INSIGHT ENTERPRISES INC
For the period ended Sep 30, 2025. Filed Oct 30, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Oct 30, 2025
NSIT$158.25+3.6%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-07-31.
0001628280-25-036953
Item 2. – Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-10-30.
0000932696-25-000019
Item 2. – Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 157 previous paragraphs and 162 current paragraphs.
55 unchanged; 75 reworded; 29 added; 24 removed; 3 previous and 3 current paragraphs rearranged.
Tables are not compared: 15 previous and 15 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (29)
Current report
•Gross profit of $434.2 million was flat compared to the three months ended September 30, 2024, reflecting the impact of partner program changes. Excluding the effects of fluctuating foreign currency exchange rates, gross profit was also flat compared to the third quarter of 2024.
Current report
•Earnings from operations was flat, year over year, at $93.1 million in the third quarter of 2025 compared to $92.9 million in the third quarter of 2024. The net change reflects increases in selling and administrative expenses and acquisition and integration related expenses, partially offset by decreases in severance and restructuring expenses. Excluding the effects of fluctuating foreign currency exchange rates, earnings from operations was also flat year over year.
Current report
In discussing financial results for the three and nine months ended September 30, 2025 and 2024, the Company refers to certain financial measures that are adjusted from the financial results prepared in accordance with United States generally accepted accounting principles (“GAAP”). When referring to non-GAAP measures, the Company refers to them as “Adjusted.” See the "Use of Non-GAAP Financial Measures" section below for additional information and a reconciliation of such non-GAAP measures to the most directly comparable GAAP financial measures.
Current report
Our net sales by operating segment were as follows for the three and nine months ended September 30, 2025 and 2024 (dollars in thousands):
Current report
Net sales in EMEA increased 2%, or $7.2 million, for the three months ended September 30, 2025 compared to the three months ended September 30, 2024. Excluding the effects of fluctuating foreign currency exchange rates, net sales in EMEA decreased 3%, year to year. Net sales of services and software increased by 30% and 2%, respectively, year over year, partially offset by a decrease in hardware net sales of 11%, year to year. The net changes for the three months ended September 30, 2025 were the result of the following:
Current report
•The increase in software net sales was primarily due to higher volume of sales to corporate clients, partially offset by lower volume of sales to large enterprise and public sector clients combined with the continued migration of on-premise software to cloud solutions, reported net in services net sales.
Current report
•The decrease in hardware net sales was primarily due to lower volume of sales to large enterprise and corporate clients, partially offset by higher volume of sales to public sector clients.
Current report
16%, year over year. The net changes for the nine months ended September 30, 2025 were the result of the following:
Current report
•The increase in services net sales was primarily due to an increase in fees from cloud solution offerings and higher volume of Insight Delivered services.
Current report
•The decrease in software net sales was primarily due to the effects of foreign currency fluctuations.
Current report
•An expansion in services margin of 66 basis points combined with expansion in product margin of 13 basis points.
Current report
EMEA's gross profit for the three months ended September 30, 2025 increased 12%, or $7.9 million, year over year (increasing 7% when excluding the effects of fluctuating foreign currency exchange rates), compared to the three months ended September 30, 2024. As a percentage of net sales, gross margin expanded 200 basis points, year over year. The year over year net expansion in gross margin was attributable to the following:
Current report
•An increase in services margin of 488 basis points partially offset by a contraction in product margin of 290 basis points.
Current report
•An increase in services margin of 371 basis points partially offset by a contraction in product margin of 126 basis points.
Current report
APAC's gross profit for the three months ended September 30, 2025 was relatively flat, increasing $0.1 million, year over year (increasing 2% when excluding the effects of fluctuating foreign currency exchange rates), compared to the three months ended September 30, 2024. As a percentage of net sales, gross margin was also flat year over year. The year over year net changes in gross margin was attributable to a net expansion in services margin of 60 basis points partially offset by a contraction in product margin of 56 basis points.
Current report
North America's earnings from operations for the three months ended September 30, 2025 increased 3%, or $2.8 million, compared to the three months ended September 30, 2024. As a percentage of net sales, earnings from operations increased by approximately 40 basis points to 5.1%. The increase in earnings from operations was primarily driven by a decrease selling and administrative expenses and severance and restructuring expenses partially offset by a decrease in gross profit and an increase in acquisition and integration related expenses when compared to the three months ended September 30, 2024.
Current report
EMEA's earnings from operations for the three months ended September 30, 2025 decreased 33%, or $2.2 million (also decreasing 33% when excluding the effects of fluctuating foreign currency exchange rates), compared to the three months ended September 30, 2024. As a percentage of net sales, earnings from operations decreased by approximately 70 basis points to 1.4%. The decrease in earnings from operations was primarily driven by an increase in selling and administrative expenses, partially offset by an increase in gross profit when compared to the three months ended September 30, 2024.
Current report
APAC's earnings from operations for the nine months ended September 30, 2025 decreased 13%, or $2.5 million (decreasing 12% when excluding the effects of fluctuating foreign currency exchange rates), compared to the nine months ended September 30, 2024. As a percentage of net sales, earnings from operations decreased by approximately 120 basis points to 9.0%. The decrease in earnings from operations was driven by a decrease in gross profit and an increase in acquisition and integration related expenses when compared to the nine months ended September 30, 2024.
Current report
EMEA’s Adjusted earnings from operations for the three months ended September 30, 2025 increased 30%, or $2.4 million (increasing 29% excluding the effects of fluctuating foreign currency exchange rates), compared to the three months ended September 30, 2024. As a percentage of net sales, Adjusted earnings from operations increased by approximately 70 basis points to 3.3%. The increase in Adjusted earnings from operations was primarily driven by an increase in gross profit, partially offset by an increase in selling and administrative expenses.
Current report
APAC’s Adjusted earnings from operations for the three months ended September 30, 2025 increased 10%, or $0.6 million (increasing 12% excluding the effects of fluctuating foreign currency exchange rates), compared to the three months ended September 30, 2024. As a percentage of net sales, Adjusted earnings from operations increased by approximately 100 basis points to 10.3%. The increase in Adjusted earnings from operations was primarily driven by a decrease in selling and administrative expenses.
Current report
Our effective tax rate for the three and nine months ended September 30, 2025 was not materially impacted by the enactment of the OBBBA during the quarter. While we will benefit from the new provision allowing for the immediate deduction of domestic R&D expenses, the impact is not material to our overall tax provision.
Current report
•Capital expenditures were $17.6 million and $32.4 million for the nine months ended September 30, 2025 and 2024, respectively.
Current report
•We had net borrowings under our inventory financing facilities of $21.9 million during the nine months ended September 30, 2025 compared to net borrowings of $3.1 million during the nine months ended September 30, 2024.
Current report
equivalents acquired, to acquire an entity in our EMEA segment, on July 1, 2024.
Current report
•Capital expenditures were $17.6 million and $32.4 million for the nine months ended September 30, 2025 and 2024, respectively.
Current report
•We received proceeds from the sale of assets of $13.8 million in the nine months ended
Current report
•We had net borrowings under our inventory financing facilities of $21.9 million during the nine months ended September 30, 2025 compared to net borrowings of $3.1 million during the nine months ended September 30, 2024.
Current report
•During the nine months ended September 30, 2025, we repurchased $151.1 million of our common stock.
Current report
•During the nine months ended September 30, 2024, we repurchased $200.0 million of our common stock.
Removed paragraphs (24)
Previous report
•Gross profit of $442.3 million decreased 2% compared to the three months ended June 30, 2024. Excluding the effects of fluctuating foreign currency exchange rates, gross profit decreased 3% compared to the second quarter of 2024. This decrease was attributable in part to partner program changes.
Previous report
•Earnings from operations decreased 34%, year to year, to $86.5 million in the second quarter of 2025 compared to $131.1 million in the second quarter of 2024. The decrease was primarily due to a decrease in gross profit in the current quarter, combined with an increase in selling and administrative expenses, including a $12.6 million loss on impairment of a real estate asset in the current year quarter and a $25.1 million gain on revaluation of earnout liabilities in the prior year quarter. Excluding the effects of fluctuating foreign currency exchange rates, earnings from operations decreased 34% year to year.
Previous report
Our net sales by operating segment were as follows for the three and six months ended June 30, 2025 and 2024 (dollars in thousands):
Previous report
•The decrease in hardware net sales was primarily due to lower volume of sales to large enterprise, corporate and public sector clients.
Previous report
•The decrease in software net sales was primarily due to lower volume of sales to large enterprise and public sector clients reflecting changes in certain vendor relationships as well as the continued migration of on-premise software to cloud solutions, in each case, reported net in services net sales.
Previous report
Net sales in EMEA decreased 12%, or $90.3 million, for the six months ended June 30, 2025 compared to the six months ended June 30, 2024. Excluding the effects of fluctuating foreign currency exchange rates, net sales in EMEA also decreased 13%, year to year. Net sales of software and hardware decreased by 22% and
Previous report
9%, respectively, year to year, partially offset by an increase in services net sales of 9%, year over year. The net changes for the six months ended June 30, 2025 were the result of the following:
Previous report
•A contraction in services margin of 39 basis points partially offset by expansion in product margin of 24 basis points.
Previous report
•An increase in services margin of 333 basis points partially offset by a contraction in product margin of 114 basis points.
Previous report
EMEA's gross profit for the six months ended June 30, 2025 was flat year to year (decreasing 2% when excluding the effects of fluctuating foreign currency exchange rates), compared to the six months ended June 30, 2024. As a percentage of net sales, gross margin expanded approximately 260 basis points, year over year. The year over year net expansion in gross margin was attributable to the following:
Previous report
•An increase in services margin of 319 basis points partially offset by a contraction in product margin of 59 basis points.
Previous report
APAC's gross profit for the three months ended June 30, 2025 decreased 10%, or $1.9 million, year to year (decreasing 8% when excluding the effects of fluctuating foreign currency exchange rates), compared to the three months ended June 30, 2024. As a percentage of net sales, gross margin contracted approximately 220 basis points, year to year. The year to year net contraction in gross margin was attributable to a net contraction in services margin of 298 basis points partially offset by an expansion in product margin of 77 basis points. The contraction in services margin was driven by the decrease in fees from cloud solution offerings in the current year period.
Previous report
North America's earnings from operations for the six months ended June 30, 2025 decreased 36%, or $66.3 million, compared to the six months ended June 30, 2024. As a percentage of net sales, earnings from operations decreased by approximately 160 basis points to 3.5%. The decrease in earnings from operations was primarily driven by a decrease in gross profit combined with an increase in selling and administrative expenses when compared to the six months ended June 30, 2024.
Previous report
EMEA's earnings from operations for the six months ended June 30, 2025 decreased 50%, or $16.0 million (decreasing 51% when excluding the effects of fluctuating foreign currency exchange rates), compared to the six months ended June 30, 2024. As a percentage of net sales, earnings from operations decreased by approximately 180 basis points to 2.3%. The decrease in earnings from operations was primarily driven by an increase in selling and administrative expenses and severance and restructuring expenses, net, compared to the six months ended June 30, 2024.
Previous report
APAC's earnings from operations for the three months ended June 30, 2025 decreased 19%, or $1.6 million (decreasing 18% when excluding the effects of fluctuating foreign currency exchange rates), compared to the three months ended June 30, 2024. As a percentage of net sales, earnings from operations decreased by approximately 230 basis points to 11.4%. The decrease in earnings from operations was primarily driven by a decrease in gross profit when compared to the three months ended June 30, 2024.
Previous report
APAC’s Adjusted earnings from operations for the three months ended June 30, 2025 decreased 21%, or $1.7 million (decreasing 19% excluding the effects of fluctuating foreign currency exchange rates), compared to the three months ended June 30, 2024. As a percentage of net sales, Adjusted earnings from operations decreased by approximately 260 basis points to 11.4%. The decrease in Adjusted earnings from operations was primarily driven by a decrease in gross profit, partially offset by a decrease in selling and administrative expenses.
Previous report
APAC’s Adjusted earnings from operations for the six months ended June 30, 2025 decreased 17%, or $2.3 million (decreasing 15% excluding the effects of fluctuating foreign currency exchange rates), compared to the six months ended June 30, 2024. As a percentage of net sales, Adjusted earnings from operations decreased by approximately 170 basis points to 9.3%. The decrease in Adjusted earnings from operations was primarily driven by a decrease in gross profit partially offset by a decrease in selling and administrative expenses.
Previous report
•Capital expenditures were $12.0 million and $18.6 million for the six months ended June 30, 2025 and 2024, respectively.
Previous report
•We had net borrowings under our inventory financing facilities of $2.1 million during the six months ended June 30, 2025 compared to net repayments of $13.0 million during the six months ended June 30, 2024.
Previous report
•Capital expenditures were $12.0 million and $18.6 million for the six months ended June 30, 2025 and 2024, respectively.
Previous report
•We had net borrowings under our inventory financing facilities of $2.1 million during the six months ended June 30, 2025 compared to net repayments of $13.0 million during the six months ended June 30, 2024.
Previous report
•During thesix months ended June 30, 2025, we did not make any earnout and acquisition related payments.
Previous report
•During the six months ended June 30, 2025, we repurchased $76.1 million of our common stock.
Previous report
•During the six months ended June 30, 2024, we repurchased $35.0 million of our common stock.
Reworded paragraphs (75)
Previous wording
•Net sales of $2.1 billion decreased 3% compared to the three months ended June 30, 2024. The decrease in net sales reflects decreases in software and services net sales, partially offset by an increase in hardware net sales. Excluding the effects of fluctuating foreign currency exchange rates, net sales decreased 4% compared to the second quarter of 2024.
Current wording
•Net sales of $2.0 billion decreased 4% compared to the three months ended September 30, 2024. The decrease was primarily due to a decrease in software net sales, partially offset by increases in services and hardware net sales. Excluding the effects of fluctuating foreign currency exchange rates, net sales decreased 5% compared to the third quarter of 2024.
Previous wording
•Compared to the three months ended June 30, 2024, gross margin expanded approximately 10 basis points to 21.1% of net sales in the three months ended June 30, 2025. This expansion primarily reflects higher margin contributed by hardware net sales compared to the same period in the prior year.
Current wording
•Compared to the three months ended September 30, 2024, gross margin expanded approximately 100 basis points to 21.7% of net sales in the three months ended September 30, 2025. This expansion reflects higher margin contributed by services net sales compared to the same period in the prior year.
Previous wording
•Net earnings and diluted earnings per share were $46.9 million and $1.46, respectively, for the second quarter of 2025. This compares to net earnings of $87.4 million and diluted earnings per share of $2.27 for the second quarter of 2024. The decrease in net earnings was primarily due to a decrease in earnings from operations and an increase in interest expense, partially offset by a decrease in tax expense in the current year period. Diluted earnings per share decreased 36% year to year, and excluding the effects of fluctuating foreign currency exchange rates, also decreased 36% year to year.
Current wording
•Net earnings and diluted earnings per share were $50.9 million and $1.62, respectively, for the third quarter of 2025. This compares to net earnings of $58.2 million and diluted earnings per share of $1.52 for the third quarter of 2024. The decrease in net earnings was primarily due to an increase in interest expense. Diluted earnings per share increased 7% year over year, primarily as a result of the decrease in dilutive shares outstanding. Excluding the effects of fluctuating foreign currency exchange rates, diluted earnings per share also increased 7% year over year.
Previous wording
Throughout the “Quarterly Overview” and “Results of Operations” sections of this “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” we refer to changes in net sales, gross profit, selling and administrative expenses and earnings from operations on a consolidated basis and in North America, EMEA and APAC excluding the effects of fluctuating foreign currency exchange rates, which are financial measures that are adjusted from our financial results prepared in accordance with the United States generally accepted accounting principles (“GAAP”). We believe providing this information excluding the effects of fluctuating foreign currency exchange rates provides valuable supplemental information to investors regarding our underlying business and results of operations, consistent with how we, including our management, evaluate our performance. In computing the changes in amounts and percentages, we compare the current period amount as translated into U.S. dollars under the applicable accounting standards to the prior period amount in local currency translated into U.S. dollars utilizing the weighted average translation rate for the current period. The performance measures excluding the effects of fluctuating foreign currency exchange rates should not be considered a substitute for, or superior to, the measures of financial performance prepared in accordance with GAAP.
Current wording
Throughout the “Quarterly Overview” and “Results of Operations” sections of this “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” we refer to changes in net sales, gross profit, selling and administrative expenses, diluted earnings per share and earnings from operations on a consolidated basis and in EMEA and APAC, as applicable, excluding the effects of fluctuating foreign currency exchange rates, which are financial measures that are adjusted from our financial results prepared in accordance with GAAP. In addition, we refer to changes in Adjusted earnings from operations in EMEA and APAC excluding the effects of fluctuating foreign currency exchange rates. These are also considered to be non-GAAP measures. We believe providing this information excluding the effects of fluctuating foreign currency exchange rates provides valuable supplemental information to investors regarding our underlying business and results of operations, consistent with how we, including our management, evaluate our performance. In computing the changes in amounts and percentages, we compare the current period amount as translated into U.S. dollars under the applicable accounting standards to the prior period amount in local currency translated into U.S. dollars utilizing the weighted average translation rate for the current period. The performance measures excluding the effects of fluctuating foreign currency exchange rates should not be considered a substitute for, or superior to, the measures of financial performance prepared in accordance with GAAP.
Previous wording
We believe inflation contributed to sustained high interest rates on all of our variable rate borrowing facilities in the first half of 2025 consistent with the prior year period. While these interest rates are expected to decrease, we continue to anticipate higher than historical rates throughout most of 2025. We are actively monitoring changes to the global macroeconomic environment, including those impacting our supply chain, demand for our products whether due to tariffs or otherwise and interest rates, and assessing the potential impacts these challenges may have on our current results, financial condition and liquidity. We are also mindful of the potential impact these conditions could have on our clients, partners and prospects in 2025 and beyond.
Current wording
We believe inflation contributed to sustained high interest rates on all of our variable rate borrowing facilities in the first nine months of 2025 consistent with the prior year period. While these interest rates are expected to decrease, we continue to anticipate higher than historical rates throughout the remainder of 2025. We are actively monitoring changes to the global macroeconomic environment, including those impacting our supply chain, demand for our products whether due to tariffs or otherwise and interest rates, and assessing the potential impacts these challenges may have on our current results, financial condition and liquidity. We are also mindful of the potential impact these conditions could have on our clients, partners and prospects in the remainder of 2025 and beyond.
Previous wording
The following table sets forth certain financial data as a percentage of net sales for the three and six months ended June 30, 2025 and 2024:
Current wording
The following table sets forth certain financial data as a percentage of net sales for the three and nine months ended September 30, 2025 and 2024:
Previous wording
Net Sales. Net sales of $2.1 billion for the three months ended June 30, 2025 decreased 3%, year to year, compared to the three months ended June 30, 2024, reflecting decreases in all of our operating segments. Net sales of $4.2 billion for the six months ended June 30, 2025 decreased 8%, year to year, compared to the six months ended June 30, 2024, also reflecting decreases in each of our operating segments.
Current wording
Net Sales. Net sales of $2.0 billion for the three months ended September 30, 2025 decreased 4%, year to year, compared to the three months ended September 30, 2024, primarily reflecting a decrease in our North America operating segment. Net sales of $6.2 billion for the nine months ended September 30, 2025 decreased 6%, year to year, compared to the nine months ended September 30, 2024, reflecting decreases in each of our operating segments.
Previous wording
Our net sales by offering category for North America for the three and six months ended June 30, 2025 and 2024 were as follows (dollars in thousands):
Current wording
Our net sales by offering category for North America for the three and nine months ended September 30, 2025 and 2024 were as follows (dollars in thousands):
Previous wording
Net sales in North America decreased 3%, or $48.1 million, for the three months ended June 30, 2025 compared to the three months ended June 30, 2024, driven by decreases in software and services net sales, partially offset by an increase in hardware net sales. Software and services net sales decreased 18% and 6%, year to year, respectively. These decreases were partially offset by an increase in hardware net sales of 4%, year over year. The net changes for the three months ended June 30, 2025 were the result of the following:
Current wording
Net sales in North America decreased 5%, or $91.3 million, for the three months ended September 30, 2025 compared to the three months ended September 30, 2024, driven by decreases in software and services net sales, partially offset by an increase in hardware net sales. Software and services net sales decreased 26% and 3%, year to year, respectively. These decreases were partially offset by an increase in hardware net sales of 2%, year over year. The net changes for the three months ended September 30, 2025 were the result of the following:
Previous wording
•The decrease in services net sales was primarily due to a decrease in certain fees from cloud solution offerings. A decline in sales of Insight Delivered services from our organic business, partially offset by an increase in net sales from Infocenter, also contributed to the year to year decrease in services net sales. Our North America organic business excludes Infocenter, which we acquired on May 1, 2024.
Current wording
•The decrease in services net sales was primarily due to a decrease in certain fees from cloud solution offerings associated with partner program changes. A decline in sales of Insight Delivered services also contributed to the year to year decrease in services net sales.
Previous wording
Net sales in North America decreased 7%, or $252.2 million, for the six months ended June 30, 2025, compared to the six months ended June 30, 2024, driven by decreases in software and services net sales. Software and services net sales decreased by 27% and 6%, respectively, year to year. These decreases were partially offset by an increase in hardware net sales of 3%, year over year. The net changes for the six months ended June 30, 2025 were the result of the following:
Current wording
Net sales in North America decreased 6%, or $343.5 million, for the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024, driven by decreases in software and services net sales. Software and services net sales decreased by 27% and 5%, respectively, year to year.
Previous wording
•The decrease in services net sales was primarily due to a decrease in certain fees from cloud solution offerings as a result of partner program changes and a decline in sales of Insight Delivered services from our organic business. The decrease in Insight Delivered services from our organic business was partially offset by an increase in net sales from Infocenter. Our North America organic business excludes Infocenter, which we acquired on May 1, 2024.
Current wording
•The decrease in services net sales was primarily due to a decrease in certain fees from cloud solution offerings as a result of partner program changes and a decline in sales of Insight Delivered services from our organic business. The decrease in sales of Insight Delivered services from our organic business was partially offset by an increase in net sales from Infocenter. Our North America organic business excludes Infocenter, which we acquired on May 1, 2024.
Previous wording
Our net sales by offering category for EMEA for the three and six months ended June 30, 2025 and 2024 were as follows (dollars in thousands):
Current wording
Our net sales by offering category for EMEA for the three and nine months ended September 30, 2025 and 2024 were as follows (dollars in thousands):
Previous wording
Net sales in EMEA decreased 5%, or $20.3 million, for the three months ended June 30, 2025 compared to the three months ended June 30, 2024. Excluding the effects of fluctuating foreign currency exchange rates, net sales in EMEA decreased 11%, year to year. Net sales of software and hardware decreased by 9% and 13%, respectively, year to year, partially offset by an increase in services net sales of 15%, year over year. The net changes for the three months ended June 30, 2025 were the result of the following:
Current wording
Net sales in EMEA decreased 8%, or $83.1 million, for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. Excluding the effects of fluctuating foreign currency exchange rates, net sales in EMEA decreased 10%, year to year. Net sales of software and hardware decreased by 16% and 10%, respectively, year to year, partially offset by an increase in services net sales of
Previous wording
Our net sales by offering category for APAC for the three and six months ended June 30, 2025 and 2024 were as follows (dollars in thousands):
Current wording
Our net sales by offering category for APAC for the three and nine months ended September 30, 2025 and 2024 were as follows (dollars in thousands):
Previous wording
Net sales in APAC decreased 3%, or $3.6 million, for the six months ended June 30, 2025 compared to the six months ended June 30, 2024. Excluding the effects of fluctuating foreign currency exchange rates, net sales in APAC was flat, year to year. Net sales of hardware and services decreased 14% and 4%, respectively, year to year. These decreases were partially offset by an increase in software net sales of 2%, year over year. The net changes for the six months ended June 30, 2025 were the result of the following:
Current wording
Net sales in APAC was relatively flat, increasing $0.1 million, for the three months ended September 30, 2025 compared to the three months ended September 30, 2024. Excluding the effects of fluctuating foreign currency exchange rates, net sales in APAC increased 2%, year over year. Net sales of hardware and services increased by 5% and 4%, respectively, year over year. These increases were partially offset by a decrease in software net sales of 7%, year to year. The net changes for the three months ended September 30, 2025 were the result of the following:
Previous wording
•The increase in software net sales was due to higher volume of sales to enterprise clients.
Current wording
•The decrease in software net sales was due to lower volume of sales to enterprise clients.
Previous wording
Net sales in APAC decreased 3%, or $1.9 million, for the three months ended June 30, 2025 compared to the three months ended June 30, 2024. Excluding the effects of fluctuating foreign currency exchange rates, net sales in APAC decreased 1%, year to year. Net sales of hardware and services decreased by 14% and 3%, respectively, year to year. These decreases were partially offset by an increase in software net sales of 1%, year over year. The net changes for the three months ended June 30, 2025 were the result of the following:
Current wording
Net sales in APAC decreased 2%, or $3.5 million, for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. Excluding the effects of fluctuating foreign currency exchange rates, net sales in APAC was flat, year over year. Net sales of hardware decreased 6%, year to year, while net sales of services and software each declined 1%, year to year. The net decreases for the nine months ended September 30, 2025 were the result of the following:
Previous wording
•The decrease in hardware net sales was primarily the result of lower volume of sales to enterprise and commercial clients.
Current wording
•The decrease in hardware net sales was primarily the result of lower volume of sales to enterprise and public sector clients.
Previous wording
The percentage of net sales by category for North America, EMEA and APAC were as follows for the three and six months ended June 30, 2025 and 2024:
Current wording
The percentage of net sales by category for North America, EMEA and APAC were as follows for the three and nine months ended September 30, 2025 and 2024:
Previous wording
Gross Profit. Gross profit decreased 2%, or $11.0 million, for the three months ended June 30, 2025 compared to the three months ended June 30, 2024, with gross margin expanding approximately 10 basis points to 21.1% for the three months ended June 30, 2025 compared to 21.0% for the three months ended June 30, 2024. Gross profit decreased 5%, or $45.5 million, for the six months ended June 30, 2025 compared to the six months ended June 30, 2024, with gross margin expanding approximately 50 basis points to 20.2% for the six months ended June 30, 2025 compared to 19.7% for the six months ended June 30, 2024.
Current wording
Gross Profit. Gross profit was relatively flat, increasing $2.1 million, for the three months ended September 30, 2025 compared to the three months ended September 30, 2024, with gross margin expanding approximately 100 basis points to 21.7% for the three months ended September 30, 2025 compared to 20.7% for the three months ended September 30, 2024. Gross profit decreased 3%, or $43.4 million, for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024, with gross margin expanding approximately 70 basis points to 20.7% for the nine months ended September 30, 2025 compared to 20.0% for the nine months ended September 30, 2024.
Previous wording
Our gross profit and gross profit as a percentage of net sales by operating segment were as follows for the three and six months ended June 30, 2025 and 2024 (dollars in thousands):
Current wording
Our gross profit and gross profit as a percentage of net sales by operating segment were as follows for the three and nine months ended September 30, 2025 and 2024 (dollars in thousands):
Previous wording
North America's gross profit for the three months ended June 30, 2025 decreased 4%, or $12.4 million, compared to the three months ended June 30, 2024. As a percentage of net sales, gross margin contracted approximately 10 basis points to 20.3%, year to year. The year to year net contraction in gross margin was primarily attributable to the following:
Current wording
North America's gross profit for the three months ended September 30, 2025 decreased 2%, or $5.8 million, compared to the three months ended September 30, 2024. As a percentage of net sales, gross margin expanded approximately 80 basis points to 21.1%, year over year. The year over year net expansion in gross margin was primarily attributable to the following:
Previous wording
•The decrease in services margin primarily reflects a decrease in margin contribution from fees for cloud solution offerings and software maintenance.
Current wording
•The increase in services margin primarily reflects an increase in margin contribution from fees for cloud solution offerings combined with an increase in margin contribution from product warranty, partially offset by a decrease in margin contribution from Insight Core services and software maintenance.
Previous wording
North America's gross profit for the six months ended June 30, 2025 decreased 6%, or $42.8 million, compared to the six months ended June 30, 2024. As a percentage of net sales, gross margin expanded approximately 10 basis points to 19.5% for the six months ended June 30, 2025. The year over year net expansion in gross margin was primarily attributable to the following:
Current wording
North America's gross profit for the nine months ended September 30, 2025 decreased 5%, or $48.6 million, compared to the nine months ended September 30, 2024. As a percentage of net sales, gross margin expanded approximately 40 basis points to 20.0% for the nine months ended September 30, 2025. The year over year net expansion in gross margin was primarily attributable to the following:
Previous wording
•A net increase in product margin of 31 basis points, year over year partially offset by a contraction in services margin of 14 basis points compared to the same period in the prior year.
Current wording
•A net increase in product margin of 25 basis points combined with an expansion in services margin of 12 basis points compared to the same period in the prior year.
Previous wording
•The decrease in services margin primarily reflects a decrease in margin contribution from Insight Core services and software maintenance. These declines were partially offset by an increase in margin contribution from product warranty.
Current wording
•The net increase in services margin primarily reflects an increase in margin contribution from fees for cloud solution offerings, partially offset by a decrease in margin contribution from Insight Core services and software maintenance.
Previous wording
•The increase in services margin is primarily the result of increased margin contribution from Insight Core services and an increase in agency net sales, partially offset by a decline in margin contribution from fees for cloud solution offerings.
Current wording
•The increase in services margin is primarily the result of increased margin contribution from an increase in agency net sales combined with an increase in margin contribution from Insight Core services, partially offset by a decline in margin contribution from fees for cloud solution offerings.
Previous wording
EMEA's gross profit for the three months ended June 30, 2025 increased 4%, or $3.3 million, year over year (decreasing 2% when excluding the effects of fluctuating foreign currency exchange rates), compared to the three months ended June 30, 2024. As a percentage of net sales, gross margin expanded 210 basis points, year over year. The year over year net expansion in gross margin was attributable to the following:
Current wording
EMEA's gross profit for the nine months ended September 30, 2025 increased 4%, or $8.0 million, year over year (increasing 1% when excluding the effects of fluctuating foreign currency exchange rates), compared to the nine months ended September 30, 2024. As a percentage of net sales, gross margin expanded approximately 240 basis points, year over year. The year over year net expansion in gross margin was attributable to the following:
Previous wording
•The increase in services margin is primarily the result of increased margin contribution from Insight Core services and an increase in agency net sales, partially offset by a decline in margin contribution from fees for cloud solution offerings.
Current wording
•The increase in services margin is primarily the result of increased margin contribution from an increase in agency net sales combined with an increase in margin contribution from Insight Core services, partially offset by a decline in margin contribution from fees for cloud solution offerings.
Previous wording
APAC's gross profit for the six months ended June 30, 2025 decreased 8%, or $2.9 million, year to year (decreasing 5% when excluding the effects of fluctuating foreign currency exchange rates), compared to the six months ended June 30, 2024. As a percentage of net sales, gross margin contracted approximately 150 basis points, year to year. The year to year net contraction in gross margin was attributable to a net contraction in services margin of 184 basis points partially offset by an expansion in product margin of 32 basis points. The contraction in services margin was driven by the decrease in fees from cloud solution offerings in the current year period.
Current wording
APAC's gross profit for the nine months ended September 30, 2025 decreased 5%, or $2.8 million, year to year (decreasing 3% when excluding the effects of fluctuating foreign currency exchange rates), compared to the nine months ended September 30, 2024. As a percentage of net sales, gross margin contracted approximately 100 basis points, year to year. The year to year net contraction in gross margin was attributable to a net contraction in services margin of 103 basis points. The contraction in services margin was driven by the decrease in margin contribution from fees from cloud solution offerings in the current year period.
Previous wording
Selling and Administrative Expenses. Selling and administrative expenses for the three months ended June 30, 2025 increased 11%, or $35.1 million, compared to the three months ended June 30, 2024 (increasing 10% when excluding the effects of fluctuating foreign currency exchange rates). Selling and administrative expenses increased $36.8 million, or 6% (increasing 5% when excluding the effects of fluctuating foreign currency exchange rates), for the six months ended June 30, 2025 compared to the six months ended June 30, 2024.
Current wording
Selling and Administrative Expenses. Selling and administrative expenses for the three months ended September 30, 2025 increased 1%, or $2.9 million, compared to the three months ended September 30, 2024 (flat when excluding the effects of fluctuating foreign currency exchange rates). Selling and administrative expenses increased $39.7 million, or 4% (also increasing 4% when excluding the effects of fluctuating foreign currency exchange rates), for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024.
Previous wording
Selling and administrative expenses increased approximately 210 basis points as a percentage of net sales in the three months ended June 30, 2025 compared to the three months ended June 30, 2024. The overall net increase in selling and administrative expenses primarily reflects an increase in other expenses of approximately $46.0 million, partially offset by a net decrease in personnel costs, including teammate benefits of approximately $9.3 million, year over year due to a decrease in overall teammate headcount. The net increase in other expenses primarily reflects a gain on revaluation of earnout liabilities in the prior year period of approximately $25.1 million with no significant comparable activity in the current year period. We incurred an impairment loss of approximately $12.6 million on a real estate asset that was reclassified to held for sale in April 2025 with no comparable activity in the prior year period. We also incurred transformation costs in the current and prior year periods of $7.0 million and $5.6 million, respectively, however, these costs are unique in nature and are not expected to recur in the longer term. For the three months ended June 30, 2024, we recovered approximately $3.4 million in costs we previously incurred related to a third-party data center service outage that occurred in July 2023 with no significant comparable activity in the current year period.
Current wording
Selling and administrative expenses increased approximately 80 basis points as a percentage of net sales in the three months ended September 30, 2025 compared to the three months ended September 30, 2024. The overall net increase in selling and administrative expenses primarily reflects an increase in other expenses of approximately $7.0 million. The net increase in other expenses primarily reflects a net loss on revaluation of earnout liabilities in the current year period of approximately $3.8 million compared to a net gain on revaluation of earnout liabilities of $6.4 million in the prior year period. We also incurred transformation costs in the current and prior year periods of $2.9 million and $5.1 million, respectively, however, these costs are unique in nature and are not expected to recur in the longer term. The increase in other expenses was partially offset by a decrease in legal and professional fees of approximately $1.8 million. The decrease in legal and professional fees primarily reflects reductions in activity and consulting projects, year over year.
Previous wording
Selling and administrative expenses increased approximately 210 basis points as a percentage of net sales in the six months ended June 30, 2025 compared to the six months ended June 30, 2024. The overall net increase in selling and administrative expenses primarily reflects increases in other expenses and depreciation and amortization expenses of approximately $68.1 million and $5.5 million, respectively. These increases were partially offset by a net decrease in personnel costs, including teammate benefits of approximately $29.8 million, year over year due to a decrease in overall teammate headcount. The net increase in other expenses primarily reflects a gain on revaluation of earnout liabilities in the prior year period of approximately $24.2 million compared to a net loss on revaluation of earnout liabilities of approximately $15.4 million in the current year period. We incurred an impairment loss of approximately $12.6 million on a real estate asset that was reclassified to held for sale in April 2025 with no comparable activity in the prior year period. We also incurred transformation costs in the current and prior year periods of $8.3 million and $7.9 million, respectively, however, these costs are unique in nature and are not expected to recur in the longer term. There was an increase in fees for service agreements of approximately $6.2 million compared to the prior year period. For the six months ended June 30, 2024, we recovered approximately $3.4 million in costs we previously incurred related to a third-party data center service outage that occurred in July 2023 with no significant comparable activity in the current year period. The increase in depreciation and amortization expenses reflects higher amortization of intangible assets associated with the Infocenter acquisition.
Current wording
Selling and administrative expenses increased approximately 160 basis points as a percentage of net sales in the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. The overall net increase in selling and administrative expenses primarily reflects increases in other expenses and depreciation and amortization expenses of approximately $75.1 million and $6.3 million, respectively. The net increase in other expenses primarily reflects a net gain on revaluation of earnout liabilities in the prior year period of approximately $30.6 million compared to a net loss on revaluation of earnout liabilities of approximately $19.2 million in the current year period. We incurred an impairment loss of approximately $12.6 million on a real estate asset that was reclassified to held for sale in April 2025 with no comparable activity in the prior year period. We also incurred transformation costs in the current and prior year periods of $11.2 million and $13.0 million, respectively, however, these costs are unique in nature and are not expected to recur in the longer term. There was a net increase in fees for service agreements of approximately $6.9 million compared to the prior year period. For the nine months ended September 30, 2024, we recovered approximately $3.4 million in costs we previously incurred related to a third-party data center service outage that occurred in July 2023 with no significant comparable activity in the current year period. The increase in depreciation and amortization expenses reflects higher amortization of intangible assets associated with the Infocenter acquisition. The increases in other expenses and depreciation and amortization expenses were partially offset by decreases in personnel costs, including teammate benefits, legal and professional fees and facility expenses of approximately $31.1 million, $5.0 million and $3.2 million, year over year, respectively. The decrease in personnel costs primarily reflects reductions in teammate headcount, year over year, as well as a reduction in variable compensation related to performance. The decrease in legal and professional fees primarily reflects reductions in activity and consulting projects, year over year.
Previous wording
Severance and Restructuring Expenses, net. During the three months ended June 30, 2025, we recorded severance and restructuring expenses, net of adjustments, of approximately $3.4 million. Comparatively, during the three months ended June 30, 2024, we recorded severance and restructuring expenses, net of adjustments, of approximately $4.9 million. The severance charges in both periods primarily related to a realignment of certain roles and responsibilities and reductions in workforce.
Current wording
Severance and Restructuring Expenses, net. During the three months ended September 30, 2025, we recorded severance and restructuring expenses, net of adjustments, of approximately $5.4 million. Comparatively, during the three months ended September 30, 2024, we recorded severance and restructuring expenses, net of adjustments, of approximately $8.5 million. The severance charges in both periods primarily related to a realignment of certain roles and responsibilities and reductions in workforce. In the prior year period, we also incurred restructuring expenses associated with strategic office consolidation.
Previous wording
During the six months ended June 30, 2025, we recorded severance and restructuring expense, net of adjustments, of approximately $10.4 million. Comparatively, during the six months ended June 30, 2024, we recorded severance and restructuring expense, net of adjustments, of approximately $7.1 million. The charges in both periods primarily related to a realignment of certain roles and responsibilities.
Current wording
During the nine months ended September 30, 2025, we recorded severance and restructuring expense, net of adjustments, of approximately $15.8 million. Comparatively, during the nine months ended September 30, 2024, we recorded severance and restructuring expense, net of adjustments, of approximately $15.6 million. The severance charges in both periods primarily related to a realignment of certain roles and responsibilities and reductions in workforce. In the prior year period, we also incurred restructuring expenses associated with strategic office consolidation.
Previous wording
Acquisition and Integration Related Expenses. During the three months ended June 30, 2025, we recorded acquisition and integration related expenses of approximately $0.1 million. During the three months ended June 30, 2024, we recorded acquisition and integration related expenses of approximately $0.2 million.
Current wording
Acquisition and Integration Related Expenses. During the three months ended September 30, 2025, we recorded acquisition and integration related expenses of approximately $2.8 million primarily related to certain acquisitions that closed or are expected to close in the fourth quarter of 2025. During the three months ended September 30, 2024, we recorded acquisition and integration related expenses of approximately $0.7 million.
Previous wording
During the six months ended June 30, 2025, we recorded acquisition and integration related expenses of approximately $0.3 million. During the six months ended June 30, 2024, we recorded acquisition and integration related expenses of approximately $1.5 million. The expenses in the prior year period related primarily to the acquisitions of SADA in December 2023 and Infocenter in May 2024. As the Company executes its acquisition strategy, we expect to incur additional acquisition and integration related expenses.
Current wording
During the nine months ended September 30, 2025, we recorded acquisition and integration related expenses of approximately $3.1 million primarily related to certain acquisitions that closed or are expected to close in the fourth quarter of 2025. During the nine months ended September 30, 2024, we recorded acquisition and integration related expenses of approximately $2.2 million. The expenses primarily related to the acquisitions of SADA in December 2023 and Infocenter in May 2024. As the Company executes its acquisition strategy, we expect to incur additional acquisition and integration related expenses.
Previous wording
Earnings from Operations. Earnings from operations decreased 34%, or $44.5 million, for the three months ended June 30, 2025 compared to the three months ended June 30, 2024. Earnings from operations decreased 37%, or $84.4 million, for the six months ended June 30, 2025 compared to the six months ended June 30, 2024. Earnings from operations and earnings from operations as a percentage of net sales by operating segment were as follows for the three and six months ended June 30, 2025 and 2024 (dollars in thousands):
Current wording
Earnings from Operations. Earnings from operations was flat, increasing $0.2 million, for the three months ended September 30, 2025 compared to the three months ended September 30, 2024. Earnings from operations decreased 26%, or $84.2 million, for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. Earnings from operations and earnings from operations as a percentage of net sales by operating segment were as follows for the three and nine months ended September 30, 2025 and 2024 (dollars in thousands):
Previous wording
North America's earnings from operations for the three months ended June 30, 2025 decreased 33%, or $33.1 million, compared to the three months ended June 30, 2024. As a percentage of net sales, earnings from operations decreased by approximately 180 basis points to 4.1%. The decrease in earnings from operations was primarily driven by a decrease in gross profit combined with an increase in selling and administrative expenses when compared to the three months ended June 30, 2024.
Current wording
North America's earnings from operations for the nine months ended September 30, 2025 decreased 24%, or $63.5 million, compared to the nine months ended September 30, 2024. As a percentage of net sales, earnings from operations decreased by approximately 90 basis points to 4.1%. The decrease in earnings from operations was primarily driven by a decrease in gross profit combined with an increase in selling and administrative expenses when compared to the nine months ended September 30, 2024.
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Rearranged current paragraphs (3)
Current report — wording carried from elsewhere
These decreases were partially offset by an increase in hardware net sales of 2%, year over year. The net changes for the nine months ended September 30, 2025 were the result of the following:
Current report — wording carried from elsewhere
•The increase in hardware net sales was primarily due to higher volume of sales to enterprise and commercial clients.
Current report — wording carried from elsewhere
•During thenine months ended September 30, 2025, we made earnout and acquisition related payments of $20.2 million primarily associated with our acquisition of Infocenter.
Rearranged previous paragraphs (3)
Previous report — wording carried elsewhere
•The decrease in services net sales was primarily due to a decrease in fees from cloud solution offerings partially offset by higher volume sales of Insight Delivered services.
Previous report — wording carried elsewhere
•The decrease in hardware net sales was primarily the result of lower volume of sales to enterprise and commercial clients.
Previous report — wording carried elsewhere
•The increase in software net sales was due to higher volume of sales to enterprise and commercial clients.