Eplus (PLUS) risk factors, FY2026 10-K

Eplus's FY2026 10-K, filed May 28, 2026, lists 29 risk factors in 3 groups. Against the prior year's 31: 3 new, 5 dropped, 11 substantially reworded.

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Risk factors listed
293 groups
New this year
3vs 31 last year
Dropped
5since the prior 10-K
Substantially reworded
11of those kept
Section length
9k wordsItem 1A

What the changes say

  • Selling the financing business concentrates ePlus on technology solutions and may increase volatility in revenue, cash flow, working capital, and financing needs.
  • Customer payment risk is newly emphasized, while Verizon receivables concentration rose from 17% to 36%.
  • Competition now explicitly includes cloud marketplaces and hyperscale cloud providers, and public-sector compliance penalties are more detailed.
  • Vendor concentration remains material, with Cisco representing 29% of technology-segment sales in 2026.

What changed since the prior 10-K

New

  • New

    Any financial losses of our customers that inhibit their ability to pay us may have an adverse impact on our operating results and financial condition

    Customer losses or economic downturns could delay or prevent payment for products, maintenance, and software subscriptions.

  • New

    We may not achieve the operational and financial results that we anticipated after completing the sale of our financing business

    Selling the financing business to Marlin Leasing reduces revenue diversification and may make technology-only results more volatile than expected.

  • NewRisks Related to Ownership of our Stock

    There can be no assurance that we will continue to declare and pay dividends to our common stockholders

    Future dividends are uncertain because they depend on results, capital needs, debt restrictions, law, and Board decisions.

Dropped

  • Dropped

    As 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

  • Dropped

    We depend on having creditworthy customers to avoid an adverse impact on our operating results and financial condition

  • Dropped

    We may not be able to realize our entire investment in the equipment we lease

  • DroppedRISKS RELATED TO THE ECONOMY AND OUR INDUSTRY

    Changes 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

  • DroppedRISKS RELATED TO OWNERSHIP OF OUR STOCK

    changes in key personnel

Reworded

  • 74% rewritten

    We 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

    Cisco’s share of technology-segment sales fell to 29% from 32% and 44%; the other key-vendor group now includes Dell rather than Dell EMC.

  • 58% rewritten

    We 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

    Competition now specifically includes cloud marketplaces and hyperscale cloud providers, and vendors or distributors may sell directly to end-users.

  • 50% rewrittenRisks Related to Ownership of our Stock

    Our 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

    The volatility discussion was reformatted and slightly rephrased, including changing failure to obtain guidance to failure to achieve guidance.

  • 43% rewrittenRisks Related to Laws and Regulations

    We may not adequately protect ourselves through our contract vehicles, or our insurance policies may not be adequate to address potential losses or claims

    The contract risk now expressly adds rapid price increases and resulting order cancellations.

  • 32% rewritten

    A 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

    The facilities discussion now includes other professional services, in addition to product configuration, warehouse, and logistics services.

  • 28% rewrittenRisks Related to Laws and Regulations

    Failure 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

    The prior focus on DOGE-driven federal funding cuts was replaced with detailed risks of noncompliance, fines, contract termination, audits, and government suspension or debarment.

  • 28% rewritten

    We 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

    The reference to rapidly evolving data privacy regulation was broadened to rapidly evolving regulations.

  • 27% rewritten

    If 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

    Verizon represented approximately 36% of trade-receivable invoices at March 31, 2026, versus 17% at March 31, 2025.

  • 23% rewrittenRisks Related to the Economy and our Industry

    We 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

  • 22% rewrittenRisks Related to the Economy and our Industry

    General economic weakness may harm our operating results and financial condition

  • 20% rewritten

    We 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

All 29 risk factors

Headings as the filing states them, in filing order.

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 affected27% rewritten
  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 companies20% rewritten
  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 future58% rewritten
  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 vendors74% rewritten
  6. 06Breaches 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
  7. 07We may not be able to hire and/or retain personnel that we need
  8. 08Any financial losses of our customers that inhibit their ability to pay us may have an adverse impact on our operating results and financial conditionNew
  9. 09We may experience a reduction in incentives offered to us and earned by us from our vendors that would affect our earnings
  10. 10If 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
  11. 11The 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
  12. 12Issues 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
  13. 13We 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 event28% rewritten
  14. 14Our results of operations are subject to financial losses due to translation of foreign currency
  15. 15A 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 business32% rewritten
  16. 16We may be required to take impairment charges for goodwill or other intangible assets related to acquisitions
  17. 17Actual or anticipated epidemics, pandemics, outbreaks, or other public health crises may adversely affect our customers’ and vendors’ financial condition and the operations of our business
  18. 18We may not achieve the operational and financial results that we anticipated after completing the sale of our financing businessNew

Risks Related to the Economy and our Industry

  1. 19General economic weakness may harm our operating results and financial condition22% rewritten
  2. 20We 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 industry23% rewritten

Risks Related to Laws and Regulations

  1. 21Failure to comply with new laws or changes to existing laws may adversely impact our business
  2. 22We may not adequately protect ourselves through our contract vehicles, or our insurance policies may not be adequate to address potential losses or claims43% rewritten
  3. 23Failure 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 business28% rewritten
  4. 24We face risks of claims from third parties for intellectual property infringement, including counterfeit products, which could harm our business
  5. 25We 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. 26Our 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 investment50% rewritten
  2. 27There can be no assurance that we will continue to declare and pay dividends to our common stockholdersNew
  3. 28There can be no assurance that we will continue to repurchase any of our common stock under our share repurchase program
  4. 29Future offerings of debt or equity securities, which would rank senior to our common stock, may adversely affect the market price of our common stock

Other Eplus 10-Ks

  • FY2025 10-K risk factors
    31 risks

    Technology solution provider heavily reliant on vendor Cisco Systems for revenue and product supply. Financing segments and credit facilities tie operating results to macroeconomic credit conditions. Non-exclusive customer contracts with short termination windows expose earnings to volume fluctuations.

    Filed May 22, 2025

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.