PLUS · CIK 1022408
What ePlus inc. told the SEC could break it.
As an IT reseller, ePlus's disclosures cluster on concentration at both ends of its business. On the demand side, a single customer dominates — Verizon was about 24% of net sales in fiscal 2026 and an outsized 36% of trade receivables — so a Verizon pullback or payment problem would hit revenue and working capital hard. On the supply side, a small set of vendors carries its sales: Cisco products were about 29% of net sales, and its three largest distributors — Ingram Micro, Arrow, and TD SYNNEX — were over 30% of product purchases, without long-term supply or guaranteed-price agreements. It also resells tariff-exposed hardware and expects trade-law and Executive Order changes to materially raise costs it largely passes to customers, which can still dampen demand on a thin-margin model.
3 self-disclosed vulnerabilities, pulled from its own filings, each in the company’s words, with the source. This is the risk register almost nobody reads.
In its own words
What could break it.
Customer concentration
- Verizon = 24% of net sales / 36% of trade receivables; telecom/media end-market = 30% of revenuemedium
ePlus has a single dominant customer: Verizon Communications was ~24% of net sales in FY2026 (up from 17-19%) and an outsized ~36% of trade accounts receivable at 3/31/2026 (up from 17%). Its largest end market — telecommunications, media & entertainment — is 30% of revenue. The named Verizon relationship is captured as a supply edge; this records the concentration/credit-exposure vulnerability: a Verizon spending pullback, contract loss, or payment problem would have an outsized effect on revenue and working capital.
“On March 31, 2026, and March 31, 2025, our accounts receivable-trade balance included a concentration of approximately 36% and 17% of invoices due from Verizon Communications Inc.”
SEC filing →As of 2026
Regulatory & policy
- Tariffs / trade-law & Executive Order changes materially impacting costs (largely passed to customers)medium
ePlus resells tariff-exposed IT hardware, and it flags that rapid changes in trade-related laws and Executive Orders — tariffs, import/export regulations and sanctions — are creating supply-chain uncertainty and complexity. It expects these changes to materially impact its costs and to largely result in passing tariffs onto its customers (with compliance itself onerous and expensive, and the rules inconsistent across jurisdictions and repeatedly modified). Even with pass-through, tariff-driven price increases can dampen customer demand and compress margins on a thin-margin reseller model.
“We anticipate that these changes will materially impact our costs and will largely result in our passing tariffs onto our customers.”
Supplier concentration
- Cisco = 29% of net sales; NetApp/HPE/Juniper/Dell/Arista collectively 23-28%; top-3 distributors (Ingram, Arrow, TD SYNNEX) >30% of purchasesmedium
A substantial portion of ePlus's revenue depends on a small number of key vendors, with no long-term supply or guaranteed-price agreements or assurance of inventory availability. Cisco products were ~29% of net sales in FY2026 (32%/44% in prior years), and NetApp, HPE, Juniper, Dell and Arista collectively another ~23-28%. On the purchasing side, its three largest distributors — Ingram Micro, Arrow Electronics and TD SYNNEX — were over 30% of product-segment purchases. Loss of, or adverse program/pricing/inventory changes at, a top vendor or distributor (especially Cisco, captured as a supply edge) would materially affect availability, margins and gross billings.
“For the year ended March 31, 2026, our three largest distributors, Ingram Micro, Arrow Electronics, and TD SYNNEX, collectively accounted for over 30% of our purchases related to our product segment”
SEC filing →As of 2026
The hidden graph
Who it depends on, and who depends on it.
Relationships surfaced from filings, including ones disclosed by the other side, which is how the non-obvious ones come to light.
Its customers
“Sales to Verizon Communications Inc. represented 16%, 19%, and 22% of our net sales for the years ended March 31, 2025, 2024, and 2023, respectively.”
Cited →“Sales to Verizon Communications Inc. represented 24%, 17%, and 19% of our net sales and 17%, 12%, and 13% of gross billings for the years ended March 31, 2026, 2025, and 2024, respectively.”
Cited →
Its suppliers
“Products manufactured by Cisco Systems represented approximately 29%, 32%, and 44% of net sales for the years ended March 31, 2026, 2025, and 2024, respectively.”
Cited →
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