Technology

ePlus Reports Third Quarter and First Nine Months Results

Published

2 years ago

February 5, 2025

Third Quarter Gross Profit Increased 5.3% And Gross Margin Expanded Year Over Year

Third Quarter Fiscal Year 2025

•

Net sales increased 0.4% to $511.0 million; technology business net sales declined 0.2% to $493.1 million; service revenues increased 52.2% to $113.6 million.

•

Technology business gross billings increased 6.6% to $849.5 million.

•

Consolidated gross profit increased 5.3% to $140.9 million.

•

Consolidated gross margin was 27.6%, compared with 26.3% last year.

•

Net earnings decreased 11.5% to $24.1 million.

•

Adjusted EBITDA decreased 15.2% to $39.1 million.

•

Diluted earnings per share decreased 10.8% to $0.91. Non-GAAP diluted earnings per share decreased 10.2% to $1.06.

First Nine Months of Fiscal Year 2025

•

Net sales decreased 6.0% to $1,570.7 million; technology business net sales decreased 6.7% to $1,521.9 million; service revenues increased 38.6% to $295.5 million.

•

Technology business gross billings decreased 0.2% to $2,491.5 million.

•

Consolidated gross profit increased 0.7% to $423.4 million.

•

Consolidated gross margin was 27.0%, compared with 25.2% last year.

•

Net earnings decreased 11.7% to $82.8 million.

•

Adjusted EBITDA decreased 12.5% to $134.4 million.

•

Diluted earnings per share decreased 11.9% to $3.10. Non-GAAP diluted earnings per share decreased 10.8% to $3.56.

HERNDON, Va., Feb. 5, 2025 /PRNewswire/ — ePlus inc. (NASDAQ: PLUS), a leading provider of technology and financing solutions, today announced financial results for the three months and nine months ended December 31, 2024.

Management Comment

“Our third quarter results reflect the benefit of our investment in services and the continuing industry shift toward ratable, subscription and ‘as a service’ revenue recognition,” said Mark Marron, president and CEO of ePlus. “Our services business, driven by organic and inorganic growth, increased 52% in the third quarter, across both managed and professional services. We are also benefitting from acquisitions completed over the past two years which have enhanced our suite of service offerings. This strong services performance in our technology business, however, was offset by lower product sales and a higher proportion of netted down product revenues given the acceleration of the industry shift underway.

“Technology business gross billings increased 6.6% underscoring solid customer demand for our suite of solutions offerings. Consolidated gross profit increased 5.3% and consolidated gross margin expanded 130 basis points, on a lower revenue base as we benefitted from higher proportion of netted down revenues, and increased contribution from higher margin services. We continue to maintain our strong positioning in the fast-growing categories that our customers require and our strong balance sheet positions us well to advance our organic and inorganic growth strategy over time.”

Third Quarter Fiscal Year 2025 Results

For the third quarter ended December 31, 2024, as compared to the third quarter ended December 31, 2023:

Consolidated net sales increased 0.4% to $511.0 million, from $509.1 million.

Technology business net sales declined slightly to $493.1 million, from $494.2 million, as lower product sales were offset by higher service revenues. Technology business gross billings increased 6.6% to $849.5 million, from $797.0 million.

Product sales declined 9.5% to $379.5 million, from $419.5 million and, product margin was 22.1%, up from 21.9% last year, both due to a higher proportion of third-party maintenance, software subscriptions, and services sold in the current quarter, which are recorded on a net basis. Product sales to certain enterprise customers at lower overall margins decreased product margins but was offset by contribution from the netted down revenues.

Professional service revenues increased 73.6% from last year to $69.5 million, from $40.0 million, primarily due to the acquisition of Bailiwick Services, LLC. Gross margins declined to 40.1%, from 43.3% due to a shift in the mix of services provided.

Managed service revenues increased 27.5% to $44.2 million due to ongoing growth in these offerings, including Enhanced Maintenance Support and Cloud services. Gross profit from managed services increased 19.5% from last year due to the increase in revenues. Managed service margins declined to 29.8%, from 31.8%.

Financing business segment net sales increased 19.8% to $17.8 million primarily due to increased proceeds from sales of equipment. Gross profit in the financing business segment increased $2.3 million, from $13.5 million last year to $15.8 million this year, due to the increase in net sales.

Consolidated gross profit increased 5.3% to $140.9 million, from $133.8 million. Technology business gross profit increased 4.0% to $125.0 million due to increased gross profit from the professional and managed services segments offset by a decline in gross profit from the product segment. The financing business segment gross profit increased 16.9% to $15.8 million. Consolidated gross margin was 27.6%, compared with 26.3% last year.

Operating expenses were $112.4 million, up 17.3% from $95.8 million last year, primarily due to increases in salaries and benefits from additional headcount. Our headcount at the end of the third quarter of 2025 was 2,291, up 394 from a year ago, due to the acquisition of Bailiwick Services, LLC on August 19, 2024, and Peak Resources on January 27, 2024. Of the 394 additional employees, 355 were customer facing employees.

Consolidated operating income decreased 25.1% to $28.5 million and earnings before tax decreased 16.3% to $32.2 million. Other income was $3.7 million compared to $0.4 million last year due to higher interest income and foreign currency transaction gains.

Our effective tax rate for the current quarter was 25.0%, lower than the prior year quarter of 29.0%, primarily due to lower state taxes.

Net earnings decreased 11.5% to $24.1 million.

Adjusted EBITDA in the technology business declined 25.1% and increased 23.1% in the financing business segment, and when combined, resulted in a consolidated decrease of 15.2% to $39.1 million.

Diluted earnings per share was $0.91, compared with $1.02 in the prior year quarter. Non-GAAP diluted earnings per share was $1.06, compared with $1.18 in the prior year quarter.

First Nine Months of Fiscal Year 2025 Results

For the nine months ended December 31, 2024, as compared to the nine months ended December 31, 2023:

Consolidated net sales decreased 6.0% to $1,570.7 million, from $1,670.8 million.

Technology business net sales decreased 6.7% to $1,521.9 million, from $1,631.8 million, due to lower product sales, offset by higher service revenues. Technology business gross billings decreased 0.2% to $2,491.5 million, from $2,495.5 million.

Product sales decreased 13.5% to $1,226.4 million, from $1,418.6 million, due to declines in customer demand, as well as a shift in mix. Gross profit from product segment sales decreased 11.7% to $271.9 million, from $308.1 million, due to lower sales combined with a shift in mix towards third-party maintenance and services, which are recorded on a net basis.

Professional service revenues increased 48.1% primarily due to the acquisition of Bailiwick Services, LLC. Gross margins declined slightly to 40.8% from 42.0% for the same period in the prior year.

Managed service revenues increased 27.7% to $126.8 million, from $99.3 million, due to ongoing growth in these offerings, including Enhanced Maintenance Support, Cloud and Service Desk services. Gross profit from managed services increased 23.6% to $38.3 million, from $31.0 million, due to the increase in revenues. Gross margins declined slightly to 30.2% from 31.2% last year.

Financing business segment net sales increased 24.9% to $48.8 million, from $39.1 million, due to higher transactional gains and portfolio earnings offset by lower post-contract earnings. Gross profit in the financing business segment increased $10.7 million primarily due to the increase in sales.

Consolidated gross profit increased to $423.4 million, from $420.4 million. Consolidated gross margin was 27.0%, compared with last year’s gross margin of 25.2%, due to higher product margins.

Operating expenses were $316.7 million, up 8.7% from $291.2 million last year, primarily due to increases in salaries and benefits and general and administrative costs, both of which were due to increases in personnel. The increase in depreciation and amortization was due to the acquisition of Bailiwick Services, LLC.

Consolidated operating income decreased 17.4% to $106.7 million. Earnings before tax decreased 13.0% to $113.0 million. Other income was $6.3 million compared to $0.7 million last year, primarily due to higher interest income.

Our effective tax rate for the current year period was 26.7%, slightly lower than last year’s 27.8%.

Net earnings decreased 11.7% to $82.8 million.

Adjusted EBITDA decreased 12.5% to $134.4 million.

Diluted earnings per common share was $3.10 for the nine months ended December 31, 2024, compared with $3.52 in the prior year. Non-GAAP diluted earnings per common share was $3.56, compared with $3.99 in the prior year.

Balance Sheet Highlights

As of December 31, 2024, cash and cash equivalents increased slightly to $253.1 million, from $253.0 million as of March 31, 2024, as cash generated from operations was used for working capital needs, the acquisition of Bailiwick Services, LLC and repurchases of our common stock. Inventory decreased 29.1% to $99.0 million compared with $139.7 million as of March 31, 2024. Total stockholders’ equity as of December 31, 2024 was $962.3 million, compared with $901.8 million as of March 31, 2024. Total shares outstanding were 26.7 million as of December 31, 2024, and 27.0 million as of March 31, 2024.

Fiscal Year 2025 Guidance

Fiscal year 2025 net sales are now expected to be in the range of $2.07 billion to $2.11 billion, and the adjusted EBITDA range is now expected to be $165.0 million to $171.0 million. ePlus cannot predict with reasonable certainty and without unreasonable effort, the ultimate outcome of unusual gains and losses, the occurrence of matters creating GAAP tax impacts, fluctuations in interest expense or interest income and share-based compensation, and acquisition-related expenses. These items are uncertain, depend on various factors, and could be material to the ePlus’ results computed in accordance with GAAP. Accordingly, ePlus is unable to provide a reconciliation of GAAP net earnings to adjusted EBITDA for the full year 2025 forecast.

Summary and Outlook

“Looking ahead, we are excited about the opportunities we see in areas including AI, cybersecurity and cloud, and are confident in our strategy of investing in these faster growth offerings. We will continue to prioritize investments in these areas as we build upon our broad suite of solutions. Importantly, our cash position is strong and our balance sheet is healthy which provides flexibility to support our growth initiatives, including organic growth in customer facing headcount and acquisitions,” concluded Mr. Marron.

Recent Corporate Developments/Recognitions

In the third quarter, ePlus:

Achieved ISO 9001 CertificationLaunched Secure GenAI AcceleratorAdditionally, effective January 3, 2025, ePlus welcomed Melissa Ballenger as a new member of the Board of Directors.

Conference Call Information

ePlus will hold a conference call and webcast at 4:30 p.m. ET on February 5, 2025:

Date:

February 5, 2025

Time:

4:30 p.m. ET

Audio Webcast (Live & Replay):

https://events.q4inc.com/attendee/412924671

Live Call:

(888) 596-4144 (toll-free/domestic)

(646) 968-2525 (international)

Archived Call:

(800) 770-2030 (toll-free/domestic)

(609) 800-9909 (international)

Conference ID:

5394845# (live call and replay)

A replay of the call will be available approximately two hours after the call through February 12, 2025. A transcript of the call will also be available on the ePlus Investor Relations website at https://www.eplus.com/investors.

About ePlus inc.

ePlus is a customer-first, services-led, and results-driven industry leader offering transformative technology solutions and services to provide the best customer outcomes. Offering a full portfolio of solutions, including artificial intelligence, security, cloud and data center, networking, and collaboration, as well as managed, consultative and professional services, ePlus works closely with organizations across many industries to successfully navigate business challenges. With a long list of industry-leading partners and more than 2,200 employees, our expertise has been honed over more than three decades, giving us specialized yet broad levels of experience and knowledge. ePlus is headquartered in Virginia, with locations in the United States, United Kingdom, Europe, and Asia‐Pacific. For more information, visit www.eplus.com, call 888-482-1122, or email info@eplus.com. Connect with ePlus on LinkedIn, X, Facebook, and Instagram.

ePlus, Where Technology Means More®.

ePlus® and ePlus products referenced herein are either registered trademarks or trademarks of ePlus inc. in the United States and/or other countries. The names of other companies and products mentioned herein may be the trademarks of their respective owners.

Forward-looking statements

Statements in this press release that are not historical facts may be deemed to be “forward-looking statements,” including, among other things, statements regarding the future financial performance of ePlus. Actual and anticipated future results may vary materially due to certain risks and uncertainties, including, without limitation, exposure to fluctuation in foreign currency rates, interest rates, and inflation, including as a result of national and international political instability fostering uncertainty and volatility in the global economy, which may cause increases in our costs and wages and our ability to increase prices to our customers, negative impacts to the arrangements that have pricing commitments over the term of an agreement and/or the loss of key lenders or constricting credit markets as a result of changing interest rates, which may result in adverse changes in our results of operations and financial position; significant adverse changes in our relationship with one or more of our larger customer accounts or vendors, including decreased account profitability, reductions in contracted services, or a loss of such relationships; a material decrease in the credit quality of our customer base, or a material increase in our credit losses, including by the federal government’s actual or attempted termination for convenience, other contract termination or non-performance; our ability to remain secure during a cybersecurity attack or other information technology (“IT”) outage, including disruptions in our, our vendors or other third party’s IT systems and data and audio communication networks; our ability to secure our own and our customers’ electronic and other confidential information, while maintaining compliance with evolving data privacy and regulatory laws and regulations and appropriately providing required notice and disclosure of cybersecurity incidents when and if necessary; ongoing remote work trends, and the increase in cybersecurity attacks that have occurred while employees work remotely and our ability to adequately train our personnel to prevent a cyber event; the possibility of a reduction of vendor incentives provided to us; our dependence on key personnel to maintain certain customer relationships, and our ability to hire, train, and retain sufficient qualified personnel by recruiting and retaining highly skilled, competent personnel, and vendor certifications; risks relating to use or capabilities of artificial intelligence (“AI”) including social and ethical risks; our ability to manage a diverse product set of solutions, including AI products and services, in highly competitive markets with a number of key vendors; changes in the IT industry and/or rapid changes in product offerings, including the proliferation of the cloud, infrastructure as a service (“IaaS”), software as a service (“SaaS”), platform as a service (“PaaS”), and AI; supply chain issues, including a shortage of IT products, may increase our costs or cause a delay in fulfilling customer orders, or increase our need for working capital, or delay completing professional services, or purchasing IT products or services needed to support our internal infrastructure or operations, resulting in an adverse impact on our financial results; our inability to identify acquisition candidates, perform sufficient due diligence prior to completing an acquisition, successfully integrate a completed acquisition, or identify an opportunity for or successfully completing a business disposition, may affect our earnings; our ability to raise capital, maintain or increase as needed our lines of credit with vendors or our floor plan facility, obtain debt for our financing transactions, or the effect of those changes on our common stock price; our ability to implement comprehensive plans for the integration of sales forces, cost containment, asset rationalization, systems integration, and other key strategies; and other risks or uncertainties detailed in our reports filed with the Securities and Exchange Commission. All information set forth in this press release is current as of the date of this release and ePlus undertakes no duty or obligation to update this information either as a result of new information, future events or otherwise, except as required by applicable U.S. securities law.

ePlus inc. AND SUBSIDIARIES

UNAUDITED CONSOLIDATED BALANCE SHEETS

(in thousands, except per share amounts)

December 31, 2024

March 31, 2024

ASSETS

Current assets:

Cash and cash equivalents

$253,074

$253,021

Accounts receivable—trade, net

594,175

644,616

Accounts receivable—other, net

62,280

46,884

Inventories

99,021

139,690

Financing receivables—net, current

148,758

102,600

Deferred costs

67,945

59,449

Other current assets

51,445

27,269

Total current assets

1,276,698

1,273,529

Financing receivables and operating leases—net

87,636

79,435

Deferred tax asset

6,087

5,620

Property, equipment and other assets–net

104,778

89,289

Goodwill

202,794

161,503

Other intangible assets—net

87,783

44,093

TOTAL ASSETS

$1,765,776

$1,653,469

LIABILITIES AND STOCKHOLDERS’ EQUITY

LIABILITIES

Current liabilities:

Accounts payable

$313,046

$315,676

Accounts payable—floor plan

115,744

105,104

Salaries and commissions payable

52,727

43,696

Deferred revenue

154,273

134,596

Non-recourse notes payable—current

24,173

23,288

Other current liabilities

36,848

34,630

Total current liabilities

696,811

656,990

Non-recourse notes payable—long-term

9,622

12,901

Other liabilities

97,003

81,799

TOTAL LIABILITIES

803,436

751,690

COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS’ EQUITY

Preferred stock, $0.01 per share par value; 2,000 shares authorized; none outstanding

–

Common stock, $0.01 per share par value; 50,000 shares authorized; 26,703
outstanding at December 31, 2024 and 26,952 outstanding at March 31, 2024

276

274

Additional paid-in capital

192,087

180,058

Treasury stock, at cost, 880 shares at December 31, 2024 and

447 shares at March 31, 2024

(57,639)

(23,811)

Retained earnings

825,760

742,978

Accumulated other comprehensive income—foreign currency

translation adjustment

1,856

2,280

Total Stockholders’ Equity

962,340

901,779

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

$1,765,776

$1,653,469

ePlus inc. AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

Three Months Ended December 31,

Nine Months Ended December 31,

2024

2023

2024

2023

Net sales

Product

$397,318

$434,371

$1,275,172

$1,457,636

Services

113,647

74,684

295,503

213,205

Total

510,965

509,055

1,570,675

1,670,841

Cost of sales

Product

297,434

328,908

959,027

1,116,046

Services

72,646

46,337

188,291

134,347

Total

370,080

375,245

1,147,318

1,250,393

Gross profit

140,885

133,810

423,357

420,448

Selling, general, and administrative

104,181

89,381

296,760

272,331

Depreciation and amortization

7,676

5,399

18,260

15,821

Interest and financing costs

517

983

1,639

3,054

Operating expenses

112,374

95,763

316,659

291,206

Operating income

28,511

38,047

106,698

129,242

Other income (expense), net

3,650

366

6,302

673

Earnings before taxes

32,161

38,413

113,000

129,915

Provision for income taxes

8,028

11,131

30,218

36,122

Net earnings

$24,133

$27,282

$82,782

$93,793

Net earnings per common share—basic

$0.91

$1.02

$3.12

$3.53

Net earnings per common share—diluted

$0.91

$1.02

$3.10

$3.52

Weighted average common shares outstanding—basic

26,495

26,618

26,568

26,598

Weighted average common shares outstanding—diluted

26,620

26,697

26,727

26,665

Technology Business

Three Months Ended December 31,

Nine Months Ended December 31,

2024

2023

Change

2024

2023

Change

(in thousands)

Net sales

Product

$379,472

$419,478

(9.5 %)

$1,226,397

$1,418,581

(13.5 %)

Professional services

69,497

40,044

73.6 %

168,676

113,870

48.1 %

Managed services

44,150

34,640

27.5 %

126,827

99,335

27.7 %

Total

493,119

494,162

(0.2 %)

1,521,900

1,631,786

(6.7 %)

Gross profit

Product

84,046

91,919

(8.6 %)

271,910

308,059

(11.7 %)

Professional services

27,841

17,332

60.6 %

68,879

47,852

43.9 %

Managed services

13,160

11,015

19.5 %

38,333

31,006

23.6 %

Total

125,047

120,266

4.0 %

379,122

386,917

(2.0 %)

Selling, general, and administrative

100,441

86,001

16.8 %

284,575

261,694

8.7 %

Depreciation and amortization

7,676

5,381

42.7 %

18,260

15,747

16.0 %

Interest and financing costs

–

217

(100.0 %)

–

1,428

(100.0 %)

Operating expenses

108,117

91,599

18.0 %

302,835

278,869

8.6 %

Operating income

$16,930

$28,667

(40.9 %)

$76,287

$108,048

(29.4 %)

Gross billings

$849,546

$796,986

6.6 %

$2,491,482

$2,495,451

(0.2) %

Adjusted EBITDA

$27,498

$36,725

(25.1 %)

$103,803

$132,170

(21.5) %

Technology Business Gross Billings by Type

Three Months Ended December 31,

Nine Months Ended December 31,

2024

2023

Change

2024

2023

Change

(in thousands)

Networking

$214,762

$251,322

(14.5 %)

$716,087

$839,638

(14.7 %)

Cloud

207,762

181,559

14.4 %

644,888

641,120

0.6 %

Security

190,808

189,476

0.7 %

506,256

480,159

5.4 %

Collaboration

22,381

23,180

(3.4 %)

102,074

97,111

5.1 %

Other

76,513

55,473

37.9 %

193,650

203,805

(5.0 %)

Product gross billings

712,226

701,010

1.6 %

2,162,955

2,261,833

(4.4 %)

Service gross billings

137,320

95,976

43.1 %

328,527

233,618

40.6 %

Total gross billings

$849,546

$796,986

6.6 %

$2,491,482

$2,495,451

(0.2 %)

Technology Business Net Sales by Type

Three Months Ended December 31,

Nine Months Ended December 31,

2024

2023

Change

2024

2023

Change

(in thousands)

Networking

$181,367

$209,936

(13.6 %)

$602,883

$723,760

(16.7 %)

Cloud

116,864

120,253

(2.8 %)

375,431

427,365

(12.2 %)

Security

53,919

58,822

(8.3 %)

143,133

156,504

(8.5 %)

Collaboration

8,391

13,608

(38.3 %)

47,278

53,647

(11.9 %)

Other

18,931

16,859

12.3 %

57,672

57,305

0.6 %

Total product

379,472

419,478

(9.5 %)

1,226,397

1,418,581

(13.5 %)

Professional services

69,497

40,044

73.6 %

168,676

113,870

48.1 %

Managed services

44,150

34,640

27.5 %

126,827

99,335

27.7 %

Total net sales

$493,119

$494,162

(0.2 %)

$1,521,900

$1,631,786

(6.7 %)

Technology Business Net Sales by Customer End Market

Three Months Ended December 31,

Nine Months Ended December 31,

2024

2023

Change

2024

2023

Change

(in thousands)

Telecom, Media, & Entertainment

$126,201

$139,551

(9.6 %)

$352,624

$405,192

(13.0 %)

SLED

71,412

60,108

18.8 %

261,195

264,419

(1.2 %)

Technology

71,293

83,951

(15.1 %)

235,387

268,302

(12.3 %)

Healthcare

58,670

55,504

5.7 %

212,185

214,182

(0.9 %)

Financial Services

46,217

38,816

19.1 %

130,701

174,391

(25.1 %)

All other

119,326

116,232

2.7 %

329,808

305,300

8.0 %

Total net sales

$493,119

$494,162

(0.2 %)

$1,521,900

$1,631,786

(6.7 %)

Financing Business Segment

Three Months Ended December 31,

Nine Months Ended December 31,

2024

2023

Change

2024

2023

Change

(in thousands)

Portfolio earnings

$4,466

$3,701

20.7 %

$13,491

$10,113

33.4 %

Transactional gains

8,477

8,107

4.6 %

24,272

16,335

48.6 %

Post-contract earnings

4,743

2,685

76.6 %

10,163

11,357

(10.5 %)

Other

160

400

(60.0 %)

849

1,250

(32.1 %)

Net sales

17,846

14,893

19.8 %

48,775

39,055

24.9 %

Gross profit

15,838

13,544

16.9 %

44,235

33,531

31.9 %

Selling, general, and administrative

3,740

3,380

10.7 %

12,185

10,637

14.6 %

Depreciation and amortization

–

(100.0 %)

–

(100.0 %)

Interest and financing costs

517

766

(32.5 %)

1,639

1,626

0.8 %

Operating expenses

4,257

4,164

2.2 %

13,824

12,337

12.1 %

Operating income

$11,581

$9,380

23.5 %

$30,411

$21,194

43.5 %

Adjusted EBITDA

$11,651

$9,464

23.1 %

$30,612

$21,466

42.6 %

ePlus inc. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP INFORMATION

We included reconciliations below for the following non-GAAP financial measures: (i) Adjusted EBITDA, (ii) Adjusted EBITDA for business segments, (iii) non-GAAP Net Earnings and (iv) non-GAAP Net Earnings per Common Share – Diluted.

We define Adjusted EBITDA as net earnings calculated in accordance with US GAAP, adjusted for the following: interest and financing costs, depreciation and amortization, share-based compensation, acquisition related expenses, provision for income taxes, and other income (expense). Adjusted EBITDA presented for the technology business segments and the financing business segment is defined as operating income calculated in accordance with US GAAP, adjusted for interest and financing costs, share-based compensation, acquisition related expenses, and depreciation and amortization. We consider the interest on notes payable from our financing business segment and depreciation expense presented within cost of sales, which includes depreciation on assets financed as operating leases, to be operating expenses. As such, they are not included in the amounts added back to net earnings in the Adjusted EBITDA calculation.

Non-GAAP net earnings and non-GAAP net earnings per common share – diluted are based on net earnings calculated in accordance with GAAP, adjusted to exclude other (income) expense, share based compensation, acquisition related expenses, and acquisition related amortization expenses, and the related tax effects.

We use the above non-GAAP financial measures as supplemental measures of our performance to gain insight into our operating performance and performance trends. We believe that such non-GAAP financial measures provide management and investors 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.

Our use of non-GAAP information as analytical tools has limitations, and you should not consider them in isolation or as substitutes for analysis of our financial results as reported under GAAP. In addition, other companies, including companies in our industry, might calculate adjusted EBITDA, non-GAAP net earnings and non-GAAP net earnings per common share or similarly titled measures differently, which may reduce their usefulness as comparative measures.

Three Months Ended December 31,

Nine Months Ended December 31,

2024

2023

2024

2023

(in thousands)

Consolidated

Net earnings

$24,133

$27,282

$82,782

$93,793

Provision for income taxes

8,028

11,131

30,218

36,122

Share based compensation

2,933

2,526

8,385

7,145

Acquisition related expenses

–

1,072

–

Interest and financing costs

–

217

–

1,428

Depreciation and amortization [1]

7,676

5,399

18,260

15,821

Other (income) expense, net [2]

(3,650)

(366)

(6,302)

(673)

Adjusted EBITDA

$39,149

$46,189

$134,415

$153,636

Technology Business Segments

Operating income

$16,930

$28,667

$76,287

$108,048

Share based compensation

2,863

2,460

8,184

6,947

Depreciation and amortization [1]

7,676

5,381

18,260

15,747

Acquisition related expenses

–

1,072

–

Interest and financing costs

–

217

–

1,428

Adjusted EBITDA

$27,498

$36,725

$103,803

$132,170

Financing Business Segment

Operating income

$11,581

$9,380

$30,411

$21,194

Share based compensation

201

198

Depreciation and amortization [1]

–

Adjusted EBITDA

$11,651

$9,464

$30,612

$21,466

Three Months Ended December 31,

Nine Months Ended December 31,

2024

2023

2024

2023

(in thousands)

GAAP: Earnings before taxes

$32,161

$38,413

$113,000

$129,915

Share based compensation

2,933

2,526

8,385

7,145

Acquisition related expenses

–

1,072

–

Acquisition related amortization expense [3]

5,983

3,856

14,180

11,348

Other (income) expense [2]

(3,650)

(366)

(6,302)

(673)

Non-GAAP: Earnings before provision for income taxes

37,456

44,429

130,335

147,735

GAAP: Provision for income taxes

8,028

11,131

30,218

36,122

Share based compensation

734

733

2,263

2,005

Acquisition related expenses

–

300

–

Acquisition related amortization expense [3]

1,495

1,115

3,788

3,173

Other (income) expense, net [2]

(913)

(106)

(1,656)

(190)

Tax benefit (expense) on restricted stock

513

226

Non-GAAP: Provision for income taxes

9,372

12,883

35,426

41,336

Non-GAAP: Net earnings

$28,084

$31,546

$94,909

$106,399

Three Months Ended December 31,

Nine Months Ended December 31,

2024

2023

2024

2023

GAAP: Net earnings per common share – diluted

$0.91

$1.02

$3.10

$3.52

Share based compensation

0.08

0.07

0.23

0.19

Acquisition related expenses

–

0.03

–

Acquisition related amortization expense [3]

0.17

0.10

0.39

0.30

Other (income) expense, net [2]

(0.10)

–

(0.17)

(0.01)

Tax benefit (expense) on restricted stock

–

(0.00)

(0.02)

(0.01)

Total non-GAAP adjustments – net of tax

0.15

0.16

0.46

0.47

Non-GAAP: Net earnings per common share – diluted

$1.06

$1.18

$3.56

$3.99

[1] Amount consists of depreciation and amortization for assets used internally.

[2] Interest income and foreign currency transaction gains and losses.

[3] Amount consists of amortization of intangible assets from acquired businesses.

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SOURCE EPLUS INC.

Technology

DataOne Adds Massachusetts Registration and Sales Data to Cross-Sell Reports for Auto Dealers, Expanding State Coverage to 40 States

Published

54 minutes ago

October 19, 2026

BEVERLY, Mass., Oct. 19, 2026 /PRNewswire/ — DataOne Software, a Dominion Enterprises company and a leading provider of automotive data and software solutions, today announced the availability of Massachusetts vehicle registration and sales data within its Cross-Sell Reports market intelligence solutions for dealers. Cross-Sell Reports, including the Cross-Sell Interactive web interface, provide auto dealers with unparalleled insight into local market trends, giving them a competitive edge in reaching new customers and expanding market share. The addition of Massachusetts data to Cross-Sell Reports expands coverage to 40 states.

“As of today, Massachusetts dealers can now access a current, accurate view of new and used vehicle transactions within their market area,” explains David Wall, DataOne head of Cross-Sell Reports. “Localized data, in easy-to-interpret views, are an incredible advantage to dealers who want to spot trends early and make decisions based on accurate market intelligence. We are thrilled to be bringing this capability not only to Massachusetts dealers but also to dealerships in other New England states whose target markets cross into Massachusetts.”

On average, over 3.8 million vehicle transactions are processed monthly for inclusion in Cross-Sell Reports, covering new and used dealer transactions across 40 states, all sourced from official state DMV records. Each dealer subscription is configured to the dealer’s unique market area and provides:

Competitive market share analysis by dealership, make, and modelZIP code-level heat mapping to identify buyer activity and emerging marketsInventory trend analysis to inform stocking decisions by segment and seasonInteractive dashboards with drill-down reporting — no analytics infrastructure required

“We know dealers trust Cross-Sell Reports for critical market insight, and for those insights to be delivered with industry-leading speed and timeliness,” says Jake Maki, DataOne President. “With the addition of Massachusetts state coverage, we continue to expand our coverage providing more dealers with the most immediate, accurate market intelligence available.”

Since welcoming the Cross-Sell brand into DataOne earlier this year, DataOne has accelerated efforts to expand state coverage of vehicle registration and sales data. In addition to Massachusetts, Cross-Sell Reports recently added Mississippi, Kansas and Georgia to its coverage.

“Our goal is to make DataOne the most accurate and comprehensive source of vehicle registration and sales data, however customers choose to use it,” says Maki. “For a dealer, that might be a Cross-Sell Interactive dashboard tuned to their local market. For other customers looking to license the data, it might be multi-state data integrated directly into their own platforms. Every new state we add makes both more valuable.”

In addition to Cross-Sell Reports and Cross-Sell Interactive, DataOne offers Vehicle Registration and Sales Data for licensing via API or FTP data feed, with coverage configurable by state or region.

For general information about DataOne solutions, contact DataOne at 877.438.8467, e-mail sales@dataonesoftware.com or visit dataonesoftware.com. For specific information about Cross-Sell Reports or Cross-Sell Interactive for dealers, visit Cross-Sell Reports.

About DataOne Software

DataOne Software (www.dataonesoftware.com) is a premier automotive data source providing the data and software solutions needed to power modern businesses across all segments of the automotive industry. DataOne’s comprehensive data solutions cover everything from VIN decoding and vehicle descriptions to specifications, optional equipment, and market pricing. With the acquisition of Cross-Sell in 2026, DataOne has expanded our product offering to include PII-free vehicle sales and registration data. Our high-quality solutions are delivered with industry-leading support, making them easy to integrate and scale.

Media Contact

Alice Fackre, Product and Brand Marketing Manager

Email: alice .fackre@dataonesoftware.com

Phone: (978) 473-9097

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SOURCE DataOne Software

Technology

DR. PHONE FIX ENTERS DEVICE LIFECYCLE AND FULFILLMENT MOU WITH GEO NOVA SCOTIA

Published

54 minutes ago

October 19, 2026

Agreement expands Dr. Phone Fix’s institutional platform through device procurement, triage, repair, refurbishment, accessories and fulfillment services

EDMONTON, AB, Oct. 19, 2026 /CNW/ — Dr. Phone Fix Canada Corporation (TSXV: DPF) (“Dr. Phone Fix” or the “Company”), one of Canada’s fastest-growing and award-winning national consumer electronics lifecycle platforms, is pleased to announce that it has entered into a Memorandum of Understanding (“MOU”) with GEO Nova Scotia (“GEO” or “Getting Everyone Online”), a nonprofit organization focused on advancing digital inclusion across Nova Scotia.

Under the MOU, Dr. Phone Fix will provide a broad range of device lifecycle services supporting GEO’s programs, including device procurement and inventory management, donated-device triage, repair and refurbishment, device preparation, accessories, packaging, fulfillment, shipping, tracking and environmentally responsible disposition, with GEO’s approval, of devices that are uneconomical or impractical to repair.

The relationship builds on GEO’s digital inclusion programs across Nova Scotia. Since 2022, GEO has distributed more than 8,500 devices, including almost 3,500 refurbished mobile phones and iPads, and has provided more than 4,500 home internet and mobile phone connections to individuals who otherwise may not be able to afford them. GEO delivers its programs through a network of more than 125 partner agencies across the province.

“This relationship is a strong example of how the infrastructure we have built at Dr. Phone Fix can support customers well beyond the traditional retail environment,” said Piyush Sawhney, Founder and Chief Executive Officer of Dr. Phone Fix. “We can manage a broad range of device lifecycle services – from procurement and inventory management to assessment, repair, preparation and ultimately fulfillment to the end user. We believe this type of institutional relationship represents an important growth opportunity for Dr. Phone Fix as we continue expanding our capabilities across Canada.”

Under the commercial structure contemplated by the MOU, Dr. Phone Fix will generate revenue through the sale of devices to GEO, per-device processing services, accessories and approved repair and refurbishment work, where applicable. DPF will also maintain GEO-owned inventory and manage fulfillment and distribution of devices to GEO program participants and partner organizations.

Each device processed for fulfillment may include services and accessories such as protective cases, screen protection, charging cables and charging equipment, with DPF managing the preparation, packaging, shipment and associated tracking requirements.

Management believes these relationships can leverage DPF’s existing national infrastructure, supplier network, repair capabilities and centralized operating systems while creating incremental revenue streams across device procurement, repair, refurbishment, accessories and fulfillment.

About GEO Nova Scotia

GEO Nova Scotia, or Getting Everyone Online, is a nonprofit organization dedicated to advancing digital inclusion by helping ensure individuals have access to the devices, connectivity and basic skills required to participate in an increasingly digital economy. GEO works with public-sector, private-sector and community partners across Nova Scotia to support individuals facing barriers to digital access.

About Dr. Phone Fix

Dr. Phone Fix is an award-winning, eco-friendly, and customer-centric integrated device care platform providing repair, refurbishment, certified pre-owned devices, trade-in solutions, accessories and related services through its growing national retail network. Founded in 2019, the Company serves consumers and businesses across multiple Canadian markets, delivering convenient and reliable device care solutions through its corporately owned retail network. With a focus on operational execution, customer service and sustainability, Dr. Phone Fix continues to expand its national platform while supporting the repair, reuse and extension of the useful life of connected devices.

www.docphonefix.com

NEITHER THE TSXV NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSXV) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE.

Cautionary Statement Regarding Forward-Looking Information

This news release contains “forward-looking information” within the meaning of applicable securities laws. Forward-looking information can be identified by words such as “intend”, “believe”, “estimate”, “expect”, “may”, “will”, “would”, “could”, “should”, “plans”, “anticipates” and similar references to future periods. Forward-looking information includes, but is not limited to, statements regarding the expected scope, scale and benefits of the Company’s relationship with GEO Nova Scotia; potential revenues from device sales, processing, repair, refurbishment, accessories and related services; the continued expansion of the Company’s institutional and enterprise business; and the Company’s ability to leverage its national operating platform to support additional device lifecycle programs. Forward-looking information is based on management’s current expectations, assumptions and estimates as of the date of this news release. The MOU does not guarantee any specific number of device purchases and does not specify a minimum processing volume, and actual volumes, revenues and profitability may differ materially from management’s expectations. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to differ materially from those expressed or implied. These include, among others, changes in GEO’s program requirements or funding, actual device volumes, availability and condition of donated and purchased devices, supply chain and inventory availability, repair and fulfillment costs, operational execution, termination or modification of the MOU, competitive conditions and general economic and business conditions. Readers are cautioned not to place undue reliance on forward-looking information. The Company undertakes no obligation to update or revise any forward-looking information except as required by applicable law.

SOURCE Dr. Phone Fix

Technology

A Speed Cap Nobody Will Own Just Shook Up the Satellite Trade

Published

54 minutes ago

October 19, 2026

WASHINGTON, Oct. 19, 2026 /PRNewswire/ — USA News Group News Commentary – Ukrainian President Volodymyr Zelenskyy said on Saturday that tests showed Starlink-equipped drones lost their connection when flying faster than about 100 mph inside Ukraine, while Starlink terminals moving at more than 112 mph inside the European Union worked normally. “In other words, this is a planned operation,” he said. No one in Washington or at SpaceX has claimed the decision. Most U.S.-listed space stocks fell sharply last week, while Europe’s only low Earth orbit broadband rival to SpaceX had its best day in 16 months. Active Companies from around the markets with current developments this week include: Space Exploration Technologies Corp. (NASDAQ: SPCX), AST SpaceMobile, Inc. (NASDAQ: ASTS), Iridium Communications Inc. (NASDAQ: IRDM), Rocket Lab Corporation (NASDAQ: RKLB), Eutelsat Communications SA (Euronext Paris: ETL).

The restrictions reportedly cover both Starlink and Starshield, SpaceX’s military-use service, which Ukraine relies on for communications, logistics, live drone video and targeting. The Telegraph reported on Oct. 16, citing four unnamed sources, that Elon Musk approached President Trump with the idea of slowing Starlink in Ukraine and that Trump “agreed.” Musk said on X that speed or usage limits on Starshield “are decided by the US military and ultimately POTUS.” Trump told reporters, “it wasn’t me, and I don’t think it was Elon.”

Secretary of State Marco Rubio said on Saturday, “We had nothing to do with it. Nobody ordered that Starlink speed to be slowed down. It sorta happened.” He also said Starshield was not available to Ukraine, which Yahoo Finance noted conflicts with a late 2024 Pentagon contract that expanded Ukraine’s Starshield access from about 500 to roughly 3,000 terminals. Speaking on NBC’s Meet the Press on Sunday, Zelenskyy said, “Just give us back Starlink.”

Europe is paying close attention. The European Union is working to develop its own alternative to Starlink, and on Sunday the U.S. ambassador to the EU threatened “devastating” retaliation if the bloc advanced a proposal favoring EU-made satellites over companies like SpaceX, Yahoo Finance reported.

CONTINUED… Read this and more news for the space sector at: usanewsgroup.com

In other industry developments and happenings in the market this week include:

Space Exploration Technologies Corp. (NASDAQ: SPCX)

Shares of SpaceX fell 10.17% last week, from $162.57 at the Oct. 9 close to $146.03 on Oct. 16, according to Stock Analysis data, though they remain above the $135 price of the company’s June initial public offering. Starlink, a core part of SpaceX’s business, has more than 13 million subscribers worldwide, and Yahoo Finance noted this is the first throttling episode since the company went public.

SpaceX has limited service in Ukraine before. In 2023, President and COO Gwynne Shotwell acknowledged the company could restrict how Ukraine used Starlink, saying, “There are things that we can do, and have done.” Musk said on X last week that Starlink “is limited to civilian or defensive activities.”

AST SpaceMobile, Inc. (NASDAQ: ASTS)

AST SpaceMobile, which is building a space-based cellular broadband network that connects directly to standard smartphones, fell 20.23% last week, from $50.97 to $40.66. On Oct. 13, Piper Sandler downgraded the stock to Neutral from Overweight and cut its price target to $54 from $98, citing SpaceX’s direct-to-cell ambitions after its agreement to acquire Grain Management’s 800 MHz spectrum for about $8 billion, subject to regulatory approval.

Piper warned that SpaceX could, in theory, limit launch opportunities for competitors such as AST and pressure pricing by competing with telecom operators. Not every analyst agreed. Deutsche Bank upgraded the shares to Buy on Oct. 12 with a $93 target, and Clear Street reiterated a Buy rating with a $115 target, arguing AST is about six months ahead of SpaceX in direct-to-cell.

Iridium Communications Inc. (NASDAQ: IRDM)

Iridium announced on Oct. 14 that Altair Semiconductor is adding Iridium NTN Direct to its ALT1350 and ALT1550 cellular IoT chipsets, letting device makers, module makers and mobile network operators add satellite coverage without a separate satellite modem. “Iridium is offering device manufacturers a powerful new way to develop connected products,” said Tim Last, executive vice president at Iridium.

Iridium stockholders approved the company’s acquisition by Rocket Lab on Sept. 24, with about 99.6% of votes cast in favor. Each Iridium share is to be exchanged for $27.00 in cash plus Rocket Lab stock based on an exchange ratio subject to a collar, for a notional value of $54.00 per share, and the deal is expected to close by mid-2027, subject to remaining regulatory approvals. Iridium shares fell 7.82% last week, from $47.47 to $43.76.

Rocket Lab Corporation (NASDAQ: RKLB)

Rocket Lab shares fell 25.47% last week, from $68.21 to $50.84, after founder and CEO Sir Peter Beck said in a video posted to YouTube that the first launch of the company’s Neutron rocket would move from late 2026 into 2027. Inspectors found voids in the carbon-fiber layers of a recently made forward propellant dome after curing, according to Space.com.

Beck said the voids “don’t necessarily mean that the dome would fail in flight,” but added, “Possible success isn’t our standard.” Rocket Lab expects to finish a new forward dome by the end of the year and complete first-stage testing in the first quarter of 2027, after which Beck said the company expects to be “in good shape to share a new target launch date.”

Eutelsat Communications SA (Euronext Paris: ETL)

Eutelsat shares jumped 23% on Oct. 14, the stock’s biggest one-day gain in 16 months, Reuters reported, after Ukraine said Starlink had introduced restrictions on its military-grade service. Eutelsat’s OneWeb network has more than 600 satellites in low Earth orbit, compared with about 10,000 for Starlink, and it is the only company besides SpaceX providing space-based internet through a low Earth orbit network. Bernstein analyst Aleksander Peterc said the news put European providers “back in the spotlight as potential alternatives.”

Not everyone sees an easy swap. Existing Starlink users cannot simply switch to OneWeb, since a transition would require new terminals and supporting infrastructure, and independent consultant Christian Freiherr von der Ropp said “considering it as a straightforward substitute overlooks significant operational and infrastructure constraints.”

Space stocks swung hard on headlines last week. Learn to read the charts behind moves like these with the free Stock Preachers guide, plus The Roadmap market reports, at stockpreachers.com.

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This article is independent news commentary. USA News Group is wholly owned and operated by Market Equities Limited (“MEL”), a company incorporated under the laws of Ireland. MEL has not been paid by any company mentioned in this article. MEL and its owners, operators, directors, and affiliates do not currently own any shares of the companies mentioned in this article, but reserve the right to, and will, buy and sell shares of those companies at any time without further notice. Weekly price changes are from the October 9, 2026 close to the October 16, 2026 close based on Stock Analysis data. Information is drawn from company news releases, published reporting and third-party data believed to be reliable, but its accuracy is not guaranteed. Investing in securities carries risk, including the loss of some or all of your investment. This document is governed by the laws of Ireland.

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SOURCE USA News Group