Customer concentration
A few large customers can materially affect revenue and receivables if purchasing changes.
- Scope
- Verizon represented 16% of net sales in fiscal 2025 and ~17% of A/R invoices due
- Materiality
- high
ePlus inc
ePlus Inc. is a U.S.-based IT solutions reseller and services company that combines third-party hardware and software with consulting, professional services, managed services, and lifecycle support. It helps enterprise and public-sector customers design, deploy, secure, and operate technology environments across cloud, networking, security, collaboration, and emerging technologies. The company also historically offered financing, though that business was sold in 2025, leaving ePlus more concentrated in technology solutions.
7,9 %
25,2 %
5,4 %
+18,1 %
2.24
1.92
| % | |
|---|---|
| IT Products Resale | 78% Resale of third-party hardware, software, maintenance, and software assurance. |
| Professional Services | 11% Advisory, design, implementation, and staff augmentation services for IT projects. |
| Managed Services | 8% Subscription-based monitoring and management of cloud, security, and collaboration environments. |
| Financing Business | 3% Legacy financing, leasing, and asset management activities that were sold in 2025. |
ePlus sells primarily to middle-market and large enterprises, plus state and local government and education customers...
- Large enterprise customersprimary
Buy data center, cloud, security, networking, and collaboration solutions, often with managed services attached.
- State and local government and education (SLED)primary
Buy IT products and services for public-sector modernization, deployment, and lifecycle support.
- Telecommunications, media and entertainmentprimary
Buy infrastructure, collaboration, and managed services for large-scale network and workplace environments.
- Healthcaresecondary
Buy secure, reliable IT infrastructure and managed services to support clinical and operational systems.
- Financial servicessecondary
Buy security, cloud, and networking solutions with strong compliance and uptime requirements.
The company generates most of its revenue in the United States, which is also where its configuration centers and...
- •United States is the core revenue base and operating center
- •Configuration centers are strategically distributed across the U.S.
- •Select international sales in the UK, EU, India, and Singapore
- •Customer innovation and AI experience centers support solution selling
- •Global vendor and supply-chain exposure can affect delivery timing
ePlus is shifting further toward higher-value technology solutions by combining product resale with consulting, managed...
01
Grow recurring managed servicesshort-term
Recurring services improve revenue visibility and deepen customer relationships beyond product resale.
02
Broaden integrated solution mixmedium-term
Bundling products, services, and lifecycle support increases wallet share and differentiates ePlus from pure resellers.
03
Pursue selective acquisitionsmedium-term
Acquisitions can add customer relationships, engineering talent, and geographic footprint.
04
Build AI and emerging technology capabilitiesmedium-term
AI and automation are becoming part of enterprise infrastructure buying decisions and can expand solution relevance.
ePlus faces customer concentration risk, especially from large accounts such as Verizon, and its contracts are...
Supply-chain disruption
The company depends on third-party vendors for hardware and software availability.
- Scope
- Delays, tariffs, bankruptcies, or logistics issues can disrupt customer installations
- Materiality
- high
Competitive pressure
Large IT resellers and direct OEM channels can compress pricing and win rates.
- Scope
- Especially relevant in product resale and enterprise solution bids
- Materiality
- high
Post-divestiture concentration
Selling the financing business reduces diversification and increases reliance on core tech segments.
- Scope
- Higher volatility in revenue, cash flow, and working capital
- Materiality
- high
Revenue recognition for bundled IT solutions
Affects timing of revenue and gross margin by period
Residual asset valuation
Can create impairment charges or change lease economics
Goodwill and intangible impairment
Could materially reduce earnings if business conditions weaken
Quarterly seasonality and project timing
Makes quarterly comparisons less linear and more volatile
: 28.4.2026