ePlus inc.

call is Mark Marin, CEO and President, Darren Ragwell, COO and President of E-Plus Technology, Elaine Marion, CFO, and Erica Stoker, General Counsel. I want to take a moment to remind you that the statements we make this afternoon that are not historical facts may be deemed to be forward-looking statements and are based on management's current plans, estimates, and projections. Actual and anticipated future results may vary materially due to certain risks and uncertainties detailed in the earnings release we issued this afternoon, and our periodic filings with the Securities and Exchange Commission, including our most recent annual report on Form 10-K, quarterly reports on Form 10-Q, and other documents we might file with the FCC. Any forward-looking statement speaks only as of the date of which the statement is made, and the company undertakes no responsibility to update any of these forward-looking statements in light of new information, future events, or otherwise. In addition, we will be using certain non-GAAP measures during the call. We've included a GAAP financial reconciliation in our earnings release, which is posted on the investor information section of our website at www.eplus.com. I'd now like to turn the call over to Mark Maron. Mark?

Thank you, Clay. Good afternoon, everyone, and thank you for joining us. I will give a recap of our fiscal third quarter 2025 highlights and an update on our business overall. Elaine will follow with the discussion of our financial results, and I will then conclude with an update of our current outlook. We continue to execute on our strategic priorities of expanding our footprint and customer base and broadening our suite of solution and service offerings as we are investing in the most promising growth areas. We continue to see the evolution of our industry transition to our more ratable consumption and subscription-based model, which has impacted the comparability of our quarterly results. As noted last quarter, our revenue trends reflects an acceleration of gross billings recorded on a net basis, as well as a move towards more ratable revenue models. Software subscriptions orders have continued to increase year over year, with these deals being recognized on a net basis or ratably. While this evolution helped to contribute to a flat year-over-year revenue, we delivered solid growth in gross billings, gross profit, and gross margin. It is also a solid forward indicator for growth with our subscription orders up 51.4% year over year, accounting for almost 46% of our open orders currently compared to 31.7% last year and growth of over 100 million. On a consolidated basis, total revenues were flat as lower product sales were partially offset by faster growing high margin service revenue. which is partially reflected in our gross profit being up 5.3%. We believe customers are still digesting purchases from last year's inventory flush, primarily impacting our networking and data center cloud sales. The main factor, though, was that we had a much higher gross to net adjustment this year, which was up 840 basis points from the prior year and impacted our top line revenues by approximately $60 million. This year-over-year increase in SG&A expenses was primarily due to increased headcount from the Bailiwick acquisition, as well as investments in the business. Of note, much of the increased headcount were customer-facing employees. Adjusted EBITDA decreased 15% as higher earnings in the finance segment were offset by a decrease in our technology business adjusted EBITDA. We continue to see softer than expected hardware sales, and lower demand from some enterprise customers. As we have moved towards a services-led model, our services revenues continue to grow nicely, increasing 52% year-on-year and reaching a new high of $114 million, with services gross profit up 45% year-over-year. Revenue in the quarter benefited from the acquisition of Bailiwick early in the year, which is integrating well, and organic managed services revenue increased 28% year over year. Our finance segment delivered another solid quarter with revenue increasing 20%, primarily due to an increase in proceeds from the sale of equipment, as well as higher portfolio earnings and transaction gains. As we look at our longer-term growth drivers, AI is a good place to start. In an E-plus AI survey, 76% of IT leaders have said their organizations have yet to reach AI maturity. They noted the top challenges they are facing are a skills gap, security concerns, and cost. There is a disparity between AI aspirations and AI readiness, and most companies are in the early stages of their AI journey. With that, we continue to build out our AI Ignite and SecureGen AI programs that deliver services and solutions our customers need to make informed decisions. Our SecureGen AI program is a platform developed by ePlus utilizing leading AI technology from our strategic partners to deliver a SecureGen AI chatbot experience. This allows customers to test use cases and convert them into actionable plans with built-in guardrails. Ultimately, our secure GenAI program helps our customers more quickly make informed decisions and adopt GenAI safely. We're also leveraging the benefits of AI internally to create efficiencies that improve customer satisfaction and we expect will provide cost savings long term. With our internal use of AI, we're seeing an increase in quality due to automation and an ability to resolve inquiries and tickets faster. As such, we expect that AI will help us deliver enhanced customer experiences. Security is key to customers' long-term roadmap, especially related to AI initiatives around data strategy, governance, and risk. Our security offerings also continue to be a solid performer for us. Our security gross billings accounted for 21.2% of our trailing 12 months gross billings. We continue to benefit from very attractive cash flow characteristics. In turn, our balance sheet provides financial flexibility to support future growth initiatives. We will continue to be disciplined and strategic with our deployment of capital as we prioritize investing in the business to drive long-term growth, both organically and via M&A transactions, as well as return excess cash to our shareholders. I will now turn the call over to Elaine to discuss our financial results in more detail. Elaine?

Thank you, Mark, and thank you, everyone, for joining us today. I will now review our financial performance for the third quarter of fiscal 2025. Consolidated net sales of $511 million were modestly above the $509.1 million reported in last year's third quarter. In our technology business, sales were flat year over year as a decline in product sales was more than offset by continued strength in services demand. The decline in product sales reflects a shift towards sales of third-party software and services, resulting in higher netted down revenues, as Mark mentioned, as well as lower sales of product as a result of last year's supply chain easing, particularly from enterprise customers. Notably, growth fillings growth of 6.6% year-over-year outpaced net sales growth, highlighting continued demand for Eplus's offerings and the netting down effect. Our strategic focus on services continues to deliver results as service revenue grew 52% in the quarter with strong contribution from both professional and managed services. The professional services segment benefited from the bailiwick acquisition while growth in the managed services segment was broad-based. Within our technology business, our two largest markets continue to be telecom, media, and entertainment. and technology representing 24 and 17% respectively of technology business net sales on a trailing 12-month basis. SLED healthcare and financial services accounted for 16, 13, and 10% respectively with the remaining 20% from other end markets. Our financing segment posted a solid quarter with revenues of 17.8 million up 19.8% from 14.9 million in last year's third quarter due to higher proceeds from sales of equipment and portfolio earnings. Consolidated growth profit grew 5.3% faster than our revenue growth to $140.9 million, representing a consolidated growth margin of 27.6%, up from 26.3% in the prior year. The 130 basis point expansion was primarily driven by higher product margins, which benefited from a shift in mix to third-party maintenance and subscriptions. While product margins were higher than last year, a higher proportion of product sales to certain enterprise customers at lower overall margins weighed on product margins, but this was offset by contribution from the netting effect I've mentioned. Professional services gross margin declined to 40.1% from 43.3%, due to a shift in mix of services provided, while managed services gross margin declined to 29.8% from 31.8%. Consolidated operating expenses increased 17.3% year-over-year to $112.4 million, primarily reflecting increased headcounts due to the bailiwick and peak resource acquisitions, as well as continued investments in our business to support our growth. Our headcount at the end of the quarter increased to 2,291 from 1,897 a year ago, primarily reflecting additions of customer-facing professionals acquired in the bailiwick transaction. Operating income was $28.5 million, down from $38 million, and earnings before taxes declined to $32.2 million from $38.4 million in the prior year quarter. During the third quarter, we realized interest income of 1.8 million and foreign exchange gains of 1.9 million, resulting in other income of 3.7 million. Our effective tax rate was 25% versus 29% a year ago due to lower state taxes. Third quarter consolidated net earnings were 24.1 million, or 91 cents per share, down from net earnings of $27.3 million or $1.02 per share in last year's third quarter. Non-GAAP diluted earnings came in at $1.06 per share compared to $1.18 per share last year. Our diluted share count at the end of the quarter was $26.6 million compared to $26.7 million in the prior year third quarter. Consolidated adjusted EBITDA amounted to $39.2 million versus $46.2 million in the third quarter of fiscal 24. For the nine months ended December 31, 2024, our consolidated net sales totaled $1.57 billion, down from $1.67 billion in the prior year. The decrease primarily reflects lower product sales in the technology business, partially offset by growth in services and stronger performance in our financing segment. Technology business net sales were 1.52 billion year-to-date compared to 1.63 billion last year. Despite the decline in net sales, gross billings in the technology business were essentially flat year-over-year at 2.49 billion. Year-to-date consolidated gross profit rose 0.7% to 423.4 million, while gross margin rose 180 basis points to 27%. Gross margin expansion was driven by higher product margins, which benefited from an increase in netted-down revenues partially offset by lower upfront margins. For the nine months ended December 31, 2024, consolidated net earnings were $82.8 million, or $3.10 per diluted share, compared to $93.8 million, or $3.52 per diluted share in the comparable period last year. and non-GAAP earnings per share were $3.56 versus $3.99. Adjusted EBITDA was 134.4 million, down from 153.6 million in the comparable period last year. We ended the quarter with cash and cash equivalents of 253.1 million, consistent with the balance at the close of fiscal 2024. Operating cash flow for the first nine months was $141.2 million compared to $143.5 million last year and included cash used to fund working capital, the bailiwick acquisition, and share repurchases. We ended the quarter with $99 million in inventory down from $139.7 million at the end of fiscal 2024. Inventory turns were 13 days, down significantly from 27 days in the third quarter of fiscal 2024. As a result, our cash conversion cycle improved to 32 days, down meaningfully from 54 days in the prior year. During the first nine months of the year, we repurchased approximately 380,000 shares under our repurchase plan at a cost of 30 million. Our strategy continues to focus on our core priorities driving organic growth, expanding through accretive acquisitions, and returning capital to shareholders through our repurchase program. With that, I will turn the call back over to Mark. Mark?