ePlus Reports Strong Annual Growth, Completes Strategic Divestiture, and Authorizes New Share Repurchase Program
Summary
ePlus inc. reported strong annual financial performance, successfully divested its domestic financing business, and announced a new share repurchase program and quarterly dividend.
Key Events
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Strong Financial Performance
Net sales increased by $442.4 million (22.1%) to $2.44 billion, operating income surged by $66.5 million (66.7%) to $166.1 million, and diluted EPS from continuing operations grew by 64.1% to $4.71 for the fiscal year ended March 31, 2026, compared to the prior year.
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Strategic Divestiture Completed
The sale of the domestic financing business (HoldCo) was completed on June 30, 2025, yielding net cash proceeds of $164.2 million. This strategic move allows ePlus to focus entirely on its core technology solutions business.
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New Share Repurchase Authorization
The Board authorized the repurchase of up to 1,500,000 shares of common stock, valued at approximately $125.7 million at current prices, over a 12-month period starting August 11, 2025. The company repurchased 362,900 shares for $27.9 million under this plan during the fiscal year.
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Quarterly Dividend Declared
A quarterly cash dividend of $0.27 per common share was declared on May 28, 2026, payable on June 30, 2026, demonstrating consistent shareholder returns.
Analysis
ePlus inc. delivered robust financial results for the fiscal year ended March 31, 2026, with significant increases in net sales, operating income, and diluted EPS from continuing operations. The company also completed the strategic divestiture of its domestic financing business, streamlining its focus on technology solutions. A new, substantial share repurchase authorization and a declared quarterly dividend underscore a commitment to shareholder returns. While a restatement of prior financial periods was noted, it was deemed immaterial, maintaining overall positive sentiment.
At the time of this filing, PLUS was trading at $83.77 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $2.3B. The 52-week trading range was $62.11 to $93.98. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.