Company Overview
ePlus, Inc. is a public company specializing in information technology solutions, advisory, and managed services, with strengths in security, cloud, networking, and collaboration. The company serves over five thousand customers in sectors including government, education, financial services, healthcare, and more. Incorporated in 1990 and headquartered in Herndon, Virginia, ePlus has expanded its footprint globally, including operations in the UK, Europe, Asia, and more. Its workforce is approximately 2,100–2,200 employees. Over its history, ePlus has made numerous acquisitions to broaden its capabilities, especially in professional and managed services.
Most Recent Earnings (Q1 Fiscal Year 2026)
For the quarter ended June 30, 2025 (first quarter of fiscal year 2026), ePlus reported consolidated net sales of $637.3 million, up 19.0% from the same period last year. The company’s services revenues rose by 48.8% in that quarter. Gross billings were $952.8 million, an increase of 14.3% year-over-year. Net earnings from continuing operations increased 12.1% to $27.1 million from $24.2 million in the prior-year quarter. Diluted earnings per common share from continuing operations rose to $1.03 (GAAP) and $1.26 (non-GAAP).
In that same release, ePlus provided guidance for fiscal year 2026, expecting net sales growth in the upper single digits over fiscal 2025 levels of about $2.01 billion (continuing operations), and forecasting adjusted EBITDA growth in the mid-teens above fiscal year 2025’s continuing operations adjusted EBITDA of $141 million.
Founding, History, Products, and Key Operations
ePlus was founded in 1990, originally under the name MLC Holdings, Inc., and later changed its name to ePlus, Inc. after its IPO in 1996. The company is led by CEO Mark Marron. Over time, it has expanded its business via organic growth and acquisitions, particularly in professional services and cloud-/security-related offerings. Its product portfolio includes hardware, software, and services related to cloud, data center, security, collaboration, and networking. The business is organized around product sales, professional services, and managed services. Headquarters is in Herndon, Virginia. Key competitors include other IT integrators and managed service providers, especially those active in security, cloud infrastructure, and advisory services.
One recent strategic move was the sale of its domestic financing business, making ePlus more of a pure-technology provider. This sale supports stronger capital allocation flexibility and sharper focus on its core growth areas. The financing business had been a legacy part of its operations but was less aligned with its long-term strategic focus.
Market, Growth Expectations, and Trends
ePlus operates in markets that are experiencing accelerating demand: cloud computing, cybersecurity, digital infrastructure, collaboration tools, and services that help organizations transform and modernize their IT architectures. These sectors are expected to continue growing through 2030 driven by increasing cybersecurity threats, regulatory demands, the shift to hybrid and multi-cloud environments, and the adoption of AI and automation.
Although I did not find a confirmed CAGR figure specific for ePlus, trends in the broader IT solutions and managed services market show projected growth rates generally in the mid to high single digits, sometimes low double digits (e.g. cloud infrastructure market, cybersecurity services). The guidance ePlus provided for fiscal 2026 (upper single digit growth in net sales, mid-teens for EBITDA) suggests the company expects continued growth, though probably constrained somewhat by macroeconomic cycles and market competition.
Competitors
Competitors to ePlus include other consultative technology solutions providers, systems integrators, and managed services firms. Their rivals likely include large players like CDW, Insight Enterprises, SHI International, and perhaps smaller specialized firms in cloud, security, and infrastructure services. Some competition also comes from large cloud providers and software vendors that offer integrated services directly. The competitive landscape pressures margins, especially in product hardware sales and low-margin services, which makes differentiation via higher value services, managed offerings, and recurring revenues especially important.
Unique Differentiation
What sets ePlus apart is its mix of strong services growth (especially professional services and managed services), well-established partnerships with technology vendors, and its recent strategic moves to focus more tightly on its core technology/business solutions rather than maintaining legacy financing business lines. The first-ever dividend and share buyback program also show management’s intent to treat shareholders more directly and leverage its capital base. Its ability to grow services revenue nearly 50% in the latest quarter suggests execution strength in higher margin areas, which could lead to more stable earnings and gross margin improvements over time.
Management Team
Mark Marron serves as President and Chief Executive Officer of ePlus. He has overseen the company through recent strategic shifts, including disposal of non-core business units and refocusing on technology solutions and services. Elaine Marion serves as Chief Financial Officer, managing the financial operations, reporting, capital allocation, and the recent strategic decisions related to dividend issuance and share repurchases. Doug King is Chief Information Officer, responsible for IT infrastructure, internal systems, and possibly aligning ePlus’s internal technology with its external product/service offerings. The management team has emphasized disciplined execution, margin control, and strategic positioning.
Financial Performance Over the Last Five Years
Over the last five fiscal years, revenue growth for ePlus has been somewhat mixed. The company had revenue of approximately $2.23 billion in fiscal year 2024, down to about $2.07 billion in fiscal year 2025, representing a decline year-over-year. The trailing twelve month revenue as of mid-2025 is around $2.17 billion, which suggests some recovery or stabilization.
Earnings growth has also shown periods of volatility, particularly influenced by product margins, service mix, and macroeconomic pressure. The most recent quarter’s continuing operations net income of $27.1 million reflects a moderate increase over prior periods but is impacted by cost pressures and margin variance. Non-GAAP earnings per share have increased more sharply in that context.
On the balance sheet, ePlus has strengthened cash and cash equivalents (about $480 million as of June 30, 2025) following the sale of its domestic financing business. The sale also reduced inventories and reshaped receivables. Stockholders’ equity modestly increased to over $1.02 billion. The reduction of business lines that are less core to high-growth services and technology product offerings appears to have improved focus, though operating expenses have risen due to acquisitions and expansion.
Bull Case for the Stock
The bull case for PLUS rests on its strong growth in services, which tend to yield higher margins and more recurring revenue. Its strategic decision to divest non-core business units improves its ability to focus resources and capital on higher growth, higher margin areas. The initiation of a dividend and authorization of share repurchases reflect management confidence and can enhance shareholder returns.
Bear Case for the Stock
The bear case includes risk from margin compression in product hardware sales, especially if product mix shifts toward lower margin items or face supply chain or pricing pressures. Macroeconomic downturns, inflation in labor or materials, or weakening demand in some customer sectors (e.g. technology or government budget constraints) could slow growth or adversely affect profitability. Competition is intense, especially in cloud and cybersecurity, and large vendors or integrators could erode pricing power.
The stock is in a stage 2 markup (slow) on the monthly and weekly charts. The daily chart is in stage 2 as well, moving slowly higher to the $77 and then towards $84 mark.