INSIGHT ENTERPRISES INC
For the period ended Jun 30, 2026. Filed Aug 6, 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.
Jun 30, 2026 · Filed Aug 6, 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 2026-03-31; filed 2026-05-07.
0000932696-26-000050
Item 2. – Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-06.
0000932696-26-000070
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 123 previous paragraphs and 160 current paragraphs.
39 unchanged; 62 reworded; 55 added; 20 removed; 2 previous and 4 current paragraphs rearranged.
Tables are not compared: 13 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 (55)
Current report
Net Sales. Net sales of $2.4 billion for the three months ended June 30, 2026 increased 15%, year over year, compared to the three months ended June 30, 2025, reflecting increases in all our operating segments with the majority of the increase from our North America segment. Net sales of $4.5 billion for the six months ended June 30, 2026 increased 8%, year over year, compared to the six months ended June 30, 2025, reflecting increases in each of our operating segments with the largest increase in North America.
Current report
Our net sales by operating segment were as follows for the three and six months ended June 30, 2026 and 2025 (dollars in thousands):
Current report
Net sales in North America increased 15%, or $254.4 million, for the three months ended June 30, 2026 compared to the three months ended June 30, 2025, primarily driven by increases in hardware and services net sales of 20% and 19%, respectively. The increase was partially offset by a decrease in software net sales of 8%, year to year. The net changes for the three months ended June 30, 2026 were the result of the following:
Current report
•The increase in hardware net sales was primarily driven by an increase across client segments, led by growth from large enterprise and corporate clients, and supported by higher average selling prices.
Current report
•The decrease in software net sales was primarily due to the continued migration of on-premise software to cloud solutions (reported net in services net sales).
Current report
Net sales in North America increased 7%, or $236.5 million, for the six months ended June 30, 2026, compared to the six months ended June 30, 2025, driven by increases in services and hardware net sales of 16% and
Current report
13%, respectively, year over year. This increase was partially offset by a decrease in software net sales of 19%, year to year. The net changes for the six months ended June 30, 2026 were the result of the following:
Current report
•The increase in hardware net sales was primarily driven by an increase across client segments, led by growth from large enterprise and corporate clients, and supported by higher average selling prices.
Current report
•The decrease in software net sales was primarily due to the continued migration of on-premise software to cloud solutions (reported net in services net sales).
Current report
•The increase in hardware net sales was primarily due to higher volume of sales to large enterprise and corporate clients.
Current report
•The decrease in software net sales was primarily due to lower volume of sales to large enterprise, corporate and public sector clients with the continued migration of on-premise software to cloud solutions (reported net in services net sales) also contributing to the decrease.
Current report
Net sales in EMEA increased 8%, or $56.6 million, for the six months ended June 30, 2026 compared to the six months ended June 30, 2025. Excluding the effects of fluctuating foreign currency exchange rates, net sales in EMEA increased 3%, year over year. Net sales of services and hardware increased by 17% and15%, respectively, year over year, partially offset by a decrease in software net sales of 2%, year to year. The net changes for the six months ended June 30, 2026 were the result of the following:
Current report
•The increase in hardware net sales was primarily due to higher volume of sales to large enterprise and corporate clients.
Current report
•The decrease in software net sales was primarily due to lower volume of sales to large enterprise and corporate clients with the continued migration of on-premise software to cloud solutions (reported net in services net sales) also contributing to the decrease.
Current report
Net sales in APAC increased 46%, or $27.1 million, for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. Excluding the effects of fluctuating foreign currency exchange rates, net sales in APAC increased 36%, year over year. Net sales of hardware, services and software increased by 86%, 59% and 13%, respectively, year over year. The increases for the three months ended June 30, 2026 were the result of the following:
Current report
•The increase in hardware net sales was due to higher volume of sales to large enterprise clients as well as due to the acquisition of Sekuro in November 2025.
Current report
•The increase in software net sales was driven by higher volume of sales to public sector clients.
Current report
•The increase in hardware net sales was due to higher volume of sales to large enterprise and corporate clients as well as due to the acquisition of Sekuro in November 2025.
Current report
•The decrease in software net sales was due to the continued migration of on-premise software to cloud solutions (reported net in services net sales) with the shift led primarily by corporate and public sector clients.
Current report
•An expansion in services margin of 87 basis points, partially offset by a contraction in product margin of 64 basis points.
Current report
•The contraction in product margin primarily reflects changes in hardware mix, including a higher proportion of lower-margin sales compared to the prior year period.
Current report
North America's gross profit for the six months ended June 30, 2026 increased 14%, or $89.9 million, compared to the six months ended June 30, 2025. As a percentage of net sales, gross margin expanded approximately 120 basis points to 20.7% for the six months ended June 30, 2026. The year over year net expansion in gross margin was primarily attributable to the following:
Current report
•An expansion in services margin of 137 basis points, partially offset by a contraction in product margin of 21 basis points.
Current report
•The increase in services margin primarily reflects increases in margin contribution from cloud solution offerings and Insight Delivered services, partially offset by a contraction in warranty and partner delivered services.
Current report
EMEA's gross profit for the three months ended June 30, 2026 increased 13%, or $11.0 million, year over year (increasing 12% when excluding the effects of fluctuating foreign currency exchange rates), compared to the three months ended June 30, 2025. As a percentage of net sales, gross margin expanded 130 basis points to 24.9%, year over year. The year over year net expansion in gross margin was primarily attributable to the following:
Current report
•An increase in services margin of 256 basis points, partially offset by a contraction in product margin of 131 basis points.
Current report
•The increase in services margin is primarily the result of an expansion in margin contribution from Insight Delivered services and in instances of software sales where Insight is the agent.
Current report
EMEA's gross profit for the six months ended June 30, 2026 increased 17%, or $25.9 million, year over year (increasing 12% when excluding the effects of fluctuating foreign currency exchange rates), compared to the six months ended June 30, 2025. As a percentage of net sales, gross margin expanded approximately 180 basis points to 24.1%, year over year. The year over year net expansion in gross margin was primarily attributable to the following:
Current report
•An increase in services margin of 252 basis points, partially offset by a contraction in product margin of 75 basis points.
Current report
•The increase in services margin is primarily the result of an expansion in margin contribution from Insight Delivered services and in instances of software sales where Insight is the agent.
Current report
APAC's gross profit for the three months ended June 30, 2026 increased 67%, or $12.3 million, year over year (increasing 56% when excluding the effects of fluctuating foreign currency exchange rates), compared to the three months ended June 30, 2025. As a percentage of net sales, gross margin expanded 450 basis points to 35.6%, year over year. The year over year net expansion in gross margin was primarily attributable to the following:
Current report
•A net expansion in services margin of 565 basis points, partially offset by a contraction in product margin of 115 basis points.
Current report
•The expansion in services margin is primarily driven by an expansion in margin contribution from the acquisition of Sekuro in November 2025 as well as an increase in cloud solution offerings.
Current report
APAC's gross profit for the six months ended June 30, 2026 increased 58%, or $19.2 million, year over year (increasing 47% when excluding the effects of fluctuating foreign currency exchange rates), compared to the six months ended June 30, 2025. As a percentage of net sales, gross margin expanded approximately 510 basis points, year over year. The year over year net expansion in gross margin was primarily attributable to the following:
Current report
•A net expansion in services margin of 668 basis points, partially offset by a contraction in product margin of 152 basis points.
Current report
•The expansion in services margin is primarily driven by an expansion in margin contribution from the acquisition of Sekuro in November 2025 as well as an increase in cloud solution offerings.
Current report
Selling and administrative expenses increased approximately 50 basis points as a percentage of net sales in the six months ended June 30, 2026 compared to the six months ended June 30, 2025. The overall net increase in selling and administrative expenses primarily reflects increases in personnel costs of $51.3 million, depreciation and amortization expenses of $5.4 million and other expenses of $13.7 million. The increase in personnel costs was driven by variable compensation costs and expenses from acquisitions in the fourth quarter of 2025. The increase in depreciation and amortization expenses reflects higher amortization of assets associated with acquisitions in the fourth quarter of 2025. The increase in other expenses includes the net loss on revaluation of earnout liabilities of approximately $25.6 million from the acquisitions of InfoCenter, Inspire11 and Sekuro for the six months ended June 30, 2026 compared to a net loss on revaluation of earnout liabilities of $15.4 million from the acquisition of InfoCenter for the six months ended June 30, 2025. We incurred an impairment loss of approximately $2.0 million in the six months ended June 30, 2026 compared to an impairment loss of approximately $12.6 million in the six months ended June 30, 2025 relating to the Santa Monica property that was reclassified to held for sale in April 2025 and subsequently sold in April 2026. We also incurred transformation costs, as discussed above, in the current and prior year periods of $16.3 million and $8.3 million, respectively.
Current report
During each of the six months ended June 30, 2026 and 2025, we recorded acquisition and integration related expenses of approximately $0.3 million.
Current report
North America's earnings from operations for the six months ended June 30, 2026 increased 50%, or $59.3 million, compared to the six months ended June 30, 2025. As a percentage of net sales, earnings from operations increased by approximately 140 basis points to 4.9%. 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 six months ended June 30, 2025.
Current report
EMEA's earnings from operations for the three months ended June 30, 2026 decreased 15%, or $1.7 million (decreasing 20% when excluding the effects of fluctuating foreign currency exchange rates), compared to the three months ended June 30, 2025. As a percentage of net sales, earnings from operations decreased by approximately 70 basis points to 2.5%. The decrease in earnings from operations was primarily driven by an increase in transformation and severance costs within operating expenses, partially offset by an increase in gross profit when compared to the three months ended June 30, 2025.
Showing the first 40 of 55 passages. Open the source sections for the rest.
Removed paragraphs (20)
Previous report
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 report
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 report
•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 report
•The decrease in software net sales was primarily due to changes in certain vendor relationships (shifting us from a principal to an agent role), as well as the continued migration of on-premise software to cloud solutions, in each case, reported net in services net sales.
Previous report
•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 report
•The increase in hardware net sales was due to higher volume of sales to enterprise and commercial clients.
Previous report
•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 report
•An expansion in services margin of 188 basis points combined with expansion in product margin of 23 basis points.
Previous 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:
Previous report
•An increase in services margin of 250 basis points partially offset by a contraction in product margin of 20 basis points.
Previous 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.
Previous 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.
Previous report
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 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.
Previous report
•Capital expenditures were $6.0 million and $7.1 million for the three months ended March 31, 2026 and 2025, respectively.
Previous 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.
Previous report
•Capital expenditures were $6.0 million and $7.1 million for the three months ended March 31, 2026 and 2025, respectively.
Previous 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.
Previous report
•During the three months ended March 31, 2026, we repurchased $75.0 million of our common stock.
Previous report
•During the three months ended March 31, 2025, we did not repurchase any shares of our common stock.
Reworded paragraphs (62)
Previous wording
The following discussion should be read in conjunction with the consolidated financial statements and the related notes that appear elsewhere in this Quarterly Report on Form 10-Q. We refer to our customers as “clients,” our suppliers as “partners” and our employees as “teammates.”
Current wording
The following discussion should be read in conjunction with the condensed consolidated financial statements and the related notes that appear elsewhere in this Quarterly Report on Form 10-Q. We refer to our customers as “clients,” our suppliers as “partners” and our employees as “teammates.”
Previous 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.
Current wording
•Net sales of $2.4 billion increased 15% compared to the three months ended June 30, 2025. The increase was primarily due to increases in hardware and services 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 increased 14% compared to the second quarter of 2025.
Previous wording
•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 wording
•Gross profit of $521.6 million increased 18% compared to the three months ended June 30, 2025, primarily driven by increases in cloud solution offerings and Insight Delivered services. Excluding the effects of fluctuating foreign currency exchange rates, gross profit increased 17% compared to the second quarter of 2025.
Previous 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.
Current wording
•Compared to the three months ended June 30, 2025, gross margin expanded approximately 60 basis points to 21.7% of net sales in the three months ended June 30, 2026. This expansion reflects higher margin contributed by services net sales, including both cloud solution offerings and Insight Delivered services, compared to the same period in the prior year.
Previous 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.
Current wording
•Earnings from operations increased 51%, year over year, to $131.0 million in the second quarter of 2026 compared to $86.5 million in the second 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 50% year over year.
Previous 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.
Current wording
•Net earnings and diluted earnings per share were $77.6 million and $2.57, respectively, for the second quarter of 2026. This compares to net earnings of $46.9 million and diluted earnings per share of $1.46 for the second quarter of 2025. The increase in net earnings was primarily due to an increase in earnings from operations in the second quarter of 2026. Diluted earnings per share increased 76% year over year, primarily as a result of an increase in net earnings and a decrease in dilutive shares outstanding in the second quarter of 2026. Excluding the effects of fluctuating foreign currency exchange rates, diluted earnings per share increased 74% year over year.
Previous 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.
Current wording
In discussing financial results for the three and six months ended June 30, 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
Details about segment results of operations can be found in Note 9 to the Consolidated Financial Statements in Part I, Item 1 of this report.
Current wording
Details about segment results of operations can be found in Note 9 to the Condensed Consolidated Financial Statements in Part I, Item 1 of this report.
Previous 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.
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 condensed 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 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.
Current wording
We believe inflation contributed to sustained high interest rates on all of our variable rate borrowing facilities in the first half 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
Our consolidated financial statements have been prepared in accordance with GAAP. For a summary of significant accounting policies, see Note 1 to the Consolidated Financial Statements in Part II, Item 8 of our Annual Report on Form 10-K for the year ended December 31, 2025. The preparation of these consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, net sales and expenses. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results, however, may differ from estimates we have made. Members of our senior management have discussed the critical accounting estimates and related disclosures with the Audit Committee of our Board of Directors.
Current wording
Our condensed consolidated financial statements have been prepared in accordance with GAAP. For a summary of significant accounting policies, see Note 1 to the Consolidated Financial Statements in Part II, Item 8 of our Annual Report on Form 10-K for the year ended December 31, 2025. The preparation of these condensed consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, net sales and expenses. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results, however, may differ from estimates we have made. Members of our senior management have discussed the critical accounting estimates and related disclosures with the Audit Committee of our Board of Directors.
Previous 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:
Current wording
The following table sets forth certain financial data as a percentage of net sales for the three and six months ended June 30, 2026 and 2025:
Previous 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):
Current wording
Our net sales by offering category for North America for the three and six months ended June 30, 2026 and 2025 were as follows (dollars in thousands):
Previous 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.
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 including from the Inspire11 acquisition.
Previous 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):
Current wording
Our net sales by offering category for EMEA for the three and six months ended June 30, 2026 and 2025 were as follows (dollars in thousands):
Previous 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:
Current wording
Net sales in EMEA increased 8%, or $26.6 million, for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. Excluding the effects of fluctuating foreign currency exchange rates, net sales in EMEA increased by 6%, year over year. Net sales of hardware and services increased by 20% and 14%, respectively, year over year, with software net sales decreasing by 5%, year to year. The net changes for the three months ended June 30, 2026 were the result of the following:
Previous 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):
Current wording
Our net sales by offering category for APAC for the three and six months ended June 30, 2026 and 2025 were as follows (dollars in thousands):
Previous 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:
Current wording
Net sales in APAC increased 33%, or $39.3 million, for the six months ended June 30, 2026 compared to the six months ended June 30, 2025. Excluding the effects of fluctuating foreign currency exchange rates, net sales in APAC increased by 23%, year over year. Net sales of hardware and services increased by 94% and 61%, respectively, year over year. These increases were partially offset by a decrease in software net sales of 11%, year to year. The net changes for the six months ended June 30, 2026 were the result of the following:
Previous 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:
Current 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, 2026 and 2025:
Previous 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.
Current wording
Gross Profit. Gross profit increased 18%, or $79.3 million, for the three months ended June 30, 2026 compared to the three months ended June 30, 2025, with gross margin expanding approximately 60 basis points to 21.7% for the three months ended June 30, 2026 compared to 21.1% for the three months ended June 30, 2025. Gross profit increased 16%, or $134.9 million, for the six months ended June 30, 2026 compared to the six months ended June 30, 2025, with gross margin expanding approximately 150 basis points to 21.7% for the six months ended June 30, 2026 compared to 20.2% for the six months ended June 30, 2025.
Previous 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):
Current 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, 2026 and 2025 (dollars in thousands):
Previous 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:
Current wording
North America's gross profit for the three months ended June 30, 2026 increased 16%, or $56.0 million, compared to the three months ended June 30, 2025. As a percentage of net sales, gross margin expanded approximately 20 basis points to 20.5%, year over year. The year over year net expansion in gross margin was primarily attributable to the following:
Previous 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.
Current wording
•The increase in services margin primarily reflects an increase in margin contribution from cloud solution offerings and Insight Core services, partially offset by a contraction in warranty and partner delivered services.
Previous wording
•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 wording
•The contraction in product margin primarily reflects a larger concentration of hardware in our product mix, along with lower margins compared to the prior year period.
Previous wording
•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 wording
•The contraction in product margin is primarily the result of sales of software at lower margins than in the prior year period.
Previous 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).
Current wording
Selling and Administrative Expenses. Selling and administrative expenses for the three months ended June 30, 2026 increased 9%, or $32.3 million, compared to the three months ended June 30, 2025 (an increase of 9% when excluding the effects of fluctuating foreign currency exchange rates). Selling and administrative expenses increased $77.1 million, or 11% (increasing 10% when excluding the effects of fluctuating foreign currency exchange rates), for the six months ended June 30, 2026 compared to the six months ended June 30, 2025.
Previous 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.
Current wording
Selling and administrative expenses decreased approximately 80 basis points as a percentage of net sales in the three months ended June 30, 2026 compared to the three months ended June 30, 2025. The overall net increase in selling and administrative expenses reflects increases in personnel costs of $27.3 million, depreciation and amortization expense of $2.8 million and legal and professional fees of $2.7 million. The increase in personnel costs was driven by variable compensation costs and expenses from acquisitions in the fourth quarter of 2025. The increase in depreciation and amortization expenses reflects higher amortization of assets associated with acquisitions in the fourth quarter of 2025. The increase in legal and professional fees primarily relates to consulting projects related to transformation of our global internal systems and EMEA specific transformation. We also incurred transformation costs in the current and prior year periods of $9.8 million and $7.0 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 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.
Current wording
Severance and Restructuring Expenses, net. During the three months ended June 30, 2026, we recorded severance and restructuring expenses, net of adjustments, of approximately $5.8 million. Comparatively, during the three months ended June 30, 2025, we recorded severance and restructuring expenses, net of adjustments, of approximately $3.4 million. The severance charges in both periods primarily related to a realignment of certain roles and responsibilities and reductions in workforce.
Previous wording
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 wording
Acquisition and Integration Related Expenses. During the three months ended June 30, 2026, we recorded acquisition and integration related expenses of approximately $0.3 million. During the three months ended June 30, 2025, we recorded acquisition and integration related expenses of approximately $0.1 million
Previous 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):
Current wording
Earnings from Operations. Earnings from operations increased 51%, or $44.4 million, for the three months ended June 30, 2026 compared to the three months ended June 30, 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 June 30, 2026 and 2025 (dollars in thousands):
Previous 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.
Current wording
North America's earnings from operations for the three months ended June 30, 2026 increased 64%, or $43.9 million, compared to the three months ended June 30, 2025. As a percentage of net sales, earnings from operations increased by approximately 170 basis points to 5.8%. 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 June 30, 2025.
Previous 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.
Current wording
APAC's earnings from operations for the three months ended June 30, 2026 increased 34%, or $2.2 million (increasing 28% when excluding the effects of fluctuating foreign currency exchange rates), compared to the three months ended June 30, 2025. As a percentage of net sales, earnings from operations decreased by approximately 100 basis points to 10.4%. The increase in earnings from operations was driven by an increase in gross profit, partially offset by expenses related to the acquisition of Sekuro, when compared to the three months ended June 30, 2025.
Previous 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):
Current wording
Adjusted Earnings from Operations. Adjusted earnings from operations increased 31%, or $42.6 million, year over year, in the three months ended June 30, 2026 compared to the three months ended June 30, 2025. Adjusted earnings from operations increased 29%, or $72.6 million, year over year, in the six months ended June 30, 2026 compared to the six months ended June 30, 2025. Adjusted earnings from operations as a percentage of net sales by operating segment were as follows for the three months ended June 30, 2026 and 2025 (dollars in thousands):
Previous 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.
Current wording
North America’s Adjusted earnings from operations for the three months ended June 30, 2026 increased 36%, or $39.1 million, compared to the three months ended June 30, 2025. As a percentage of net sales, Adjusted earnings from operations increased by approximately 120 basis points to 7.7%. 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
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 wording
EMEA’s Adjusted earnings from operations for the three months ended June 30, 2026 decreased 2%, or $0.4 million (decreasing 5% excluding the effects of fluctuating foreign currency exchange rates), compared to the three months ended June 30, 2025. As a percentage of net sales, Adjusted earnings from operations decreased by approximately 50 basis points to 5.5%. 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.
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 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.
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 June 30, 2026 increased 9%, or $2.1 million, compared to the three months ended June 30, 2025. This was primarily due to higher loan balances under our ABL facility and inventory financing facilities, partially offset by increased interest income and lower interest rates on ABL facility borrowings in the current year period. Interest expense, net for the six months ended June 30, 2026 increased 27%, or $10.1 million, compared to the six months ended June 30, 2025. The increase in the six months ended June 30, 2026 was primarily due to higher loan balances under our ABL facility and the maturity of the Convertible Notes in February 2025, partially offset by the lower interest rates and increased interest income.
Previous 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.
Current wording
Imputed interest under our inventory financing facilities was $3.2 million and $5.9 million for the three and six months ended June 30, 2026, compared to $2.4 million and $4.8 million for the three and six months ended June 30, 2025. For a description of our various financing facilities, see Note 5 to our Condensed Consolidated Financial Statements in Part I, Item 1 of this report.
Previous wording
Other Income (Expense), Net. Other income (expense), net primarily reflects a net loss on the revaluation of warrant settlement liabilities of $25.1 million recorded in the three months ended March 31, 2025 in connection with the cash settlement of a portion of the Warrants, with no comparable activity in the three months ended March 31, 2026 For additional information regarding the Warrants, see Note 5 to our Consolidated Financial Statements in Part I, Item 1 of this report.
Current wording
Other Income (Expense), Net. Other income (expense), net primarily reflects a net loss on the revaluation of warrant settlement liabilities of $25.1 million recorded in the six months ended June 30, 2025 in connection with the cash settlement of a portion of the Warrants, with no comparable activity in the six months ended June 30, 2026. For additional information regarding the Warrants, see Note 5 to our Condensed Consolidated Financial Statements in Part I, Item 1 of this report.
Previous wording
Adjusted non-GAAP earnings from operations (which we also refer to as "Adjusted earnings from operations") excludes (i) severance and restructuring expenses, net, (ii) certain executive recruitment and hiring related expenses, (iii) amortization of intangible assets, (iv) transformation costs, (v) certain acquisition and integration related expenses, (vi) gains and losses from revaluation of acquisition related earnout liabilities, (vii) impairment losses on long lived real estate assets held for sale, and (viii) stock-based compensation expense, as applicable. Adjusted non-GAAP earnings from operations is used by the Company and its management to evaluate financial performance against budgeted amounts, to calculate incentive compensation, to assist in forecasting future performance and to compare the Company’s results to those of the Company’s competitors. We believe that this non-GAAP financial measure is useful to investors because it allows for greater transparency, facilitates comparisons to prior periods and to the Company’s competitors’ results, and assists in forecasting performance for future periods. The non-GAAP financial measure is not prepared in accordance with GAAP and may be different from non-GAAP financial measures presented by other companies. Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP.
Current wording
Adjusted non-GAAP earnings from operations (which we also refer to as "Adjusted earnings from operations") excludes (i) severance and restructuring expenses, net, (ii) certain executive recruitment and hiring related expenses, (iii) amortization of intangible assets, (iv) transformation costs, (v) certain acquisition and integration related expenses, (vi) gains and losses from revaluation of acquisition related earnout liabilities, (vii) impairment losses on long lived real estate assets held for sale, (viii) stock-based compensation expense, and (ix) certain third-party data center service outage related expenses and recoveries, as applicable. Adjusted non-GAAP earnings from operations is used by the Company and its management to evaluate financial performance against budgeted amounts, to calculate incentive compensation, to assist in forecasting future performance and to compare the Company’s results to those of the Company’s competitors. We believe that this non-GAAP financial measure is useful to investors because it allows for greater transparency, facilitates comparisons to prior periods and to the Company’s competitors’ results, and assists in forecasting performance for future periods. The non-GAAP financial measure is not prepared in accordance with GAAP and may be different from non-GAAP financial measures presented by other companies. Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP.
Previous wording
The following table sets forth certain consolidated cash flow information for the three months ended March 31, 2026 and 2025 (in thousands):
Current wording
The following table sets forth certain consolidated cash flow information for the six months ended June 30, 2026 and 2025 (in thousands):
Showing the first 40 of 62 pairs. Open the source sections for the rest.
Rearranged current paragraphs (4)
Current report — wording carried from elsewhere
•The increase in services net sales was primarily due to an increase in cloud solution offerings combined with an increase in Insight Delivered services including from the Inspire11 acquisition.
Current report — wording carried from elsewhere
•The increase in services net sales was primarily due to increases in Insight Delivered services and other agency net sales.
Current report — wording carried from elsewhere
•The increase in services net sales was primarily due to the acquisition of Sekuro in November 2025.
Current report — wording carried from elsewhere
During the six months ended June 30, 2026, we recorded severance and restructuring expense, net of adjustments, of approximately $12.3 million. Comparatively, during the six months ended June 30, 2025, we recorded severance and restructuring expense, net of adjustments, of approximately $10.4 million. The severance charges in both periods primarily related to a realignment of certain roles and responsibilities and reductions in workforce.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
Our net sales by operating segment were as follows for the three months ended March 31, 2026 and 2025 (dollars in thousands):
Previous report — wording carried elsewhere
•The increase in services margin is primarily the result of increased margin contribution from cloud solution offerings.