"We are pleased that our annuity service backlog is up approximately 50% and giving us line of sight to future annuity service revenue streams."
— Mark Marron
03Detailed Report
PLUS
Company PLUS
Period
Q4 2024
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 28, 2026
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Executive Summary
ePlus delivered a solid fiscal 2024, with full-year net sales of $2.23 billion, up 7.6% YoY, and gross profit of $550.8 million (gross margin 24.8%). In Q4 2024, net sales rose 12.7% YoY to $551.8 million, and gross billings increased 13.8%, driven by double-digit growth in Technology and Services, alongside a 15.5% uptick in Financing segment revenue. However, Q4 margins and near-term profitability were pressured by a higher mix of low-margin enterprise product sales and elevated headcount/related amortization as management stepped up growth investments. Management signaled a normalization path: gross margins are expected to stabilize in the 24%–26% range for fiscal 2025, with total revenue growth projected at 3%–6% and adjusted EBITDA of $200–$215 million. The company maintains a robust balance sheet, with over $250 million of cash and cash equivalents and a new share repurchase authorization of 1.25 million shares, supporting an active capital allocation strategy (organic investment + acquisitions + buybacks). The AI-focused AI Ignite program represents a meaningful, early-stage growth vector, leveraging ePlus’ core infrastructure, security, and services capabilities to build recurring revenue as customers progress along their AI journeys.
Key Performance Indicators
Revenue
Increasing
551.76M
QoQ: 8.39% | YoY: 12.11%
Gross Profit
Decreasing
122.44M
22.19% margin
QoQ: -8.50% | YoY: -7.47%
Operating Income
Decreasing
27.04M
QoQ: -28.94% | YoY: -36.25%
Net Income
Decreasing
21.98M
QoQ: -19.42% | YoY: -33.09%
EPS
Decreasing
0.83
QoQ: -18.63% | YoY: -33.06%
Revenue Trend
Margin Analysis
Financial Highlights
- Q4 2024 revenue: $551.761 million, up 12.11% YoY; QoQ not available in quarterly table, but Q3 2024 revenue was $509.055 million (implying stronger sequential demand into Q4).
- Q4 2024 gross profit: $122.441 million; gross margin 22.19%; YoY decline of 7.47%, QoQ decline of 8.50% driven by mix shifts toward lower-margin enterprise product sales.
- Q4 2024 operating income: $27.038 million; operating margin 4.90%; YoY decline of ~36.25%, QoQ down ~28.94%.
- Q4 2024 net income: $21.983 million; net margin 3.98%; YoY decline of ~33.09%, QoQ decline of ~19.42%.
- Q4 2024 EPS (diluted): $0.82–0.83; YoY change ~-33.06%, QoQ ~-18.63%.
- Full-year FY2024: Net sales $2.23 billion, up 7.6%; gross profit $550.8 million, gross margin 24.8%; operating income $158.3 million; net earnings $115.8 million; diluted EPS $4.33; Adjusted EBITDA $190.4 million.
- Balance sheet: cash and cash equivalents $253 million; total assets $1.668 billion; total liabilities $766.7 million; stockholders’ equity $901.8 million.
- Cash flow: operating cash flow $248.4 million for the year; free cash flow ~$190.2 million (approx. from disclosed FCF). End-of-year cash >$250 million supports M&A and buybacks.
- Backlog and customers: annuity service backlog up ~50%, customer base grew by ~300 in the year.
- Capital allocation: new buyback authorization for 1.25 million shares; FY2025 guidance for revenue growth 3%–6% and adjusted EBITDA $200–$215 million.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
551.76M
12.11%
8.39%
Gross Profit
122.44M
-7.47%
-8.50%
Operating Income
27.04M
-36.25%
-28.94%
Net Income
21.98M
-33.09%
-19.42%
EPS
0.83
-33.06%
-18.63%
Key Financial Ratios
Gross Profit Margin
Fair
22.20%
Gross profit margin is moderate, room for improvement in cost management
Operating Profit Margin
Weak
4.90%
Operating margin is below industry norms, profitability concerns
Net Profit Margin
Fair
3.98%
Net profit margin is moderate, room for improvement in cost management
Return on Assets
Weak
1.32%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
2.44%
Return on equity suggests inefficient capital allocation
Current Ratio
Healthy
1.85
Current ratio shows adequate liquidity to meet short-term obligations
Debt to Equity
Conservative
0.06
Debt-to-equity shows conservative leverage and low financial risk
P/E Ratio
Fair Value
23.27x
P/E ratio in line with market averages
Price to Book
Fair Value
2.27x
Price-to-book ratio reasonable for profitable companies
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