Key Highlights

● First-quarter fiscal 2027 net sales rose 1.0% to US$649.1 million.

● Gross margin fell to 23.3% from 23.9% a year earlier.

● Adjusted EBITDA fell 9.2% to US$47.8 million.

● The board authorised repurchases of up to 1,500,000 shares over twelve months.

Latest verified development

ePlus Inc (NASDAQ:PLUS), a technology solutions provider, reported first-quarter fiscal 2027 results on 4 August 2026 for the quarter ended 30 June. Net sales rose 1.0% to US$649.1 million from US$642.8 million, and gross billings rose 0.5% to US$957.1 million. Gross profit fell 1.5% to US$151.3 million, taking gross margin to 23.3% from 23.9%.

Net earnings were US$30.3 million. Net earnings from continuing operations fell 5.4% from US$32.0 million, and diluted earnings per share from continuing operations were US$1.16 against US$1.21. Non-GAAP diluted earnings per share fell 9.2% to US$1.28 from US$1.41, and adjusted EBITDA fell 9.2% to US$47.8 million from US$52.7 million.

Reading the comparison

The prior-year period is not directly comparable on a total basis. Total net earnings a year earlier were US$42.6 million, which included US$10.6 million from discontinued operations, so the continuing-operations figures give the cleaner like-for-like view. On that basis, profit slipped modestly while sales edged up.

Margins give a further useful angle. Using the reported figures, adjusted EBITDA was about 7.4% of net sales in the quarter, compared with roughly 8.2% a year earlier, a decline of around 0.8 percentage points. Gross margin fell by 0.6 percentage points over the same period. Together they point to a squeeze in profitability per dollar of sales.

Chief executive Mark Marron said the quarter reflected strong execution against a challenging year-over-year comparison. The reported figures show flat sales, a lower gross margin and lower adjusted profitability.

ePlus reports both net sales and gross billings. Gross billings of US$957.1 million were US$308.0 million higher than net sales, a difference that is consistent with a large share of the business being recognised on a net basis.

Outlook and buyback

ePlus reiterated its fiscal 2027 outlook, expecting mid-single-digit year-over-year growth in net sales, gross profit and adjusted EBITDA. Given first-quarter growth of 1.0% in net sales, a decline of 1.5% in gross profit and a decline of 9.2% in adjusted EBITDA, the guidance implies stronger growth in the remaining three quarters.

The board also authorised a new repurchase programme of up to 1,500,000 shares over twelve months starting 11 August 2026. The release stated that the existing plan expires on 10 August 2026. Authorisations set a ceiling and do not oblige the company to buy any particular number of shares.

Gross margin, guidance and the share count

Diluted earnings per share from continuing operations slipped from US$1.21 to US$1.16 while net earnings from continuing operations fell 5.4%. Earnings per share can be supported by repurchases even when net earnings decline, so the share count matters to how the per-share figures read.

A first-quarter gross margin of 23.3%, against 23.9% a year earlier, is the clearest measure of the squeeze that the mid-single-digit guidance for gross profit has to overcome.