ePlus inc. (PLUS): Business Model Canvas [Dec-2025 Updated]

You're digging into ePlus inc.'s engine, and honestly, after years watching tech plays, their recent fiscal 2025 performance shows a defintely successful strategic shift away from pure product sales. The numbers tell the story: Services Revenue shot up 37.1% to $400.4 million, proving their focus on high-margin consulting and managed services is paying off, all while they maintain a rock-solid 92.7% customer retention rate on those contracts. With $389.4 million in cash reserves as of March 31, 2025, they have the firepower to keep this momentum going. So, let's map out the nine essential building blocks of their Business Model Canvas to see precisely how this services-led, multi-vendor powerhouse operates.

ePlus inc. (PLUS) - Canvas Business Model: Key Partnerships

You're looking at the core relationships that fuel ePlus inc.'s technology and services delivery, especially as they pivot further into high-margin services and away from the financing side of the ledger. These aren't just vendor relationships; they are deep, often award-winning, strategic alliances that directly impact your access to cutting-edge tech and service delivery capabilities. Honestly, the recent sale of the U.S. financing business makes these technology partnerships even more central to the story.

The company's Fiscal Year 2025 (ended March 31, 2025) saw total net sales of $2,068.8 million, with service revenues growing by 37.1% to $400.4 million, underscoring the importance of these technology alliances in driving that services growth. So, let's break down the heavy hitters.

Strategic Vendor Alliances and Recognition

ePlus inc. maintains high-level partnerships that are validated by consistent industry awards, which you should track as leading indicators of their go-to-market strength with these platforms.

• ePlus inc. was recognized as the Lenovo North American Infrastructure Partner of the Year for the second consecutive year in June 2025.
• They collaborate with Lenovo in the ePlus AI Innovation Lab, showcasing technologies like Lenovo's new liquid cooling for AI infrastructures.
• ePlus is a Broadcom Premier Solution Provider, well-known for its technical expertise with VMware solutions.
• In April 2025, Broadcom named ePlus the 2024 VMware Fastest Growth Partner (Americas), specifically recognizing outstanding year-over-year growth in subscription bookings.
• ePlus is a Microsoft Cloud Solution Provider (CSP), offering Azure services bundled with cost optimization and security monitoring.
• The company is an authorized Azure Migrate and Modernize (AMM) partner, which validates expertise in Migration/Modernization using the Microsoft Cloud Adoption Framework and can unlock customer funding for Professional Services effort.
• ePlus has partnered with Cisco Systems for over two decades, achieving five awards at the 2024 Cisco Partner Summit, including Mass Scale Infrastructure Partner of the Year Globally and for the Americas.
• ePlus was the first North American partner qualified in the Cisco Partner Lifecycle Services Support (PLS-S) program.
• The 2025 Cisco GRIT program, which introduces middle school girls to technology careers, included over 100 students from seven schools.

Here's a quick look at how these key technology relationships stack up, based on recent achievements:

Strategic Financial Institutions and Portfolio Shift

The structure of ePlus inc.'s financing relationships saw a major change in mid-2025. You need to know this because it frees up capital and sharpens the focus on the technology business, which is where the higher gross margins are coming from.

On June 30, 2025, ePlus inc. completed the sale of its U.S. financing business to Marlin Leasing Corporation (operating as PEAC Solutions) for approximately $180 million in initial cash proceeds. This divestiture was a strategic move to concentrate on expanding technology solutions and services. To give you context, for the fourth quarter of Fiscal Year 2025, the financing business segment net sales were $10.9 million, an increase of 4.9% year-over-year for that quarter. This segment contributed to a consolidated gross profit of $145.8 million in Q4 FY2025, with a consolidated gross margin of 29.3%. By contrast, the technology business gross billings for that same quarter were $789.0 million. The financing operations were previously supported by a credit facility with Wells Fargo Commercial Distribution Finance, LLC (WFCDF). As of March 31, 2025, the company held $389.4 million in cash and cash equivalents, which was bolstered by this sale.

Finance: draft 13-week cash view by Friday.

ePlus inc. (PLUS) - Canvas Business Model: Key Activities

Delivering end-to-end multi-vendor IT solutions and hardware procurement is a core activity, though the mix is shifting. For the fiscal year ended March 31, 2025, Technology business net sales were $2,009.1 million, with Technology business gross billings at $3,280.4 million. Product sales for that same fiscal year were subject to digestion following supply chain normalization.

Providing high-margin professional and managed services is a key focus, evidenced by significant growth and integration activities. The acquisition of Bailiwick Services, LLC, closed in August 2024, immediately impacted these figures. For the second quarter of fiscal year 2026 (ended September 30, 2025), professional services segment revenue reached $148.1 million, a year-over-year increase of 49.3%. Managed services segment revenue for that same quarter was $47.4 million, up 13.5% year over year.

Continuous investment and acquisition in high-growth areas like AI and cybersecurity are active pursuits. ePlus inc. completed the acquisition of certain assets of Realwave in a recent quarter to further enhance its AI capabilities. Security remains a significant area of focus, representing 22% of gross billings in fiscal year 2025. The company also launched the Secure GenAI Accelerator, which combines its GenAI platform with technologies from NVIDIA (NASDAQ:NVDA) and AWS.

Maintaining top-tier engineering certifications and technical expertise underpins solution delivery. As of March 18, 2025, ePlus and its teams collectively hold more than 7,000 certifications and accreditations from leading technology providers worldwide. The company has appeared on the CRN Tech Elite 250 list for 12 years.

Managing a global supply chain and logistics for technology products is necessary to support hardware procurement. Inventory levels reflect this activity. Inventory stood at $120.4 million as of March 31, 2025, a decrease of 13.8% compared to March 31, 2024. By September 30, 2025, inventory had increased to $154.1 million.

Here's a look at the service revenue and margin performance as of the latest reported periods:

The focus on services is clear from the revenue mix and margin profile:

• FY2025 Technology business gross billings: $3,280.4 million.
• Q4 FY2025 Professional service revenues: $60.4 million.
• Q4 FY2025 Managed service revenues: $44.5 million.
• Q2 FY2026 Product gross margin: 24.5%.
• ePlus is the only NVIDIA partner in the U.S. with both NVIDIA DGX-Ready SuperPod and DGX-Ready Managed Service Providers specializations.
• The company's headcount at the end of Q4 FY2025 was 2,199, up 299 from a year prior, primarily due to the Bailiwick acquisition.

ePlus inc. (PLUS) - Canvas Business Model: Key Resources

You're looking at what really underpins ePlus inc.'s ability to deliver complex technology solutions-the tangible and intangible assets they rely on. Honestly, in this business, the people and the partnerships are everything.

Highly certified engineering and consultative sales talent pool

The expertise of the team is a massive resource, especially as the market demands more in areas like AI and security. As of January 2025, ePlus inc. had approximately 2,200 employees. These folks aren't just warm bodies; they hold significant technical credentials. Collectively, the employees carry more than 1,700 technical certifications from many preeminent technology vendors. This deep bench allows ePlus to assess, plan, deliver, and secure solutions across cloud, security, networking, and collaboration. If onboarding takes 14+ days, churn risk rises, but this scale helps mitigate that.

Here's a quick look at the human capital metrics we have:

Strong cash reserves of $389.4 million as of March 31, 2025

Financial strength provides the flexibility to invest organically, pursue acquisitions, and return capital to shareholders. As of March 31, 2025, cash and cash equivalents stood at $389.4 million. This was up from $253.0 million as of March 31, 2024. This capital position was further enhanced shortly after the fiscal year-end, with cash and cash equivalents reaching $480.2 million as of June 30, 2025, primarily due to the sale of their domestic financing business. The company also authorized a new stock repurchase program commencing August 11, 2025, up to 1,500,000 shares.

Strategic vendor alliances and top-level partner status

ePlus inc. relies heavily on its relationships with industry-leading technology vendors to offer best-of-breed solutions. These alliances are validated through high-level partner statuses and awards. The company focuses on obtaining top-level engineering certifications with many leading vendors. This focus resulted in specific recognitions in 2025.

• Named the 2024 VMware Fastest Growth Partner by Broadcom.
• Earned NVIDIA DGX SuperPOD Specialization Partner Status in April 2025.
• Recognized on CRN's MSP 500 list in the Elite 150 category for 2025, marking their 10th appearance on the list.

Global network of integration centers and managed services centers

The operational footprint supports the delivery of services globally. ePlus inc. is headquartered in Virginia, with locations spanning the United States, the United Kingdom, Europe, and Asia-Pacific. This geographic reach supports their managed services portfolio, which holds multiple compliance attestations, including SSAE 18 (SOC 1 Type 2), HIPAA attestation, and SSAE 18 SOC 2 Type 2 for cloud-based managed services. Their managed service gross margin for the fourth quarter of fiscal year 2025 was 29.1%.

Proprietary intellectual property in IT lifecycle management and consulting

While specific IP valuation isn't public, the resource manifests as specialized service offerings and methodologies. ePlus provides consulting, professional services, and managed services across the entire technology lifecycle. Their expertise covers areas like orchestration and automation, DevSecOps, zero-trust architectures, and consumption licensing models. The company's services-led approach drove service revenues up 37.1% to $400.4 million for the full fiscal year ended March 31, 2025, demonstrating the value extracted from these specialized capabilities. Professional service revenues alone increased 48.4% in the fourth quarter of fiscal year 2025.

Finance: draft 13-week cash view by Friday.

ePlus inc. (PLUS) - Canvas Business Model: Value Propositions

You're looking at how ePlus inc. (PLUS) delivers distinct value to its customers as of late 2025. It's a shift from just selling boxes to driving outcomes through services.

Services-led approach to drive positive business outcomes, not just product sales

ePlus inc. (PLUS) is clearly prioritizing recurring and service-based revenue streams. This strategy is showing up in the numbers, which is what matters for long-term value. For the fiscal year ended March 31, 2025, service revenues increased by a significant 37.1%, reaching $400.4 million. This focus on services is what drives stickier customer relationships. For instance, in the third quarter of calendar year 2025, services revenue was up 52% year-over-year, hitting $113.6 million. Furthermore, subscription orders, which feed this ratable revenue model, represented 46% of open orders as of the Q3 2025 earnings call.

The value proposition is built on this service momentum, which you can see in the table below:

This shift is key; it means the value is in the ongoing management and optimization, not just the initial transaction.

Expertise in complex, multi-vendor solutions across cloud, security, and AI

ePlus inc. (PLUS) positions itself as the trusted advisor for modernizing technology stacks. This expertise is validated by partner awards and specific growth areas. In Q3 CY2025, security gross billings, a core area of expertise, rose 56% year-over-year, showing strong customer adoption in that domain. To back up the AI component of their offering, ePlus inc. (PLUS) earned NVIDIA DGX SuperPOD Specialization Partner Status in April 2025. You're paying for the ability to navigate these complex, multi-vendor environments.

Financial flexibility via leasing and financing for cost predictability

Historically, financing was a core part of the business, offering customers ways to smooth out capital expenditures. While the company has strategically moved away from this segment to become a pure-play technology provider, the recent financial activity shows the scale of that segment. In the fourth quarter of fiscal year 2025, the Financing business segment net sales were $59.6 million, up 20.7% year-over-year. However, the strategic pivot is clear: ePlus inc. (PLUS) closed the sale of the majority of its domestic financing business on June 30, 2025, generating initial cash proceeds of $180 million. This action reallocates focus to the technology solutions side.

Consultative guidance to navigate complex technology shifts (e.g., VMware licensing)

The consultative value is demonstrated by recognition in areas tied to complex licensing and subscription models. For example, ePlus inc. (PLUS) was named the 2024 VMware Fastest Growth Partner (Americas) by Broadcom, which specifically recognized outstanding year-over-year growth in subscription bookings. This shows they are helping customers manage the shift to subscription-based software consumption, which is a major consultative effort right now. The company's headcount increased by 299 employees year-over-year as of the end of Q4 FY2025, with 272 of those being customer-facing employees, supporting this service and guidance model.

The value proposition is heavily weighted toward expertise and recurring revenue, evidenced by the 37.1% growth in service revenues for the full fiscal year 2025. Finance: draft 13-week cash view by Friday.

ePlus inc. (PLUS) - Canvas Business Model: Customer Relationships

You're looking at how ePlus inc. (PLUS) locks in its clients, and honestly, it's all about embedding themselves in the customer's long-term tech strategy. The core idea here is moving beyond a transactional vendor to become a trusted advisor. This relationship focus is what drives their high-margin services growth, which is key to their current valuation story.

Dedicated account management and long-term technology partnership model

The company explicitly states it is a customer-first, services-led, and results-driven entity. This isn't just marketing fluff; the numbers show a clear pivot toward sticky revenue streams that require ongoing partnership. For example, in the fiscal year ended March 31, 2025, revenue from services grew by 37% for the full year. This growth is the direct result of deepening those customer relationships. The success of this model is evident in the continued expansion of recurring revenue offerings.

Here's a snapshot of the services growth that underpins these long-term ties:

High-touch, consultative selling for complex enterprise IT projects

When you're selling complex solutions like AI, cybersecurity, and cloud migration, you can't just send a catalog. The sales process has to be consultative. ePlus inc. helps organizations modernize their technology stacks through these specific, high-value areas. The growth in professional services revenue, which jumped 48.4% to $60.4 million in the fourth quarter of fiscal year 2025, clearly shows the success of these high-touch engagements, partly fueled by the Bailiwick acquisition. You see this consultative approach in their focus on discovery services, which are key to locking in future business.

• Focus areas driving consultative sales include: AI, cybersecurity, and cloud/data center solutions.
• Security represented 22% of gross billings in fiscal year 2025.
• Professional service revenues hit $60.4 million in Q4 FY2025.

Managed services contracts for recurring, ongoing operational support

The push for ratable and subscription revenue models is a deliberate strategy to build long-term visibility and profitability. Managed services are the backbone of this recurring revenue effort. These contracts provide ongoing operational support, which naturally deepens the relationship over time. For the full fiscal year 2025, managed service revenues grew to $171.3 million. This focus is a hallmark of successful tech services firms. The gross margin for managed services in Q1 FY2026 was 30.4%, showing these contracts are profitable, even with a slight dip from the prior year's 31.4%.

Customer-first, results-driven engagement across the technology lifecycle

The entire engagement philosophy is centered on delivering the best customer outcomes. This means they are involved from initial strategy through to ongoing operations. The results-driven nature is reflected in the overall margin expansion; consolidated gross margin improved to 27.5% for fiscal year 2025, up from 24.8% the prior year. This margin improvement signals that the mix of business is shifting toward higher-value, presumably stickier, services rather than just product sales. The company even started paying a dividend, a $0.25 per share quarterly payment, which suggests confidence in the stability derived from these long-term customer commitments. If onboarding takes 14+ days, churn risk rises, so speed defintely matters here.

ePlus inc. (PLUS) - Canvas Business Model: Channels

You're thinking about how ePlus inc. gets its solutions and services into the hands of its customers. It's a mix of direct engagement and specialized remote delivery, which makes sense given their focus on complex technology solutions.

Direct sales force and consultative professionals represent a significant portion of their human capital. As of late August 2025, ePlus inc. employed about $\mathbf{1,380}$ people total. The Sales and Support team, which drives this direct channel, is the largest department, accounting for $\mathbf{532}$ employees, or roughly $\mathbf{39\%}$ of the entire workforce. This concentration shows you where the primary revenue-generating effort is focused, supporting a services-led approach that saw service revenues hit $\mathbf{\$400.4}$ million in the fiscal year ended March 31, 2025, up $\mathbf{37.1\%}$ year-over-year.

The physical footprint supports this direct engagement globally. ePlus inc. maintains a presence across the Americas, with its headquarters in Herndon, Virginia. For international reach, they operate offices in the United Kingdom (London, serving EMEA HQ) and in India (Bangalore). Overall, the company states it has more than $\mathbf{30}$ locations serving customers around the world, which helps them implement technology solutions both globally and locally.

For remote delivery of support and ongoing management, the Managed Services Centers for remote delivery of support are key. ePlus has at least $\mathbf{3}$ Managed Services Centers in the United States. The largest of these is the facility in the Raleigh, NC area, which spans $\mathbf{12,000}$ square feet. These centers deliver $\mathbf{24x7x365}$ support using an ITIL-based framework.

To showcase architecture design and customer demonstrations, ePlus leverages specialized facilities. The company launched an ePlus AI Experience Center in partnership with Digital Realty. This center is hosted within Digital Realty's Innovation Lab located in Ashburn, Virginia. This facility is designed to demonstrate deployment, management, and optimization of technologies like NVIDIA AI Enterprise, allowing customers to explore AI-specific infrastructure requirements.

Here's a quick look at the scale of the channel structure and its financial output as of the latest available data:

The structure relies on a few key delivery mechanisms:

• Direct engagement via the $\mathbf{532}$-person Sales and Support team.
• Global reach supported by offices in the UK and India, plus over $\mathbf{30}$ total locations.
• Remote, proactive support delivered through $\mathbf{3}$ US-based Managed Services Centers.
• Specialized customer validation via the AI Experience Center in Ashburn, VA.

The growth in service revenue, $\mathbf{37.1\%}$ for FY2025, suggests these channels are effectively driving the higher-margin, ratable business that management is focusing on. If onboarding takes 14+ days, churn risk rises.

ePlus inc. (PLUS) - Canvas Business Model: Customer Segments

You're looking at the customer base for ePlus inc. (PLUS) as of late 2025, and the picture is one of a shift toward services within a large, established client roster. As of March 31, 2025, ePlus inc. (PLUS) served approximately 4,600 customers.

The core is definitely the large and mid-market enterprise organizations across North America. This group forms the bulk of their business, though the company also sells to select international markets like the United Kingdom, the European Union, India, and Singapore. To give you a sense of the scale, for the fiscal year ended March 31, 2025, the technology business segments accounted for 97% of net sales.

When we look at the commercial sectors requiring complex IT infrastructure and services, the data from fiscal year 2025 net sales breakdown shows clear concentrations. Honestly, customer concentration is something you need to watch; for instance, sales to Verizon Communications Inc. made up 16% of net sales for the year ended March 31, 2025. Here's a quick look at how the technology business revenue was split by end market for that same fiscal year:

The public sector clients including government, education, and healthcare are a significant part of that commercial mix. The SLED segment accounted for 17% of revenue, and Healthcare was 14% of revenue for the fiscal year ended March 31, 2025. These are clients that need reliable, multi-vendor IT solutions across the spectrum.

Finally, you see the clear direction in customers seeking to invest in AI, cloud migration, and advanced cybersecurity. This is where ePlus inc. (PLUS) is actively investing its resources. Security is a top priority for these customers; it represented 22% of gross billings in fiscal year 2025. The company is positioning its services portfolio, which saw revenue grow 37% in fiscal year 2025, to meet these modern demands. The total net sales for the entire company in fiscal year 2025 were $2,068.8 million.

Finance: draft 13-week cash view by Friday.

ePlus inc. (PLUS) - Canvas Business Model: Cost Structure

You're looking at the cost side of ePlus inc. (PLUS) as of late 2025. The structure is heavily weighted toward the people delivering the services and the cost of the products they sell.

Personnel costs (salaries and benefits) are the primary operating expense driver. This is clearly visible in the year-over-year comparisons. For the first quarter of fiscal year 2026 (ended June 30, 2025), operating expenses hit $112.0 million, which was up 17.4% from $95.4 million in the prior year period. The primary reason cited for this increase was salaries and benefits from additional headcount.

Operating expenses totaled $427.7 million for fiscal year 2025, which ended March 31, 2025. That represented a 9.0% increase compared to the $392.5 million reported in the prior fiscal year. The increase was attributed mainly to higher salaries and benefits and general and administrative costs, both stemming from increased personnel.

Cost of product sales (Cost of Goods Sold) remains a significant component, reflecting the volume of hardware and software moved through the business. For the fourth quarter of fiscal year 2025, product sales specifically were $382.4 million. For the trailing twelve months ending September 2025, the Cost of Sales was reported at $453.51 million.

The growth in personnel costs is directly tied to strategic expansion. Investment in strategic acquisitions and integration expenses (e.g., Bailiwick) is a clear factor. The acquisition of Bailiwick Services, LLC closed on August 19, 2024. At the end of fiscal year 2025 (March 31, 2025), the total headcount was 2,199, an increase of 299 employees year-over-year, largely due to the Bailiwick acquisition. Similarly, for the first quarter of fiscal year 2026, the headcount was 2,182, up 275 from the prior year, again primarily due to Bailiwick. Operating expenses in the second quarter of fiscal year 2025 specifically included increases in acquisition-related amortization and expenses related to both Bailiwick Services LLC and Peak Resources.

Costs related to maintaining high-level vendor certifications and training are embedded within the personnel and operating expenses, supporting the high-margin services growth. The company's focus on services, with service revenues increasing 33.0% to $104.9 million in Q4 FY2025, necessitates continuous investment in specialized talent and credentials.

Here's a look at the scale of key cost and revenue drivers based on the latest available figures:

The cost structure reflects a business model that is scaling its service delivery capability, which means higher fixed costs related to personnel, even as product sales fluctuate.

• Personnel costs are the main driver of the 9.0% increase in FY2025 operating expenses.
• Acquisition integration costs, like those from Bailiwick, directly inflate operating expenses through amortization and related expenses.
• The shift to services implies higher relative investment in employee skill sets over pure product inventory costs.

Finance: draft 13-week cash view by Friday.

ePlus inc. (PLUS) - Canvas Business Model: Revenue Streams

The revenue streams for ePlus inc. (PLUS) in fiscal year 2025 were heavily influenced by a strategic pivot towards services, which showed significant growth despite an overall decrease in total net sales.

Service Revenues saw substantial growth, increasing by 37.1% to reach $400.4 million for the full fiscal year 2025. This growth in services revenue is a key indicator of the shift in the business model away from pure product resale.

The components making up the revenue streams for ePlus inc. (PLUS) in FY2025 are detailed below:

The Technology Product Sales component, represented by the Technology business net sales, still forms the bulk of the top line, though it contracted in FY2025. The focus on services revenue is clearly evident in the growth figures.

Within the services category, the breakdown shows strong performance in specialized offerings:

• Professional Services revenue growth was reported at 48.2% for the fourth quarter, driven partly by acquisitions.
• Managed Services revenue increased by 24.6% to $171.3 million for the full year, reflecting growth in offerings like Enhanced Maintenance Support and Cloud services.

The Financing business segment also contributed, with its net sales increasing by 20.7% to $59.6 million in fiscal year 2025, attributed to higher transactional gains and portfolio earnings.

The overall financial performance for FY2025 shows that while consolidated gross margin improved to 27.5% from 24.8% in fiscal year 2024, reflecting the higher margin mix from services, net earnings decreased by 6.7% to $108.0 million. Adjusted EBITDA decreased 6.4% to $178.2 million.