# EPLUS INC (PLUS) Informational only - not investment advice. CIK: 0001022408 SIC: 5045 Wholesale-Computers & Peripheral Equipment & Software SIC breadcrumb: [Wholesale Trade](/division/F/) > [SIC Major Group 50](/major-group/50/) > [SIC 5045 Wholesale-Computers & Peripheral Equipment & Software](/industry/5045/) Latest 10-K filed: 2026-05-28 SEC page: https://www.sec.gov/edgar/browse/?CIK=1022408 Filing source: https://www.sec.gov/Archives/edgar/data/1022408/000114036126023171/ef20070470_10k.htm ## At a glance FY2026 · period end 2026-03-31 · filed 2026-05-28 · accession 0001140361-26-023171 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001022408.json | Metric | Value | FY | Provenance | | --- | ---: | ---: | --- | | Revenue | 2,442,549,000 USD | 2026 | verified | | Net income | 132,636,000 USD | 2026 | verified | | Assets | 1,800,952,000 USD | 2026 | verified | | Free cash flow | -120,660,000 USD | 2026 | computed | | Net margin | 5.43% | 2026 | computed | | Operating margin | 6.80% | 2026 | computed | | Revenue YoY | +22.12% | 2026 | computed | | ROE | 12.41% | 2026 | computed | Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2026 revenue ÷ FY2025 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity. No market price, no rating, no forecast on this site. Not investment advice. ### Peer percentile fingerprint | Ratio | PLUS | Peer median | Percentile | N | | --- | ---: | ---: | ---: | ---: | | Net margin | 5.4% | 2.8% | 76 | 39 | | Operating margin | 6.8% | 5.0% | 58 | 37 | | Revenue growth | 22.1% | 4.0% | 89 | 39 | | FCF margin | -4.9% | 2.4% | 8 | 38 | | ROE | 12.4% | 9.1% | 66 | 39 | | ROA | 7.4% | 3.9% | 82 | 39 | | Liabilities / equity | 0.68 | 1.51 | 24 | 39 | | Current ratio | 2.24 | 2.21 | 54 | 38 | Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC major-group 50 SIC Major Group 50, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking. ## Selected Fundamentals | Metric | Value | Unit | FY | Filed | | --- | ---: | --- | ---: | --- | | Revenue | 2442549000 | USD | 2026 | 2026-05-28 | | Net income | 132636000 | USD | 2026 | 2026-05-28 | | Assets | 1800952000 | USD | 2026 | 2026-05-28 | ## Financials Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-05-28. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001022408.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts. | Metric | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Revenue | | | | | | 1,331,778,000 | 1,418,802,000 | 1,372,673,000 | 1,588,404,000 | 1,568,323,000 | 1,821,019,000 | 2,067,718,000 | 2,178,249,000 | 2,000,168,000 | 2,442,549,000 | | Net income | | | | | | 50,556,000 | 55,122,000 | 63,192,000 | 69,082,000 | 74,397,000 | 105,600,000 | 119,356,000 | 117,982,000 | 104,576,000 | 132,636,000 | | Operating income | | | | | | 85,732,000 | 84,239,000 | 79,534,000 | 95,279,000 | 106,335,000 | 147,316,000 | 166,162,000 | 133,806,000 | 99,686,000 | 166,145,000 | | Gross profit | | | | | | 299,759,000 | 323,482,000 | 330,388,000 | 391,191,000 | 393,554,000 | 460,982,000 | 517,524,000 | 511,742,000 | 512,120,000 | 616,081,000 | | Diluted EPS | | | | | | 3.60 | 3.95 | 4.65 | 2.57 | 2.77 | 3.93 | 4.48 | 4.41 | 3.93 | 5.03 | | Operating cash flow | | | | | | 33,016,000 | 82,766,000 | 39,411,000 | -74,174,000 | 129,507,000 | -20,571,000 | -15,425,000 | 248,449,000 | 302,145,000 | -116,231,000 | | Capital expenditures | | | | | | | | | | | | | 7,664,000 | 5,271,000 | 4,429,000 | | Dividends paid | 0.00 | 20,100,000 | 108,000 | 90,000 | 80,000 | 0.00 | 0.00 | | | | | | 0.00 | 0.00 | 19,662,000 | | Share buybacks | | | | | | 30,493,000 | 35,245,000 | 18,754,000 | 14,425,000 | 6,948,000 | 13,608,000 | 7,224,000 | 9,853,000 | 46,937,000 | 30,629,000 | | Assets | | | | | | 741,720,000 | 755,471,000 | 786,198,000 | 909,113,000 | 1,076,775,000 | 1,166,203,000 | 1,414,826,000 | 1,653,469,000 | 1,879,089,000 | 1,800,952,000 | | Liabilities | | | | | | 395,802,000 | 382,868,000 | 361,945,000 | 422,968,000 | 514,365,000 | 505,465,000 | 632,561,000 | 751,690,000 | 908,431,000 | 731,982,000 | | Stockholders' equity | | | | | | 345,918,000 | 372,603,000 | 424,253,000 | 486,145,000 | 562,410,000 | 660,738,000 | 775,719,000 | 897,439,000 | 970,658,000 | 1,068,970,000 | | Cash and cash equivalents | | | | | | 109,760,000 | 118,198,000 | 79,816,000 | 86,231,000 | 129,562,000 | 155,378,000 | 103,093,000 | 253,021,000 | 389,375,000 | 410,769,000 | | Free cash flow | | | | | | | | | | | | | 240,785,000 | 296,874,000 | -120,660,000 | ### Ratios ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported. | Metric | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Net margin | | | | | | 3.80% | 3.89% | 4.60% | 4.35% | 4.74% | 5.80% | 5.77% | 5.42% | 5.23% | 5.43% | | Operating margin | | | | | | 6.44% | 5.94% | 5.79% | 6.00% | 6.78% | 8.09% | 8.04% | 6.14% | 4.98% | 6.80% | | Return on equity | | | | | | 14.62% | 14.79% | 14.89% | 14.21% | 13.23% | 15.98% | 15.39% | 13.15% | 10.77% | 12.41% | | Return on assets | | | | | | 6.82% | 7.30% | 8.04% | 7.60% | 6.91% | 9.06% | 8.44% | 7.14% | 5.57% | 7.36% | | Liabilities / equity | | | | | | 1.14 | 1.03 | 0.85 | 0.87 | 0.91 | 0.77 | 0.82 | 0.84 | 0.94 | 0.68 | | Current ratio | | | | | | 1.59 | 1.61 | 1.70 | 1.68 | 1.69 | 1.95 | 1.95 | 1.94 | 1.70 | 2.24 | ## As-reported value updates 8 tracked differences above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period. Ledger: /company/PLUS/revisions/ ## Quarterly Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-04. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001022408.json. Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived. | Quarter | End date | Revenue | Net income | Diluted EPS | Method | | --- | --- | ---: | ---: | ---: | --- | | 2023-Q2 | 2022-09-30 | | | 1.07 | reported discrete quarter | | 2023-Q3 | 2022-12-31 | | | 1.34 | reported discrete quarter | | 2024-Q1 | 2023-06-30 | | | 1.27 | reported discrete quarter | | 2024-Q2 | 2023-06-30 | | 33,847,000 | | reported discrete quarter | | 2024-Q2 | 2023-09-30 | 587,611,000 | | 1.22 | reported discrete quarter | | 2024-Q3 | 2023-09-30 | | 32,664,000 | | reported discrete quarter | | 2024-Q3 | 2023-12-31 | 509,055,000 | | 1.02 | reported discrete quarter | | 2024-Q4 | 2024-03-31 | 554,461,000 | 21,983,000 | | derived Q4 = FY annual - nine-month YTD | | 2025-Q1 | 2024-06-30 | 544,538,000 | 27,339,000 | 1.02 | reported discrete quarter | | 2025-Q2 | 2024-06-30 | | 27,339,000 | | reported discrete quarter | | 2025-Q2 | 2024-09-30 | 515,172,000 | | 1.17 | reported discrete quarter | | 2025-Q3 | 2024-09-30 | | 31,310,000 | | reported discrete quarter | | 2025-Q3 | 2024-12-31 | 510,965,000 | | 0.91 | reported discrete quarter | | 2025-Q4 | 2025-03-31 | 498,114,000 | 25,196,000 | | derived Q4 = FY annual - nine-month YTD | | 2026-Q1 | 2025-06-30 | 637,315,000 | 37,697,000 | 1.43 | reported discrete quarter | | 2026-Q2 | 2025-06-30 | | 37,697,000 | | reported discrete quarter | | 2026-Q2 | 2025-09-30 | 608,826,000 | | 1.32 | reported discrete quarter | | 2026-Q3 | 2025-09-30 | | 34,855,000 | | reported discrete quarter | | 2026-Q3 | 2025-12-31 | 614,774,000 | | 1.33 | reported discrete quarter | | 2026-Q4 | 2026-03-31 | 581,634,000 | 25,032,000 | | derived Q4 = FY annual - nine-month YTD | | 2027-Q1 | 2026-06-30 | 649,113,000 | 30,279,000 | 1.16 | reported discrete quarter | ## Filed narrative (10-K & 10-Q) ## Business Verbatim Item 1 Business section from PLUS's latest 10-K: [/company/PLUS/business/](/company/PLUS/business/). ## Risk Factors Verbatim Item 1A Risk Factors from PLUS's latest 10-K: [/company/PLUS/risk-factors/](/company/PLUS/risk-factors/). ## Latest quarter (10-Q) Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1022408/000114036126031274/ef20075178_10q.htm Extracted structurally from real Item 2 body heading to real Item 3/4 boundary. Confidence: high Filing date: 2026-08-04 Report date: 2026-06-30 Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The below is intended to provide context to our consolidated financial condition and results of continuing operations. It should be read in conjunction with the unaudited consolidated financial statements included in this Quarterly Report on Form 10-Q and the audited consolidated financial statements included in our annual report on Form 10-K for the year ended March 31, 2026 (“2026 Annual Report”). These historical financial statements may not be indicative of our future performance. This Management’s Discussion and Analysis of Financial Condition and Results of Operations may contain forward-looking statements, all of which are based on our current expectations and could be affected by the uncertainties and risks described in Part I, Item 1A, “Risk Factors,” in our 2026 Annual Report, as well as those described in our other filings with the SEC. We have revised our results to reflect the correction of certain misstatements in previously issued financial statements for the three months ended June 30, 2025, which we determined are not material either individually or in aggregate. Please see Note 2, “Revision of Previously Issued Consolidated Financial Statements” in the accompanying Consolidated Financial Statements included in “Part I, Item 1. Financial Statements.” EXECUTIVE OVERVIEW Business Description We are a leading information technology (“IT”) solutions provider in the areas of artificial intelligence (“AI”), cloud, data center, security, networking and collaboration. Leveraging our engineering talent, we assess, plan, deliver, and secure solutions comprised of leading technologies aligned with our customers’ needs. Our expertise and experience enable us to craft optimized solutions for our customers that take advantage of the cost, scale, and efficiency of private, public and hybrid cloud services in an evolving IT market. We deliver integrated solutions that address our customers’ IT business needs, leveraging the appropriate technologies, both on-premises and in the cloud. Our approach is to lead with advisory consulting, to understand our customers’ needs, and then design, deploy, and manage IT solutions aligned to their objectives. We are skilled in orchestration and automation, application modernization, DevSecOps, zero-trust architectures, data management, data visualization, analytics, network modernization including high-end optical networking, edge computing and other advanced and IT emerging technologies. These solutions are comprised of class-leading technologies from our commercial partners. AI continues to be a transformative force and a demand driver, particularly for our core products. Across industries, our customers are using AI to enhance their decision making, automate tasks, and drive both growth and efficiency. Through assessments, bespoke workshops and labs and consulting engagements, we deliver actionable outcomes for our customer organizations by using IT and consulting solutions to enhance their decision making, automate tasks and drive business agility and innovation. As part of our solutions, we provide consulting, professional services, managed services, IT staff augmentation, and complete lifecycle management services in the areas of security, cloud, networking, collaboration, and emerging technologies. Further, we offer professional services to our customers in the spaces of digital signage, electric vehicle (“EV”) charging solutions, loss prevention and security, retail store openings, remodels, and closings. We are a reseller for thousands of vendors, which enables us to provide our customers with new and evolving IT solutions. We possess top-level IT engineering certifications with a broad range of leading IT vendors that enable us to offer IT solutions that are optimized for each of our customers’ specific requirements. We serve primarily middle market to large enterprises across diverse markets including telecom, media and entertainment, technology, state and local government and educational institutions (“SLED”), healthcare, and financial services. We sell to customers in the United States (“US”), which account for most of our sales, and to customers in select international markets including the United Kingdom (“UK”), the European Union (“EU”), India, and Singapore. 22 Table of Contents On June 30, 2025, we completed the sale of 100% of the membership interests of Expo Holdings, LLC, a Delaware limited liability company and our wholly-owned subsidiary (“HoldCo”), to Marlin Leasing Corporation, a Delaware corporation (d/b/a PEAC Solutions) pursuant to the terms of the Membership Interest Purchase Agreement, dated June 20, 2025 (the “Sale Transaction”). By selling HoldCo, together with its US subsidiaries, we sold our domestic financing business that comprised most of our financing business segment, which is a business that finances information technology equipment, software and related services for customers. We continue to own the international entities in the financing business. Our sale of HoldCo positions us to focus on being a technology solutions provider and represents a strategic shift in our operations. As a result of the Sale Transaction, we determined that the domestic financing business that was sold met the definition of discontinued operations. Consequently, for all periods presented in these financial statements, we are presenting the results of our domestic financing business as discontinued operations. In our unaudited consolidated statements of operations for all periods, we present the operating results of our domestic financing business in earnings from discontinued operations. After the Sale Transaction, our remaining three reportable segments are product, professional services, and managed services, which we formerly referred to collectively as our technology business. Please refer to Note 13, “Discontinued Operations” in the accompanying Consolidated Financial Statements included in “Part I, Item 1. Financial Statements” for further information. Business Trends We believe the following key factors may impact our business performance and our ability to achieve business results: ● General economic conditions including changes in law and policy by the US government, inflation, tariffs, export requirements, sanctions, changing interest rates, staffing shortages, remote work trends, geopolitical concerns and changes in US government spending and contracting practices may impact our customers’ willingness to spend on IT and services. ● There is a worldwide shortage of memory chips due to the demand for AI-ready products, which is also causing rapid price increases across many IT products. Like others, we may experience ongoing supply constraints for memory chips that may affect: lead times for delivery of products; our having to carry more inventory for longer periods; the costs of products for us and our customers; vendor return and cancellation policies and our ability to meet customer demands. We continue to work closely with our vendors to mitigate disruptions outside our control. Despite these actions, we believe extended lead times and price increases will likely persist for at least the next few quarters. ● Our customers’ top focus areas include AI, security, and cloud solutions, as well as digital transformation and modernization. We have developed advisory services, assessments, solutions, and professional and managed services to meet these priorities and help our customers attain and maintain their desired outcomes. ● Rapid cloud adoption has led to customer challenges around increasing costs, security concerns, and skillset gaps. These challenges are consistent across all industries and business sizes. We have developed a Cloud Managed Services portfolio to address these needs, allowing our clients to focus on driving business outcomes via optimized and secure cloud platforms. ● The IT industry continues to shift from upfront, product-based purchasing toward subscription and consumption-based (“ratable”) models, driven by increased adoption of cloud computing, software-as-a-service (“SaaS”), and as-a-service infrastructure offerings. This transition is changing customer buying behavior, elongating revenue recognition periods and increasing revenues recognized on a net basis, and increasing the importance of recurring revenue streams, while also placing greater emphasis on lifecycle management, financing capabilities, and vendor-aligned service delivery. 23 Table of Contents Key Business Metrics Our management monitors several financial and non-financial measures and ratios on a regular basis to track the progress of our business. We believe that the most important of these measures and ratios include net sales, gross profit, gross profit margin, operating income, net earnings, and net earnings per common share, in each case based on information prepared in accordance with United States Generally Accepted Accounting Principles (“US GAAP”), as well as the non-GAAP financial measures and ratios, including Adjusted EBITDA, Adjusted EBITDA margin, Non-GAAP: Net earnings from continuing operations and Non-GAAP: Net earnings from continuing operations per common share - diluted. We also use a variety of operating and other information to evaluate the operating performance of our business, develop financial forecasts, make strategic decisions, and prepare and approve our annual budgets. We use gross billings as an operational metric to assess the volume of transactions or market share for our product, professional services, and managed services segments, as well as to understand changes in our accounts receivable and accounts payable balances and our statement of cash flows. We believe our gross billings metric will aid investors in the same manner to evaluate our business. These key indicators include financial information that is prepared in accordance with US GAAP and presented in our consolidated financial statements, as well as non-GAAP and operational performance measurement tools. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance or financial position that either excludes or includes amounts that are correspondingly not normally excluded or included in the most directly comparable measure calculated and presented in accordance with US GAAP. Our use of non-GAAP information as an analytical tool has limitations and should not be considered in isolation or as a substitute for analysis of our financial results reported under GAAP, as these measures used by management may differ from similar measures used by other companies, even when similar terms are used to identify such measures. We use Adjusted EBITDA, Adjusted EBITDA margin, Non-GAAP: net earnings from continuing operations and Non-GAAP: net earnings from continuing operations per common share - diluted as supplemental measures of our performance to gain insight into our operating performance and performance trends. We believe that these measures provide management and investors with a useful measure for period-to-period comparisons of our business and operating results by excluding items that management believes are not reflective of our underlying operating performance. Accordingly, we believe that such non-GAAP financial measures provide useful information to investors and others in understanding and evaluating our operating results. Please see footnotes (1) and (2) of the tables below for more information. 24 Table of Contents The following tables provide our key business metrics for our consolidated entity (in thousands, except per share amounts): [Excerpt truncated for page length; source filing is linked above.] ## Latest 10-K MD&A (excerpt) Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/1022408/000114036126023171/ef20070470_10k.htm Complete FY 2026 MD&A: /company/PLUS/mda/fy2026/ Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary. Published MD&A gate trimmed front/tail over-capture. Confidence: high Filing date: 2026-05-28 Report date: 2026-03-31 ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following discussion and analysis of the financial condition and results of operations (the “financial review”) of ePlus is intended to help investors understand our company and our operations. The financial review is provided as a supplement to, and should be read in conjunction with, the Consolidated Financial Statements and the related notes included elsewhere in this Annual Report on Form 10-K. Unless specifically stated, all discussions below reflect continuing operations for all periods presented. We have revised our results to reflect the correction of certain misstatements in previously issued financial statements for fiscal years ended March 31, 2024 and March 31, 2025, which we determined are not material either individually or in aggregate. Please refer to Note 2, “Revision of Previously Issued Consolidated Financial Statements” in the Notes to the Consolidated Financial Statements included in Part II, Item 8 of this Annual Report on Form 10-K. Business Description We are a leading information technology (“IT”) solutions provider in the areas of artificial intelligence (“AI”), cloud, data center, security, networking and collaboration. Leveraging our engineering talent, we assess, plan, deliver, and secure solutions comprised of leading technologies aligned with our customers’ needs. Our expertise and experience enable us to craft optimized solutions for our customers that take advantage of the cost, scale, and efficiency of private, public and hybrid cloud services in an evolving IT market. We deliver integrated solutions that address our customers’ IT business needs, leveraging the appropriate technologies, both on-premises and in the cloud. Our approach is to lead with advisory consulting, to understand our customers’ needs, and then design, deploy, and manage IT solutions aligned to their objectives. We are skilled in orchestration and automation, application modernization, DevSecOps, zero-trust architectures, data management, data visualization, analytics, network modernization including high-end optical networking, edge computing and other advanced and IT emerging technologies. These solutions are comprised of class-leading technologies from our commercial partners. AI continues to be a transformative force and a demand driver, particularly for our core products. Across industries, our customers are using AI to enhance their decision making, automate tasks, and drive both growth and efficiency. Through assessments, bespoke workshops and labs and consulting engagements, we deliver actionable outcomes for our customer organizations by using IT and consulting solutions to enhance their decision making, automate tasks and drive business agility and innovation. As part of our solutions, we provide consulting, professional services, managed services, IT staff augmentation, and complete lifecycle management services in the areas of security, cloud, networking, collaboration, and emerging technologies. Further, we offer professional services to our customers in the spaces of digital signage, electric vehicle (“EV”) charging solutions, loss prevention and security, retail store openings, remodels, and closings. We are a reseller for thousands of vendors, which enables us to provide our customers with new and evolving IT solutions. We possess top-level IT engineering certifications with a broad range of leading IT vendors that enable us to offer IT solutions that are optimized for each of our customers’ specific requirements. We serve primarily middle market to large enterprises across diverse markets including telecom, media and entertainment, technology, state and local government and educational institutions (“SLED”), healthcare, and financial services. We sell to customers in the United States (“US”), which account for most of our sales, and to customers in select international markets including the United Kingdom (“UK”), the European Union (“EU”), India, and Singapore. 25 Table of Contents On June 30, 2025, we completed the sale of 100% of the membership interests of Expo Holdings, LLC, a Delaware limited liability company and our wholly-owned subsidiary (“HoldCo”), to Marlin Leasing Corporation, a Delaware corporation (d/b/a PEAC Solutions) pursuant to the terms of the Membership Interest Purchase Agreement, dated June 20, 2025 (the “Sale Transaction”). By selling HoldCo, together with its U.S. subsidiaries, we sold our domestic financing business that comprised most of our financing business segment, which is a business that finances information technology equipment, software and related services for customers. We continue to own the international entities in the financing business. This divestiture positions us to focus on being a technology solutions provider and represents a strategic shift in our operations. As a result of the Sale Transaction, we determined that the domestic financing business that was sold met the definition of discontinued operations. Consequently, for all periods presented in these financial statements, we are retrospectively presenting the results of our domestic financing business as discontinued operations. In our audited consolidated balance sheets for all periods, we present the assets and liabilities of our domestic financing business as assets and liabilities of discontinued operations. In our audited consolidated statements of operations for all periods, we present the operating results of our domestic financing business in earnings from discontinued operations. After the Sale Transaction, our remaining three reportable segments are product, professional services, and managed services, which we formerly referred to collectively as our technology business. Please refer to Note 5, “Discontinued Operations” in the Notes to the Consolidated Financial Statements included in Part II, Item 8 of this Annual Report on Form 10-K for additional information. Business Trends We believe the following key factors may impact our business performance and our ability to achieve business results: ● General economic conditions including changes in law and policy by the US government, inflation, tariffs, export requirements, sanctions, changing interest rates, staffing shortages, remote work trends, geopolitical concerns and changes in US government spending and contracting practices may impact our customers’ willingness to spend on IT and services. ● There is a worldwide shortage of memory chips due to the demand for AI-ready products, which is also causing rapid price increases across many IT products. Like others, we may experience ongoing supply constraints for memory chips that may affect lead times for delivery of products, our having to carry more inventory for longer periods, costs of products for us and our customers, vendor return and cancellation policies, and our ability to meet customer demands. We continue to work closely with our vendors to mitigate disruptions outside our control. Despite these actions, we believe extended lead times and price increases will likely persist for at least the next few quarters. ● Our customers’ top focus areas include AI, security, cloud solutions, as well as digital transformation and modernization. We have developed advisory services, assessments, solutions, and professional and managed services to meet these priorities and help our customers attain and maintain their desired outcomes. ● Modernizing legacy applications, data modernization, reducing operational complexity, securing workloads, the cost and performance of IT operations, and agility are changing the way companies are purchasing and consuming technology. These are fueling deployments of solutions on cloud, managed services and hybrid platforms and licensing models, which may include invoicing over the term of the engagement and may result in additional revenue recognized on a net basis. ● Rapid cloud adoption has led to customer challenges around increasing costs, security concerns, and skillset gaps. These challenges are consistent across all industries and business sizes. We have developed a Cloud Managed Services portfolio to address these needs, allowing our clients to focus on driving business outcomes via optimized and secure cloud platforms. ● The IT industry continues to shift from upfront, product-based purchasing toward subscription and consumption-based (“ratable”) models, driven by increased adoption of cloud computing, software-as-a-service (“SaaS”), and as-a-service infrastructure offerings. This transition is changing customer buying behavior, elongating revenue recognition periods and increasing revenues recognized on a net basis, and increasing the importance of recurring revenue streams, while also placing greater emphasis on lifecycle management, financing capabilities, and vendor-aligned service delivery. 26 Table of Contents Key Business Metrics Our management monitors several financial and non-financial measures and ratios on a regular basis to track the progress of our business. We believe that the most important of these measures and ratios include net sales, gross profit, gross margin, operating income, net earnings, and net earnings per common share, in each case based on information prepared in accordance with United States Generally Accepted Accounting Principles (“US GAAP”), as well as the non-GAAP financial measures and ratios, including Adjusted EBITDA, Adjusted EBITDA margin, Non-GAAP: Net earnings from continuing operations and Non-GAAP: Net earnings from continuing operations per common share - diluted. We also use a variety of operating and other information to evaluate the operating performance of our business, develop financial forecasts, make strategic decisions, and prepare and approve our annual budgets. We use gross billings as an operational metric to assess the volume of transactions or market share for our product, professional services, and managed services segments, as well as to understand changes in our accounts receivable and accounts payable balances and our statement of cash flows. We believe our gross billings metric will aid investors in the same manner to evaluate our business. These key indicators include financial information that is prepared in accordance with US GAAP and presented in our consolidated financial statements, as well as non-GAAP and operational performance measurement tools. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance or financial position that either excludes or includes amounts that are correspondingly not normally excluded or included in the most directly comparable measure calculated and presented in accordance with US GAAP. Our use of non-GAAP information as an analytical tool has limitations and should not be considered in isolation or as a substitute for analysis of our financial results reported under GAAP, as these measures used by management may differ from similar measures used by other companies, even when similar terms are used to identify such measures. We use Adjusted EBITDA, Adjusted EBITDA margin, Non-GAAP: net earnings from continuing operations and Non-GAAP: net earnings from continuing operations per common share - diluted as supplemental measures of our performance to gain insight into our operating performance and performance trends. We believe that these measures provide management and investors with a useful measure for period-to-period comparisons of our business and operating results by excluding items that management believes are not reflective of our underlying operating performance. Accordingly, we believe that such non-GAAP financial measures provide useful information to investors and others in understanding and evaluating our operating results. Please see footnotes (1) and (2) of the tables below for more information. 27 Table of Contents The following tab [Excerpt truncated for page length; the complete text is on the linked full-MD&A page.] Read the full FY 2026 MD&A: /company/PLUS/mda/fy2026/ All MD&A years: /company/PLUS/mda/ ## MD&A history Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page. - [FY 2025 MD&A](/company/PLUS/mda/fy2025/): filed 2025-05-22; accession 0001140361-25-020204 (https://www.sec.gov/Archives/edgar/data/1022408/000114036125020204/ef20047615_10k.htm) - [FY 2024 MD&A](/company/PLUS/mda/fy2024/): filed 2024-05-23; accession 0001140361-24-027200 (https://www.sec.gov/Archives/edgar/data/1022408/000114036124027200/ef20026293_10k.htm) - [FY 2023 MD&A](/company/PLUS/mda/fy2023/): filed 2023-05-25; accession 0001140361-23-026454 (https://www.sec.gov/Archives/edgar/data/1022408/000114036123026454/brhc20053157_10k.htm) - [FY 2022 MD&A](/company/PLUS/mda/fy2022/): filed 2022-05-26; accession 0001140361-22-020620 (https://www.sec.gov/Archives/edgar/data/1022408/000114036122020620/brhc10037709_10k.htm) ## Macro cross-references Indicators mapped to this company's SIC classification (industry 5045 Wholesale-Computers & Peripheral Equipment & Software) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim. - [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product - [PCE](/indicator/PCE/): Personal Consumption Expenditures - [RSAFS](/indicator/RSAFS/): Advance Retail Sales: Retail Trade - [BOPGSTB](/indicator/BOPGSTB/): U.S. International Trade in Goods and Services: Balance - [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity Macro-to-micro threads including this sector: [Money & trade](/thread/money-trade/), [Industrial orders & inventories](/thread/industrial-orders/), [Trade & external](/thread/trade-external/). All macro indicators: /indicators/ ## For LLMs & downloads Markdown twin: /company/PLUS.md · JSON record: /company/PLUS.json · verified financials: /company/PLUS/financials.json / /company/PLUS/financials.csv · machine TOC for the whole site: /llms.txt