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- **Revenue Surge**: 24.6% net sales growth, driven by AI, cloud, and security. Product sales up 32.2%, offsetting flat services.
- **Profitability Boost**: Adjusted EBITDA nearly doubled, with margin expansion to 8.7%. AI adoption accelerates growth.
- **Strategic Momentum**: Mid-market and enterprise wins, with enterprise projects driving Q3. Full-year guidance raised across all metrics.
- **Risks and Challenges**: Retail project delays weigh on services, memory chip shortage poses near-term risk. Inventory build reflects long-term AI investment.

**【CEO Summary Section】**
- **Revenue Growth**: Net sales increased 24.6% to $615 million, driven by product sales growth of 32.2% in AI, cloud, networking, and security. Services were flat due to weaker professional services in retail.
- **Profitability**: Adjusted EBITDA rose 97% to $53.4 million, with a margin of 8.7%, up 320 basis points year-over-year. AI adoption is a key growth driver, with ePlus helping customers implement AI use cases.
- **Customer Base**: Mid-market and enterprise segments showed strong performance, with notable projects from enterprise customers.
- **Strategic Focus**: Investments in high-growth areas like AI, cloud, and security, with disciplined expense management.

**【CFO Financial Commentary】**
- **Financial Highlights**: GAAP net income of $33.4 million, up 129.3%, with Non-GAAP EPS at $1.45. Operating expenses grew 6.1%, reflecting cost control.
- **Gross Profit**: Product gross margin expanded 170 basis points to 23.8%, while services margins remained stable.
- **Balance Sheet**: Cash of $326.3 million, supporting share buybacks and dividend payments. Inventory increased to $241 million due to project delays, with a cash conversion cycle of 41 days.
- **Guidance Update**: Full-year net sales growth raised to 20-22%, gross profit to 19-21%, and adjusted EBITDA to 41-43% year-over-year.

**【Q&A Highlights】**
- **Inventory and Projects**: Inventory build-up due to large AI-related projects, with delays in retail sector impacting professional services. Expect inventory to remain elevated in near term.
- **AI Impact**: AI is a tailwind, driving infrastructure modernization and security investments. ePlus provides integrated solutions, differentiating from competitors.
- **Memory Chip Shortage**: Industry-wide supply constraints for advanced memory components, particularly for AI and data centers. ePlus is managing through diversified suppliers.
- **Services Growth**: Managed services up 10.5%, offsetting professional services decline. Recurring revenue focus continues.


ePlus inc. (PLUS) Q3 2026 Earnings Call Transcript

- **$1 billion gross billings milestone**: 26.5% YoY growth, 90% organic, with mid-market/enterprise leading.
- **Adjusted EBITDA surges 62%**, driven by AI, security, and cloud investments.
- **52% YoY security growth**, fueled by AI-related infrastructure projects.
- **$400 million cash** supports M&A (e.g., RealWave acquisition) and $0.25 quarterly dividend.
- **Operating leverage**: 61.6% EBITDA growth vs. 23.4% sales growth, with AI, cloud, and security margin expansion.

**【CEO Opening Remarks】**
- Achieved **$1 billion in gross billings** for the first time, marking a 26.5% year-over-year increase, with **90% organic growth**.
- Highlighted **four key drivers**:
  1. Record performance across products, services, and verticals (e.g., mid-market and enterprise up 23.4%).
  2. **Adjusted EBITDA growth of 62%**, driven by operating leverage in AI, security, and cloud.
  3. **$400 million cash balance**, enabling M&A and shareholder returns (e.g., $0.25 quarterly dividend).
  4. **AI Industry Pulse Poll** findings: 75% of leaders view AI as a revenue driver, 81% worry about infrastructure scalability.
- Acquired **RealWave**, an AI-powered video analytics platform, to enhance real-time insights for customers.

**【CFO Financial Commentary】**
- **Net sales**: $608 million (+23.4% YoY), with services (19.4% growth) and products (24.5% margin expansion) leading.
- **Gross profit**: $162.1 million (+27.4%), driven by higher-margin security and networking solutions.
- **Operating expenses**: $113.3 million (+12.9%), reflecting investments in AI, cloud, and M&A (e.g., Bailiwick acquisition).
- **Adjusted EBITDA**: $58.7 million (+61.6%), outpacing net sales growth by 38 percentage points.
- **Balance sheet**: $402 million in cash, supporting capital allocation priorities (M&A, dividends, share buybacks).

**【Q&A Highlights】**
- **Security growth**: 52% YoY, driven by AI-related deals (e.g., data classification, network modernization for AI readiness).
- **Pipeline confidence**: Management cites strong demand across AI, security, and cloud, with large deals closing in Q2.
- **Leverage outlook**: Expect continued operating margin expansion, but note potential investments in AI talent and M&A.
- **Vertical performance**: Telecom/media/entertainment (+27%), healthcare/tech/financial services (+13%), with state/local gov lagging due to budget constraints.

ePlus inc. (PLUS) Q2 2026 Earnings Call Transcript

- **Record Q1 Growth**: 19% net sales, 49% service sales, and 22.8% security contribution to gross billings.
- **Strategic Shift**: Sold finance business to focus on AI, cloud, and security; initiated $0.25 quarterly dividend and 1.5M share buyback.
- **AI Investment**: Building AI labs, consultative services, and infrastructure; exploring acquisitions in AI services.
- **Updated Guidance**: FY2026 targets: upper single-digit net sales growth, mid-teens EBITDA growth.

**【Management Opening Remarks】**
- Kleyton Parkhurst introduced the call, emphasizing forward-looking statements and the use of non-GAAP measures. He highlighted the company's strategic initiatives and financial performance.

**【CEO Commentary】**
- **Key Messages**: Strong Q1 results, divestiture of domestic finance business, focus on AI, security, and cloud, and a record cash position with new dividend and buyback programs.
- **Financial Highlights**: 19% net sales growth ($637.3M), 14% product sales growth, 49% service sales growth (Bailiwick acquisition), and security contributing 22.8% of gross billings.
- **Strategic Moves**: AI investments in workshops, labs, and infrastructure; sale of finance business to simplify operations; $0.25 quarterly dividend and 1.5M share buyback program.
- **Updated Guidance**: FY2026 net sales growth in upper single digits, gross profit growth in upper single digits, and adjusted EBITDA growth in mid-teens.

**【CFO Financial Commentary】**
- **Financial Performance**: GAAP net income $27.1M, non-GAAP EPS $1.26 (vs. $1.01 prior year), and 16.8% gross profit growth to $148.2M.
- **Margins**: Gross margin 23.3% (down 40bps due to project-specific sales), service margins 39.2% (Bailiwick impact), and operating expenses up 17.4% to $112M.
- **Balance Sheet**: Record $480M cash, 26-day cash conversion, and $180.1M from finance sale.

**【Q&A Highlights】**
- **EBITDA Growth Drivers**: Services expansion, margin improvements, and AI-related infrastructure wins.
- **Enterprise Spending**: Project-based, not yet normalized, but positive pipeline visibility.
- **AI Readiness**: Investing in consultative services, labs, and infrastructure; potential acquisitions in AI services.
- **Finance Divestiture Timing**: Strategic to focus on tech, capitalize on AI growth, and return cash to shareholders.

ePlus inc. (PLUS) Q2 2025 Earnings Call Transcript

- **Services-driven growth**: Despite 10.2% YoY decline in net sales, services revenue surged 33% YoY, with gross margin expanding 580 basis points to 29.3%.
- **AI and security leadership**: As the only NVIDIA DGX Ready Super Pod partner, ePlus is capitalizing on enterprise AI demand through workshops and proof-of-concept tools, with services-led AI adoption expected to accelerate in FY2026.
- **Strong financial position**: $389M cash on hand and no debt support strategic investments in high-growth areas. FY2026 guidance reflects cautious optimism with low single-digit net sales growth and mid-single-digit EBITDA growth.
- **Key risks**: Networking sales remain soft, and guidance assumes macroeconomic uncertainty without factoring in potential recessions.

**【CEO Summary Section】**
- **Revenue decline but services growth**: Q4 net sales decreased 10.2% YoY to $498.1M, driven by lower product sales. However, services revenue grew 33% YoY, with professional services up 48% and managed services up 17%, reflecting strategic focus on high-margin services.
- **Gross margin expansion**: Gross margin improved 580 basis points YoY to 29.3%, driven by a more profitable mix of services and netted-down product revenue. Full-year gross margin expanded 270 basis points to 27.5%.
- **AI and security leadership**: ePlus is the only NVIDIA partner with both DGX Ready Super Pod and Managed Service Provider specializations. AI Ignite workshops and Generative AI Accelerator solutions are generating demand, with services-led AI adoption expected to accelerate in FY2026.
- **Balance sheet strength**: Ended FY2025 with $389M cash, up from $253M prior year, and no debt. This financial flexibility supports strategic investments in AI, security, and M&A.

**【CFO Financial Commentary】**
- **Q4 financial highlights**: Adjusted EBITDA rose 19.1% YoY to $43.8M, driven by higher gross profit. Non-GAAP EPS was $1.11, up 19.4% YoY. Full-year net earnings were $108M ($4.05 EPS), down 5.4% YoY due to lower product sales and higher operating expenses (up 9% YoY).
- **Cash flow and efficiency**: Operating cash flow was $302.1M, up 21.7% YoY. Cash conversion cycle improved to 29 days (from 46 days), reflecting normalized supply chain.
- **FY2026 guidance**: Low single-digit net sales growth, mid-single-digit growth in gross profit and EBITDA. Guidance assumes cautious macroeconomic conditions without factoring in potential recessions.

**【Q&A Highlights】**
- **Demand environment**: Data center, cloud, and security demand improved, but networking sales remain soft. Customers are digesting supply chain constraints and expected to return in coming quarters.
- **AI adoption timeline**: Enterprise AI infrastructure spending is lagging hyperscalers but will accelerate as customers test use cases through ePlus' AI workshops and proof-of-concept tools. Services-driven AI revenue is expected to materialize in FY2026.
- **Strategic investments**: Continued focus on AI, security, and customer-facing headcount (299 net hires YoY, 272 customer-facing). NVIDIA Super Pod specialization positions ePlus for enterprise AI infrastructure growth.


ePlus inc. (PLUS) Q4 2025 Earnings Call Transcript

- **Services-led growth**: Services revenue up 52% YoY, with managed services +28% organically.
- **Subscription momentum**: Subscription orders +51.4% YoY, 46% of open orders vs. 31.7% last year.
- **AI investment payoff**: Internal AI adoption cuts ticket resolution times, with 'Secure Gen AI' helping customers adopt safely.
- **Challenges ahead**: Product sales expected to stay soft in Q4 due to channel inventory and OEM model shifts.
- **Financial flexibility**: $253M cash on hand and 32-day cash conversion cycle support growth initiatives.

**【CEO Opening Remarks】**
- Q3 2025 revenue was flat YoY at $511M, driven by a shift to subscription-based models and lower product sales.
- Services revenue grew 52% YoY to $114M, with managed services up 28% organically.
- Subscription orders surged 51.4% YoY, accounting for 46% of open orders vs. 31.7% last year.
- AI strategy focuses on 'AI Ignite' and 'Secure Gen AI' programs, with internal AI adoption improving ticket resolution times.

**【CFO Financial Highlights】**
- Gross profit rose 5.3% to $140.9M, with gross margin expanding 130bps to 27.6% due to higher service margins.
- Operating expenses increased 17.3% YoY to $112.4M, driven by 2,291 employees (vs. 1,897 last year) from acquisitions.
- Adjusted EBITDA declined 15% to $39.2M, impacted by higher gross-to-net adjustments ($60M YoY impact).
- Cash flow improved with a 32-day cash conversion cycle vs. 54 days last year, and $253M cash on hand.

**【Q&A Key Takeaways】**
- Product sales expected to remain soft in Q4 due to channel inventory digestion and OEM shift to subscriptions.
- Tariffs and political uncertainty may delay enterprise hardware purchases, but services growth remains resilient.
- Subscription models create opportunities for add-on services and renewals, offsetting hardware declines.
- FY25 guidance updated to $2.07B-$2.11B revenue and $165M-$171M EBITDA, reflecting higher netting impacts.

Actual											0.62	0.755	0.84	0.895	0.705	0.98	1.295	1.1	1.01	0.99	1.29	1.38	1.36	1.41	1.4	1.18	0.93	1.13	1.36	1.06	1.11	1.26	1.53	1.45
Forecast											0.4713	0.5538	0.6333	0.6638	0.625	0.75	1.135	0.9867	0.74	0.99	1.0567	1.0867	0.8933	1	1.3233	1.3878	1.107	1.1705	1.3933	1.215	0.865	1.105	0.945	1.01
Surprise	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	+31.55%	+36.33%	+32.64%	+34.83%	+12.80%	+30.67%	+14.10%	+11.48%	+36.49%	0.00%	+22.08%	+26.99%	+52.24%	+41.00%	+5.80%	-14.97%	-15.99%	-3.46%	-2.39%	-12.76%	+28.32%	+14.03%	+61.90%	+43.56%

PLUS

PLUS fundamentals

PLUS Q3 2026 Earnings

Earnings Call

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PLUS

PLUS fundamentals

PLUS Q3 2026 Earnings

Earnings Call

PLUS Earnings Call Summary for Q3/20264:30 PM on Feb 4, 2026

PLUS Earnings Call Summary for Q2/20264:30 PM on Nov 6, 2025

PLUS Earnings Call Summary for Q1/20264:30 PM on Aug 7, 2025

PLUS Earnings Call Summary for Q4/20254:30 PM on May 22, 2025

PLUS Earnings Call Summary for Q3/20254:30 PM on Feb 5, 2025

You can ask Aime