Financial Analysis

14. BUSINESS COMBINATIONS BAILIWICK SERVICES, LLC On August 19, 2024, our subsidiary, e Plus Technology, inc., acquired 100% of the membership interests of Bailiwick Services, LLC (Bailiwick). Based near Minneapolis, Minnesota, Bailiwick is a provider of professional and managed services with nearly 30 years in the business. Bailiwick specializes in serving enterprise customers that operate large store, branch, and campus footprints predominantly in the retail, financial services, restaurant, and hospitality markets. Our sum for consideration transferred is $124.9 million, which consists of $126.2 million paid in cash at closing, less $1.5 million cash acquired, plus $0.2 million paid in December 2024 to the sellers based on adjustments to a determination of the total net assets delivered. Our allocation of the purchase consideration to the assets acquired and liabilities assumed is presented below (in thousands): Acquisition date amount Accounts receivable $ 41,719 Contract assets 7,712 Other assets 20,669 Identified intangible assets 58,010 Accounts payable and other liabilities (38,273 ) Contract liabilities (6,216 ) Total identifiable net assets 83,621 Goodwill 41,305 Total purchase consideration $ 124,926 The identified intangible assets of $58.0 million consists of customer relationships of $49.3 million with an estimated useful life of ten years and trade name of $8.7 million with a useful life of seven years. We recognized goodwill related to this transaction of $41.3 …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

8. COMMITMENTS AND CONTINGENCIES LEGAL PROCEEDINGS We are subject to various legal proceedings, as well as demands, claims and threatened litigation, that arise in the normal course of our business and have not been fully resolved. The ultimate outcome of any litigation or other legal dispute is uncertain. When a loss related to a legal proceeding or claim is probable and reasonably estimable, we accrue our best estimate for the ultimate resolution of the matter. If one or more legal matters are resolved against us in a reporting period for amounts above our expectations, our financial condition and operating results for that period may be adversely affected. As of December 31, 2025, we do not believe that there is a reasonable possibility that any material loss exceeding the amounts already recognized for these proceedings and matters, if any, has been incurred. Any outcome, whether favorable or unfavorable, may materially and adversely affect us due to legal costs and expenses, diversion of management attention and other factors. We expense legal costs in the period incurred. We cannot assure that additional contingencies of a legal nature or contingencies having legal aspects will not be asserted against us in the future, and these matters could relate to prior, current, or future transactions or events.

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The following table provides a disaggregation of our revenue from contracts with customers by customer end market and by type (in thousands): Three months ended December 31, Nine months ended December 31, 2025 2024 2025 2024 Customer end market: Telecom, Media & Entertainment $ 176,405 $ 126,201 $ 538,156 $ 352,624 Technology 89,368 71,293 241,664 235,387 Healthcare 81,460 58,670 238,036 212,185 Financial Services 66,104 46,217 176,683 130,701 SLED 59,946 71,412 237,754 261,195 Retail 34,394 33,785 106,427 67,754 All others 106,993 85,541 321,929 262,054 Total revenue from contracts with customers $ 614,670 $ 493,119 $ 1,860,649 $ 1,521,900 Type: Product segment: Networking $ 230,886 $ 181,367 $ 707,244 $ 602,883 Cloud 175,352 116,864 510,618 375,431 Security 61,055 53,919 188,051 143,133 Collaboration 13,418 8,391 41,733 47,278 Other 21,116 18,931 60,090 57,672 Total product segment 501,827 379,472 1,507,736 1,226,397 Professional services segment 64,065 69,497 212,138 168,676 Managed services segment 48,778 44,150 140,775 126,827 Total revenue from contracts with customers $ 614,670 $ 493,119 $ 1,860,649 $ 1,521,900

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11. SHARE-BASED COMPENSATION SHARE-BASED PLANS During the nine months ended December 31, 2025, we had share-based awards outstanding under the following plans: (1) the 2017 Non-Employee Director Long-Term Incentive Plan (2017 Director LTIP), (2) the 2024 Non-Employee Director Long-Term Incentive Plan (2024 Director LTIP) and (3) the 2021 Employee Long-Term Incentive Plan (2021 Employee LTIP). These share-based plans define fair market value as the closing sales price of a share of common stock as quoted on any established stock exchange for such date or the most recent trading day preceding such date if there were no trades on such date. RESTRICTED STOCK ACTIVITY For the nine months ended December 31, 2025, we granted 9,820 restricted shares under the 2024 Director LTIP and 121,844 restricted shares under the 2021 Employee LTIP. For the nine months ended December 31, 2024, we granted 729 restricted shares of our stock under the 2017 Director LTIP, 6,628 restricted shares of our stock under the 2024 Director LTIP, and 121,097 restricted shares of our stock under the 2021 Employee LTIP. A summary of our restricted stock activity is as follows: Number of shares Weighted average grant-date fair value Unvested April 1, 2025 275,773 $ 64.80 Granted 131,664 $ 72.64 Vested (146,660 ) $ 63.55 Forfeited (5,397 ) $ 66.77 Unvested December 31, 2025 255,380 $ 69.52 PERFORMANCE STOCK UNITS Beginning with the fiscal year ended March 31, 2024, we granted Performance Stock Units (PSUs) to cer …

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13. FAIR VALUE OF FINANCIAL INSTRUMENTS The following table summarizes the fair value hierarchy of our financial instruments as of December 31, 2025, and March 31, 2025 (in thousands): Fair value measurement using Recorded amount Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) December 31, 2025 Assets: Money market funds $ 223,910 $ 223,910 $ - $ - Contingent receivable $ 12,448 $ - $ - $ 12,448 Receivables held for sale $ 45,883 $ 45,883 $ - $ - March 31, 2025 Assets: Money market funds $ 280,067 $ 280,067 $ - $ - Through the agreement for the sale of HoldCo, we may earn and receive Holdback Premium (as defined below) payments and two different types of Earn-Outs (as defined below, and together with the Holdback Premium the Contingent Consideration) based on the post-Closing performance of the HoldCo Group (as defined below), as operated by PEAC Solutions. We estimated the fair value of each element of the Contingent Consideration using a Monte Carlo simulation model. We recognize the short-term and long-term portions of the receivable for the Contingent Consideration as part of other current assets and property, equipment, and other assetsnet, respectively, in our consolidated balance sheet. We may receive aggregate post-Closing cash payments of up to $3.0 million (the Holdback Premium) based on the achievement of customer lease receivable originations targets by HoldCo (i …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

5. GOODWILL AND OTHER INTANGIBLE ASSETS GOODWILL The following table summarizes the changes in the carrying amount of goodwill for the nine months ended December 31, 2025 (in thousands): Product Professional Services Managed Services Total Balance, March 31, 2025 (1) $ 129,177 $ 63,779 $ 9,902 $ 202,858 Foreign currency translations 54 10 5 69 Balance, December 31, 2025 (1) $ 129,231 $ 63,789 $ 9,907 $ 202,927 (1) Balance is net of $4,644 thousand in accumulated impairments that were recorded in a segment that preceded our current segment organization. Goodwill represents the premium paid over the fair value of the net tangible and intangible assets that are individually identified and separately recognized in business combinations. The only activity in our goodwill balance over the nine months ended December 31, 2025, was foreign currency translation adjustments. We test goodwill for impairment on an annual basis, as of the first day of our third fiscal quarter, and between annual tests if an event occurs, or circumstances change, that would more likely than not reduce the fair value of a reporting unit below its carrying value. In our annual test as of October 1, 2025, we performed a qualitative assessment of goodwill and concluded that, more likely than not, the fair value of our product, professional services, and managed services reporting units continued to exceed their carrying value. OTHER INTANGIBLE ASSETS Our other intangible assets consist of purchased intangible a …

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"12. INCOME TAXES Our provision for income tax expense was $12.2 million and $37.7 million for the three and nine months ended December 31, 2025, as compared to $5.4 million and $21.8 million for the same three- and nine-month periods in the prior year. Our effective tax rate for the three and nine months ended December 31, 2025, was 26.7% and 27.6% respectively, compared with 26.9% and 27.2%, respectively, for the same three- and nine-month periods in the prior year. Our effective income tax rate for the three months ended December 31, 2025, was lower compared to the same three-month period in the prior year primarily due to lower state taxes. Our effective income tax rate for the nine months ended December 31, 2025, was higher compared to the same nine-month period in the prior year primarily due to a higher tax benefit from restricted stock and state taxes in the prior year. The effective tax rate for the three and nine months ended December 31, 2025, and December 31, 2024, differed from the US federal statutory rate of 21.0% primarily due to state and local income taxes. On July 4, 2025, the One Big Beautiful Bill Act (the ""OBBBA"") was enacted into law, resulting in significant changes to the US tax code. The OBBBA permanently extends many of the tax provisions of the Tax Cuts and Jobs Act of 2017, which were scheduled to expire on December 31, 2025. The OBBBA introduces modifications to various US corporate tax provisions, with staggered effective dates ranging from 20 …

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RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS NOT YET ADOPTED In December 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This update requires disaggregated information about a reporting entitys effective tax rate reconciliation as well as information on income taxes paid. This update is effective for us for annual periods beginning with our fiscal year ending March 31, 2026. Early adoption is permitted. The amendments in this update are required to be applied on a prospective basis and retrospective adoption is permitted. This update will impact our income tax disclosures and will not affect our financial position, results of operations, and cash flows. In November 2024, the FASB issued ASU 2024-03, Income StatementReporting Comprehensive IncomeExpense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. The standard requires public business entities to disclose detailed information about specific types of expenses that are relevant to certain line items on the income statement. This update is effective for us for annual periods beginning in our fiscal year ending March 31, 2028, and interim periods beginning in the first quarter of our fiscal year ending March 31, 2029. Early adoption is permitted. We are currently evaluating the impact that this update will have on our financial statement disclosures. In September 2025, …

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3. REVENUES ACCOUNTS RECEIVABLE AND CONTRACT ASSETS Our balance in accounts receivabletrade, net includes our accounts receivable recognized from contracts with customers and contract assets. Contract assets represent our right to consideration in exchange for goods or services that we transferred to a customer when that right is conditioned on something other than the passage of time. The following table provides a disaggregation of our balance in accounts receivabletrade, net (in thousands): December 31, 2025 March 31, 2025 Accounts receivable $ 684,917 $ 507,052 Contract assets 16,271 13,775 Allowance for credit losses (3,199 ) (3,902 ) Total accounts receivabletrade, net $ 697,989 $ 516,925 As of December 31, 2025, our accounts receivable includes $0.2 million that is due from a financing partner in payment for our sale of customer receivables to them. Additionally, within other current assets in our consolidated balance sheet, we have $45.9 million in receivables recognized from contracts with customers that we intend to sell to this financing partner. CONTRACT LIABILITIES Contract liabilities represent our obligation to transfer goods or services to a customer for which we have received consideration, or the amount is due from the customer. Our contract liabilities consist of our deferred revenue and deferred revenuelong-term in our consolidated balance sheets. Revenues recognized from the beginning contract liability balance were $26.2 million and $102.4 million for th …

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15. SEGMENT REPORTING We manage and report our operating results through three operating segments: product, professional services, and managed services. Our organizational structure is based on how our chief operating decision maker (CODM) allocates resources, manages operations, and evaluates performance. Our CODM is our Chief Executive Officer. Our product segment includes sales of IT products, third-party software, and third-party maintenance, software assurance, and other third-party services. Our professional services segment includes our advanced professional services, staff augmentation, project management services, cloud consulting services and security services. Our managed services segment includes our advanced managed services, service desk, storage-as-a-service, cloud hosted services, cloud managed services and managed security services. Our other category consists of the international entities of our financing business that we retained after selling our domestic financing business. Our CODM measures the performance of the segments based on gross profit. We do not present asset information for our reportable segments as we do not provide asset information to our CODM. Our CODM reviews financial results and forecasts quarterly to manage operations and evaluate performance. Our CODM also uses our financial results and forecasts to make investment decisions as part of our annual budgeting process. The following table provides reportable segment information (in thousa …

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10. STOCKHOLDERS EQUITY SHARE REPURCHASE PLAN On August 7, 2025, our Board of Directors authorized the repurchase of up to 1,500,000 shares of our outstanding common stock, over a 12-month period beginning August 11, 2025. Previously, on May 18, 2024, our board of directors authorized the repurchase of up to 1,250,000 shares of our outstanding common stock over a 12-month period that began on May 28, 2024 and terminated on May 27, 2025. Under each authorized share repurchase program, when such program is in place, we may make purchases from time to time in the open market, or in privately negotiated transactions, subject to availability and the plan terms. Any repurchased shares have the status of treasury shares and may be used, when needed, for general corporate purposes. During the nine months ended December 31, 2025, we purchased 272,900 shares of our outstanding common stock at a value of $21.0 million under the share repurchase plan; we also purchased 47,488 shares of common stock at a value of $3.3 million to satisfy tax withholding obligations relating to the vesting of employees restricted stock. During the nine months ended December 31, 2024, we purchased 380,522 shares of our outstanding common stock at a value of $30.0 million under the share repurchase plan; we also purchased 52,450 shares of common stock at a value of $3.8 million to satisfy tax withholding obligations relating to the vesting of employees restricted stock. …

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