EPLUS INC

Previous wording

The below is intended to provide context to our consolidated financial condition and results of continuing operations. It should be read in conjunction with the unaudited consolidated financial statements included in this Quarterly Report on Form 10-Q and the audited consolidated financial statements included in our annual report on Form 10-K for the year ended March 31, 2026 (“2026 Annual Report”). These historical financial statements may not be indicative of our future performance. This Management’s Discussion and Analysis of Financial Condition and Results of Operations may contain forward-looking statements, all of which are based on our current expectations and could be affected by the uncertainties and risks described in Part I, Item 1A, “Risk Factors,” in our 2026 Annual Report, as well as those described in our other filings with the SEC.

Current wording

The following discussion provides context for our consolidated financial condition and results of continuing operations. It should be read in conjunction with the unaudited consolidated financial statements included in this Quarterly Report on Form 10-Q and the audited consolidated financial statements included in our annual report on Form 10-K for the year ended March 31, 2026 (“2026 Annual Report”). These historical financial statements may not be indicative of our future performance. This Management’s Discussion and Analysis of Financial Condition and Results of Operations may contain forward-looking statements, all of which are based on our current expectations and could be affected by the uncertainties and risks described in Part I, Item 1A, “Risk Factors,” in our 2026 Annual Report, as well as those described in our other filings with the SEC.

Previous wording

We have revised our results to reflect the correction of certain misstatements in previously issued financial statements for the three months ended June 30, 2025, which we determined are not material either individually or in aggregate. Please see Note 2, “Revision of Previously Issued Consolidated Financial Statements” in the accompanying Consolidated Financial Statements included in “Part I, Item 1. Financial Statements.”

Current wording

We have revised our results to reflect the correction of certain misstatements in previously issued financial statements for the six months ended September 30, 2025, which we determined are not material either individually or in aggregate. Please see Note 2, “Revision of Previously Issued Consolidated Financial Statements” in the accompanying Consolidated Financial Statements included in “Part I, Item 1. Financial Statements.”

Previous wording

Our management monitors several financial and non-financial measures and ratios on a regular basis to track the progress of our business. We believe that the most important of these measures and ratios include net sales, gross profit, gross profit margin, operating income, net earnings, and net earnings per common share, in each case based on information prepared in accordance with United States Generally Accepted Accounting Principles (“US GAAP”), as well as the non-GAAP financial measures and ratios, including Adjusted EBITDA, Adjusted EBITDA margin, Non-GAAP: Net earnings from continuing operations and Non-GAAP: Net earnings from continuing operations per common share - diluted.

Current wording

Our management monitors several financial and non-financial measures and ratios on a regular basis to track the progress of our business. We believe that the most important of these measures and ratios include net sales, gross profit, gross margin, operating income, net earnings, and net earnings per common share, in each case based on information prepared in accordance with United States Generally Accepted Accounting Principles (“US GAAP”), as well as the non-GAAP financial measures and ratios, including Adjusted EBITDA, Adjusted EBITDA margin, Non-GAAP: Net earnings from continuing operations and Non-GAAP: Net earnings from continuing operations per common share - diluted.

Previous wording

Non -GAAP: Net earnings from continuing operations and Non-GAAP: Net earnings from continuing operations per common share – diluted are based on net earnings from continuing operations calculated in accordance with US GAAP, adjusted to exclude other (income) expense, net, share-based compensation, acquisition related amortization expense, and the related tax effects.

Current wording

Non -GAAP: Net earnings from continuing operations and Non-GAAP: Net earnings from continuing operations per common share – diluted are based on net earnings from continuing operations calculated in accordance with US GAAP, adjusted to exclude other (income) expense, net, share-based compensation, acquisition related expenses, acquisition related amortization expense, and the related tax effects.

Previous wording

We believe that the exclusion of other income and acquisition related amortization expense in calculating Non-GAAP: Net earnings from continuing operations and Non-GAAP: Net earnings from continuing operations per common share – diluted provides management and investors a useful measure for period-to-period comparisons of our business and operating results by excluding items that management believes are not reflective of our underlying operating performance, which helps in understanding and evaluating our operating results. We use Non-GAAP: Net earnings from continuing operations and Non-GAAP: Net earnings from continuing operations per common share – diluted as supplemental measures of our performance to gain and provide insight into our operating performance and performance trends. However, our use of non-GAAP information as an analytical tool has limitations and should not be considered in isolation or as a substitute for analysis of our financial results as reported under US GAAP. In addition, other companies, including companies in our industry, might calculate similar Non-GAAP: Net earnings from continuing operations and Non-GAAP: Net earnings from continuing operations per common share – diluted, or similarly titled measures differently, which may reduce their usefulness as comparative measures.

Current wording

We believe that these exclusions in calculating Non-GAAP: Net earnings from continuing operations and Non-GAAP: Net earnings from continuing operations per common share – diluted provides management and investors with useful measures for period-to-period comparisons of our business and operating results by excluding items that management believes are not reflective of our underlying operating performance, which helps in understanding and evaluating our operating results. We use Non-GAAP: Net earnings from continuing operations and Non-GAAP: Net earnings from continuing operations per common share – diluted as supplemental measures of our performance to gain and provide insight into our operating performance and performance trends. However, our use of non-GAAP information as an analytical tool has limitations and should not be considered in isolation or as a substitute for analysis of our financial results as reported under US GAAP. In addition, other companies, including companies in our industry, might calculate similar Non-GAAP: Net earnings from continuing operations and Non-GAAP: Net earnings from continuing operations per common share – diluted, or similarly titled measures differently, which may reduce their usefulness as comparative measures.

Previous wording

We define Adjusted EBITDA as net earnings from continuing operations calculated in accordance with US GAAP, adjusted for the following: depreciation and amortization, share-based compensation, provision for income taxes, and other (income), net. In the table below, we provide a reconciliation of Adjusted EBITDA to net earnings from continuing operations, which is the most directly comparable financial measure to this non-GAAP financial measure. Adjusted EBITDA margin is our calculation of Adjusted EBITDA divided by net sales.

Current wording

We define Adjusted EBITDA as net earnings from continuing operations calculated in accordance with US GAAP, adjusted for the following: depreciation and amortization, share-based compensation, acquisition related expenses, provision for income taxes, and other (income), net. In the table below, we provide a reconciliation of Adjusted EBITDA to net earnings from continuing operations, which is the most directly comparable financial measure to this non-GAAP financial measure. Adjusted EBITDA margin is our calculation of Adjusted EBITDA divided by net sales.

Previous wording

We believe that these exclusions in calculating Adjusted EBITDA and Adjusted EBITDA margin provides management and investors with a useful measure for period-to-period comparisons of our business and operating results by excluding items that management believes are not reflective of our underlying operating performance, which helps in the understanding and evaluation of our operating results. We use Adjusted EBITDA as a supplemental measure of our performance to gain and provide insight into our operating performance and performance trends. However, our use of Adjusted EBITDA and Adjusted EBITDA margin as analytical tools has limitations and should not be considered in isolation or as substitutes for analysis of our financial results as reported under US GAAP. In addition, other companies, including companies in our industry, might calculate Adjusted EBITDA and Adjusted EBITDA margin, or similarly titled measures, differently which may reduce their usefulness as comparative measures.

Current wording

We believe that these exclusions in calculating Adjusted EBITDA and Adjusted EBITDA margin provides management and investors with useful measures for period-to-period comparisons of our business and operating results by excluding items that management believes are not reflective of our underlying operating performance, which helps in the understanding and evaluation of our operating results. We use Adjusted EBITDA and Adjusted EBITDA margin as supplemental measures of our performance to gain and provide insight into our operating performance and performance trends. However, our use of Adjusted EBITDA and Adjusted EBITDA margin as analytical tools has limitations and should not be considered in isolation or as substitutes for analysis of our financial results as reported under US GAAP. In addition, other companies, including companies in our industry, might calculate Adjusted EBITDA and Adjusted EBITDA margin, or similarly titled measures, differently which may reduce their usefulness as comparative measures.

Previous wording

Net sales: Net sales for the three months ended June 30, 2026, increased $6.3 million compared to the three months ended June 30, 2025, due to increased net sales to customers in the technology, healthcare, retail, and financial services industries, offset by decreased net sales to customers in the telecom, media and entertainment, and SLED industries. Our increase in net sales was primarily driven by large small and mid-market customers. For further information, see the “Segment Results of Operations” below.

Current wording

Net sales: Net sales for the three months ended September 30, 2026, increased $59.1 million compared to the three months ended September 30, 2025, due to increased net sales to customers in the financial services, healthcare, and SLED industries, offset by decreased net sales to customers in the telecom, media and entertainment, retail, and technology industries. In sales to our commercial customers, our increase in net sales was primarily driven by small and mid-market customers. For further information, see the “Segment Results of Operations” below.

Previous wording

Gross profit: Gross profit for the three months ended June 30, 2026, decreased $2.3 million compared to the prior three-month period due to decreases in net sales in our professional services segment, offset by increases in our product segment and managed services segment. Overall, gross profit margin decreased 60 basis points year over year to 23.3%, primarily due to lower margins in all three segments and a lower proportion of sales of third-party maintenance and subscriptions that are recognized on a net basis, offset by an increase to vendor consideration. For further information, see the “Segment Results of Operations” below.

Current wording

Gross profit: Gross profit for the three months ended September 30, 2026, increased $18.2 million compared to the prior year three-month period due to increases in net sales in our product segment and managed services segment, offset by a decrease in our professional services segment. Overall, gross margin increased 40 basis points year over year to 27.0%, primarily due to higher gross margins in our product segment and an increase in vendor consideration, offset by lower gross margins in our professional services segment and managed services segment. Contributing to higher gross margins in our product segment, we had an increase in net sales from sales of third-party maintenance and subscriptions that are recognized on a net basis. For further information, see the “Segment Results of Operations” below.

Previous wording

Selling, general, and administrative: Selling, general, and administrative expenses for the three months ended June 30, 2026, increased $3.0 million, compared to the three months ended June 30, 2025.

Current wording

Selling, general, and administrative: Selling, general, and administrative expenses for the three and six months ended September 30, 2026, increased $11.6 million and $14.5 million, respectively, compared to the three and six months ended September 30, 2025.

Previous wording

Salaries and benefits, including variable compensation and share-based compensation for the three months ended June 30, 2026, increased $1.0 million, compared to the same three-month period in the prior year, primarily due to increased headcount of employees whose costs are included in continuing operations, offset by a decrease in variable compensation commensurate with the decrease in our gross profit. As of June 30, 2026, we had 2,171 employees, an increase of 33 from 2,138 employees as of June 30, 2025.

Current wording

Salaries and benefits, including variable compensation and share-based compensation for the three and six months ended September 30, 2026, increased $7.0 million and $8.0 million, respectively, compared to the same three- and six-month periods in the prior year, primarily due to increased headcount and an increase in variable compensation commensurate with the increase in our gross profit. As of September 30, 2026, we had 2,173 employees, an increase of 35 from 2,138 employees as of September 30, 2025. We added 19 employees from the acquisition of certain assets of Daymark Solutions, Inc. (“Daymark”) on August 21, 2026.

Previous wording

General and administrative expenses for the three months ended June 30, 2026, increased $2.3 million as compared to the prior three-month period, mainly driven by higher third-party consultant fees and legal fees.

Current wording

General and administrative expenses for the three and six months ended September 30, 2026, increased $4.6 million and $6.9 million, respectively, as compared to the same three- and six-month periods in the prior year, mainly driven by the acquisition of certain assets of Daymark, higher third-party consultant fees, and higher software, subscription, and maintenance fees.

Previous wording

Provision for credit losses for the three months ended June 30, 2026, was $0.3 million, as compared to $0.6 million for the prior three-month period. Our lower provision for credit losses for the three months ended June 30, 2026, was due to favorable changes in our net credit exposure.

Current wording

Provision for credit losses for the three months ended September 30, 2026, was a benefit of $0.5 million, as compared to a benefit of $0.4 million for the prior year three-month period. Our lower provision for credit losses for the three months ended September 30, 2026, was due to favorable changes in our net credit exposure.

Previous wording

Depreciation and amortization: Depreciation and amortization for the three months ended June 30, 2026, decreased compared to the three months ended June 30, 2025, primarily due to decreased acquisition related amortization expense.

Current wording

Depreciation and amortization: Depreciation and amortization for the three and six months ended September 30, 2026, decreased compared to the three and six months ended September 30, 2025, primarily due to decreased amortization expense from customer relationship assets acquired in prior acquisitions that are being amortized on an accelerated basis, slightly offset by increased amortization from intangible assets acquired from the acquisition of certain assets of Daymark in the current three- and six-month periods.

Previous wording

Operating income: As a result of the foregoing, operating income for the three months ended June 30, 2026, decreased $4.1 million compared to the prior three-month period, and operating income margin decreased by 70 basis points to 6.0%.

Current wording

Operating income: As a result of the foregoing, operating income for the three months ended September 30, 2026, increased by $7.7 million as compared to the same three-month period in the prior year, and operating income margin increased by 50 basis points to 8.5%.

Previous wording

Other income, net: Other income, net for the three months ended June 30, 2026, was $3.1 million, compared to $0.6 million for the three months ended June 30, 2025. Higher other income was driven by increased interest income and decreased foreign exchange losses. We had $3.3 million in interest income for the three months ended June 30, 2026, compared to $2.1 million for the three months ended June 30, 2025. We had foreign exchange losses of $0.2 million for the three months ended June 30, 2026, compared to losses of $1.5 million for the same three-month period in the prior year.

Current wording

Other income (expense), net: Other income (expense), net for the three months ended September 30, 2026, was an expense of $0.5 million, compared to income of $5.2 million for the three months ended September 30, 2025. Our other expense in the three-month period ended September 30, 2026, primarily relates to adjustments of $3.5 million to reduce our estimate of the fair value of contingent consideration relating to our sale of HoldCo. We had foreign exchange losses of $0.3 million for the three months ended September 30, 2026, compared to foreign exchange gains of $0.7 million for the same three-month period in the prior year. We had $3.3 million in interest income for the three months ended September 30, 2026, compared to $3.9 million for the three months ended September 30, 2025.

Previous wording

Provision for income taxes: Our provision for income tax expense was $11.7 million for the three months ended June 30, 2026, as compared to $11.5 million for the same three-month period in the prior year. Our effective tax rate for the three months ended June 30, 2026, was 27.8%, compared with 26.5%, for the same three- month period in the prior year. Our effective income tax rate for the three months ended June 30, 2026, was higher compared to the same three-month period in the prior year primarily due to higher state and local taxes and higher non-deductible executive compensation in the current three-month period.

Current wording

Provision for income taxes: Our provision for income tax expense was $15.6 million and $27.3 million for the three and six months ended September 30, 2026, as compared to $15.8 million and $27.4 million for the same three-and six-month periods in the prior year. Our effective tax rate for the three and six months ended September 30, 2026, were each 27.9%, compared with 29.3% and 28.1%, respectively, for the same three- and six-month periods in the prior year. Our effective income tax rate for the three- and six- month periods ended September 30, 2026, differed compared to the same three- and six-month periods in the prior year primarily due to state and local taxes and non-deductible executive compensation.

Previous wording

Net earnings from continuing operations: Net earnings from continuing operations for the three months ended June 30, 2026, were $30.3 million, a decrease of $1.7 million, as compared to $32.0 million for the same three-month period in the prior year. The net earnings decrease was due to the decrease in operating profits, offset by an increase in other income.

Current wording

Net earnings from continuing operations: Net earnings from continuing operations for the three months ended September 30, 2026, was $40.4 million, an increase of $2.2 million, as compared to $38.2 million for the same three-month period in the prior year. The net earnings increase was due to the increase in operating income, offset by a decrease in other income (expense), net.

Previous wording

Net earnings from discontinued operations, net of tax: Net earnings from discontinued operations, net of tax for the three months ended June 30, 2025, were $10.6 million. There were no discontinued operations transactions during the three months ended June 30, 2026.

Current wording

Earnings (loss) from discontinued operations, net of tax: Losses from discontinued operations, net of tax, for the three months ended September 30, 2025, were $3.3 million. There were no discontinued operations transactions during the three months ended September 30, 2026.

Previous wording

Net earnings: Due to the aforementioned reasons, net earnings for the three months ended June 30, 2026, were $30.3 million, a decrease of $12.3 million, as compared to $42.6 million for the same three-month period in the prior year.

Current wording

Net earnings: Due to the aforementioned reasons, net earnings for the three months ended September 30, 2026, were $40.4 million, as compared to $34.9 million for the same three-month period in the prior year.

Previous wording

Product segment sales for the three months ended June 30, 2026, increased compared to the same three-month period in the prior year, due to increases in revenue from networking, security, and collaboration products, offset by a decrease in cloud products. These increases were driven by the timing of purchases by existing customers, which are determined by their buying cycles and the timing of specific IT-related initiatives. Contributing to the increase, the proportion of our sales that were sales of third-party maintenance and subscriptions that are recognized on a net basis decreased for the three months ended June 30, 2026, compared to the same period in the prior year.

Current wording

Product segment sales for the three and six months ended September 30, 2026, increased compared to the same three- and six-month periods in the prior year, due to increases in revenue from cloud, security, and collaboration products, offset by a decrease in networking products. These increases were driven by the timing of purchases by existing customers, which are determined by their buying cycles and the timing of specific IT-related initiatives.

Previous wording

Professional services segment sales for the three months ended June 30, 2026, decreased compared to the same three-month period in the prior year, primarily due to decreases in revenues from project services and staff augmentation.

Current wording

Professional services segment sales for the three and six months ended September 30, 2026, decreased compared to the same three- and six-month periods in the prior year, primarily due to decreases in revenues from project services and staff augmentation.

Previous wording

Managed services segment sales for the three months ended June 30, 2026, increased compared to the same three- month period in the prior year, due to ongoing expansion of these service offerings, primarily related to ongoing growth in enhanced maintenance support and cloud services.

Current wording

Managed services segment sales for the three and six months ended September 30, 2026, increased compared to the same three- and six-month periods in the prior year, due to ongoing expansion of these service offerings, primarily related to ongoing growth in cloud services.

Previous wording

Product segment gross profit margin for the three months ended June 30, 2026, decreased by 30 basis points from the same three-month period in the prior year due to a shift in product mix and a lower proportion of our sales that were sales of third-party maintenance and subscriptions which are recorded on a net basis, offset by an increase in vendor consideration. Vendor consideration earned as a percentage of sales for the three months ended June 30, 2026, increased by 90 basis points.

Current wording

Product segment gross margin for the three and six months ended September 30, 2026, increased by 130 basis points and 60 basis points, respectively, from the same three- and six-month periods in the prior year due to a shift in product mix and increase in vendor consideration. Contributing to higher gross margins, we had an increase in net sales from sales of third-party maintenance and subscriptions that are recognized on a net basis. Vendor consideration earned as a percentage of sales for the three and six months ended September 30, 2026, increased by 20 basis points and 50 basis points, respectively.

Previous wording

Professional services segment gross profit margin for the three months ended June 30, 2026, decreased by 230 basis points, from the same three-month period in the prior year primarily due to the use of a higher proportion of third parties for delivery and lower revenue from professional services.

Current wording

Professional services segment gross margin for the three and six months ended September 30, 2026, decreased by 280 basis points and 250 basis points, respectively, from the same three- and six-month periods in the prior year primarily due to the use of a higher proportion of third parties for delivery and lower revenue from professional services.

Previous wording

Managed services segment gross profit margin for the three months ended June 30, 2026, decreased by 100 basis points, from the same three-month period in the prior year, mainly driven by a decrease in gross profit margin from our managed services offerings due to increased third-party costs.

Current wording

Managed services segment gross margin for the three and six months ended September 30, 2026, decreased by 60 basis points and 80 basis points, respectively, from the same three- and six-month periods in the prior year, mainly driven by a decrease in gross margin from our managed services offerings due to increased third-party costs.

Previous wording

The following table summarizes our sources and uses of cash for the three months ended June 30, 2026, and 2025 (in thousands):

Current wording

The following table summarizes our sources and uses of cash for the six months ended September 30, 2026, and 2025 (in thousands):

Previous wording

Cash flows from operating activities: During the three months ended June 30, 2026, we provided $76.5 million through operating activities primarily due to a decrease in inventories and an increase in our accounts payable, offset by net earnings and an increase in accounts receivable. During the three months ended June 30, 2025, we used $106.0 million through operating activities of continuing operations primarily due to an increase in our accounts receivable, partially offset by net earnings and a decrease in our inventories.

Current wording

Cash flows from operating activities: During the six months ended September 30, 2026, we provided $19.1 million through operating activities primarily due to an increase in our accounts payable and net earnings, offset by an increase in inventories and accounts receivable. During the six months ended September 30, 2025, we used $137.6 million through operating activities of continuing operations primarily due to an increase in our accounts receivable and inventories and a decrease in our accounts payable, partially offset by net earnings.

Previous wording

Our cash conversion cycle increased to 41 days as of June 30, 2026, as compared to 26 days as of June 30, 2025. Our standard payment term for customers is between 30-60 days; however, certain customer orders may be approved for extended payment terms. Our DSO increased 6 days to 64 days as of June 30, 2026, compared to 58 days as of June 30, 2025, reflecting higher sales to customers with terms greater than 60 days. Our DIO increased to 22 days as of June 30, 2026, compared to 14 days as of June 30, 2025, due to longer customer delivery schedules. Our DPO increased by 1 day to 45 days as of June 30, 2026, as compared to 46 days as of June 30, 2025. Invoices processed through our credit facility, or the accounts payable-floor plan balance, are typically paid within 45-60 days from the invoice date, while accounts payable trade invoices are typically paid around 30-45 days from the invoice date.

Current wording

Our cash conversion cycle increased to 36 days as of September 30, 2026, as compared to 29 days as of September 30, 2025. Our standard payment term for customers is between 30 to 60 days; however, certain customer orders may be approved for extended payment terms. Our DSO increased by 1 day to 63 days as of September 30, 2026, compared to 62 days as of September 30, 2025. Our DIO increased to 23 days as of September 30, 2026, compared to 15 days as of September 30, 2025, due to longer customer delivery schedules. Our DPO decreased by 2 days to 50 days as of September 30, 2026, as compared to 48 days as of September 30, 2025. Invoices processed through our credit facility, or the accounts payable-floor plan balance, are typically paid within 45 to 60 days from the invoice date, while accounts payable trade invoices are typically paid around 30 to 45 days from the invoice date.

Previous wording

Cash flows related to investing activities: During the three months ended June 30, 2026, we used $0.9 million through investing activities consisting of purchases of property and equipment. During the three months ended June 30, 2025, we used $0.8 million through investing activities of continuing operations consisting primarily of purchases of property and equipment, and provided $156.7 million through investing activities of discontinued operations, consisting of cash proceeds from our sale of HoldCo of $180.1 million less cash transferred with the HoldCo entities of $23.4 million.

Current wording

Cash flows related to investing activities: During the six months ended September 30, 2026, we used $18.3 million through investing activities consisting of purchases of property and equipment and cash used for an acquisition. During the six months ended September 30, 2025, we used $1.8 million through investing activities of continuing operations consisting primarily of purchases of property and equipment, and provided $156.7 million through investing activities of discontinued operations, consisting of cash proceeds from our sale of HoldCo of $180.1 million less cash transferred with the HoldCo entities of $23.4 million.

Previous wording

Cash flows from financing activities: During the three months ended June 30, 2026, we used $37.8 million through financing activities. We had cash outflows of $25.5 million to repurchase outstanding shares of our common stock, $7.1 million paid for dividends, and $7.1 million in net repayments on our floor plan facility. These cash outflows were partially offset by cash inflows of $1.8 million in proceeds from the issuance of common stock to employees under our employee stock purchase plan.

Current wording

Cash flows from financing activities: During the six months ended September 30, 2026, we used $31.2 million through financing activities. We had cash outflows of $38.5 million to repurchase outstanding shares of our common stock and $14.1 million paid in dividends, partially offset by cash inflows of $19.5 million in net borrowings on our floor plan facility and $1.8 million in proceeds from the issuance of common stock to employees under our employee stock purchase plan.

Previous wording

During the three months ended June 30, 2025, we provided $38.3 million from financing activities of continuing operations consisting of $1.8 million in proceeds from the issuance of common stock to employees under an employee stock purchase plan, and $39.9 million in net borrowings on the floor plan component of our credit facility, partially offset by $3.3 million in cash used to repurchase outstanding shares of our common stock.

Current wording

During the six months ended September 30, 2025, we used $3.2 million through financing activities of continuing operations. We had cash outflows of $7.4 million to repurchase outstanding shares of our common stock and $6.6 million paid in dividends. These cash outflows were partially offset by cash inflows of $9.0 million in net borrowing on our floor plan facility and $1.8 million in proceeds from the issuance of common stock to employees under our employee stock purchase plan.

Previous wording

Floor plan facility: We finance certain purchases of products for sale to our customers through the floor plan facility. Once our customer places a purchase order with us and we have approved their credit, we place an order for the desired products with one of our vendors. Our vendors are generally paid by the floor plan facility and our liability is reflected in “accounts payable—floor plan” in our consolidated balance sheets.

Current wording

Floor plan facility: We finance certain purchases of products for sale to our customers through the floor plan facility. Once our customer places a purchase order with us and we have approved the customer’s credit, we place an order for the desired products with one of our vendors. Our vendors are generally paid by the floor plan facility, and our liability is reflected in “accounts payable—floor plan” in our consolidated balance sheets.

Previous wording

As of June 30, 2026, and March 31, 2026, we had a maximum credit limit of $500.0 million, and an outstanding balance on the floor plan facility of $112.5 million and $119.7 million, respectively. On our balance sheet, our liability under the floor plan facility is presented as part of accounts payable – floor plan.

Current wording

As of September 30, 2026, and March 31, 2026, we had a maximum credit limit of $500.0 million, and an outstanding balance on the floor plan facility of $139.2 million and $119.7 million, respectively. On our balance sheet, our liability under the floor plan facility is presented as part of accounts payable – floor plan.

Previous wording

Revolving credit facility: As of June 30, 2026, and March 31, 2026, we did not have any outstanding balance under the revolving credit facility. The maximum credit limit under this facility was $200.0 million as of both June 30, 2026, and March 31, 2026.

Current wording

Revolving credit facility: As of September 30, 2026, and March 31, 2026, we did not have any outstanding balance under the revolving credit facility. The maximum credit limit under this facility is constrained by both the maximum credit limit of $500.0 million and a sub-limit of $200.0 million as of both September 30, 2026, and March 31, 2026.