NASDAQ$PLUS

ePlus Inc · Q3 2025 earnings

Q3 2025 earnings · · After market close · Investor relations

Briefing

ePlus reported a slight increase in net sales and gross profit for the third quarter of fiscal year 2025, driven by strong service revenue growth, despite a decline in product sales.

ePlus reported a modest increase in net sales to $511.0 million and a 5.3% increase in consolidated gross profit to $140.9 million for the third quarter of fiscal year 2025. This growth was primarily fueled by a significant 52.2% increase in service revenues, which reached $113.6 million, offsetting a slight decline in technology business net sales. Net earnings and diluted EPS saw a decrease compared to the prior year.

  • Net sales increased 0.4% to $511.0 million.
  • Service revenues surged by 52.2% to $113.6 million, driven by organic and inorganic growth.
  • Consolidated gross profit increased 5.3% to $140.9 million, with gross margin expanding to 27.6%.
  • Net earnings decreased 11.5% to $24.1 million, and diluted EPS fell 10.8% to $0.91.

Headline financials

Total Revenue

$511M

Previous: $509M+0.4%
EPS (adj)

$1.06

Previous: $1.02+3.9%
Adjusted EBITDA

$27M

Previous: $46.2M-41.5%
Consolidated Gross Margin

25.4%

Previous: 26.3%-3.4%
Effective Tax Rate

26.9%

Previous: 29.0%-7.2%
Capital Expenditures

-$1.49M

No prior period
Net Income

$24.1M

Previous: $27.3M-11.5%
Operating Income

$28.5M

Previous: $38M-25.1%
Gross Profit

$141M

Previous: $134M+5.3%

Revenue & EPS history

ePlus · Revenue · Quarterly

$511M

Q3 2025+0.4%vs Q3 2024
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Forward guidance

ePlus expects fiscal year 2025 net sales to be in the range of $2.07 billion to $2.11 billion, and adjusted EBITDA to be between $165.0 million and $171.0 million. The company is confident in its strategy of investing in faster growth offerings like AI, cybersecurity, and cloud.

Tailwinds

  • Continued investment in faster growth offerings such as AI, cybersecurity, and cloud.
  • Strong positioning to advance organic and inorganic growth strategy.
  • Healthy balance sheet provides flexibility for growth initiatives.
  • Focus on customer-facing headcount and acquisitions.
  • Confidence in meeting customer requirements in fast-growing categories.

Headwinds

  • Inability to predict the ultimate outcome of unusual gains and losses.
  • Uncertainty regarding GAAP tax impacts.
  • Fluctuations in interest expense or income.
  • Variability in share-based compensation.
  • Potential acquisition-related expenses impacting results.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q3 2025

Historical avgQ3 2025

+1.3%

Avg return

Earnings day

+1.4%

Avg return

5 days after

+2.0%

Avg return

30 days after

59%

38 / 64 earnings

Positive

+21.8%

Q2 2016

Best reaction

-23.0%

Q2 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026
Q3 2026-1.7%+0.3%-9.4%
Q2 2026+15.5%+24.8%+22.4%
Q1 2026+9.5%+17.0%+11.9%
Q4 2025+2.0%+7.1%+9.3%
Q3 2025-13.1%-14.7%-19.0%
Q2 2025-17.9%-19.3%-19.5%
Q1 2025+6.9%+9.1%+13.0%
Q4 2024-0.4%-1.7%-7.8%
Q3 2024-12.0%-2.4%+3.5%
Q2 2024-9.3%-7.3%+5.2%
Q1 2024+14.4%+13.5%+12.9%
Q4 2023+4.9%+7.4%+15.5%
Q3 2023+8.3%+5.5%-3.2%
Q2 2023+3.4%+4.7%+2.9%
Q1 2023-13.5%-13.2%-17.3%
Q4 2022+2.8%+2.4%-1.1%
Q3 2022+0.1%+1.0%+11.1%
Q2 2022+6.2%+0.4%-6.9%
Q1 2022+6.7%+7.4%+18.2%
Q4 2021-5.4%-3.2%-12.1%
Q3 2021+6.8%+7.2%+14.6%
Q2 2021+5.0%+7.3%+21.8%
Q1 2021+0.5%+2.8%-0.1%
Q4 2020+6.8%+5.8%-2.6%
Q3 2020+7.3%+1.6%-11.7%
Q2 2020+20.7%+10.9%+5.6%
Q1 2020+13.9%+9.1%+13.4%
Q4 2019-19.7%-16.5%-22.1%
Q3 2019+4.9%+4.8%+10.6%
Q2 2019-5.1%-5.3%-13.0%
Q1 2019-4.0%-5.9%-1.2%
Q4 2018-1.4%+1.9%+6.3%
Q3 2018-8.3%-6.1%+7.2%
Q2 2018-23.0%-22.3%-18.7%
Q1 2018+7.8%+2.9%+1.0%
Q4 2017+5.0%+3.7%+0.3%
Q3 2017+6.4%+8.7%+14.7%
Q2 2017+7.6%+5.1%+22.9%
Q1 2017-2.0%-0.7%+6.8%
Q4 2016+0.7%+1.1%-3.6%
Q3 2016-17.0%
Q2 2016+21.8%
Q1 2016+4.8%
Q4 2015-9.7%
Q3 2015+18.2%
Q2 2015+19.0%
Q1 2015+5.8%
Q4 2014-0.8%
Q3 2014+9.2%
Q2 2014-0.8%
Q1 2014-7.8%
Q4 2013-3.1%
Q3 2013+1.2%
Q2 2013-5.0%
Q4 2012-2.9%
Q1 2013+1.4%
Q4 2010+4.2%
Q2 2011+1.8%
Q3 2012+1.8%
Q3 2011+1.8%
Q2 2012+1.6%
Q4 2011+0.0%
Q1 2012+0.0%
Q1 2011+0.0%

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