ePlus (PLUS) Q4 2026 earnings summary

Executive summary

• Achieved double-digit growth in key revenue and operating metrics for fiscal 2026, including record gross billings of $3.8 billion, net sales, gross profit, and EPS, with strong operational execution across the business.

• Transitioned to a pure-play technology solutions and services provider by divesting the domestic financing business, with results now presented as discontinued operations.

• Initiated the first quarterly dividend and increased it by 8% to $0.27 per share, reflecting confidence in long-term business prospects.

• Maintained a healthy balance sheet with $411 million in cash and increased working capital, supporting organic investments, acquisitions, and shareholder returns.

• Fiscal 2027 guidance projects mid-single-digit growth in net sales, gross profit, and adjusted EBITDA, reflecting a conservative approach due to tough year-over-year comparisons and external risks.

Financial highlights

• Fourth quarter consolidated net sales rose 20.6% to $576.2 million; full-year net sales up 22.1% to $2.44 billion.

• Fourth quarter adjusted EBITDA grew 40.2% to $40.1 million; full-year adjusted EBITDA up 49.5% to $204.8 million.

• Net earnings from continuing operations for the year increased 62.4% to $124.1 million; diluted EPS from continuing operations was $4.71, up from $2.87.

• Gross margin for the year was 25.2%, slightly down from 25.6% due to product mix and competitive enterprise sales.

• Q4 gross profit up 11.6% to $141.6 million; Q4 net earnings from continuing operations increased 51.7% to $20.5 million.

Outlook and guidance

• Fiscal 2027 guidance calls for mid-single-digit percentage growth in net sales, gross profit, and adjusted EBITDA, reflecting a conservative approach due to tough year-over-year comparisons and external risks.

• Guidance excludes potential impacts from recessionary conditions or other unexpected developments.

• Open orders are up, but guidance factors in memory chip shortages and geopolitical uncertainties.

• AI strategy is gaining traction, expected to drive future opportunities.