Stock Analysis

Stock Analysis · ePlus inc (PLUS)

Overview

ePlus inc. (PLUS) is a technology solutions provider that helps businesses and public-sector organizations plan, purchase, and manage information technology. In simple terms, it acts as a partner that can supply hardware and software, design and implement IT projects (like cloud and data center modernization), and provide ongoing services to keep systems running and secure.

Its activities are typically organized around two broad areas: (1) selling third-party technology products (hardware, software, and related items) and (2) delivering higher-value services such as consulting, implementation, and managed services. This business model often means revenue can be heavily influenced by customer IT spending cycles, while long-term differentiation tends to come from services capabilities and customer relationships.

Main sources of revenue are generally described in company filings as:

Product revenue (resale of hardware, software, and other third-party technology)
Service revenue (professional services, implementation, and managed services)

Exact percentages can change by fiscal year and are detailed in the company’s annual report segment disclosures.

Over the last several fiscal years shown, total revenue rose from about $1.57B (FY2021) to a peak around $2.23B (FY2024), then moved down to about $2.07B (FY2025). Gross profit increased over the same period (about $394M to about $551M), while net income moved within a narrower band (roughly $74M to $119M, then about $108M in FY2025). This pattern is consistent with a business where product sales can swing total revenue, while profitability depends heavily on mix (products vs. services), pricing discipline, and operating expense control.

Key Figures

Metric	Value	Industry ⓘ
Date	Feb 16, 2026
Context
Sector	Technology
Industry	Software - Application
Market Cap ⓘ	$2.22B
Beta ⓘ	0.99
Fundamental
P/E Ratio ⓘ	14.98	27.48
Profit Margin ⓘ	5.52%	7.66%
Revenue Growth ⓘ	24.60%	15.80%
Debt to Equity ⓘ	12.52%	24.71%
PEG ⓘ	0.87
Free Cash Flow ⓘ	-$65.35M

At the latest point shown, ePlus has a market capitalization of about $2.22B and a beta near 1.0, which indicates its share price has historically moved roughly in line with the broader market. The P/E ratio is ~15.0 versus an industry median around 27.5. Profit margin is about 5.52% (industry median ~7.66%), while revenue growth year-over-year is about 24.6% (industry median ~15.8%). Debt-to-equity is about 12.5%, below the industry median of about 24.7%. Free cash flow (TTM) is shown as -$65.3M, which can happen when working capital needs rise (for example, funding receivables and inventory as sales volumes shift) or when timing effects temporarily weigh on cash generation.

Growth (Medium)

ePlus operates in areas that generally benefit from long-running IT priorities: cloud adoption, cybersecurity, networking modernization, data center refresh cycles, and enterprise software usage. Even when customers slow spending in the short term, many of these needs remain structural because organizations must maintain and update critical systems.

From a strategy standpoint, the company’s mix of product fulfillment plus services can support growth in two ways. First, product sales can scale with large customer refresh cycles. Second, services (implementation and managed services) can deepen customer relationships and potentially improve resilience through more recurring-like engagements. The company’s future trajectory often depends on whether services can grow as a share of gross profit and whether execution remains consistent across changing demand environments.

Year-over-year revenue growth has been volatile, ranging from strong positive periods to several negative quarters. The most recent quarter shown is back to solid growth (around 20.3% YoY). This variability is important context for long-term expectations: results may be influenced by timing of large projects, supply conditions, and customer budgeting cycles, rather than a smooth upward line.

Free cash flow over the period shown swings meaningfully: negative in FY2022 and FY2023, then strongly positive in FY2024 (~$240M) and FY2025 (~$296M). The latest TTM value shown is negative, highlighting that cash generation can be uneven. For a reseller-and-services model, changes in working capital (especially receivables and payables tied to large orders) can materially impact cash flow from year to year.