ePlus (PLUS) investor relations material

Executive summary

• Net sales rose 1.0% year-over-year to $649.1 million, driven by growth in technology, healthcare, retail, financial services, and higher product and service revenues, partially offset by declines in telecom, media, entertainment, and SLED sectors.

• Managed services segment achieved its first $50 million revenue quarter, up 15.1% year-over-year.

• Gross profit declined by $2.3 million year-over-year to $151.3 million, with margin down to 23.3% from 23.9% due to lower margins across all segments and a shift in sales mix.

• Net earnings from continuing operations were $30.3 million ($1.16 per diluted share), down from $32 million ($1.21 per share) last year.

• Strong cash position of $448.9 million supports ongoing investments, M&A, and shareholder returns.

Financial highlights

• Consolidated net sales for Q1 FY27 were $649.1 million, up 1% year-over-year.

• Gross billings grew 0.5% year-over-year to $957.1 million.

• Product revenue was $529.7 million, up 0.6% year-over-year, led by security and networking.

• Managed services net sales surpassed $50 million, increasing over 15% year-over-year.

• Gross profit was $151.3 million with a gross margin of 23.3%, down from 23.9% last year.

• Operating income was $38.8 million, down from $42.9 million year-over-year.

• Net earnings from continuing operations were $30.3 million ($1.16 per diluted share), compared to $32 million ($1.21 per share) last year.

• Adjusted EBITDA was $47.8 million, down from $52.7 million year-over-year.

• Cash and cash equivalents ended at $448.9 million, up from $410.8 million at the end of fiscal 2026.

Outlook and guidance

• Fiscal 2027 guidance reaffirmed: mid-single-digit year-over-year growth expected for net sales, gross profit, and adjusted EBITDA.

• Maintaining guidance due to healthy customer demand and strong activity in strategic focus areas.

• Expecting some backlog conversion in the back half of the year and beyond.

• Guidance excludes potential recessionary impacts and other unpredictable events.

• Management expects ongoing supply constraints and price increases for memory chips to persist for several quarters, impacting inventory and delivery schedules.