ePlus inc. (PLUS) SEC Filings & Earnings Calls

Memory chip shortage causing product shipment delays and extended lead times

“we saw product shipment delays and lead times extended by the ongoing memory chip shortage” · word for word

Gross margin compression across all three segments

“Gross profit margin was 23.3%, compared with 23.9% in the prior year quarter, due to lower gross profit margin in all three segments” · word for word

Professional services revenue decline and margin compression

“Professional services segment revenues decreased 5.1% year over year to $68.1 million; gross profit margin decreased to 36.9% from 39.2%”

Memory chip supply constraint

“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.” · word for word

Customer concentration

“A substantial portion of our sales are products from Cisco Systems, which represented approximately 25% and 26% of our net sales for the three months ended June 30, 2026, and 2025, respectively.” · word for word

Revenue revision risk

“In the fourth quarter of our fiscal year ended March 31, 2026, we identified misstatements in our previously issued consolidated financial statements for the fiscal years 2025 and 2024 that related to a misstatement of revenue from our Product segment that resulted from a miscalculation of accrued revenue.” · word for word

Financial Restatement and Clawback

“The Company identified an issue related to an overstatement of revenue...resulted from a miscalculation of accrued revenue as well as certain misstatements related to inventory cost and other expenses in the fiscal years ended March 31, 2024 and March 31, 2025...the Company included revised financial statements to correct such misstatements in its 2026 Form ” · word for word

Dilution from Authorized Share Increase

“We are asking shareholders to approve an amendment...to increase the number of authorized shares of our common stock...from 50 million to 75 million...future issuances of common stock or securities convertible into or exchangeable for common stock may have a dilutive effect on the Company's earnings per share, book value per share and the voting power and in” · word for word

Customer Concentration - Verizon

“Sales to Verizon Communications Inc. represented 24%, 17%, and 19% of our net sales... Our accounts receivable-trade balance included a concentration of approximately 36% and 17% of invoices due from Verizon Communications Inc.” · word for word

Vendor Concentration - Cisco

“Products manufactured by Cisco Systems represented approximately 29%, 32%, and 44% of net sales for the years ended March 31, 2026, 2025, and 2024, respectively.” · word for word

Supply Chain Constraints - Memory Chips

“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.” · word for word

Negative Operating Cash Flow

“During the year ended March 31, 2026, we used $117.4 million through operating activities of continuing operations primarily due to increases in accounts receivable and inventory and decreases in accounts payable.” · word for word

Gross margin compression due to product mix shift toward lower-margin product sales

“Gross margin declined from 26.5% to 24.6% due to product mix shift and increase in net basis sales”

Professional services revenue growth deceleration to 1.6% YoY

“Professional services revenue grew only 1.6% YoY, with declines in consulting and staff augmentation”

Negative operating cash flow from working capital build

“During the nine months ended December 31, 2025, we used $223.4 million through operating activities of continuing operations primarily due to an increase in our accounts receivable and inventories.” · word for word

Memory chip supply constraints and price increases

“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.” · word for word

Professional services revenue decline

“Professional services segment sales for the three months ended December 31, 2025, decreased compared to the same three-month period in the prior year.” · word for word

Professional services segment revenue declined 7.8% due to project delays by retail and consumer customers.

“Professional services segment revenues decreased 7.8% year over year to $64.1 million...primarily due to project delays by certain retail and consumer customers” · word for word

No new risk signals; filing is purely a recast of prior period financials.

Negative operating cash flow from continuing operations

“Net cash provided by (used in) operating activities of continuing operations $ │ (137,623 │ ) $ │ 117,822” · word for word

Integration risk from Bailiwick acquisition

“Professional services segment margin for the three and six months ended September 30, 2025, decreased by 310 basis points and 270 basis points, respectively, from the same three- and six-month periods in the prior year primarily due to our acquisition of Bailiwick” · word for word

Dependence on large enterprise customers

“Our increase in demand was primarily driven by large enterprise customers.” · word for word

Legal liability from discontinued operations.

“Earnings from discontinued operations, net of taxes, for the three months ended September 30, 2025, was a loss of $3.3 million, as compared to earnings of $11.5 million for the same three-month period in the prior year. The loss was due to a contingent liability of $4.6 million, related to a legal matter from our discontinued operations for which we remain r” · word for word