PLUS earnings analysis
What we found in PLUS's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
ePlus delivered $649.113 million in revenue for the June 2026 quarter, up $6.338 million year over year, but gross margin fell 60 basis points to 23.3% and operating income declined $4.108 million to $38.832 million. Continuing-operations diluted GAAP EPS declined to $1.16 from $1.21, while managed services grew 15.1% to $51.302 million and offset declines in professional services. Cash generation was a major improvement, with $76.477 million of operating cash flow and calculated free cash flow of $75.624 million, although the cash conversion cycle lengthened to 41 days.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue edges higher on services growth
- Revenue increased $6.338 million year over year to $649.113 million, led by managed services growth of $6.722 million and product growth of $3.248 million.
- Managed services expands 15.1%
- Managed services was the clear growth engine: sales rose 15.1% to $51.302 million, driven by enhanced maintenance support and cloud services.
- Cash flow turns sharply positive
- Operating cash flow swung to an inflow of $76.477 million from an outflow of $98.967 million a year earlier. Less $0.853 million of property-and-equipment purchases, calculated free cash flow was $75.624 million.
- Capital returns remain substantial
- The company repurchased $25.5 million of stock and paid $7.1 million in dividends during the quarter; 885,813 shares remained under the repurchase authorization at June 30, 2026.
- Floor-plan balance declines; revolver unused
- Floor-plan borrowings declined $7.2 million sequentially to $112.5 million at June 30, 2026, while the $200.0 million revolving facility had no outstanding balance.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Margins and GAAP EPS declined
- Profitability weakened despite revenue growth: gross margin fell 60 basis points to 23.3%, operating margin fell 70 basis points to 6.0%, and continuing-operations diluted EPS declined $0.05 to $1.16 year over year.
- Cash conversion cycle lengthens
- Working-capital intensity increased: the cash conversion cycle rose to 41 days from 26 days, with DSO up to 64 days from 58 days and inventory days up to 22 from 14.
- Chip constraints and funding reliance persist
- Management expects worldwide memory-chip shortages, extended lead times and price increases to likely persist for at least the next few quarters; floor-plan borrowings were $112.5 million against a $500.0 million facility limit.
- No formal risk-factor update; facility remains key
- No material risk-factor changes were reported versus the fiscal 2026 10-K. However, the filing notes that loss of the credit facility could materially affect operations; its revolving component had a $200.0 million maximum limit at June 30, 2026.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $1.16
- Gross margin
- 23.3%
- Operating margin
- 6.0%
- Segment
- Product: $529.603 million revenue, up $3.248 million year over year (+0.6%); gross margin 21.0% versus 21.3%.
- Segment
- Professional services: $68.081 million revenue, down $3.648 million year over year (-5.1%); gross margin 36.9% versus 39.2%.
- Segment
- Managed services: $51.302 million revenue, up $6.722 million year over year (+15.1%); gross margin 29.4% versus 30.4%.
What they said about what is next.
The 10-Q provides no quantitative revenue or EPS outlook. Management states that cash on hand, operating cash generation and available credit should fund working capital, capex and other requirements for at least the next year, while warning that memory-chip lead times and price increases will likely persist for at least the next few quarters.
The filing reads about the same as the one before it.
What came before.
- 10-K · May 28, 2026
- ePlus Inc. reported a strong fiscal year 2026 with revenue reaching $2.44 billion, a 22.1% increase from the prior year, alongside a notable earnings per share (EPS) of $4.71, up from $2.87. The company continues to…
- 10-Q · February 4, 2026
- Plus Therapeutics reported strong Q3 results, exceeding revenue and EPS expectations. Revenue increased to $614.8 million, up by 24.6% year-over-year, while diluted EPS rose significantly to $1.45. The operating margin…
- 10-Q · November 6, 2025
- In its Q2 2025 results, PLUS reported substantial growth in revenue and earnings per share (EPS), significantly exceeding expectations. Revenue soared to $608.8 million, a year-over-year increase of $115.4 million,…
- 10-Q · August 7, 2025
- ePlus inc. reported strong improvement in Q1 2026, with revenues of $637.3 million, up 18.7% year-over-year, significantly surpassing estimates. The company also achieved an EPS of $1.43, exceeding expectations by…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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