Q3 2025 ePlus inc Earnings Call Transcript
Key Points
- ePlus Inc (PLUS) reported a significant increase in subscription orders, up 51.4% year over year, indicating strong future growth potential.
- The company achieved a 52% year-over-year growth in services revenue, reaching a new high of $114 million.
- The finance segment delivered a solid quarter with a 20% increase in revenue, driven by higher proceeds from equipment sales and portfolio earnings.
- ePlus Inc (PLUS) is leveraging AI to improve internal efficiencies and customer satisfaction, which is expected to provide long-term cost savings.
- The company's balance sheet remains strong, providing financial flexibility to support future growth initiatives both organically and through acquisitions.
- Total revenues were flat year over year, primarily due to lower product sales, which were only partially offset by high-margin service revenue.
- Adjusted EBITDA decreased by 15% as higher earnings in the finance segment were offset by a decrease in the technology business.
- The company experienced softer than expected hardware sales and lower demand from some enterprise customers.
- Operating expenses increased by 17.3% year over year, primarily due to increased headcount from acquisitions and business investments.
- ePlus Inc (PLUS) adjusted its fiscal 2025 financial outlook, reflecting higher gross to net adjustments and potential impacts from tariffs.
Good day, ladies and gentlemen. Welcome to the ePlus Earnings for conference call. As a reminder, this conference call is being recorded.
I would like to introduce your host for today's conference. Mr. Kleyton Parkhurst Senior Vice President. Sir, you may begin.
Thank you for joining us today. On the call is Mark Marron, CEO and President; Darren Raiguel, COO and President of ePlus Technology; Elaine Marion, CFO and Erica Stoecker, General Counsel.
I want to take a moment to remind you that the statements we make this afternoon that are not historical facts may be deemed to be forward-looking statements and are based on management's current plans, estimates and projections. Actual and anticipated future results may vary materially due to certain risks and uncertainties detailed in the earnings release we issued this afternoon and our periodic filings with the Securities and Exchange Commission, including our most recent annual report on Form 10-K, quarterly reports on
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