ePlus (PLUS) Financials

ePlus (CNSX:PLUS) has delivered solid profitability, but the latest quarterly trends show some pressure on cash generation and a more leveraged balance sheet than a year ago. Revenue is still growing year over year, earnings remain healthy, and the company continues to produce accounting profits. However, operating cash flow has been volatile, working capital swings have been large, and debt has increased compared with the same period last year.

What stands out most from the last four years is that ePlus has generally kept margins respectable for an IT solutions and services business, but the business is highly sensitive to changes in receivables, inventory, and payables. That means reported earnings can look strong even when cash flow is uneven.

• Revenue growth remains intact. Q4 2026 revenue rose to $581.6 million from $498.1 million in Q4 2025, and Q1 2026 revenue was $637.3 million versus $535.7 million a year earlier.
• Profitability stayed positive. Q4 2026 net income attributable to common shareholders was $25.0 million, and full-year quarterly earnings have generally remained profitable across the period.
• Operating margins are still acceptable. In Q4 2026, operating income was $37.6 million on $581.6 million of revenue, showing the company is still converting sales into operating profit.
• Gross profit has expanded over time. Compared with Q1 2024 gross profit of $142.3 million, the company posted $147.1 million in Q4 2026 and $162.1 million in Q2 2026, suggesting the business can still grow profit dollars.
• Share count has been fairly stable. Diluted shares outstanding in recent quarters have hovered around 26 million, so earnings are not being heavily diluted.
• The company generated a large cash inflow in Q4 2026. Net change in cash and equivalents was a strong $84.5 million, helped by operating activities and other cash movements.
• Balance sheet liquidity remains sizeable. Cash and equivalents were $326.3 million at Q3 2026 and $480.2 million at Q1 2026, which gives the company flexibility even as cash levels fluctuate.
• Goodwill and intangibles remain meaningful. These assets are large relative to total assets, so investors should keep an eye on acquisition-related risk and potential impairment exposure.
• Operating cash flow has been volatile and sometimes negative. Q3 2026 operating cash flow was -$87.4 million, and Q2 2026 was -$34.8 million, largely due to working-capital swings.
• Working capital is the key risk. Large changes in receivables, inventories, and payables have repeatedly driven cash flow well away from net income, making quarterly cash generation less predictable.
• Debt has risen versus last year. Q3 2026 short-term debt was $24.2 million and long-term debt $9.6 million, compared with a much lighter debt load in some prior periods.
• Current liabilities remain elevated. Q3 2026 current liabilities were $682.1 million, close to current assets of $1.45 billion, leaving less room than the headline asset base might suggest.

Bottom line: ePlus looks like a profitable business with decent revenue momentum, but the cash flow profile is lumpy and balance-sheet leverage has increased. For retail investors, the stock’s appeal appears to depend on whether management can keep earnings growing while normalizing working capital and maintaining strong liquidity.