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Did ePlus beat or miss consensus estimates last quarter?

What were the key takeaways from ePlus's earnings call?

- **$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

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

PLUS

PLUS fundamentals

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