ePlus Reports Higher Sales but Lower Profit in Fiscal Q1 2027, Reaffirms Full-Year Guidance

ePlus inc. reported a 1.0% rise in net sales to $649.1 million for its fiscal first quarter ended June 30, 2026, even as net earnings from continuing operations fell, the company said in a press release announcing its results.

The Herndon, Virginia-based technology solutions provider said net sales increased to $649.1 million from $642.8 million a year earlier, driven by higher product sales and service revenue, according to the filing. Gross billings rose 0.5% to $957.1 million from $952.8 million.

Gross profit fell 1.5% to $151.3 million, and gross profit margin declined to 23.3% from 23.9% in the prior-year quarter, which the company attributed to lower margins across all three of its segments, the filing said. Net earnings from continuing operations decreased 5.4% to $30.3 million, and Adjusted EBITDA fell 9.2% to $47.8 million.

By segment, product sales rose 0.6% to $529.6 million on higher networking, security and collaboration revenue, offset by a decline in cloud products, the company said. Professional services revenue fell 5.1% to $68.1 million due to decreases in project services and staff augmentation. Managed services revenue increased 15.1% to $51.3 million, which the filing said was primarily driven by additional cloud managed services revenue, and represented the segment's first $50 million revenue quarter.

President and CEO Mark Marron said in the filing that the quarter reflected strong execution against a challenging comparison, with record sales and a significant increase in booked and open orders. He also noted that product shipment delays occurred during the quarter due to the ongoing memory chip shortage.

As of June 30, 2026, cash and cash equivalents were $448.9 million, up from $410.8 million as of March 31, 2026, the filing said. Inventory decreased 27.3% to $146.0 million, while accounts receivable-trade, net increased 14.8% to $746.0 million. Total stockholders' equity was $1,072.0 million.

The company reiterated its fiscal year 2027 guidance of year-over-year growth in the mid-single digits for net sales, gross profit and adjusted EBITDA, according to the filing. ePlus also announced a quarterly cash dividend of $0.27 per common share, payable September 16, 2026, and a new stock repurchase program authorizing the buyback of up to 1,500,000 shares over a 12-month period beginning August 11, 2026.

Finazon · prior-day close · Aug 4, 2026