Eplus Inc (PLUS)

Price$92.10Cached quoteAs of 2026-09-05 12:12 UTC

AI: Undervalued

Price checkThe shares look modestly undervalued because cash-rich earnings trade at a low-teens multiple.

The London quote implies a market value of roughly £2.6 billion and about 12.5 times trailing earnings, while company-compiled forecasts point to approximately 12 times expected 2026 earnings. A multiple simply means how many years of current earnings the market value represents. Against FY2025 net income of $281.3 million and net cash of $779.2 million, that is modest for a profitable, debt-light platform. The discount is deserved partly because earnings swing with customer trading activity. Still, cash and buybacks provide downside support, so the evidence favors undervaluation rather than a bargain-level mispricing.

Big pictureProfits have held up well, but trading activity remains cyclical and less predictable than ordinary software businesses.

Revenue rose from $768.3 million in 2024 to $792.4 million in 2025; operating income rose from $336.1 million to $342.6 million, and net income from $273.1 million to $281.3 million. Operating cash flow fell from $341.5 million to $284.7 million. After $4.6 million of capital spending, free cash flow—cash left after running and investing in the business—was about $280.1 million, versus $336.7 million in 2024 and $453.3 million in 2022. The pattern shows real cash generation, but market activity can pull results sharply lower.

Business strengthA large cash cushion and shrinking share count strengthen returns, despite rising employee share payments.

At FY2025, cash was $801.6 million against $22.4 million debt, leaving $779.2 million net cash; total liabilities were $376.1 million versus $568.0 million equity, and goodwill was only $8.6 million. Shares outstanding fell from 93.8 million in 2022 to 70.4 million in 2025, while 2025 buybacks were $215 million and dividends $164.4 million. That is shareholder-friendly capital allocation. The caveat is stock compensation rose to $25.8 million from $4.8 million in 2023, so buybacks must keep offsetting employee awards.

What could change the storyUpside needs new US products to add lasting profit, while weaker trading or spending could expose the valuation.

The bull case is that US prediction markets, single-stock futures and B2B partnerships turn the non-OTC business—about 15% of H1 2026 revenue—into durable growth; management said US operations could produce roughly $140 million annualised revenue in 2026. The bear case is that customer-acquisition costs and the lower-margin mix keep profits flat: H1 revenue rose 12% year on year, but EBITDA rose only 1% to $187.5 million, a 41% margin. The current valuation therefore needs consensus 2026 earnings of $4.12 per share to hold, not another return to 2022’s peak profits.

AI: News

Forecast disappointmentInvestors sold the shares sharply when strong first-half figures came with no further upgrade to the yearly outlook.

On 13 July 2026, Reuters reported a 15.9% intraday fall after Plus500 kept FY2026 revenue and EBITDA expectations at $811.5 million and $368.1 million, despite first-half Customer Income rising 24% to $460.8 million. The market had previously been told results could exceed expectations, so unchanged guidance reset near-term expectations. The reaction is direct evidence that investors were pricing continued upgrades, not merely stable growth; it also explains why the current low-teens valuation can be read as more cautious.

Record H1 resultsStrong first-half growth confirmed diversification, but almost flat operating improvement showed the cost of building newer businesses.

On 10 August 2026, Plus500 reported H1 revenue of $462.9 million, up 12% year on year, and Customer Income of $460.8 million, up 24%. Net profit increased to $151.9 million from $149.6 million, while basic earnings per share rose 6% to $2.17. EBITDA increased only 1% to $187.5 million as customer acquisition, US expansion and currency costs rose. The result supports the growth thesis, but the weaker profit conversion limits how much extra value investors should assign to growth.

US product expansionNew US sports contracts and stock futures widen Plus500’s opportunity, but their eventual profits remain unproven.

Plus500 launched CFTC-regulated sports event contracts in June and single-stock futures with CME Group on 3 August 2026. Its H1 update said the non-OTC business reached about 15% of group revenue, roughly $70 million, up about 30% year on year. These products can add commissions and attract US customers beyond the core leveraged trading business. However, the releases provide no mature product-level profit figure, so the value impact depends on customer scale, retention and costs that are still developing.

New buyback programmeA fresh buyback and dividends return cash to investors while modestly increasing each remaining share’s claim on profits.

On 10 August, Plus500 announced $182.5 million of H1 shareholder returns, including $82.5 million dividends and a $100 million buyback; the buyback began on 27 August and may repurchase up to 5.76 million shares. Treasury shares do not receive dividends or votes, so completed purchases can lift per-share earnings if profits hold. This is material because returns equal about 65% of FY2025 net income, but distributing cash also reduces funds available for acquisitions or faster product investment.

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Total cash / debt

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Financial statements

	2026	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014	2013	2012	2011	2010
Revenue	$2.44B	$1.98B	$2.16B	$2.00B	$1.75B	$1.50B	$1.52B	$1.31B	$1.41B	$1.33B	$1.20B	$1.14B	$1.06B	$983.1M	$825.6M	$718.5M	$550.6M
Gross profit	$616.1M	$512.1M	$511.7M	$517.5M	$461.0M	$393.6M	$391.2M	$330.4M	$323.5M	$299.8M	$262.1M	$244.5M	$216.9M	$204.8M	$180.0M	$166.7M	$139.7M
Gross margin	25.22%	25.85%	23.69%	25.85%	26.30%	26.30%	25.75%	25.18%	22.93%	22.55%	21.76%	21.39%	20.51%	20.83%	21.81%	23.19%	25.38%
Operating expenses	$449.9M	$412.4M	$377.9M	$351.4M	$313.7M	$287.2M	$295.9M	$250.9M	$239.2M	$214.0M	$186.3M	$173.8M	$997.4M	$924.4M	$786.0M	$677.9M	$529.5M
Operating income	$166.1M	$99.7M	$133.8M	$166.2M	$147.3M	$106.3M	$95.3M	$79.5M	$84.2M	$85.7M	$75.8M	$70.7M	$60.1M	$58.7M	$39.6M	$40.6M	$21.1M
Operating margin	6.80%	5.03%	6.19%	8.30%	8.40%	7.11%	6.27%	6.06%	5.97%	6.45%	6.29%	6.18%	5.68%	5.98%	4.79%	5.65%	3.83%
EBITDA	$193.8M	$126.9M	$156.3M	$184.8M	$171.6M	$126.3M	$114.4M	$98.2M	$100.1M	$97.5M	$91.7M	$86.3M	$74.9M	$70.9M	$48.9M	$50.5M	$32.5M
EBITDA margin	7.93%	6.40%	7.24%	9.23%	9.79%	8.44%	7.53%	7.48%	7.09%	7.33%	7.62%	7.55%	7.08%	7.21%	5.93%	7.03%	5.90%
Net income	$132.6M	$104.6M	$118.0M	$119.4M	$105.6M	$74.4M	$69.1M	$63.2M	$55.1M	$50.6M	$44.7M	$45.8M	$35.3M	$34.8M	$23.4M	$23.7M	$12.7M
Net profit margin	5.43%	5.28%	5.46%	5.96%	6.02%	4.97%	4.55%	4.82%	3.91%	3.80%	3.72%	4.01%	3.34%	3.54%	2.83%	3.30%	2.31%
Basic EPSper basic share	$5.05	$3.94	$4.44	$4.49	$3.96	$2.79	$2.59	$1.18	$1.00	$0.91	$0.77	$0.78	$0.55	$0.55	$0.35	$0.35	$0.19
Diluted EPSper diluted share	$5.03	$3.93	$4.41	$4.48	$3.93	$2.77	$2.57	$1.16	$0.99	$0.90	$0.76	$0.78	$0.55	$0.54	$0.35	$0.35	$0.19

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

15.53%of listed shares

BlackRock, Inc.4.06M shares · Jun 30, 2026

View holders

Top 20 reported holders of PLUS
Holder	% owned
BlackRock, Inc.	15.53%4.06M shares
River Road Asset Management, LLC	6.05%1.58M shares
DIMENSIONAL FUND ADVISORS LP	5.23%1.37M shares
VANGUARD CAPITAL MANAGEMENT LLC	4.44%1.16M shares
VANGUARD PORTFOLIO MANAGEMENT LLC	4.37%1.14M shares
STATE STREET CORP	4.08%1.07M shares
FIRST TRUST ADVISORS LP	3.52%920.09K shares
AltraVue Capital, LLC	3.48%910.89K shares
FMR LLC	3.03%791.46K shares
AMERICAN CENTURY COMPANIES INC	2.90%758.25K shares
GEODE CAPITAL MANAGEMENT, LLC	2.79%729.58K shares
MORGAN STANLEY	2.52%659.99K shares
GENEVA CAPITAL MANAGEMENT LLC	2.28%595.83K shares
SILVERCREST ASSET MANAGEMENT GROUP LLC	1.70%444.4K shares
NORTHERN TRUST CORP	1.51%395.08K shares
Ophir Asset Management Pty Ltd	1.46%382.9K shares
CHARLES SCHWAB INVESTMENT MANAGEMENT INC	1.39%362.48K shares
Bragg Financial Advisors, Inc	1.19%311.91K shares
WELLINGTON MANAGEMENT GROUP LLP	1.10%287.42K shares
NEUMEIER POMA INVESTMENT COUNSEL LLC	1.05%275K shares

Percentages use 26.15M shares of this listed class outstanding on Jun 30, 2026.

Gray completes the 100% scale. Reported positions may overlap; holders have different reporting dates.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys0$0.00 disclosed value

Sells (SEC code S)17$1.43M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
May 11, 2026Form 4 · 10b5-1	RAIGUEL DARREN SCHIEF OPERATING OFFICER	SellCommon Stock · indirect	176	$91.78	$16.2K	55.7K
May 11, 2026Form 4 · 10b5-1	RAIGUEL DARREN SCHIEF OPERATING OFFICER	SellCommon Stock · indirect	450	$90.14	$40.6K	55.9K
May 11, 2026Form 4 · 10b5-1	RAIGUEL DARREN SCHIEF OPERATING OFFICER	SellCommon Stock · indirect	374	$88.85	$33.2K	56.4K
May 8, 2026Form 4 · 10b5-1	RAIGUEL DARREN SCHIEF OPERATING OFFICER	SellCommon Stock · indirect	56	$90.20	$5.1K	56.7K
May 8, 2026Form 4 · 10b5-1	RAIGUEL DARREN SCHIEF OPERATING OFFICER	SellCommon Stock · indirect	157	$89.37	$14.0K	56.8K

Review ownership filings at SEC.gov ↗

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Eplus Inc (PLUS)

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