ePlus: The Growth Machine Keeps Running, But The Cash Keeps Waiting

2026-03-10 12:08:31 ET

When I published my December follow-up on ePlus Inc. ( PLUS ) after the Q2 FY2026 results, I stepped back from the Strong Buy rating I had initiated back in August; the downgrade was not because the business itself was deteriorating. My main concern was that the quality of the growth had become increasingly decoupled from cash flow. I noted in December that ePlus was growing at ~23% on the top line while simultaneously generating profit without cash. Accounts receivable had surged 30.9% to $676.8 million since the start of FY26, inventory was up 28%, and operating cash flow for the first six months had gone negative....

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