ePlus inc.

Fourth-quarter consolidated net sales increased 20.6% to $576.2 million; gross billings grew 11.7% to $881 million; gross profit was $141.6 million; gross margin was 24.6% versus 26.5% last year; operating income rose 64.7% to $30.9 million; diluted EPS from continuing operations was $0.78 versus $0.51; adjusted EBITDA increased 40.2% to $40.1 million. Full-year net sales were $2.4 billion, up 22.1%; gross billings were $3.8 billion, up 17%; gross profit was $616.1 million; gross margin was 25.2% versus 25.6%; operating income grew 67%; diluted EPS from continuing operations was $4.71 versus $2.87; adjusted EBITDA was $204.8 million, up 49.5%. Cash and cash equivalents ended at $410.8 million, and the company repurchased 90,000 shares in the quarter. For fiscal 2027, management expects net sales, gross profit and adjusted EBITDA to grow in the mid-single-digit range.

Mark Marron framed fiscal 2026 as a transformational year defined by strong execution, market share gains and a shift to a pure-play technology solutions and services provider after divesting the domestic financing business. He emphasized momentum in AI, cloud, data center, networking and security, along with healthy backlog, disciplined cost management and operating leverage. His tone was positive but measured, repeatedly noting conservative guidance due to the memory chip shortage and geopolitical uncertainty.

Elaine Marion highlighted the operating leverage in the model: full-year net sales grew 22.1% while operating expenses rose only 9.1%, with headcount essentially flat and adjusted EBITDA up 49.5% to $204.8 million. In Q4, product revenue was $466.2 million, services revenue was $110 million, gross margin was 24.6%, and diluted EPS from continuing operations was $0.78; for the full year, diluted EPS from continuing operations was $4.71. She also noted cash and cash equivalents of $410.8 million, inventory of $200.9 million, a cash conversion cycle of 51 days, repurchases of 90,000 shares, and the 8% dividend increase to $0.27 per share.

Analysts focused on what sits behind the mid-single-digit fiscal 2027 guidance and whether management was being conservative. Mark Marron said the outlook reflects a tough compare, memory shortage-related lead times, and geopolitical unrest, while also noting that open orders are up and AI opportunities are starting to show meaningful progress. On margins, Darren Raiguel said the lower large-enterprise product margins reflect current mix, but he sees room for expansion over time through a land-and-expand motion and additional services attach.