compared with 25.6% for fiscal year 2025.
- Net earnings from continuing operations increased 62.4% to $124.1 million.
- Adjusted EBITDA increased 49.5% to $204.8 million.
- Net earnings from continuing operations per common share - diluted increased 64.1% to $4.71. Non-GAAP: Net earnings per common share - diluted increased 52.7% to $5.39.
HERNDON, Va., May 28, 2026 /PRNewswire/ -- ePlus inc. (NASDAQ: PLUS), a leading provider of technology solutions, today announced financial results for the three months and fiscal year ended March 31, 2026, or the fourth quarter of its 2026 fiscal year.
Management Comment
"In the fourth quarter, we achieved double digit growth across both net sales and gross billings, demonstrating expanding market share, and underscoring the durability and resilience of our business, " said Mark Marron, president and CEO of ePlus. "We had a very strong fiscal 2026 signaling strong execution from our team. We saw revenue grow 22% to $2.4 billion and gross billings expand to $3.8 billion, an increase of 17% while generating adjusted EBITDA of $205 million, an increase of 50%, delivering meaningful operating leverage for the year. With a healthy balance sheet, including cash of $411 million, we continued to enhance shareholder value through a share repurchase plan and are increasing our quarterly dividend by 8% to $0.27 per common share.
"ePlus' services-led strategy, especially as it relates to the leveraging of our AI consulting services capabilities, makes us nimble enough to capture emerging opportunities and large enough to scale solutions for large enterprises, enabling us to help our customers in a rapidly evolving IT environment. We believe we are well positioned to capture market opportunity and scale growth over the long term," Mr. Marron concluded.
Fourth Quarter Fiscal Year 2026 Results
On June 30, 2025, we completed the sale of our domestic financing business. Consequently, alongside the results of our continuing operations, we are retrospectively presenting the results of our domestic financing business as discontinued operations, for all prior periods.
For the fourth quarter ended March 31, 2026, as compared to the fourth quarter ended March 31, 2025:
Net sales increased 20.6% to $576.2 million, from $477.9 million due to higher product sales and higher service revenue. Gross billings increased 11.7% to $881.0 million from $789.0 million.
Product segment sales increased 25.0% to $466.1 million from $373.0 million due to increases in revenue from networking, cloud, security, and collaboration products. Product segment gross margin was 22.2%, down from 24.7% last year due to a shift in product mix along with a decrease in the proportion of sales recorded on a net basis.
Professional services segment revenues increased 1.6% year over year to $61.3 million from $60.4 million, primarily due to increases in project services revenue, offset by decreases in consulting and staff augmentation revenues. Gross margin increased to 38.3% from 35.9% during the same period last year due to a shift in mix.
Managed services segment revenue increased 9.3% to $48.7 million primarily due to additional revenue from cloud services. Gross profit from our managed services segment increased 14.3% from last year due to the increase in revenue and an increase in gross margin to 30.5% from 29.1% in the prior year quarter.
Gross profit increased 11.6% to $141.6 million, from $126.9 million, due to increases in all three segments. Gross margin was 24.6%, compared with 26.5% in the prior year quarter, due to lower gross margin from our product segment.
Operating expenses were $110.7 million, up 2.4% from $108.1 million last year, primarily due to an increase in variable compensation and share-based compensation.
Operating income increased 64.7% to $30.9 million. Other income (expense), net was an expense of $0.6 million compared to income of $1.0 million last year as this year's quarter included a charge of $3.0 million relating to the disposition of our financing business offset by interest income of $2.4 million. Earnings from continuing operations before taxes increased 53.6% to $30.3 million.
Our effective tax rate for the current quarter was 32.2%, which was higher than the prior year quarter of 31.4% due to higher state income taxes and non-deductible expenses.
Net earnings from continuing operations increased 51.7% to $20.5 million from $13.5 million in the prior year quarter. Adjusted EBITDA increased 40.2% to $40.1 million from $28.6 million in the prior year quarter. Net earnings from continuing operations per common share-diluted was $0.78, compared with $0.51 in the prior year quarter. Non-GAAP net earnings per common share from continuing operations was $1.00, compared with $0.69 in the prior year quarter.
Net earnings (loss) from discontinued operations for the three months ending March 31, 2026, was ($0.4) million, as compared to $3.9 million for the same three-month period in the prior year. Net earnings (loss) from discontinued operations per common share-diluted was ($0.02), compared with $0.15 in the prior year quarter.
Fiscal Year 2026 Results
For the fiscal year ended March 31, 2026, as compared to the fiscal year ended March 31, 2025:
Net sales increased 22.1% to $2,442.5 million, from $2,000.2 million due to higher product sales and higher services revenue. Gross billings increased 17.0% to $3,838.5 million from $3,280.4 million.
Product segment sales increased 23.8% to $1,979.3 million from $1,599.4 million due to increases in revenue from cloud, networking, and security products, offset by a decline in collaboration products. Product segment gross margin was 22.9%, down from 23.1% last year due to a shift in mix.
Professional services segment revenues increased 19.4% year over year to $273.4 million from $229.0 million, primarily due to the acquisition of Bailiwick Services, LLC, on August 19, 2024. Professional services gross margin declined to 38.7% from 39.5% last year due to the addition of Bailiwick Services, LLC, which has services margins that are generally lower than our legacy professional services.
Managed services segment revenue increased 10.6% to $189.4 million, primarily due to additional sales of cloud services and enhanced maintenance support. Gross profit from the managed services segment increased 10.1% from last year due to the increase in revenue, offset by a slight decline in gross margin to 29.8% from 29.9% in the prior year.
Gross profit increased 20.3% to $616.1 million, from $512.1 million, due to increases from all segments. Gross margin was 25.2%, compared with last year's 25.6%, due to lower gross margin from our product segment as a result of a shift in mix.
Operating expenses were $449.9 million, up 9.1% from $412.4 million last year, primarily due to increases in variable compensation commensurate with the increase in our gross profit, as well as additional fringe benefits and general and administrative costs.
Operating income increased 66.7% to $166.1 million. Other income was $7.3 million compared to $6.4 million last year, as higher interest income was offset by adjustments to the fair value of a contingent consideration receivable. Earnings from continuing operations before taxes increased 63.4% to $173.4 million.
Our effective tax rate for the fiscal year ended March 31, 2026, was 28.4%, higher than the prior fiscal year of 28.0%, due to higher state income taxes and non-deductible expenses.
Net earnings from continuing operations increased 62.4% to $124.1 million from $76.4 million in the prior year. Adjusted EBITDA increased 49.5% to $204.8 million from $137.0 million in the prior year period. Net earnings from continuing operations per common share-diluted was $4.71, compared with $2.87 in the prior year. Non-GAAP net earnings from continuing operations per common share-diluted was $5.39, compared with $3.53 in the prior year.
Net earnings from discontinued operations for the fiscal year ended March 31, 2026, were $8.5 million, a decrease of $19.6 million, as compared to $28.1 million in the prior year. The decrease was due to the sale of our domestic financing business on June 30, 2025. Net earnings from discontinued operations per common share-diluted was $0.32, compared with $1.06 in the prior year.
Balance Sheet Highlights
As of March 31, 2026, cash and cash equivalents were $410.8 million, up from $389.4 million last year, as proceeds from the sale of our domestic financing business were offset by working capital needs. Inventory increased 66.8% to $200.9 million as of March 31, 2026 compared with $120.4 million as of March 31, 2025 due to an increase in projects in process. Accounts receivable--trade, net increased 31.4% to $667.8 million as of March 31, 2026 from $508.3 million as of March 31, 2025. Total stockholders' equity was $1,069.0 million as of March 31, 2026, compared with $970.7 million as of March 31, 2025. Total shares outstanding were 26.3 million and 26.5 million on March 31, 2026 and March 31, 2025, respectively.
Fiscal Year Guidance
ePlus is initiating fiscal year 2027 guidance for percentage growth over the prior fiscal year of mid-single digits for net sales, gross profit and adjusted EBITDA.
This guidance does not factor in recessionary conditions, or other unexpected developments. ePlus 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- or disposition-related expenses. These items are uncertain, depend on various factors, and could be material to ePlus' results computed in accordance with GAAP. Accordingly, ePlus is unable to provide a reconciliation of GAAP net earnings to adjusted EBITDA for the full fiscal year 2027 forecast.
Summary and Outlook
"As we look ahead to fiscal 2027, we are operating from a position of strength with solid industry fundamentals that support growth for the coming year. Our long-term strategy includes expanding and enhancing our solutions, services and footprint, and deepening our customer relationships all while delivering solid financial performance. We have a strong financial position and healthy liquidity, enabling a disciplined capital allocation approach that fuels long-term growth organically and with M&A opportunities. We remain committed to enhancing shareholder returns over time," concluded Mr. Marron.
ePlus Announces Quarterly Dividend
ePlus announced today that its Board of Directors has declared a quarterly cash dividend of $0.27 per common share which will be paid on June 30, 2026, to shareholders of record as of the close of business on June 17, 2026.
Recent Corporate Developments/Recognitions
In the fourth quarter of its 2026 fiscal year:
- ePlus appointed Mike Portegello to its Board of Directors
- ePlus Technology subsidiary Bailiwick was selected for the prestigious National Retail Federation Innovators Showcase for digital lock technology
- ePlus Vice President, Dori White, was named Solution Provider Marketing Executive of the Year in CRN's 2025 Women of the Year Awards
- ePlus Launches Private AI Infrastructure Managed Service
Conference Call Information
ePlus will hold a conference call and webcast at 4:30 p.m. ET on May 28, 2026:
Date:
May 28, 2026
Time:
4:30 p.m. ET
Audio Webcast (Live & Replay): https://events.q4inc.com/attendee/
661235710
Live Call: (888) 596-4144 (toll-free/
domestic)
(646) 968-2525 (international)
Archived Call: (800) 770-2030 (toll-free/
domestic)
(609) 800-9909 (international)
Conference ID: 8293082# (live call and replay)
A replay of the call will be available approximately two hours after the call through June 4, 2026.
About ePlusinc.
ePlus is a customer-first, services-led, and results-driven industry leader offering transformative technology solutions and services to provide the best customer outcomes. Offering a full portfolio of solutions, including artificial intelligence, security, cloud and data center, networking, and collaboration, as well as managed, consultative and professional services, ePlus works closely with organizations across many industries to successfully navigate business challenges. With a long list of industry-leading partners and approximately 2,150 employees, our expertise has been honed over more than three decades, giving us specialized yet broad levels of experience and knowledge. ePlus is headquartered in Virginia, with locations in the United States, United Kingdom, Europe, and Asia?Pacific. For more information, visit www.eplus.com, call 888-482-1122, or email info@eplus.com. Connect with ePlus on LinkedIn, X, Facebook, and Instagram.
ePlus, Where Technology Means More®.
ePlus® and ePlus products referenced herein are either registered trademarks or trademarks of ePlus inc. in the United States and/or other countries.
Forward-looking statements
Statements in this press release that are not historical facts may be deemed to be "forward-looking statements," including, among other things, statements regarding the future financial performance of ePlus. Actual and anticipated future results may vary materially due to certain risks and uncertainties, including, without limitation, financial losses resulting from national and international political instability fostering uncertainty and volatility in the global economy including changes in interest rates, tariffs, inflation, export requirements applicable to products we sell, sanctions and exposure to foreign currency rate changes; supply chain issues, including a shortage of information technology ("IT") component parts and products, and our vendors' rapid and unpredictable price fluctuations relating thereto, or a customer's or vendor's cancellation of orders such as for, but not limited to, memory chips, which may increase our and the customer's costs, decrease gross profit, cause a delay in fulfilling or inability to fulfill customer orders, increase our need for working capital, delay the completion of professional services, or require the purchase of IT products or services needed to support our internal infrastructure or operations, resulting in an adverse impact on our financial results; significant adverse changes in our relationship with one or more of our larger customer accounts or vendors, including decreased account profitability, reductions in contracted services, or a loss of such relationships; risks relating to artificial intelligence ("AI"), including the use or capabilities of AI and emerging laws, rules and regulations related to AI; our ability to manage a diverse product set of solutions, including AI products and services, in highly competitive markets with a number of key vendors; changes in the IT industry and/or rapid changes in product offerings, including the proliferation of the cloud, infrastructure as a service ("IaaS"), software as a service ("SaaS"), platform as a service ("PaaS"), and AI which may affect our financial results; our ability to remain secure during a cybersecurity attack or other IT outage, including disruptions in our, our vendors or a third party's IT systems and data and audio communication networks; a material decrease in the credit quality of our customer base, or a material increase in our credit losses; increases to our costs including wages and our ability to increase our prices to our customers as a result, or negative financial impacts due to the pricing arrangements we have with our customers; reliance on third parties to perform some of our service obligations to our customers, and the reliance on a small number of key vendors in our supply chain with whom we do not have long-term supply agreements, guaranteed price agreements, or assurance of stock availability; the possibility of a reduction of vendor incentives provided to us; our inability to identify merger and acquisition candidates, perform sufficient due diligence prior to completing mergers and acquisitions, successfully complete merger and acquisition transactions (including on favorable terms), successfully integrate a completed merger and/or acquisition, identify an opportunity for, or successfully complete a business disposition, or achieve the operational and financial results we anticipate after a disposition (such as from completing the sale of our domestic financing business); our ability to secure our own and our customers' electronic and other confidential information, while maintaining compliance with evolving data privacy and cybersecurity laws and regulations and appropriately providing required notice and disclosure of cybersecurity incidents when and if necessary; our dependence on key personnel to maintain certain customer relationships, and our ability to hire, train, and retain sufficient qualified personnel by recruiting and retaining highly skilled, competent personnel with needed vendor certifications; inadequate design or maintenance of our IT platforms for internal use or solutions we offer to our customers or our inability to effectively and timely capitalize on the opportunities made available by the adoption of AI and not having adequate or competent IT personnel to support our business; cybersecurity attacks that have occurred while employees work remotely and our ability to adequately train our personnel to prevent a cyber event; our ability to raise capital, maintain or increase, as needed, our lines of credit with vendors or our floor plan facility, or the effect of those matters on our common stock price; our ability to predictably meet expectations of the investor and analyst community, including relative to our financial performance guidance that we provide, including based on the continuation of dividends and share repurchases; our ability to implement comprehensive plans for the integration of sales forces, cost containment, asset rationalization, systems integration, and other key strategies following mergers and acquisitions; and other risks or uncertainties detailed in our reports filed with the Securities and Exchange Commission.
The declaration and payment of future dividends are subject to the sole discretion of our Board of Directors.
All information set forth in this press release is current as of the date of this release and ePlus undertakes no duty or obligation to update this information either as a result of new information, future events or otherwise, except as required by applicable U.S. securities law.
e
Plus inc. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share amounts)
March 31, March 31,
2026 2025
ASSETS
Current assets:
Cash and cash equivalents $
410,769 $
389,375
Accounts receivable-trade, net 667,831 508,272
Accounts receivable-other, net 38,896 19,382
Inventories 200,888 120,440
Deferred costs 77,748 66,769
Other current assets 31,602 31,437
Current assets of discontinued operations 222,399
Total current assets 1,427,734 1,358,074
Deferred tax asset 8,955 3,658
Property, equipment and other assets-net 100,039 98,657
Goodwill 202,880 202,858
Other intangible assets-net 61,344 82,007
Non-current assets of discontinued operations 133,835
TOTAL ASSETS $
1,800,952 $
1,879,089
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Current liabilities:
Accounts payable $
264,605 $
323,890
Accounts payable-floor plan 119,693 89,527
Salaries and commissions payable 48,590 42,722
Deferred revenue 168,127 154,067
Other current liabilities 37,128 22,463
Current liabilities of discontinued operations 166,463
Total current liabilities 638,143 799,132
Deferred tax liability-long-term 1,454
Deferred revenue-long-term 83,010 81,759
Other liabilities 10,829 13,540
Non-current liabilities of discontinued operations 12,546
TOTAL LIABILITIES 731,982 908,431
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Preferred stock, $0.01 per share par value; 2,000 shares authorized; none
outstanding
Common stock, $0.01 per share par value; 50,000 shares authorized; 278 276
27,765 shares issued and 26,299 outstanding at March 31, 2026 and
27,582 shares issued and 26,526 outstanding at March 31, 2025
Additional paid-in capital 210,274 194,475
Treasury stock, at cost, 1,466 shares at March 31, 2026 and 1,056 shares at (101,944) (70,748)
March 31, 2025
Retained earnings 956,000 843,214
Accumulated other comprehensive income-foreign currency translation 4,362 3,441
adjustment
Total Stockholders' Equity 1,068,970 970,658
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $
1,800,952 $
1,879,089
e
Plus inc. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
Three Months Ended
Year Ended
March 31, March 31,
2026 2025 2026 2025
Net sales
Product $
466,202 $
373,049 $
1,979,664 $
1,599,791
Services 109,972 104,874 462,885 400,377
Total 576,174 477,923 2,442,549 2,000,168
Cost of sales
Product 362,868 280,790 1,525,960 1,229,495
Services 71,679 70,262 300,508 258,553
Total 434,547 351,052 1,826,468 1,488,048
Gross profit 141,627 126,871 616,081 512,120
Selling, general, and administrative 104,552 100,612 423,393 386,681
Depreciation and amortization 6,171 7,493 26,543 25,753
Operating expenses 110,723 108,105 449,936 412,434
Operating income 30,904 18,766 166,145 99,686
Other income (expense), net (605) 964 7,293 6,438
Earnings from continuing operations before tax 30,299 19,730 173,438 106,124
Provision for income taxes 9,753 6,189 49,318 29,685
Net earnings from continuing operations 20,546 13,541 124,120 76,439
Earnings (loss) from discontinued operations, net of tax (400) 3,913 8,516 28,137
Net earnings $
20,146 $
17,454 $
132,636 $
104,576
Earnings per common share-basic
Continuing operations $
0.79 $
0.51 $
4.73 $
2.88
Discontinued operations (0.02) 0.15 0.32 1.06
Earnings per common share-basic $
0.77 $
0.66 $
5.05 $
3.94
Earnings per common share-diluted
Continuing operations $
0.78 $
0.51 $
4.71 $
2.87
Discontinued operations (0.02) 0.15 0.32 1.06
Earnings per common share-diluted $
0.76 $
0.66 $
5.03 $
3.93
Weighted average common shares outstanding-basic 26,127 26,307 26,234 26,503
Weighted average common shares outstanding-diluted 26,262 26,422 26,371 26,666
Segment Results
---
Three Months Ended
Year Ended
March 31,
March 31,
2026 2025 Change 2026 2025 Change
Net sales
Product segment $
466,092 $
372,972 25.0 % $
1,979,288 $
1,599,369 23.8 %
Professional services segment 61,300 60,354 1.6 % 273,438 229,030 19.4 %
Managed services segment 48,672 44,520 9.3 % 189,447 171,347 10.6 %
Other 110 77 42.9 % 376 422 (10.9 %)
Total $
576,174 $
477,923 20.6 % $
2,442,549 $
2,000,168 22.1 %
Gross profit
Product segment $
103,288 $
92,248 12.0 % $
453,564 $
370,153 22.5 %
Professional services segment 23,464 21,638 8.4 % 105,910 90,517 17.0 %
Managed services segment 14,829 12,974 14.3 % 56,467 51,307 10.1 %
Other 46 11 318.2 % 140 143 (2.1 %)
Total $
141,627 $
126,871 11.6 % $
616,081 $
512,120 20.3 %
Gross Billings by Type
---
Networking $
268,121 $
213,621 25.5 % $
1,152,117 $
929,708 23.9 %
Cloud 244,024 220,967 10.4 % 1,016,717 865,855 17.4 %
Security 174,349 177,341 (1.7 %) 841,523 683,597 23.1 %
Collaboration 22,791 18,295 24.6 % 109,460 120,369 (9.1 %)
Other 58,378 51,347 13.7 % 252,073 244,997 2.9 %
Product segment 767,663 681,571 12.6 % 3,371,890 2,844,526 18.5 %
Services 113,293 107,394 5.5 % 466,567 435,921 7.0 %
Total $
880,956 $
788,965 11.7 % $
3,838,457 $
3,280,447 17.0 %
Net Sales by Type
---
Product segment
Networking $
226,574 $
178,820 26.7 % $
933,818 $
781,703 19.5 %
Cloud 157,853 134,343 17.5 % 668,471 509,774 31.1 %
Security 51,680 48,739 6.0 % 239,731 191,872 24.9 %
Collaboration 10,184 8,205 24.1 % 51,917 55,483 (6.4 %)
Other 19,801 2,865 591.1 % 85,351 60,537 41.0 %
Total products segment 466,092 372,972 25.0 % 1,979,288 1,599,369 23.8 %
Professional services segment 61,300 60,354 1.6 % 273,438 229,030 19.4 %
Managed services segment 48,672 44,520 9.3 % 189,447 171,347 10.6 %
Other 110 77 42.9 % 376 422 (10.9 %)
Total net sales $
576,174 $
477,923 20.6 % $
2,442,549 $
2,000,168 22.1 %
Net Sales by Customer End Market
---
Telecom, media & entertainment $
182,460 $
101,268 80.2 % $
720,616 $
453,892 58.8 %
Healthcare 76,913 74,289 3.5 % 314,949 286,474 9.9 %
SLED 70,927 72,176 (1.7 %) 308,681 333,371 (7.4 %)
Financial services 67,992 44,097 54.2 % 244,675 174,798 40.0 %
Technology 59,119 65,078 (9.2 %) 300,783 300,465 0.1 %
Retail 29,988 35,431 (15.4 %) 136,415 103,185 32.2 %
All other 88,775 85,584 3.7 % 416,430 347,983 19.7 %
Total net sales $
576,174 $
477,923 20.6 % $
2,442,549 $
2,000,168 22.1 %
Amounts for 2025 reflect the correction of certain misstatements, which we determined are not material either individually or in the aggregate. See our Form 10-K for the year ended March 31, 2026, including Note 2 to the Consolidated Financial Statements, for more information.
ePlus inc. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP INFORMATION
We included reconciliations below for the following non-GAAP financial measures: (i) Adjusted EBITDA, (ii) Non-GAAP: Net earnings from continuing operations and (iii) Non-GAAP Net earnings from continuing operations per common share - diluted.
We define Adjusted EBITDA as net earnings from continuing operations calculated in accordance with US GAAP, adjusted for the following: interest expense, depreciation and amortization, share-based compensation, acquisition related expenses, provision for income taxes, and other income (expense).
Non-GAAP: Net earnings from continuing operations and Non-GAAP Net earnings from continuing operations per common share - diluted are based on net earnings from continuing operations calculated in accordance with US GAAP, adjusted to exclude other (income) expense, share-based compensation, and acquisition related amortization expenses, and the related tax effects.
We use the above non-GAAP financial measures as supplemental measures of our performance to gain insight into our operating performance and performance trends. We believe that these financial measures provide management and investors with a useful measure for period-to-period comparisons of our business and operating results by excluding items that management believes are not reflective of our underlying operating performance. Accordingly, we believe that such non-GAAP financial measures provide useful information to investors and others in understanding and evaluating our operating results.
Our use of non-GAAP information as analytical tools has limitations, and should not be considered in isolation or as substitutes for analysis of our financial results as reported under US GAAP. In addition, other companies, including companies in our industry, might calculate Adjusted EBITDA, Non-GAAP: Net earnings from continuing operations and Non-GAAP: Net earnings from continuing operations per common share-diluted, or similarly titled measures differently, which may reduce their usefulness as comparative measures.
The amounts in the tables below are results from our continuing operations (in thousands):
(i) Reconciliation of Adjusted EBITDA
Three Months Ended
Year Ended
March 31,
March 31,
2026 2025 2026 2025
GAAP: Net earnings from continuing operations $
20,546 $
13,541 $
124,120 $
76,439
Provision for income taxes 9,753 6,189 49,318 29,685
Share-based compensation 2,989 2,318 12,134 10,502
Acquisition related expenses 1,072
Depreciation and amortization [1] 6,171 7,493 26,543 25,753
Other (income) expense, net [2] 605 (964) (7,293) (6,438)
Non-GAAP: Adjusted EBITDA $
40,064 $
28,577 $
204,822 $
137,013
(ii) Reconciliation of Non-GAAP: Net earnings from continuing operations
Three Months Ended
Year Ended
March 31,
March 31,
2026 2025 2026 2025
GAAP: Net earnings from continuing operations before tax $
30,299 $
19,730 $
173,438 $
106,124
Share-based compensation 2,989 2,318 12,134 10,502
Acquisition related expenses 1,072
Acquisition related amortization expense [3] 4,758 5,749 20,625 19,929
Other (income) expense, net [2] 605 (964) (7,293) (6,438)
Non-GAAP: Earnings from continuing operations before tax 38,651 26,833 198,904 131,189
GAAP: Provision for income taxes 9,753 6,189 49,318 29,685
Share-based compensation 966 729 3,490 2,992
Acquisition related expenses 300
Acquisition related amortization expense [3] 1,571 1,706 5,934 5,495
Other (income) expense, net [2] 200 (290) (2,043) (1,788)
Tax benefit on restricted stock 35 14 136 527
Non-GAAP: Provision for income taxes 12,525 8,348 56,835 37,211
Non-GAAP: Net earnings from continuing operations $
26,126 $
18,485 $
142,069 $
93,978
(iii) Reconciliation of Non-GAAP: Net earnings from continuing operations per common share - diluted
Three Months Ended Year Ended
March 31, March 31,
2026 2025 2026 2025
GAAP: Net earnings from continuing operations per common share - diluted $
0.78 $
0.51 $
4.71 $
2.87
Share-based compensation 0.08 0.06 0.33 0.28
Acquisition related expenses 0.03
Acquisition related amortization expense [3] 0.12 0.15 0.56 0.54
Other (income) expense, net [2] 0.02 (0.03) (0.20) (0.17)
Tax (benefit) on restricted stock (0.01) (0.02)
Total non-GAAP adjustments - net of tax 0.22 0.18 0.68 0.66
Non-GAAP: Net earnings from continuing operations per common share - diluted $
1.00 $
0.69 $
5.39 $
3.53
[1] Amount consists of depreciation and amortization for assets used internally.
[2] Interest income, foreign currency transaction gains and losses, and adjustments to the fair value of contingent consideration.
[3] Amount consists of amortization of intangible assets from acquired businesses.
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SOURCE EPLUS INC.
