INSIGHT ENTERPRISES INC
For the period ended Mar 31, 2026. Filed May 7, 2026.
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.
Mar 31, 2026 · Filed May 7, 2026
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 2025-09-30; filed 2025-10-30.
0000932696-25-000019
Item 2. – Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-07.
0000932696-26-000050
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 162 previous paragraphs and 123 current paragraphs.
41 unchanged; 61 reworded; 19 added; 58 removed; 2 previous and 2 current paragraphs rearranged.
Tables are not compared: 15 previous and 13 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 (19)
Current report
•Gross profit of $462.2 million increased 14% compared to the three months ended March 31, 2025, primarily driven by increases in cloud solution offerings and Insight Core Services. Excluding the effects of fluctuating foreign currency exchange rates, gross profit increased 11% compared to the first quarter of 2025.
Current report
•The increase in services net sales was primarily due to the acquisition of Sekuro in November 2025.
Current report
•The expansion in product margin primarily reflects improved performance in partner programs, partially offset by a mix of hardware sales with lower margins compared to the prior year period.
Current report
EMEA's gross profit for the three months ended March 31, 2026 increased 21%, or $14.9 million, year over year (increasing 11% when excluding the effects of fluctuating foreign currency exchange rates), compared to the three months ended March 31, 2025. As a percentage of net sales, gross margin expanded 230 basis points to 23.3%, 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 250 basis points partially offset by a contraction in product margin of 20 basis points.
Current report
•The contraction in product margin is primarily the result of sales at lower margins than in the prior year period for both hardware and software.
Current report
APAC's gross profit for the three months ended March 31, 2026 increased 46%, or $6.9 million, year over year (increasing 35% when excluding the effects of fluctuating foreign currency exchange rates), compared to the three months ended March 31, 2025. As a percentage of net sales, gross margin expanded 530 basis points to 30.4%, year over year. The year over year net expansion in gross margin was attributable to a net expansion in services margin of 735 basis points due to the acquisition of Sekuro, partially offset by a contraction in product margin of 203 basis points.
Current report
Acquisition and Integration Related Expenses. During the three months ended March 31, 2025, we recorded acquisition and integration related expenses of approximately $0.2 million with no significant comparable activity during the three months ended March 31,2026.
Current report
EMEA's earnings from operations for the three months ended March 31, 2026 increased 32%, or $1.6 million (increasing 22% when excluding the effects of fluctuating foreign currency exchange rates), compared to the three months ended March 31, 2025. As a percentage of net sales, earnings from operations increased by approximately 30 basis points to 1.8%. The increase in earnings from operations was primarily driven by an increase in gross profit, partially offset by an increase in transformation costs within selling and administrative expenses, when compared to the three months ended March 31, 2025.
Current report
APAC’s Adjusted earnings from operations for the three months ended March 31, 2026 decreased 16%, or $0.8 million (decreasing 21% excluding the effects of fluctuating foreign currency exchange rates), compared to the three months ended March 31, 2025. As a percentage of net sales, Adjusted earnings from operations decreased by approximately 240 basis points to 5.5%. The decrease in Adjusted earnings from operations was primarily driven by an increase in selling and administrative expenses, partially offset by an increase in gross profit.
Current report
Income Tax Expense. Our effective tax rate of 39.4% for the three months ended March 31, 2026 was lower than our effective tax rate of 60.5% for the three months ended March 31, 2025. The decrease primarily reflects the non-deductibility of net losses related to the fair value adjustment associated with warrant settlement liabilities during the three months ended March 31, 2025, which did not recur during the three months ended March 31, 2026, and a year to year decrease in non‑deductible net losses related to the revaluation of earnout liabilities. These items were partially offset by a non-recurring foreign tax credit valuation allowance release recorded in the three months ended March 31, 2025 and current period tax shortfalls relating to share-based compensation.
Current report
•Our primary use of cash during the three months ended March 31, 2026 was to repurchase shares of our common stock.
Current report
•Capital expenditures were $6.0 million and $7.1 million for the three months ended March 31, 2026 and 2025, respectively.
Current report
•We had net borrowings under our inventory financing facilities of $35.0 million during the three months ended March 31, 2026 compared to net borrowings of $42.7 million during the three months ended March 31, 2025.
Current report
•Capital expenditures were $6.0 million and $7.1 million for the three months ended March 31, 2026 and 2025, respectively.
Current report
•We had net borrowings under our inventory financing facilities of $35.0 million during the three months ended March 31, 2026 compared to net borrowings of $42.7 million during the three months ended March 31, 2025.
Current report
•During the three months ended March 31, 2025, we did not make any earnout and acquisition related payments.
Current report
•During the three months ended March 31, 2026, we repurchased $75.0 million of our common stock.
Current report
•During the three months ended March 31, 2025, we did not repurchase any shares of our common stock.
Removed paragraphs (58)
Previous 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.
Previous 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):
Previous report
•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 report
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 report
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:
Previous report
•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 report
•The increase in hardware net sales was primarily due to higher volume of sales to commercial clients due to higher demand. This was driven by an increase in device net sales.
Previous 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.
Previous report
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 report
16%, year over year. The net changes for the nine months ended September 30, 2025 were the result of the following:
Previous report
•The decrease in hardware net sales was primarily due to lower volume of sales to large enterprise and public sector clients.
Previous report
•The increase in services net sales was primarily due to an increase in agency net sales, partially offset by a net decrease in fees from cloud solution offerings as a result of partner program changes.
Previous 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.
Previous report
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 report
•The decrease in hardware net sales was primarily the result of lower volume of sales to enterprise and public sector clients.
Previous report
•The decrease in services net sales was primarily due to lower fees for cloud solution offerings partially offset by higher volume sales of Insight Delivered services.
Previous report
•The decrease in software net sales was primarily due to the effects of foreign currency fluctuations.
Previous report
•The expansion in product margin reflects an increase in margin contribution from hardware net sales due to changes in product mix towards higher margin products, partially offset by a decrease in margin from software net sales.
Previous report
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 report
•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 report
•The expansion in product margin reflects an increase in margin contribution from hardware net sales due to changes in product mix towards higher margin products, partially offset by a decrease in margin from software net sales.
Previous report
•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 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:
Previous report
•An increase in services margin of 488 basis points partially offset by a contraction in product margin of 290 basis points.
Previous report
•The contraction in product margin is due to declines in product margin on both hardware and software net sales.
Previous report
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 report
•An increase in services margin of 371 basis points partially offset by a contraction in product margin of 126 basis points.
Previous report
•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 report
•The contraction in product margin is due to declines in product margin on both hardware and software net sales.
Previous 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.
Previous report
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 report
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 report
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 report
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 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.
Previous report
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.
Previous 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.
Previous report
EMEA's earnings from operations for the nine months ended September 30, 2025 decreased 47%, or $18.2 million (decreasing 48% 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 160 basis points to 2.0%. The decrease in earnings from operations was primarily driven by increases in selling and administrative expenses and severance and restructuring expenses, net, partially offset by an increase in gross profit when compared to the nine months ended September 30, 2024.
Previous 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.
Previous report
North America’s Adjusted earnings from operations for the nine months ended September 30, 2025 decreased 4%, or $13.0 million, compared to the nine months ended September 30, 2024. As a percentage of net sales, Adjusted earnings from operations increased by approximately 20 basis points to 6.0%. 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.
Showing the first 40 of 58 passages. Open the source sections for the rest.
Reworded paragraphs (61)
Previous wording
Today, every business is a technology business. We help our clients accelerate their digital journey to modernize their businesses and maximize the value of technology. We serve these clients in North America; Europe, the Middle East and Africa (“EMEA”); and Asia-Pacific (“APAC”). As a Fortune 500-ranked solutions integrator, we enable secure, end-to-end digital transformation and meet the needs of our clients through a comprehensive portfolio of solutions, far-reaching partnerships and 37 years of broad IT expertise. We amplify our solutions and services with global scale, local expertise and our e-commerce experience, enabling our clients to realize their digital ambitions in multiple ways. Our offerings in North America and certain countries in EMEA and APAC include hardware, software and services, including cloud solutions. Our offerings in the remainder of our EMEA and APAC segments consist largely of software and certain software-related services and cloud solutions.
Current wording
Today, every business is a technology business. At Insight, we accelerate transformation by unlocking the power of people and technology. We turn complexity into clarity, helping our clients achieve meaningful business outcomes and drive real results at scale. We serve these clients in North America; Europe, the Middle East and Africa (“EMEA”); and Asia-Pacific (“APAC”). As a Fortune 500-ranked Solutions Integrator, we deliver secure, end-to-end digital transformation and meet the needs of our clients through a comprehensive portfolio of solutions, far-reaching partnerships and 38 years of broad IT expertise. We amplify our solutions and services with global scale, local expertise and our e-commerce experience, enabling our clients to realize their digital ambitions in multiple ways. Our offerings in North America and certain countries in EMEA and APAC include hardware, software and services, including cloud solutions. Our offerings in the remainder of our EMEA and APAC segments consist largely of software and certain software-related services and cloud solutions.
Previous 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.
Current wording
•Net sales of $2.1 billion increased 1% compared to the three months ended March 31, 2025. The increase was primarily due to increases in services and hardware net sales as well as continued net revenue recognition in instances where Insight is the agent, partially offset by a decrease in software net sales. Excluding the effects of fluctuating foreign currency exchange rates, net sales decreased 1% compared to the first quarter of 2025.
Previous 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.
Current wording
•Compared to the three months ended March 31, 2025, gross margin expanded approximately 240 basis points to 21.7% of net sales in the three months ended March 31, 2026. This expansion reflects higher margin contributed by services net sales, including both cloud solution offerings and Insight Core Services, compared to the same period in the prior year.
Previous wording
•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 wording
•Earnings from operations increased 19%, year over year, to $71.7 million in the first quarter of 2026 compared to $60.1 million in the first quarter of 2025. The net change reflects an increase in gross profit, partially offset by an increase in selling and administrative expenses. Excluding the effects of fluctuating foreign currency exchange rates, earnings from operations increased 17% year over year.
Previous 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.
Current wording
•Net earnings and diluted earnings per share were $30.0 million and $0.97, respectively, for the first quarter of 2026. This compares to net earnings of $7.5 million and diluted earnings per share of $0.22 for the first quarter of 2025. The increase in net earnings was primarily due to an increase in earnings from operations in the first quarter of 2026 and the revaluation of warrant settlement liabilities recorded in the first quarter of 2025. Diluted earnings per share increased more than 100% year over year, primarily as a result of an increase in net earnings and a decrease in dilutive shares outstanding in the first quarter of 2026. Excluding the effects of fluctuating foreign currency exchange rates, diluted earnings per share also increased more than 100% year over year.
Previous wording
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 wording
In discussing financial results for the three months ended March 31, 2026 and 2025, 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.
Previous wording
Our discussion and analysis of financial condition and results of operations is intended to assist in the understanding of our consolidated financial statements, including the changes in certain key items in those consolidated financial statements from period to period and the primary factors that contributed to those changes, as well as how certain critical accounting estimates affect our consolidated financial statements.
Current wording
Our discussion and analysis of financial condition and results of operations is intended to assist in the understanding of our condensed consolidated financial statements, including the changes in certain key items in those consolidated financial statements from period to period and the primary factors that contributed to those changes, as well as how certain critical accounting estimates affect our condensed consolidated financial statements.
Previous 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.
Current wording
We believe inflation contributed to sustained high interest rates on all of our variable rate borrowing facilities in the first quarter of 2026 consistent with the prior year. Interest rates are expected to hold steady and continue to remain higher than historical rates throughout most of 2026. 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. Currently, our supply chain is impacted by the global memory chip shortage, which has resulted in lower overall supply and increased pricing and may result in further constrained overall supply and upward pressure on pricing. Additionally, international conflicts, including the war in Iran, may impact supply chain and increase inflation. We are mindful of the potential effects these conditions could have on our clients, partners and prospects in 2026 and beyond.
Previous 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:
Current wording
The following table sets forth certain financial data as a percentage of net sales for the three months ended March 31, 2026 and 2025:
Previous 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.
Current wording
Net Sales. Net sales of $2.1 billion for the three months ended March 31, 2026 increased 1%, year over year, compared to the three months ended March 31, 2025, primarily reflecting increases in our EMEA and APAC operating segments, partially offset by a decrease in our North America operating segment.
Previous 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):
Current wording
Our net sales by offering category for North America for the three months ended March 31, 2026 and 2025 were as follows (dollars in thousands):
Previous 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:
Current wording
Net sales in North America decreased 1%, or $17.8 million, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025, primarily driven by decreases in software net sales of 28%. The decrease was partially offset by increases in services and hardware net sales of 12% and 6%, year over year, respectively. The net changes for the three months ended March 31, 2026 were the result of the following:
Previous wording
•The increase in hardware net sales was primarily due to higher volume of sales to commercial clients due to higher demand. This reflects an increase in both devices and infrastructure net sales.
Current wording
•The increase in hardware net sales was primarily due to a mix of higher volume of sales and higher selling price to large enterprise clients. This reflects an increase in both devices and infrastructure net sales.
Previous wording
•The decrease in software net sales was due to lower volume of sales to enterprise clients.
Current wording
•The increase in services net sales was due to an increase in cloud solution offerings combined with an increase in Insight Delivered services from the Inspire11 acquisition.
Previous 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):
Current wording
Our net sales by offering category for EMEA for the three months ended March 31, 2026 and 2025 were as follows (dollars in thousands):
Previous wording
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 wording
Net sales in EMEA increased 9%, or $30.0 million, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025. Excluding the effects of fluctuating foreign currency exchange rates, net sales in EMEA remained relatively flat, year to year. Net sales of services and hardware increased by 20% and 11%, respectively, year over year, with software net sales remaining flat, year over year. The net changes for the three months ended March 31, 2026 were the result of the following:
Previous wording
•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 wording
•The increase in hardware net sales was primarily due to higher volume of sales to large enterprise clients, partially offset by lower volume of sales to commercial and public sector clients.
Previous wording
•The increase in services net sales was primarily due to increases in Insight Delivered services and agency net sales, partially offset by a net decrease in fees from cloud solution offerings as a result of partner program changes.
Current wording
•The increase in services net sales was primarily due to increases in Insight Delivered services and other agency net sales.
Previous 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):
Current wording
Our net sales by offering category for APAC for the three months ended March 31, 2026 and 2025 were as follows (dollars in thousands):
Previous 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:
Current wording
Net sales in APAC increased 20%, or $12.2 million, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025. Excluding the effects of fluctuating foreign currency exchange rates, net sales in APAC increased 11%, year over year. Net sales of hardware and services increased by 106% and 64%, respectively, year over year. These increases were partially offset by a decrease in software net sales of 28%, year to year. The net changes for the three months ended March 31, 2026 were the result of the following:
Previous wording
•The increase in hardware net sales was primarily due to higher volume of sales to enterprise and commercial clients.
Current wording
•The increase in hardware net sales was due to higher volume of sales to enterprise and commercial clients.
Previous wording
•The decrease in software net sales was primarily due to lower volume of sales to large enterprise clients and the continued migration of on-premise software to cloud solutions, reported net in services net sales.
Current wording
•The decrease in software net sales was primarily driven by a continued migration of on-premise software to cloud solutions, reported net in services net sales.
Previous 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:
Current wording
The percentage of net sales by category for North America, EMEA and APAC were as follows for the three months ended March 31, 2026 and 2025:
Previous 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.
Current wording
Gross Profit. Gross profit increased 14%, or $55.7 million, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025, with gross margin expanding approximately 240 basis points to 21.7% for the three months ended March 31, 2026 compared to 19.3% for the three months ended March 31, 2025.
Previous 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):
Current wording
Our gross profit and gross profit as a percentage of net sales by operating segment were as follows for the three months ended March 31, 2026 and 2025 (dollars in thousands):
Previous 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:
Current wording
North America's gross profit for the three months ended March 31, 2026 increased 11%, or $33.9 million, compared to the three months ended March 31, 2025. As a percentage of net sales, gross margin expanded approximately 220 basis points to 21.0%, year over year. The year over year net expansion in gross margin was primarily attributable to the following:
Previous wording
•An expansion in services margin of 66 basis points combined with expansion in product margin of 13 basis points.
Current wording
•An expansion in services margin of 188 basis points combined with expansion in product margin of 23 basis points.
Previous 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.
Current wording
•The increase in services margin primarily reflects an increase in margin contribution from cloud solution offerings combined with an increase in margin contribution from Insight Core Services.
Previous 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.
Current wording
•The increase in services margin is primarily the result of increased margin contribution from cloud solution offerings.
Previous 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.
Current wording
Selling and Administrative Expenses. Selling and administrative expenses for the three months ended March 31, 2026 increased 13%, or $44.8 million, compared to the three months ended March 31, 2025 (an increase of 11% when excluding the effects of fluctuating foreign currency exchange rates).
Previous 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.
Current wording
Selling and administrative expenses increased approximately 190 basis points as a percentage of net sales in the three months ended March 31, 2026 compared to the three months ended March 31, 2025. The overall net increase in selling and administrative expenses primarily reflects an increase in personnel costs of $24.0 million and other expenses of approximately $16.5 million. The increase in personnel costs was driven by variable compensation costs and expenses from acquisitions in Q4 2025. The increase in other expenses primarily reflects a net loss on revaluation of earnout liabilities of approximately $25.3 million for the first quarter of 2026 compared to a net loss of $15.2 million for the first quarter of 2025 primarily due to the acquisitions of Inspire 11 and Sekuro. We also incurred transformation costs in the current and prior year periods of $6.5 million and $1.3 million, respectively. We have been undergoing a transformation of our business in phases across the global organization to help us achieve our strategic objectives, including becoming a leading solutions integrator. These costs are unique in nature to the individual transformation phases and are generally not expected to recur in the longer term.
Previous 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.
Current wording
Severance and Restructuring Expenses, net. During the three months ended March 31, 2026, we recorded severance and restructuring expenses, net of adjustments, of approximately $6.5 million. Comparatively, during the three months ended March 31, 2025, we recorded severance and restructuring expenses, net of adjustments, of approximately $7.0 million. The severance charges in both periods primarily related to a realignment of certain roles and responsibilities and reductions in workforce.
Previous 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):
Current wording
Earnings from Operations. Earnings from operations increased 19%, or $11.6 million, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025. Earnings from operations and earnings from operations as a percentage of net sales by operating segment were as follows for the three months ended March 31, 2026 and 2025 (dollars in thousands):
Previous wording
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 wording
North America's earnings from operations for the three months ended March 31, 2026 increased 30%, or $15.4 million, compared to the three months ended March 31, 2025. As a percentage of net sales, earnings from operations increased by approximately 90 basis points to 3.9%. The increase in earnings from operations was primarily driven by an increase in gross profit, partially offset by an increase in selling and administrative expenses, including expenses relating to the acquisition of Inspire11, when compared to the three months ended March 31, 2025.
Previous wording
APAC's earnings from operations for the three months ended September 30, 2025 decreased 7%, or $0.4 million (also decreasing 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, earnings from operations decreased by approximately 70 basis points to 8.4%. The decrease in earnings from operations was driven by an increase in acquisition and integration related expenses when compared to the three months ended September 30, 2024.
Current wording
APAC's earnings from operations for the three months ended March 31, 2026 decreased 126%, or $5.4 million (decreasing 125% when excluding the effects of fluctuating foreign currency exchange rates), compared to the three months ended March 31, 2025. As a percentage of net sales, earnings from operations decreased by approximately 870 basis points to (1.5)%. The decrease in earnings from operations was driven by expenses related to the acquisition of Sekuro, partially offset by an increase in gross profit when compared to the three months ended March 31, 2025.
Previous wording
Adjusted Earnings from Operations. Adjusted earnings from operations increased 5%, or $6.3 million, year over year, in the three months ended September 30, 2025 compared to the three months ended September 30, 2024. Adjusted earnings from operations decreased 4%, or $15.2 million, year to year, in the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. Adjusted 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):
Current wording
Adjusted Earnings from Operations. Adjusted earnings from operations increased 27%, or $29.9 million, year over year, in the three months ended March 31, 2026 compared to the three months ended March 31, 2025. Adjusted earnings from operations as a percentage of net sales by operating segment were as follows for the three months ended March 31, 2026 and 2025 (dollars in thousands):
Previous wording
North America’s Adjusted earnings from operations for the three months ended September 30, 2025 increased 3%, or $3.3 million, compared to the three months ended September 30, 2024. As a percentage of net sales, Adjusted earnings from operations increased by approximately 60 basis points to 6.8%. The increase in Adjusted earnings from operations was primarily driven by a decrease in selling and administrative expenses, partially offset by a decrease in gross profit.
Current wording
North America’s Adjusted earnings from operations for the three months ended March 31, 2026 increased 30%, or $28.5 million, compared to the three months ended March 31, 2025. As a percentage of net sales, Adjusted earnings from operations increased by approximately 180 basis points to 7.3%. 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.
Previous wording
EMEA’s Adjusted earnings from operations for the nine months ended September 30, 2025 decreased 1%, or $0.4 million (decreasing 3% excluding the effects of fluctuating foreign currency exchange rates), compared to the nine months ended September 30, 2024. As a percentage of net sales, Adjusted earnings from operations increased by approximately 20 basis points to 4.0%. The slight decrease in Adjusted earnings from operations was primarily driven by an increase in selling and administrative expenses, partially offset by an increase in gross profit.
Current wording
EMEA’s Adjusted earnings from operations for the three months ended March 31, 2026 increased 17%, or $2.2 million (increasing 9% excluding the effects of fluctuating foreign currency exchange rates), compared to the three months ended March 31, 2025. As a percentage of net sales, Adjusted earnings from operations increased by approximately 30 basis points to 4.0%. 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.
Previous wording
Interest Expense, Net. Interest expense, net primarily relates to borrowings under our financing facilities and imputed interest under our inventory financing facilities, the Convertible Notes and the Senior Notes, as applicable, partially offset by interest income generated from interest earned on cash and cash equivalent bank balances. Interest expense, net for the three months ended September 30, 2025 increased 40%, or $6.7 million, compared to the three months ended September 30, 2024. This was primarily due to the higher loan balances under our ABL facility and decreased interest income partially offset by lower interest rates. Interest expense, net for the nine months ended September 30, 2025 increased 41%, or $17.9 million, compared to the nine months ended September 30, 2024. The increase in the nine months ended September 30, 2025 was primarily due to a higher loan balance under our ABL facility, the issuance of the Senior Notes in May 2024, the maturity of the Convertible Notes in February 2025 and decreased interest income, partially offset by lower interest rates.
Current wording
Interest Expense, Net. Interest expense, net primarily relates to borrowings under our financing facilities and imputed interest under our inventory financing facilities, the Convertible Notes and the Senior Notes, as applicable, partially offset by interest income generated from interest earned on cash and cash equivalent bank balances. Interest expense, net for the three months ended March 31, 2026 increased 51%, or $8.0 million, compared to the three months ended March 31, 2025. This was primarily due to the higher loan balances under our ABL facility and decreased interest income, partially offset by lower interest rates on ABL borrowings in the current year period.
Previous wording
Imputed interest under our inventory financing facilities was $2.6 million and $7.4 million for the three and nine months ended September 30, 2025, compared to $2.5 million and $7.3 million for the three and nine months ended September 30, 2024. For a description of our various financing facilities, see Note 5 to our Consolidated Financial Statements in Part I, Item 1 of this report.
Current wording
Imputed interest under our inventory financing facilities was $2.7 million for the three months ended March 31, 2026, compared to $2.4 million for the three months ended March 31, 2025. For a description of our various financing facilities, see Note 5 to our Consolidated Financial Statements in Part I, Item 1 of this report.
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Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
Our net sales by operating segment were as follows for the three months ended March 31, 2026 and 2025 (dollars in thousands):
Current report — wording carried from elsewhere
•During the three months ended March 31, 2026, we had net borrowings under our ABL facility of $112.4 million, which were primarily used to repurchase shares of our common stock.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
•The decrease in software net sales was primarily due to changes in certain vendor relationships (shifting us from a principal to an agent role), a significant transaction in the first quarter of 2024 with no comparable transaction in the current period, as well as the continued migration of on-premise software to cloud solutions, in each case, reported net in services net sales.
Previous report — wording carried elsewhere
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.