Short answer
EPLUS INC (PLUS) filed its fiscal 2025 10-K annual report with the SEC on May 22, 2025. It reported revenue of $2.1B (−7.0% year over year) and net income of $108M.
- Top risk flagged: Accounts receivable concentration risk: 17% of trade invoices due from Verizon Communications as of March 31, 2025
FY2025 key financial metrics · XBRL
- Revenue
- $2.1B
- −7.0% YoY
- Net income
- $108M
- −6.7% YoY
- Operating margin
- 6.8%
- −0.3 pp YoY
- Gross margin
- 27.5%
- +2.8 pp YoY
- EPS (diluted)
- $4.05
- −6.5% YoY
- ROE
- 11.0%
- −1.8 pp YoY
- Operating cash flow
- $302M
- +21.6% YoY
Source: XBRL data from the EPLUS INC (PLUS) FY2025 10-K on SEC EDGAR. USD.
EPLUS INC FY2025 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Core business model: IT solutions provider specializing in third-party software sales and related services with revenue recognition at point of software delivery
- New acquisition of Bailiwick Services, LLC in August 2024 adding approx. 8% of total assets and 4% of revenues to consolidated figures
- Strategic emphasis on careful determination of gross vs net revenue recognition for third-party software and support sales reflecting evolving compliance rigor
- Notable metric: Cash and cash equivalents increased to $389.4M from $253.0M YoY as of March 31, 2025
- Unusual fact: Management excluded Bailiwick Services from internal control assessment due to recent acquisition representing material consolidation adjustment
Management Discussion & Analysis
- Revenue $2.07B, down 7.0% YoY ($156.5M decrease), driven by product segment decline offset by professional and managed services growth and financing segment revenue increase
- Gross margin 27.5% vs 24.8% YoY (+270 bps); operating margin 6.8% vs 7.1% YoY (-30 bps); operating income down $16.8M; net earnings $108.0M vs $115.8M
- Best segment: Professional services revenue up 48.2% to $229.0M with 39.5% margin; Worst segment: Product revenue down 14.6% to $1.61B with margin improving to 23.2% but gross profit down
- Operating expenses up $35.2M to $409.1M due to salaries, G&A, acquisition expenses, and depreciation; Adjusted EBITDA $178.2M flat margin at 8.6%; net earnings per share $4.05 vs $4.33; financing segment Adjusted EBITDA up $9.4M to $35.4M
- Management notes economic, geopolitical risks, pricing pressure, project delays, and interest rate impact on financing growth; focus on AI, security, cloud, digital transformation services; acquisition of Bailiwick in fiscal 2025
Risk Factors
- Accounts receivable concentration risk: 17% of trade invoices due from Verizon Communications as of March 31, 2025
- Supply chain dependence on Cisco Systems: 32% of technology segment net sales from Cisco products in fiscal 2025
- Cybersecurity vulnerabilities: rising risk of AI-enabled cyberattacks and ransomware affecting customer data and operations
- Competitive pressure from larger firms and direct vendor sales, including generative AI advancements impacting market share
- Reliance on $500 million WFCDF Credit Facility with $200 million revolving sublimit, subject to covenants and termination risks
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