ePlus exits financing business, faces AI chip shortages and Verizon concentration risk

Filed May 28, 2026 · Period ending March 31, 2026 · Compared to 10-K May 22, 2025 · ~2 min read

Key Changes

• high

  Sold domestic financing business (25% of FY25 operating income) to PEAC Solutions for $156.7M net cash, exiting equipment leasing to focus solely on technology solutions. Contingent earn-out reduced by $4.2M, signaling weaker-than-expected post-sale performance.

  MD&A: Sale of Financing Business verify on EDGAR →
• high

  Verizon concentration doubled: now 24% of net sales (vs 16% prior year) and 36% of accounts receivable (vs 17%), creating material customer and credit risk if Verizon delays payment or reduces spending.

  Risk Factors: Customer Concentration verify on EDGAR →
• high

  Worldwide memory chip shortage driven by AI demand causing rapid price increases, extended lead times, and higher inventory carrying costs. Management expects constraints to persist for at least the next few quarters.

  MD&A: Supply Chain verify on EDGAR →