EPLUS INC has recently released its 10-K report. ePlus, together with its subsidiaries, provides IT solutions in the U.S. and selected international markets, with a focus on AI, cloud, data center, security, networking, and collaboration. The company sells third-party hardware, software, maintenance, and related services, and also provides consulting, professional services, managed services, and financing arrangements. Its customers include telecom, media and entertainment, technology, state and local government, educational institutions, healthcare, and financial services.
In Item 7, ePlus said it revised its results to correct certain misstatements in previously issued financial statements for fiscal 2024 and fiscal 2025, describing the corrections as not material individually or in aggregate. The company also said it completed the June 30, 2025 sale of Expo Holdings, LLC and its U.S. subsidiaries, which removed its domestic financing business from continuing operations and left it with three reportable segments: product, professional services, and managed services. ePlus said the divestiture was a strategic shift toward being a technology solutions provider.
For the year ended March 31, 2026, net sales rose to $2.443 billion from $2.000 billion in 2025 and $2.178 billion in 2024. Gross profit increased to $616.1 million from $512.1 million a year earlier, while gross margin edged down to 25.2% from 25.6%. Operating income climbed to $166.1 million from $99.7 million, and operating income margin improved to 6.8% from 5.0%.
Net earnings from continuing operations were $124.1 million, up from $76.4 million in 2025 and $97.3 million in 2024. Diluted earnings from continuing operations were $4.71 per share, compared with $2.87 and $3.64 in the prior two years. Net earnings from discontinued operations were $8.5 million, down from $28.1 million in 2025 and $20.7 million in 2024, bringing total net earnings to $132.6 million.
On a non-GAAP basis, net earnings from continuing operations were $142.1 million, or $5.39 per diluted share, versus $94.0 million, or $3.53 per share, in 2025. Adjusted EBITDA rose to $204.8 million from $137.0 million, and adjusted EBITDA margin increased to 8.4% from 6.9%.
Gross billings totaled $3.838 billion, up from $3.280 billion in 2025 and $3.330 billion in 2024. Product gross billings were $3.372 billion, including networking at $1.152 billion, cloud at $1.017 billion, and security at $841.5 million. Service gross billings were $466.6 million, up from $435.9 million in 2025 and $324.6 million in 2024.
Management said customer demand continues to center on AI, security, cloud solutions, digital transformation, and modernization. It also pointed to a shortage of memory chips tied to AI-ready product demand, saying the shortage is driving longer lead times and higher prices across many IT products and may persist for at least the next few quarters. Today the company's shares have moved -0.03% to a price of $89.16. Check out the company's full 10-K submission here.
