What caused PLUS's earnings to decline in Q2 2025?

ePlus Inc. (PLUS) experienced a decline in net income by 11.54% in Q2 2025, with a net income of $24.13 million compared to the previous year. The decline in earnings can be attributed to several factors: 1. **Revenue Shortfall in Q4**: ePlus reported revenues of $511 million for Q4, which was flat year-on-year but fell short of analysts’ expectations by 7.7%. This shortfall in revenue could have contributed to the decline in earnings. 2. **Challenges in IT Distribution & Solutions Sector**: The IT Distribution & Solutions sector is undergoing changes due to increasing complexity of IT ecosystems, rising cloud adoption, and demand for cybersecurity solutions. However, cloud migration also means less need for hardware, which could dent demand for large portions of the product portfolio and hurt margins. ePlus, as a player in this sector, has likely been affected by these trends. 3. **Supply Chain Disruptions**: The company has been planning for potential supply chain disruptions, a concern highlighted by the COVID-19 pandemic's impact on global trade. Such disruptions can lead to shortages and increased costs, negatively affecting profitability. In conclusion, ePlus's earnings decline in Q2 2025 was likely a result of a combination of revenue shortfall, challenges in IT Distribution & Solutions sector, and supply chain disruptions.