ePlus Inc., headquartered in Herndon, VA, is a technology solutions provider specializing in digital transformation initiatives and financing services for various industries. The company operates across a diverse array of sectors, including telecom, healthcare, and finance, and offers products and services that encompass artificial intelligence (AI), cybersecurity, cloud services, and managed services.

During the fiscal third quarter of 2025, ePlus reported stable financial performance, with consolidated net sales of $511 million, slightly up from $509.1 million reported in the same period a year ago. The technology business experienced a marginal decline in net sales, totaling $493.1 million, down from $494.2 million. However, robust service revenues surged 52% year-over-year, reaching $113.6 million, thus contributing positively to overall revenue trends.

Total gross billings increased by 6.6% year-over-year to $849.5 million, reflecting strong demand for ePlus’s service offerings despite a 9.5% decrease in product sales, which fell to $379.5 million from $419.5 million. Consolidated gross profit saw an increase of 5.3% to $140.9 million, leading to a gross margin improvement of 130 basis points, now at 27.6%, compared to 26.3% in the prior year quarter.

Operating expenses rose 17.3% year-over-year to $112.4 million, primarily due to increased headcount associated with recent acquisitions. Despite the rise in expenses, operating income dropped 25.1% to $28.5 million, while net earnings decreased 11.5% to $24.1 million, translating to earnings per diluted share of $0.91, down from $1.02 in the prior year quarter. Adjusted EBITDA declined by 15.2%, amounting to $39.1 million compared to $46.2 million a year ago.

For the first nine months of fiscal 2025, consolidated net sales totaled $1.57 billion, a 6% decrease from $1.67 billion in the previous year. The technology segment’s net sales fell by 6.7% to $1.52 billion, influenced by lower product sales while service revenues grew significantly. Adjusted EBITDA for the nine-month period decreased 12.5% to $134.4 million.

Looking ahead, ePlus has revised its fiscal 2025 guidance, with projected net sales now expected in the range of $2.07 billion to $2.11 billion and adjusted EBITDA estimated between $165 million and $171 million. The guidance reflects anticipated higher gross-to-net adjustments and factors in market conditions that may impact product sales moving forward.