Risk factors

Artificial intelligence is newly identified as a security, privacy, regulatory, vendor-service and reputational threat.

Selling the financing business concentrates ePlus on technology solutions and may increase volatility in revenue, cash flow, working capital, and financing needs.

Activist campaigns and two unsolicited acquisition proposals from Irenic and Wesbild/Richmond are newly highlighted as strategic and cost risks.

New geopolitical risk links the Iran conflict to higher energy, transportation, raw-material and borrowing costs.

Going-concern metrics worsened: accumulated deficit reached $67.1 million, operating cash burn $12.3 million, and working capital fell to $5.9 million.

Fiscal 2025 included a $118.4 million deferred-tax benefit whose future reversals could materially affect earnings.

New risks focus on e-commerce fulfillment, wholesale customer failures, merger-related securities litigation, and July 2027 debt maturities.

Content-release concentration and unpredictable audience demand can materially swing revenue, profitability and liquidity in a period.

Commercial-scale validation is now the central technology risk; Terrebonne remains only a small research and development plant.

New disclosures add counterparty-credit, LPG fleet oversupply, sanctions, Venezuela, anti-corruption and U.S. maritime-policy risks.

145 underperforming stores closed, with $14.8 million of closing costs recorded in fiscal 2026’s first quarter.

The pending Reverse Morris Trust with Gentherm creates completion, disruption, value, and execution risks.