CDW Corp
For the period ended Jun 30, 2025. Filed Aug 6, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 6, 2025
CDW$157.00-0.9%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-07.
0001402057-25-000096
Item 2. Managements Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-06.
0001402057-25-000145
Item 2. Managements 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 128 previous paragraphs and 145 current paragraphs.
85 unchanged; 30 reworded; 28 added; 13 removed; 0 previous and 2 current paragraphs rearranged.
Tables are not compared: 16 previous and 16 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 (28)
Current report
Gross profit increased $58 million, or 4.9%, primarily due to higher Net sales, partially offset by lower gross profit margin. Gross profit margin decreased 100 basis points which is attributed to decreased rate in certain hardware categories, primarily in data storage and servers and netcomm products and lower contribution from netted down revenue relative to the prior year.
Current report
Operating income decreased $13 million, or 3.0%, to $420 million for the three months ended June 30, 2025, compared to $433 million for the three months ended June 30, 2024.
Current report
Interest expense, net includes interest expense and interest income. Interest expense, net increased $5 million, or 8.6%, primarily due to lower interest income earned on cash balances and a higher fixed interest rate on unsecured senior notes, partially offset by a lower variable interest rate on the senior unsecured term loan.
Current report
Six months ended June 30, 2025 compared with the six months ended June 30, 2024
Current report
Gross profit increased $117 million, or 5.2%, primarily due to higher Net sales, partially offset by lower gross profit margin. Gross profit margin decreased 70 basis points which is attributed to decreased rate and increased mix in certain hardware categories.
Current report
Operating income increased $21 million, or 2.7%, to $782 millionfor the six months ended June 30, 2025, compared to $761 million for the six months ended June 30, 2024.
Current report
Interest expense, net includes interest expense and interest income. Interest expense, net increased $10 million, or 9.9%, primarily due to lower interest income earned on cash balances and a higher fixed interest rate on unsecured senior notes, partially offset by a lower variable interest rate on the senior unsecured term loan.
Current report
Income tax expense increased$14 million, or 8.6%. The effective income tax rate, expressed by calculating the income tax expense as a percentage of Income before income taxes, was 25.8%and 24.2% for the six months ended June 30, 2025 and 2024, respectively. The increase in the effective income tax rate was primarily attribut able to lower excess tax benefits on equity-based compensation.
Current report
(1)Segment gross profit includes the segment’s direct gross profit, allocations for gross profit from logistics services and allocations for certain inventory adjustments, volume rebates and cooperative advertising from vendors.
Current report
Corporate segment Gross profit dollars increased $49 million, or 9.4%, primarily due to higher Net sales, partially offset by lower gross profit margin. Gross profit margin decreased 160 bps, to 22.2%, which isattributed to decreased rate and increased mix in certain hardware categories, primarily data storage and servers and netcomm products.
Current report
Corporate segment Operating income increased $46 million, or 23.4%, primarily due to higher Gross profit dollars, partially offset by higher performance-based compensation, coworker-related costs and amortization expense on acquisition-related intangible assets.
Current report
Small Business segment Net sales increased $48 million, or 12.6%, primarily due to an increase in notebooks/mobile devices, software and desktops.
Current report
Small Business segment Operating income increased $2 million, or 4.8%, primarily due to higher Gross profit dollars, partially offset by higher performance-based compensation.
Current report
Public segment Operating income decreased $22 million, or 10.4%, primarily due to lower Gross profit dollars, higher coworker-related costs and an increased provision for expected credit losses.
Current report
Other Operating income increased $18 million, or 76.0%, primarily due to higher Gross profit dollars, partially offset by higher performance-based compensation within the UK and Canada operations.
Current report
Six months ended June 30, 2025 compared with the six months ended June 30, 2024
Current report
Corporate segment Net sales increased $486 million, or 11.2%, primarily due to an increase in notebooks/mobile devices, software, data storage and servers and netcomm products.
Current report
Corp orate segment Gross profit dollars increased $77 million, or 7.5%, primarily due to higher Net sales, partially offset by lower gross profit margin. Gross profit margin decreased 80 bps, to 23.0%, which is attributed to decreased rate in certain hardware categories, primarily data storage and servers and increased mix into notebooks/mobile devices.
Current report
Small Business segment Netsales increased $72 million, or 9.4%, primarily due to an increase in notebooks/mobile devices, data storage and servers and services.
Current report
Small Business segment Gross profit increased $6 million, or 3.2%, primarily due to higher Net sales, partially offset by lower gross profit margin. Gross profit margin decreased 130 bps, to 21.9%, which is attributed to lower contribution of netted down revenue relative to the prior year.
Current report
Small Business segment Operating income decreased $1 million, or 1.0%, primarily due to higher payroll costs, including performance-based compensation, and an increased provision for expected credit losses, partially offset by higher Gross profit dollars.
Current report
Public segment Net sales increased $202 million, or 5.1%, primarily due to an increase in desktops and software in healthcare and government sales channels.
Current report
Public segment Gross profit dollars increased $2 million, or 0.2%, primarily due to higher Net sales, partially offset by lower gross profit margin. Gross profit margin decreased 90 bps, to 19.2%, which is attributed to decreased rate in certain hardware categories, primarily notebooks/mobile devices and lower contribution of netted down revenue relative to the prior year.
Current report
Public segment Operating income decreased $7 million, or 1.9%, primarily due to higher payroll costs, including performance-based compensation, and an increased provision for expected credit losses.
Current report
Net sales in Other, increased $119 million, or 9.7%, primarily due to an increase in notebooks/mobile devices within UK and Canada operations.
Current report
Other Gross profit dollars increased $33 million, or 13.6%, primarily due to higher Net sales and Gross profit margin. Gross profit margin increased 70 bps, to 20.3%, which is attributed to higher contribution of netted down revenue relative to the prior year.
Current report
During the second quarter of 2025, we repaid the $211 million remaining aggregate principal amount of the 4.125% Senior Notes due 2025 (the “2025 Notes”) at maturity.
Current report
Net cash provided by investing activities increased $215 million for the six months ended June 30, 2025 compared to June 30, 2024. This increase was primarily driven by the maturity of a certificate of deposit in the second quarter of 2025.
Removed paragraphs (13)
Previous report
Gross profit increased $59 million, or 5.5%, primarily due to higher Net sales, partially offset by lower gross profit margin. Gross profit margin decreased 20 basis points due to an increased mix into lower margin products, primarily notebooks/mobile devices, which was partially offset by a higher contribution of netted down revenue from software as a service.
Previous report
Operating income increased $33 million, or 10.2%, to $361 million for the three months ended March 31, 2025, compared to $328 million for the three months ended March 31, 2024.
Previous report
Interest expense, net increased $6 million, or 11.3%, primarily due to increased interest expense on higher debt levels and lower interest income earned.
Previous report
The effective income tax rate for the three months ended March 31, 2025 differed from the US federal statutory rate of 21.0% primarily due to state and local income taxes. The effective income tax rate for the three months ended March 31, 2024 differed from the US federal statutory rate of 21.0% primarily due to state and local income taxes, partially offset by excess tax benefits on equity-based compensation.
Previous report
The higher effective income tax rate for the three months ended March 31, 2025 as compared to the same period of the prior year was primarily attributable to lower excess tax benefits on equity-based compensation.
Previous report
(2)Includes the financial results for our other operating segments, CDW UK and CDW Canada, which do not meet the reportable segment quantitative thresholds.
Previous report
(1)Includes the financial results for our other operating segments, CDW UK and CDW Canada, which do not meet the reportable segment quantitative thresholds.
Previous report
(2)Includes the financial results for our other operating segments, CDW UK and CDW Canada, which do not meet the reportable segment quantitative thresholds.
Previous report
Corporate segment Net sales increased $100 million, or 4.7%, primarily due to an increase in notebooks/mobile devices and software, partially offset by a decrease in data storage and servers.
Previous report
Corporate segment Gross profit dollars increased $27 million, or 5.4%, primarily due to higher Net sales. Gross profit margin increased 10 bps, to 23.9%, due to increased netted down revenue from software as a service.
Previous report
Small Business segment Operating income decreased $3 million, or 6.7%, primarily due to lower Gross profit dollars.
Previous report
Other Operating income increased $14 million, or 54.5%, primarily due to higher Gross profit dollars related to the UK operations.
Previous report
Net cash used in investing activities remained relatively consistent at an increase of $2 million for the three months ended March 31, 2025 compared to March 31, 2024.
Reworded paragraphs (30)
Previous wording
We are vendor, technology and consumption model unbiased, with a solutions portfolio including more than 100,000 products and services from more than 1,000 leading and emerging brands. Our solutions are delivered in physical, virtual and cloud-based environments through approximately 10,850 customer-facing coworkers, including sellers, highly-skilled specialists and engineers. We are a leading sales channel partner for many original equipment manufacturers, software publishers, cloud providers (collectively, our “vendor partners”), and wholesale distributors, whose products we sell or include in the solutions we offer. We provide our vendor partners with a cost-effective way to reach customers and deliver a consistent brand experience through our established end-market coverage, technical expertise and extensive customer access.
Current wording
We are vendor, technology and consumption model unbiased, with a solutions portfolio including more than 100,000 products and services from more than 1,000 leading and emerging brands. Our solutions are delivered in physical, virtual and cloud-based environments through approximately 10,700 customer-facing coworkers, including sellers, highly-skilled specialists and engineers. We are a leading sales channel partner for many original equipment manufacturers, software publishers, cloud providers (collectively, our “vendor partners”), and wholesale distributors, whose products we sell or include in the solutions we offer. We provide our vendor partners with a cost-effective way to reach customers and deliver a consistent brand experience through our established end-market coverage, technical expertise and extensive customer access.
Previous wording
•General economic conditions are a key factor affecting our results as they can impact our customers’ willingness and ability to spend on information technology. The prevailing economic conditions remain challenging, largely due to ongoing uncertainty surrounding evolving global trade law provisions or regulations, along with other drivers. These dynamics may continue to influence supply chains, drive inflationary pressures and affect interest rates. The uncertainty in the current economic environment has impacted and may continue to impact the timing of our customer’s investments in technology.
Current wording
•General economic conditions are a key factor affecting our results as they can impact our customers’ willingness and ability to spend on information technology. The prevailing economic conditions remain challenging, largely due to ongoing uncertainty surrounding evolving global trade policies and geopolitical conditions, along with other drivers. These dynamics may continue to influence supply chains, drive inflationary pressures and affect interest rates. The uncertainty in the current economic environment has impacted and may continue to impact the timing of our customers’ investments in technology.
Previous wording
•Customers are evaluating the complex technology landscape in order to balance priorities and focus on solutions that lead to business optimization, cost management and security risk management, resulting in a more measured approach to their IT spending. We have orchestrated solutions by leveraging security, software, hybrid and cloud offerings to help customers achieve their objectives.
Current wording
•Customers are evaluating the complex technology landscape in order to balance priorities and focus on solutions that lead to business optimization, cost management and security risk management, among other factors, resulting in a more measured approach to their IT spending. We have orchestrated solutions that leverage security, software, hybrid and cloud offerings to help customers achieve their objectives.
Previous wording
•Technology trends drive customer purchasing behaviors in the market. Current technology trends are focused on delivering greater flexibility and efficiency, as well as designing and managing IT securely. These trends are driving customer adoption of cloud, artificial intelligence, software defined architectures and hybrid on-premise and off-premise combinations. The trends are further driven by the evolution of the IT consumption model to more “as a service” offerings, including software as a service and infrastructure as a service, in addition to ongoing managed and professional service arrangements. Technology trends are likely to evolve as customers prioritize spend that will produce the most important outcomes for their business.
Current wording
•Technology trends drive customer purchasing behaviors in the market. Current technology trends are focused on delivering greater flexibility and efficiency, as well as designing and managing IT securely. These trends are driving customer adoption of cloud, artificial intelligence, software defined architectures and hybrid on-premise and off-premise combinations. The trends are further driven by the evolution of the IT consumption model to more “as a service” offerings, including software as a service and infrastructure as a service, in addition to ongoing managed and professional service arrangements. Technology trends are likely to evolve and customers will prioritize spend that will produce the most important outcomes for their business.
Previous wording
(1)Defined as Net sales divided by the number of selling days. There were 63 and 64 selling days for the three months ended March 31, 2025 and 2024, respectively.
Current wording
(1)Defined as Net sales divided by the number of selling days. There were 64 selling days for both the three months ended June 30, 2025 and 2024. There were 127 and 128 selling days for the six months ended June 30, 2025 and 2024, respectively.
Previous wording
Results of operations, including Gross profit margin and Operating income margin, expressed as Gross profit and Operating income as a percentage of Net sales, respectively, for the three months ended March 31, 2025 and 2024 are below. For additional information on Net sales, Gross profit and Operating income by segment, see the “Segment Results of Operations.”
Current wording
Results of operations, including Gross profit margin and Operating income margin, expressed as Gross profit and Operating income as a percentage of Net sales, respectively, for the three and six months ended June 30, 2025 and 2024 are below. For additional information on Net sales, Gross profit and Operating income by segment, see the “Segment Results of Operations.”
Previous wording
Income tax expense was $79 million and $61 million for the three months ended March 31, 2025 and 2024, respectively. The effective income tax rate, expressed by calculating the income tax expense as a percentage of Income before income taxes, was 26.0% and 21.9% for the first three months ended March 31, 2025 and 2024, respectively.
Current wording
Income tax expense decreased$5 million, or 5.0%. The effective income tax rate, expressed by calculating the income tax expense as a percentage of Income before income taxes, was 25.7%and 26.0% for thethree months ended June 30, 2025 and 2024, respectively. The decrease in the effective income tax rate was primarily due to higher excess tax benefits on equity-based compensation.
Previous wording
Net sales increased $326 million, or 6.7%, with higher Net sales across all operating segments. The increase was primarily due to customer demand for notebooks/mobile devices, desktops, software and services, partially offset by a decrease across various hardware categories. While economic uncertainty continues to persist, certain end-markets experienced improved customer spending during the quarter.
Current wording
Net sales increased $880 million, or 8.5%, with higher Net sales across all operating segments. The increase was primarily due to customer demand for notebooks/mobile devices, software, desktops and services. While economic uncertainty continues to persist, certain end-markets experienced improved customer spending during the period.
Previous wording
Selling and administrative expenses increased $26 million, or 3.5%, primarily due to higher performance-based compensation, transformation and other related costs and amortization expense on acquisition-related intangible assets, partially offset by lower coworker-related costs.
Current wording
Selling and administrative expenses increased $97 million, or 6.5%, primarily due to higher performance-based compensation, transformation and other related costs, amortization expense on acquisition-related intangible assets and workplace optimization costs, partially offset by lower coworker-related costs.
Previous wording
(1)There were 63 and 64 selling days for the three months ended March 31, 2025 and 2024, respectively. Average daily sales is defined as Net sales divided by the number of selling days.
Current wording
(1)There were 64 selling days for both the three months ended June 30, 2025 and 2024. There were 127 and 128 selling days for the six months ended June 30, 2025 and 2024, respectively. Average daily sales is defined as Net sales divided by the number of selling days.
Previous wording
Small Business segment Net sales increased $24 million, or 6.2%, primarily due to an increase in data storage and servers and notebooks/mobile devices.
Current wording
Corporate segment Net sales increased $386 million, or 17.6%, primarily due to an increase in data storage and servers, netcomm products, notebooks/mobile devices and software.
Previous wording
Public segment Gross profit dollars increased $21 million, or 6.2%, due to higher Net sales, partially offset by lower gross profit margin. Gross profit margin decreased 50 bps, to 19.5%, due to an increased mix into lower margin products, primarily notebooks/mobile devices and desktops.
Current wording
Small Business segment Gross profit increased $7 million, or 7.9%, primarily due to higher Net sales, partially offset by lower gross profit margin. Gross profit margin decreased 100 bps, to 21.9%, which is attributed to increased mix into lower margin products, primarily notebooks/mobile devices.
Previous wording
Public segment Net sales increased $153 million, or 8.9%, primarily due to an increase in notebooks/mobile devices in education and healthcare sales channels, an increase in desktops and software in the healthcare sales channel and an increase in services across all sales channels, partially offset by a decrease in other hardware.
Current wording
Public segment Net sales increased $48 million, or 2.2%, primarily due to an increase in software in the healthcare and government sales channels, partially offset by a decrease in hardware, primarily notebooks/mobile devices and collaboration, in the education sales channel.
Previous wording
Small Business segment Gross profit decreased $1 million, or 1.3%, primarily due to lower gross profit margin on higher Net sales. Gross profit margin decreased 170 bps, to 21.9%, due to decreased netted down revenue from software as a service.
Current wording
Public segment Gross profit dollars decreased $20 million, or 4.3%, primarily due to lower gross profit margin on higher Net sales. Gross profit margin decreased 120 bps, to 18.9%, which is attributed to a lower contribution of netted down revenue relative to the prior year.
Previous wording
Net sales in Other, increased $49 million, or 7.8%, primarily due to an increase in notebooks/mobile devices within the UK operations.
Current wording
Net sales in Other, increased $70 million, or 11.6%, primarily due to an increase in notebooks/mobile devices within the UK and Canada operations.
Previous wording
Other Gross profit dollars increased $12 million, or 9.5%, primarily due to higher Net sales and Gross profit margin. Gross profit margin increased 30 bps, to 19.4%, attributed to an increase in netted down revenue from software as a service.
Current wording
Other Gross profit dollars increased $21 million, or 17.7%, primarily due to higher Net sales and Gross profit margin. Gross profit margin increased 110 bps, to 21.1%, which is attributed to higher contribution of netted down revenue relative to the prior year.
Previous wording
Corporate segment Operating income increased $43 million, or 24.0%, primarily due to higher Gross profit dollars and lower coworker-related costs, partially offset by higher performance-based compensation and amortization expense on acquisition-related intangible assets.
Current wording
Corporate segment Operating income increased $89 million, or 23.7%, primarily due to higher Gross profit dollars and lower coworker-related costs, partially offset by increased amortization expense on acquisition-related intangible assets and higher performance-based compensation.
Previous wording
Public segment Operating income increased $15 million, or 12.1%, primarily due to higher Gross profit dollars and lower coworker-related costs, partially offset by higher performance-based compensation and provision for expected credit losses.
Current wording
Other Operating income increased $32 million, or 65.1%, primarily due to higher Gross profit dollars and lower transformation and other related costs, partially offset by higher performance-based compensation within the UK and Canada operations.
Previous wording
We have included reconciliations of our non-GAAP financial measures to the most comparable US GAAP financial measures for the three months ended March 31, 2025 and 2024 below.
Current wording
We have included reconciliations of our non-GAAP financial measures to the most comparable US GAAP financial measures for the three and six months ended June 30, 2025 and 2024 below.
Previous wording
(1)There were 63 and 64 selling days for the three months ended March 31, 2025 and 2024, respectively. Average daily sales is defined as Net sales divided by the number of selling days.
Current wording
(1)There were 64 selling days for both the three months ended June 30, 2025 and 2024. There were 127 and 128 selling days for the six months ended June 30, 2025 and 2024, respectively. Average daily sales is defined as Net sales divided by the number of selling days.
Previous wording
We finance our operations and capital expenditures with cash from operations and borrowings under our variable rate senior unsecured revolving loan facility (the “Revolving Loan Facility”). As of March 31, 2025, we had $1.3 billion of availability for borrowings under our Revolving Loan Facility. Our liquidity and borrowing plans are established to align with our financial and strategic planning processes and ensure we have the necessary funding to meet our operating commitments, which primarily include the purchase of inventory, payroll and general expenses. We also take into consideration our overall capital allocation strategy, which includes dividend payments, assessment of debt levels, acquisitions and share repurchases. We believe we have adequate sources of liquidity and funding available for at least the next year; however, there are a number of factors that may negatively impact our available sources of funds. The amount of cash generated from operations will be dependent upon factors such as the successful execution of our business plan, general economic conditions and working capital management.
Current wording
We finance our operations and capital expenditures with cash from operations and borrowings under our variable rate senior unsecured revolving loan facility (the “Revolving Loan Facility”). As of June 30, 2025, we had $1.2 billion of availability for borrowings under our Revolving Loan Facility. Our liquidity and borrowing plans are established to align with our financial and strategic planning processes and ensure we have the necessary funding to meet our operating commitments, which primarily include the purchase of inventory, payroll and general expenses. We also take into consideration our overall capital allocation strategy, which includes dividend payments, assessment of debt levels, acquisitions and share repurchases. We believe we have adequate sources of liquidity and funding available for at least the next year; however, there are a number of factors that may negatively impact our available sources of funds. The amount of cash generated from operations will be dependent upon factors such as the successful execution of our business plan, general economic conditions and working capital management.
Previous wording
As of March 31, 2025, we had total unsecured indebtedness of $5.9 billion, and we were in compliance with the covenants under our credit agreements and indentures.
Current wording
As of June 30, 2025, we had total unsecured indebtedness of $5.6 billion, and we were in compliance with the covenants under our credit agreements and indentures.
Previous wording
During the three months ended March 31, 2025, we repurchased 1.1 million shares of our common stock for $200 million under the previously announced share repurchase program. For additional information on our share repurchase program, see “Part II, Item 2, Unregistered Sales of Equity Securities and Use of Proceeds.”
Current wording
During the six months ended June 30, 2025, we repurchased 2.0 million shares of our common stock for $350 million under the previously announced share repurchase program. For additional information on our share repurchase program, see “Part II, Item 2, Unregistered Sales of Equity Securities and Use of Proceeds.”
Previous wording
Net cash provided by operating activities decreased $153 million for the three months ended March 31, 2025 compared to March 31, 2024. This decrease is primarily attributable to Accounts receivable and Merchandise inventory, partially offset by Accounts payable-trade. The decrease from Accounts Receivable was primarily due to higher sales activity in the first quarter of 2025 and timing of collections, including multi-year transactions. The decrease from Merchandise inventory is primarily due to customer-driven stocking positions as a result of higher demand. The increase from Accounts payable-trade is primarily due to higher sales activity in the first quarter of 2025 and timing of payments, including multi-year transactions.
Current wording
Net cash provided by operating activities decreased $147 million for the six months ended June 30, 2025 compared to June 30, 2024. This decrease is primarily attributable to Accounts receivable and Merchandise inventory, partially offset by Accounts payable-trade and Other. The decrease from Accounts Receivable was primarily due to higher sales activity in the first half of 2025 and timing of collections, including multi-year transactions. The decrease from Merchandise inventory is primarily due to customer-driven stocking positions as a result of higher demand. The increase from Accounts payable-trade is primarily due to higher sales activity in the first half of 2025 and timing of payments, including multi-year transactions. The increase from Other is primarily due to higher vendor receivables in 2024.
Previous wording
(1)Represents the rolling three-month average of the balance of the current portion of Accounts receivable, net at the end of the period, divided by average daily Net sales for the same three-month period. Also incorporates components of other miscellaneous receivables.
Current wording
(1)Represents the rolling three-month average of the balance of the current portion of Accounts receivable, net at the end of the period, divided by average Net sales for the same three-month period. Also incorporates components of other miscellaneous receivables.
Previous wording
(2)Represents the rolling three-month average of the balance of Merchandise inventory at the end of the period divided by average daily Cost of sales for the same three-month period.
Current wording
(2)Represents the rolling three-month average of the balance of Merchandise inventory at the end of the period divided by average Cost of sales for the same three-month period.
Previous wording
(3)Represents the rolling three-month average of the combined balance of Accounts payable-trade, excluding cash overdrafts, and Accounts payable-inventory financing at the end of the period divided by average daily Cost of sales for the same three-month period.
Current wording
(3)Represents the rolling three-month average of the combined balance of Accounts payable-trade, excluding cash overdrafts, and Accounts payable-inventory financing at the end of the period divided by average Cost of sales for the same three-month period.
Previous wording
The cash conversion cycle decreased to 15 days at March 31, 2025, compared to 16 days at March 31, 2024. The overall decrease was driven by DIO due to inventory levels relative to sales activity in the respective periods. Both DSO and DPO increased due to multi-year transactions and the timing of collections and payments, respectively. If customers continue to shift their software purchases to multi-year arrangements, unbilled receivables are expected to increase, resulting in a higher DSO. This increase is expected to be offset by a corresponding increase in accounts payable and DPO as the timing of payments due to vendors is aligned with the collections due from customers. Additionally, netted down revenue results in an increase to both DSO and DPO as the corresponding receivables and payables reflect the gross amounts due from customers and due to vendors while the corresponding sales and cost of sales are reflected on a net basis within Net sales.
Current wording
The cash conversion cycle decreased to 16 days at June 30, 2025, compared to 17 days at June 30, 2024. The overall decrease was driven by DPO offset by DSO. Both DPO and DSO increased due to multi-year transactions and the timing of payments and collections, respectively. If customers continue to shift their software purchases to multi-year arrangements, unbilled receivables are expected to increase, resulting in a higher DSO. This customer shift in purchasing is expected to increase accounts payable and DPO as the timing of payments due to vendors is aligned with the collections due from customers. Additionally, netted down revenue results in an increase to both DSO and DPO as the corresponding receivables and payables reflect the gross amounts due from customers and due to vendors while the corresponding sales and cost of sales are reflected on a net basis within Net sales.
Previous wording
Net cash used in financing activities increased $102 million for the three months ended March 31, 2025 compared to March 31, 2024. This increase was primarily driven by higher share repurchases in 2025 compared to 2024.
Current wording
Net cash used in financing activities increased $200 million for the six months ended June 30, 2025 compared to June 30, 2024. This increase was primarily driven by higher repayments on debt and share repurchases, partially offset by an increase in Net change in accounts payable-inventory financing for the six months ended June 30, 2025 compared to June 30, 2024.
Previous wording
The following tables set forth Balance Sheet information as of March 31, 2025 and December 31, 2024, and Statement of Operations information for the three months ended March 31, 2025 and for the year ended December 31, 2024. The financial information includes the accounts of the Issuers and the accounts of the Guarantors (the “Obligor Group”). The financial information of the Obligor Group is presented on a combined basis and the intercompany balances and transactions between the Obligor Group have been eliminated.
Current wording
The following tables set forth Balance Sheet information as of June 30, 2025 and December 31, 2024, and Statement of Operations information for the six months ended June 30, 2025 and for the year ended December 31, 2024. The financial information includes the accounts of the Issuers and the accounts of the Guarantors (the “Obligor Group”). The financial information of the Obligor Group is presented on a combined basis and the intercompany balances and transactions between the Obligor Group have been eliminated.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
Net sales increased $553 million, or 10.2%, with higher Net sales across all operating segments. The increase was primarily due to customer demand for notebooks/mobile devices, software, netcomm products and data storage and servers. While economic uncertainty persists, certain end-markets experienced improved customer spending during the quarter.
Current report — wording carried from elsewhere
Selling and administrative expenses increased $71 million, or 9.5%, primarily due to higher performance-based compensation, transformation and other related costs, workplace optimization costs and amortization expense on acquisition-related intangible assets.