Eplus (PLUS) risk factors, FY2025 10-K

Other

1. 01RISKS SPECIFIC TO OUR BUSINESS
2. 02If one or more of our large volume customers significantly reduces purchasing from us or there is a material change in profitability of sales to our customers, our results of operations may be affected
3. 03We may fail to innovate, develop, or sell new solutions which align with changing market and customer demand, and we may fail to provide our services to a professional standard, and we face substantial competition from other companies, including certain larger, well-established companies
4. 04We may be required to make substantial additional investments in research, development, marketing, and sales in order to respond to competition, and we cannot assure you that these investments will achieve any returns for us or that we will be able to compete successfully in the future
5. 05We rely on a small number of key vendors and third parties, and do not have long-term supply or guaranteed price agreements or assurance of inventory availability from our vendors
6. 06As we do not stock inventory that is not related to an order we have received from our customers, we depend upon the supply of products available from our vendors to fulfill orders from our customers on a timely basis
7. 07Breaches of data security and the failure to protect our information technology systems and confidential information from cybersecurity threats, our inability to maintain compliance with data privacy laws and regulations, or misuse of our customers’ or employees’ information could adversely impact our business
8. 08We may not be able to hire and/or retain personnel that we need
9. 09We depend on having creditworthy customers to avoid an adverse impact on our operating results and financial condition
10. 10We may experience a reduction in incentives offered to us and earned by us from our vendors that would affect our earnings
11. 11If we are unable to identify acquisition candidates, or perform sufficient due diligence prior to completing an acquisition, or fail to successfully integrate a completed acquisition, or identify an opportunity for or successfully complete an asset disposition, our earnings may be affected
12. 12The terms of our WFCDF Credit Facility or loss thereof may restrict our current and future operations, which could adversely affect our ability to respond to changes in our business and to manage our operations
13. 13Issues relating to the use or capabilities of AI, including legal, social, ethical, and accuracy issues, in hardware, software and services offerings may result in reputational harm and liability and increased costs
14. 14We may not have adequately designed or maintained our IT platforms for internal use or solutions we offer to our customers or have adequate or competent IT personnel to support our business, or we may have inadequate training and technology safeguards to prevent a cyber event
15. 15Our results of operations are subject to financial losses due to translation of foreign currency
16. 16A natural disaster or other adverse event at one of our primary configuration centers, warehouses, data centers, or a third-party provider location could negatively impact our business
17. 17We may not be able to realize our entire investment in the equipment we lease
18. 18We may be required to take impairment charges for goodwill or other intangible assets related to acquisitions
19. 19Actual or anticipated epidemics, pandemics, outbreaks, or other public health crises may adversely affect our customers’ and suppliers’ financial condition and the operations of our business

RISKS RELATED TO THE ECONOMY AND OUR INDUSTRY

1. 20General economic weakness may harm our operating results and financial condition
2. 21We depend on continued competitive innovations in hardware, software, and service offerings by our vendors, and our ability to partner with new and emerging technology providers and adapt to changes in the IT industry
3. 22Changes in interest rates or the loss of key lenders or the constricting of credit markets may affect our future profitability and our ability to monetize our financing receivables and investments in operating leases

RISKS RELATED TO LAWS AND REGULATIONS

1. 23Failure to comply with new laws or changes to existing laws may adversely impact our business
2. 24We may not adequately protect ourselves through our contract vehicles, or our insurance policies may not be adequate to address potential losses or claims
3. 25Failure to comply with our public-sector contracts or applicable laws and regulations could result in, among other things, termination, fines or other liabilities, and changes in procurement regulations could adversely impact our business
4. 26We face risks of claims from third parties for intellectual property infringement, including counterfeit products, which could harm our business
5. 27We may be unable to protect our intellectual property and costs to protect our intellectual property may affect our earnings

RISKS RELATED TO OWNERSHIP OF OUR STOCK

1. 28Our common stock price may be volatile and may decline regardless of our operating performance, and holders of our common stock could lose a significant portion of their investment
2. 29changes in key personnel
3. 30There can be no assurance that we will continue to repurchase any of our common stock under our share repurchase program
4. 31Future offerings of debt or equity securities, which would rank senior to our common stock, may adversely affect the market price of our common stock