ePlus inc. announced its financial results for the third quarter ended December 31, 2024, reporting a slight consolidated net sales increase of 0.4% to $511.0 million. However, net earnings decreased 11.5% to $24.1 million, and diluted earnings per share fell 10.8% to $0.91. Non-GAAP diluted earnings per share also decreased 10.2% to $1.06.
The company's technology business net sales declined 0.2% to $493.1 million, as lower product sales were offset by a 52.2% increase in service revenues to $113.6 million. Technology business gross billings increased 6.6% to $849.5 million, indicating solid customer demand for solutions. Consolidated gross profit increased 5.3% to $140.9 million, with gross margin expanding to 27.6% from 26.3% in the prior year.
Despite the gross profit and margin improvements, consolidated Adjusted EBITDA decreased 15.2% to $39.1 million. Furthermore, ePlus revised its fiscal year 2025 guidance, now expecting net sales in the range of $2.07 billion to $2.11 billion and Adjusted EBITDA in the range of $165.0 million to $171.0 million. This Adjusted EBITDA guidance represents a significant reduction from the previous range of $195 million to $205 million, reflecting ongoing industry shifts and lower product sales.
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