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|8-KJan 26, 4:10 PM ET

EPLUS INC 8-K

Research Summary

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Updated

ePlus Inc. Recasts Prior Financials After Sale of U.S. Financing Unit

What Happened

  • ePlus Inc. filed a Form 8-K (Jan 26, 2026) to retrospectively recast portions of its Annual Report on Form 10-K (filed May 22, 2025) so the domestic financing business is shown as discontinued operations.
  • The company sold 100% of the membership interests in Expo Holdings, LLC (its HoldCo for the U.S. financing business) to Marlin Leasing Corporation (d/b/a PEAC Solutions), completing the sale on June 30, 2025 under a June 20, 2025 purchase agreement. The domestic financing business primarily financed IT equipment, software and related services. ePlus continues to own its international financing entities.

Key Details

  • Sale completed: June 30, 2025 (Membership Interest Purchase Agreement dated June 20, 2025).
  • Buyer: Marlin Leasing Corporation (d/b/a PEAC Solutions).
  • Reporting change: domestic financing business presented as discontinued operations beginning with the Form 10-Q for the quarter ended June 30, 2025 (filed Aug 7, 2025).
  • Recast scope: Exhibit 99.1 provides retrospective recasts of Part II, Item 7 (MD&A) and Part II, Item 8 (Financial Statements and Supplementary Data) of the 2025 Form 10-K; these recast figures will be incorporated by reference into certain registration statements and future filings.

Why It Matters

  • For investors, recasting the U.S. financing business as discontinued operations separates the effects of that divested unit from ongoing operations, making trends in revenue, profit and cash flow for the continuing business clearer.
  • The sale represents a strategic shift: ePlus is focusing on being a technology solutions provider rather than a U.S. equipment-financing provider. The change could affect future revenue composition and comparability with prior periods, so review the recast MD&A and financial statements when assessing performance.
  • The 8-K states this filing only recasts prior-period information and does not otherwise amend or restate the 2025 Form 10-K; investors should also read ePlus’s subsequent 10-Q filings for later developments.