INSIGHT ENTERPRISES INC
For the period ended Jun 30, 2025. Filed Jul 31, 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 Jul 31, 2025
NSIT$158.25+3.6%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-01.
0001628280-25-021416
Item 2. – Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-07-31.
0001628280-25-036953
Item 2. – Management’s Discussion and Analysis of Financial Condition and Results of 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 124 previous paragraphs and 157 current paragraphs.
43 unchanged; 67 reworded; 40 added; 12 removed; 2 previous and 7 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 (40)
Current report
Our net sales by operating segment were as follows for the three and six months ended June 30, 2025 and 2024 (dollars in thousands):
Current report
•The increase in hardware net sales was primarily due to higher volume of sales to commercial clients due to higher demand. This reflects an increase in both devices and infrastructure net sales.
Current report
Net sales in North America decreased 7%, or $252.2 million, for the six months ended June 30, 2025, compared to the six months ended June 30, 2024, driven by decreases in software and services net sales. Software and services net sales decreased by 27% and 6%, respectively, year to year. These decreases were partially offset by an increase in hardware net sales of 3%, year over year. The net changes for the six months ended June 30, 2025 were the result of the following:
Current report
•The decrease in hardware net sales was primarily due to lower volume of sales to large enterprise, corporate and public sector clients.
Current report
•The increase in services net sales was primarily due to increases in Insight Delivered services and agency net sales, partially offset by a net decrease in fees from cloud solution offerings as a result of partner program changes.
Current report
Net sales in EMEA decreased 12%, or $90.3 million, for the six months ended June 30, 2025 compared to the six months ended June 30, 2024. Excluding the effects of fluctuating foreign currency exchange rates, net sales in EMEA also decreased 13%, year to year. Net sales of software and hardware decreased by 22% and
Current report
9%, respectively, year to year, partially offset by an increase in services net sales of 9%, year over year. The net changes for the six months ended June 30, 2025 were the result of the following:
Current report
•The decrease in software net sales was primarily due to lower volume of sales to large enterprise clients and the continued migration of on-premise software to cloud solutions, reported net in services net sales.
Current report
•The decrease in services net sales was primarily due to a decrease in fees from cloud solution offerings partially offset by higher volume sales of Insight Delivered services.
Current report
Net sales in APAC decreased 3%, or $3.6 million, for the six months ended June 30, 2025 compared to the six months ended June 30, 2024. Excluding the effects of fluctuating foreign currency exchange rates, net sales in APAC was flat, year to year. Net sales of hardware and services decreased 14% and 4%, respectively, year to year. These decreases were partially offset by an increase in software net sales of 2%, year over year. The net changes for the six months ended June 30, 2025 were the result of the following:
Current report
•The decrease in services net sales was primarily due to lower fees for cloud solution offerings partially offset by higher volume sales of Insight Delivered services.
Current report
•A contraction in services margin of 39 basis points partially offset by expansion in product margin of 24 basis points.
Current report
•The decrease in services margin primarily reflects a decrease in margin contribution from Insight Core services and software maintenance. These declines were partially offset by an increase in margin contribution from product warranty.
Current report
North America's gross profit for the six months ended June 30, 2025 decreased 6%, or $42.8 million, compared to the six months ended June 30, 2024. As a percentage of net sales, gross margin expanded approximately 10 basis points to 19.5% for the six months ended June 30, 2025. The year over year net expansion in gross margin was primarily attributable to the following:
Current report
•A net increase in product margin of 31 basis points, year over year partially offset by a contraction in services margin of 14 basis points compared to the same period in the prior year.
Current report
•The decrease in services margin primarily reflects a decrease in margin contribution from fees for cloud solution offerings and software maintenance.
Current report
•An increase in services margin of 333 basis points partially offset by a contraction in product margin of 114 basis points.
Current report
•The contraction in product margin is due to declines in product margin on both hardware and software net sales.
Current report
EMEA's gross profit for the six months ended June 30, 2025 was flat year to year (decreasing 2% when excluding the effects of fluctuating foreign currency exchange rates), compared to the six months ended June 30, 2024. As a percentage of net sales, gross margin expanded approximately 260 basis points, year over year. The year over year net expansion in gross margin was attributable to the following:
Current report
•An increase in services margin of 319 basis points partially offset by a contraction in product margin of 59 basis points.
Current report
•The contraction in product margin is due to declines in product margin on both hardware and software net sales.
Current report
APAC's gross profit for the six months ended June 30, 2025 decreased 8%, or $2.9 million, year to year (decreasing 5% when excluding the effects of fluctuating foreign currency exchange rates), compared to the six months ended June 30, 2024. As a percentage of net sales, gross margin contracted approximately 150 basis points, year to year. The year to year net contraction in gross margin was attributable to a net contraction in services margin of 184 basis points partially offset by an expansion in product margin of 32 basis points. The contraction in services margin was driven by the decrease in fees from cloud solution offerings in the current year period.
Current report
Selling and administrative expenses increased approximately 210 basis points as a percentage of net sales in the three months ended June 30, 2025 compared to the three months ended June 30, 2024. The overall net increase in selling and administrative expenses primarily reflects an increase in other expenses of approximately $46.0 million, partially offset by a net decrease in personnel costs, including teammate benefits of approximately $9.3 million, year over year due to a decrease in overall teammate headcount. The net increase in other expenses primarily reflects a gain on revaluation of earnout liabilities in the prior year period of approximately $25.1 million with no significant comparable activity in the current year period. We incurred an impairment loss of approximately $12.6 million on a real estate asset that was reclassified to held for sale in April 2025 with no comparable activity in the prior year period. We also incurred transformation costs in the current and prior year periods of $7.0 million and $5.6 million, respectively, however, these costs are unique in nature and are not expected to recur in the longer term. For the three months ended June 30, 2024, we recovered approximately $3.4 million in costs we previously incurred related to a third-party data center service outage that occurred in July 2023 with no significant comparable activity in the current year period.
Current report
During the six months ended June 30, 2025, we recorded acquisition and integration related expenses of approximately $0.3 million. During the six months ended June 30, 2024, we recorded acquisition and integration related expenses of approximately $1.5 million. The expenses in the prior year period related primarily to the acquisitions of SADA in December 2023 and Infocenter in May 2024. As the Company executes its acquisition strategy, we expect to incur additional acquisition and integration related expenses.
Current report
North America's earnings from operations for the six months ended June 30, 2025 decreased 36%, or $66.3 million, compared to the six months ended June 30, 2024. As a percentage of net sales, earnings from operations decreased by approximately 160 basis points to 3.5%. The decrease in earnings from operations was primarily driven by a decrease in gross profit combined with an increase in selling and administrative expenses when compared to the six months ended June 30, 2024.
Current report
EMEA's earnings from operations for the six months ended June 30, 2025 decreased 50%, or $16.0 million (decreasing 51% when excluding the effects of fluctuating foreign currency exchange rates), compared to the six months ended June 30, 2024. As a percentage of net sales, earnings from operations decreased by approximately 180 basis points to 2.3%. The decrease in earnings from operations was primarily driven by an increase in selling and administrative expenses and severance and restructuring expenses, net, compared to the six months ended June 30, 2024.
Current report
APAC's earnings from operations for the three months ended June 30, 2025 decreased 19%, or $1.6 million (decreasing 18% when excluding the effects of fluctuating foreign currency exchange rates), compared to the three months ended June 30, 2024. As a percentage of net sales, earnings from operations decreased by approximately 230 basis points to 11.4%. The decrease in earnings from operations was primarily driven by a decrease in gross profit when compared to the three months ended June 30, 2024.
Current report
APAC's earnings from operations for the six months ended June 30, 2025 decreased 16%, or $2.1 million (decreasing 14% when excluding the effects of fluctuating foreign currency exchange rates), compared to the six months ended June 30, 2024. As a percentage of net sales, earnings from operations decreased by approximately 150 basis points to 9.2%. The decrease in earnings from operations was driven by a decrease in gross profit when compared to the six months ended June 30, 2024.
Current report
North America’s Adjusted earnings from operations for the six months ended June 30, 2025 decreased 8%, or $16.3 million, compared to the six months ended June 30, 2024. As a percentage of net sales, Adjusted earnings from operations decreased by approximately 10 basis points to 5.6%. The decrease in Adjusted earnings from operations was primarily driven by a decrease in gross profit, partially offset by a decrease in selling and administrative expenses.
Current report
EMEA’s Adjusted earnings from operations for the three months ended June 30, 2025 increased 1%, or $0.1 million (decreasing 3% excluding the effects of fluctuating foreign currency exchange rates), compared to the three months ended June 30, 2024. As a percentage of net sales, Adjusted earnings from operations increased by approximately 40 basis points to 5.6%. The slight increase in Adjusted earnings from operations was primarily driven by an increase in gross profit, partially offset by an increase in selling and administrative expenses.
Current report
EMEA’s Adjusted earnings from operations for the six months ended June 30, 2025 decreased 9%, or $2.9 million (decreasing 10% excluding the effects of fluctuating foreign currency exchange rates), compared to the six months ended June 30, 2024. As a percentage of net sales, Adjusted earnings from operations increased by approximately 10 basis points to 4.4%. The decrease in Adjusted earnings from operations was primarily driven by an increase in selling and administrative expenses.
Current report
APAC’s Adjusted earnings from operations for the three months ended June 30, 2025 decreased 21%, or $1.7 million (decreasing 19% excluding the effects of fluctuating foreign currency exchange rates), compared to the three months ended June 30, 2024. As a percentage of net sales, Adjusted earnings from operations decreased by approximately 260 basis points to 11.4%. The decrease in Adjusted earnings from operations was primarily driven by a decrease in gross profit, partially offset by a decrease in selling and administrative expenses.
Current report
APAC’s Adjusted earnings from operations for the six months ended June 30, 2025 decreased 17%, or $2.3 million (decreasing 15% excluding the effects of fluctuating foreign currency exchange rates), compared to the six months ended June 30, 2024. As a percentage of net sales, Adjusted earnings from operations decreased by approximately 170 basis points to 9.3%. The decrease in Adjusted earnings from operations was primarily driven by a decrease in gross profit partially offset by a decrease in selling and administrative expenses.
Current report
Income Tax Expense. Our effective tax rate of 26.9% for the three months ended June 30, 2025 was higher than our effective tax rate of 25.5% for the three months ended June 30, 2024. The increase in the effective tax rate for the three months ended June 30, 2025 was primarily due to greater tax benefits from earnout adjustments and higher excess tax benefits on the settlement of employee share-based compensation during the prior year period.
Current report
•Capital expenditures were $12.0 million and $18.6 million for the six months ended June 30, 2025 and 2024, respectively.
Current report
•We had net borrowings under our inventory financing facilities of $2.1 million during the six months ended June 30, 2025 compared to net repayments of $13.0 million during the six months ended June 30, 2024.
Current report
•We paid $264.4 million to acquire Infocenter on May 1, 2024, net of cash and cash equivalents acquired of $5.1 million.
Current report
•Capital expenditures were $12.0 million and $18.6 million for the six months ended June 30, 2025 and 2024, respectively.
Current report
•We had net borrowings under our inventory financing facilities of $2.1 million during the six months ended June 30, 2025 compared to net repayments of $13.0 million during the six months ended June 30, 2024.
Current report
•During the six months ended June 30, 2025, we repurchased $76.1 million of our common stock.
Removed paragraphs (12)
Previous report
•An expansion in product margin of 36 basis points and a slight increase in services margin of 5 basis points.
Previous report
•The slight increase in services margin reflects an increase in margin contribution from Insight Core services (consisting of Insight Delivered and managed services) from Infocenter.
Previous report
•An increase in services margin of 290 basis points and a slight contraction in product margin of 9 basis points.
Previous report
•The contraction in product margin is primarily the result of sales of software at lower margins than in the prior year period, partially offset by sales of hardware at higher margins than in the same period in the prior year.
Previous report
EMEA's earnings from operations for the three months ended March 31, 2025 decreased 55%, or $6.2 million (decreasing 54% when excluding the effects of fluctuating foreign currency exchange rates), compared to the three months ended March 31, 2024. As a percentage of net sales, earnings from operations decreased by approximately 120 basis points to 1.5%. The decrease in earnings from operations was primarily driven by a decrease in gross profit combined with an increase in severance and restructuring expenses, net, when compared to the three months ended March 31, 2024.
Previous report
APAC's earnings from operations for the three months ended March 31, 2025 decreased 10%, or $0.5 million (decreasing 7% when excluding the effects of fluctuating foreign currency exchange rates), compared to the three months ended March 31, 2024. As a percentage of net sales, earnings from operations decreased by approximately 50 basis points to 7.2%. The decrease in earnings from operations was primarily driven by a decrease in gross profit, partially offset by a decrease in selling and administrative expenses, when compared to the three months ended March 31, 2024.
Previous report
APAC’s Adjusted earnings from operations for the three months ended March 31, 2025 decreased 12% (decreasing 9% excluding the effects of fluctuating foreign currency exchange rates), or $0.6 million, compared to the three months ended March 31, 2024. As a percentage of net sales, Adjusted earnings from operations decreased by approximately 70 basis points to 7.3%. The decrease in Adjusted earnings from operations was primarily driven by a decrease in gross profit.
Previous report
•Capital expenditures were $7.1 million and $6.5 million for the three months ended March 31, 2025 and 2024, respectively.
Previous report
•We had net borrowings under our inventory financing facilities of $42.7 million during the three months ended March 31, 2025 compared to net repayments of $4.5 million during the three months ended March 31, 2024.
Previous report
•Capital expenditures were $7.1 million and $6.5 million for the three months ended March 31, 2025 and 2024, respectively.
Previous report
•We had net borrowings under our inventory financing facilities of $42.7 million during the three months ended March 31, 2025 compared to net repayments of $4.5 million during the three months ended March 31, 2024.
Previous report
•During the three months ended March 31, 2025, we did not repurchase any shares of our common stock.
Reworded paragraphs (67)
Previous wording
•Net sales of $2.1 billion decreased 12% compared to the three months ended March 31, 2024. The decrease in net sales reflects decreases in software and services net sales, partially offset by an increase in hardware net sales. Excluding the effects of fluctuating foreign currency exchange rates, net sales decreased 11% compared to the first quarter of 2024.
Current wording
•Net sales of $2.1 billion decreased 3% compared to the three months ended June 30, 2024. The decrease in net sales reflects decreases in software and services net sales, partially offset by an increase in hardware net sales. Excluding the effects of fluctuating foreign currency exchange rates, net sales decreased 4% compared to the second quarter of 2024.
Previous wording
•Gross profit of $406.5 million decreased 8% compared to the three months ended March 31, 2024. Excluding the effects of fluctuating foreign currency exchange rates, gross profit decreased 7% compared to the first quarter of 2024.
Current wording
•Gross profit of $442.3 million decreased 2% compared to the three months ended June 30, 2024. Excluding the effects of fluctuating foreign currency exchange rates, gross profit decreased 3% compared to the second quarter of 2024. This decrease was attributable in part to partner program changes.
Previous wording
•Compared to the three months ended March 31, 2024, gross margin expanded approximately 80 basis points to 19.3% of net sales in the three months ended March 31, 2025. This expansion primarily reflects higher margin contributed by hardware and services net sales compared to the same period in the prior year.
Current wording
•Compared to the three months ended June 30, 2024, gross margin expanded approximately 10 basis points to 21.1% of net sales in the three months ended June 30, 2025. This expansion primarily reflects higher margin contributed by hardware net sales compared to the same period in the prior year.
Previous wording
•Earnings from operations decreased 40%, year to year, to $60.1 million in the first quarter of 2025 compared to $100.0 million in the first quarter of 2024. The decrease was primarily due to a decrease in gross profit in the current quarter, combined with an increase in selling and administrative expenses and severance and restructuring expenses, net. Excluding the effects of fluctuating foreign currency exchange rates, earnings from operations decreased 39% year to year.
Current wording
•Earnings from operations decreased 34%, year to year, to $86.5 million in the second quarter of 2025 compared to $131.1 million in the second quarter of 2024. The decrease was primarily due to a decrease in gross profit in the current quarter, combined with an increase in selling and administrative expenses, including a $12.6 million loss on impairment of a real estate asset in the current year quarter and a $25.1 million gain on revaluation of earnout liabilities in the prior year quarter. Excluding the effects of fluctuating foreign currency exchange rates, earnings from operations decreased 34% year to year.
Previous wording
•Net earnings and diluted earnings per share were $7.5 million and $0.22, respectively, for the first quarter of 2025. This compares to net earnings of $67.0 million and diluted earnings per share of $1.74 for the first quarter of 2024. The decrease in net earnings was due in part to a net loss of $15.2 million from the revaluation of the Infocenter earnout liability and a net loss of $25.1 million recorded to reflect the revaluation of warrant settlement liabilities in the current year period. Diluted earnings per share decreased 87% year to year, and excluding the effects of fluctuating foreign currency exchange rates, also decreased 87% year to year.
Current wording
•Net earnings and diluted earnings per share were $46.9 million and $1.46, respectively, for the second quarter of 2025. This compares to net earnings of $87.4 million and diluted earnings per share of $2.27 for the second quarter of 2024. The decrease in net earnings was primarily due to a decrease in earnings from operations and an increase in interest expense, partially offset by a decrease in tax expense in the current year period. Diluted earnings per share decreased 36% year to year, and excluding the effects of fluctuating foreign currency exchange rates, also decreased 36% year to year.
Previous wording
Inflation contributed to sustained high interest rates on all of our variable rate facilities in the first quarter of 2025 consistent with the prior year period. While these interest rates are expected to decrease, we continue to anticipate higher than historical rates throughout most of 2025. We are actively monitoring changes to the global macroeconomic environment, including those impacting our supply chain, demand for our products whether due to tariffs or otherwise and interest rates, and assessing the potential impacts these challenges may have on our current results, financial condition and liquidity. We are also mindful of the potential impact these conditions could have on our clients, partners and prospects in 2025 and beyond.
Current wording
We believe inflation contributed to sustained high interest rates on all of our variable rate borrowing facilities in the first half of 2025 consistent with the prior year period. While these interest rates are expected to decrease, we continue to anticipate higher than historical rates throughout most of 2025. We are actively monitoring changes to the global macroeconomic environment, including those impacting our supply chain, demand for our products whether due to tariffs or otherwise and interest rates, and assessing the potential impacts these challenges may have on our current results, financial condition and liquidity. We are also mindful of the potential impact these conditions could have on our clients, partners and prospects in 2025 and beyond.
Previous wording
The following table sets forth certain financial data as a percentage of net sales for the three months ended March 31, 2025 and 2024:
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, 2025 and 2024:
Previous wording
Net Sales. Net sales of $2.1 billion for the three months ended March 31, 2025 decreased 12%, year to year, compared to the three months ended March 31, 2024, reflecting decreases in all of our operating segments.
Current wording
Net Sales. Net sales of $2.1 billion for the three months ended June 30, 2025 decreased 3%, year to year, compared to the three months ended June 30, 2024, reflecting decreases in all of our operating segments. Net sales of $4.2 billion for the six months ended June 30, 2025 decreased 8%, year to year, compared to the six months ended June 30, 2024, also reflecting decreases in each of our operating segments.
Previous wording
Our net sales by offering category for North America for the three months ended March 31, 2025 and 2024 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, 2025 and 2024 were as follows (dollars in thousands):
Previous wording
Net sales in North America decreased 11%, or $204.2 million, for the three months ended March 31, 2025 compared to the three months ended March 31, 2024, driven by decreases in software and services net sales, partially offset by an increase in hardware net sales. Software and services net sales decreased 33% and 7%, year to year, respectively. These decreases were partially offset by an increase in hardware net sales of 2%, year over year. The net changes for the three months ended March 31, 2025 were the result of the following:
Current wording
Net sales in North America decreased 3%, or $48.1 million, for the three months ended June 30, 2025 compared to the three months ended June 30, 2024, driven by decreases in software and services net sales, partially offset by an increase in hardware net sales. Software and services net sales decreased 18% and 6%, year to year, respectively. These decreases were partially offset by an increase in hardware net sales of 4%, year over year. The net changes for the three months ended June 30, 2025 were the result of the following:
Previous wording
•The decrease in services net sales was primarily due to declines in sales of Insight Delivered services from our organic business, partially offset by net sales from Infocenter. Our North America organic business excludes Infocenter, which we acquired on May 1, 2024. A decrease in fees from cloud solution offerings and a decrease in warranty net sales also contributed to the year to year decrease in services net sales.
Current wording
•The decrease in services net sales was primarily due to a decrease in certain fees from cloud solution offerings. A decline in sales of Insight Delivered services from our organic business, partially offset by an increase in net sales from Infocenter, also contributed to the year to year decrease in services net sales. Our North America organic business excludes Infocenter, which we acquired on May 1, 2024.
Previous wording
•The decrease in software net sales was primarily due to a significant multi year transaction in the prior year period with no comparable transaction in the current year period. 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 also contributed to the year to year decrease in software net sales.
Current wording
•The decrease in software net sales was primarily due to changes in certain vendor relationships (shifting us from a principal to an agent role), a significant transaction in the first quarter of 2024 with no comparable transaction in the current period, as well as the continued migration of on-premise software to cloud solutions, in each case, reported net in services net sales.
Previous wording
•The increase in hardware net sales was primarily due to higher volume of sales to commercial clients due to slightly higher demand. This increase was driven by an increase in device sales.
Current wording
•The increase in hardware net sales was primarily due to higher volume of sales to commercial clients due to higher demand. This was driven by an increase in device net sales.
Previous wording
Our net sales by offering category for EMEA for the three months ended March 31, 2025 and 2024 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, 2025 and 2024 were as follows (dollars in thousands):
Previous wording
Net sales in EMEA decreased 17%, or $70.0 million, for the three months ended March 31, 2025 compared to the three months ended March 31, 2024. Excluding the effects of fluctuating foreign currency exchange rates, net sales in EMEA decreased 15%, year to year. Net sales of software and hardware decreased by 32% and 5%, respectively, year to year, partially offset by an increase in services net sales of 3%, year over year. The net changes for the three months ended March 31, 2025 were the result of the following:
Current wording
Net sales in EMEA decreased 5%, or $20.3 million, for the three months ended June 30, 2025 compared to the three months ended June 30, 2024. Excluding the effects of fluctuating foreign currency exchange rates, net sales in EMEA decreased 11%, year to year. Net sales of software and hardware decreased by 9% and 13%, respectively, year to year, partially offset by an increase in services net sales of 15%, year over year. The net changes for the three months ended June 30, 2025 were the result of the following:
Previous wording
•The decrease in software net sales was primarily due to lower volume of sales to large enterprise and public sector clients reflecting changes in certain vendor relationships as well as continued migration of on-premise software to cloud solutions, in each case, reported net in services net sales.
Current wording
•The decrease in software net sales was primarily due to lower volume of sales to large enterprise and public sector clients reflecting changes in certain vendor relationships as well as the continued migration of on-premise software to cloud solutions, in each case, reported net in services net sales.
Previous wording
Our net sales by offering category for APAC for the three months ended March 31, 2025 and 2024 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, 2025 and 2024 were as follows (dollars in thousands):
Previous wording
Net sales in APAC decreased 3%, or $1.7 million, for the three months ended March 31, 2025 compared to the three months ended March 31, 2024. Excluding the effects of fluctuating foreign currency exchange rates, net sales in APAC increased 1%, year over year. Net sales of hardware and services decreased by 13% and 5%, respectively, year to year. These decreases were partially offset by an increase in software net sales of 2%, year over year. The net changes for the three months ended March 31, 2025 were the result of the following:
Current wording
Net sales in APAC decreased 3%, or $1.9 million, for the three months ended June 30, 2025 compared to the three months ended June 30, 2024. Excluding the effects of fluctuating foreign currency exchange rates, net sales in APAC decreased 1%, year to year. Net sales of hardware and services decreased by 14% and 3%, respectively, year to year. These decreases were partially offset by an increase in software net sales of 1%, year over year. The net changes for the three months ended June 30, 2025 were the result of the following:
Previous wording
•The decrease in hardware net sales was primarily the result of lower volume of sales to corporate and public sector clients.
Current wording
•The decrease in hardware net sales was primarily the result of lower volume of sales to enterprise and commercial clients.
Previous wording
•The increase in software net sales was due to higher volume of sales to commercial clients.
Current wording
•The increase in software net sales was due to higher volume of sales to enterprise and commercial clients.
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, 2025 and 2024:
Current wording
The percentage of net sales by category for North America, EMEA and APAC were as follows for the three and six months ended June 30, 2025 and 2024:
Previous wording
Gross Profit. Gross profit decreased 8%, or $34.5 million, for the three months ended March 31, 2025 compared to the three months ended March 31, 2024, with gross margin expanding approximately 80 basis points to 19.3% for the three months ended March 31, 2025 compared to 18.5% for the three months ended March 31, 2024.
Current wording
Gross Profit. Gross profit decreased 2%, or $11.0 million, for the three months ended June 30, 2025 compared to the three months ended June 30, 2024, with gross margin expanding approximately 10 basis points to 21.1% for the three months ended June 30, 2025 compared to 21.0% for the three months ended June 30, 2024. Gross profit decreased 5%, or $45.5 million, for the six months ended June 30, 2025 compared to the six months ended June 30, 2024, with gross margin expanding approximately 50 basis points to 20.2% for the six months ended June 30, 2025 compared to 19.7% for the six months ended June 30, 2024.
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, 2025 and 2024 (dollars in thousands):
Current wording
Our gross profit and gross profit as a percentage of net sales by operating segment were as follows for the three and six months ended June 30, 2025 and 2024 (dollars in thousands):
Previous wording
North America's gross profit for the three months ended March 31, 2025 decreased 9%, or $30.4 million, compared to the three months ended March 31, 2024. As a percentage of net sales, gross margin expanded approximately 40 basis points to 18.8%, 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, 2025 decreased 4%, or $12.4 million, compared to the three months ended June 30, 2024. As a percentage of net sales, gross margin contracted approximately 10 basis points to 20.3%, year to year. The year to year net contraction in gross margin was primarily attributable to the following:
Previous wording
EMEA's gross profit for the three months ended March 31, 2025 decreased 4%, or $3.1 million, year to year (decreasing 2% when excluding the effects of fluctuating foreign currency exchange rates), compared to the three months ended March 31, 2024. As a percentage of net sales, gross margin expanded 280 basis points, year over year. The year over year net expansion in gross margin was attributable to the following:
Current wording
EMEA's gross profit for the three months ended June 30, 2025 increased 4%, or $3.3 million, year over year (decreasing 2% when excluding the effects of fluctuating foreign currency exchange rates), compared to the three months ended June 30, 2024. As a percentage of net sales, gross margin expanded 210 basis points, year over year. The year over year net expansion in gross margin was attributable to the following:
Previous wording
•The increase in services margin is primarily the result of increased margin contribution from Insight Core services and an increase in agency net sales, partially offset by fees for cloud solution offerings.
Current wording
•The increase in services margin is primarily the result of increased margin contribution from Insight Core services and an increase in agency net sales, partially offset by a decline in margin contribution from fees for cloud solution offerings.
Previous wording
APAC's gross profit for the three months ended March 31, 2025 decreased 6%, or $1.0 million, year to year (decreasing 2% when excluding the effects of fluctuating foreign currency exchange rates), compared to the three months ended March 31, 2024. As a percentage of net sales, gross margin contracted approximately 90 basis points, year to year. The year to year net contraction in gross margin was attributable to a net contraction in services margin of 71 basis points and a net contraction in product margin of 12 basis points driven by the decrease in fees from cloud solution offerings in the current year period.
Current wording
APAC's gross profit for the three months ended June 30, 2025 decreased 10%, or $1.9 million, year to year (decreasing 8% when excluding the effects of fluctuating foreign currency exchange rates), compared to the three months ended June 30, 2024. As a percentage of net sales, gross margin contracted approximately 220 basis points, year to year. The year to year net contraction in gross margin was attributable to a net contraction in services margin of 298 basis points partially offset by an expansion in product margin of 77 basis points. The contraction in services margin was driven by the decrease in fees from cloud solution offerings in the current year period.
Previous wording
Selling and Administrative Expenses. Selling and administrative expenses for the three months ended March 31, 2025 increased 1%, or $1.7 million, compared to the three months ended March 31, 2024 (also increasing 1% 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, 2025 increased 11%, or $35.1 million, compared to the three months ended June 30, 2024 (increasing 10% when excluding the effects of fluctuating foreign currency exchange rates). Selling and administrative expenses increased $36.8 million, or 6% (increasing 5% when excluding the effects of fluctuating foreign currency exchange rates), for the six months ended June 30, 2025 compared to the six months ended June 30, 2024.
Previous wording
Selling and administrative expenses increased approximately 190 basis points as a percentage of net sales in the three months ended March 31, 2025 compared to the three months ended March 31, 2024. The overall net increase in selling and administrative expenses primarily reflects increases in other expenses and depreciation and amortization expenses of $18.7 million and $3.9 million, respectively, year over year. The net increase in other expenses primarily reflects a loss of $15.2 million recognized on the revaluation of the Infocenter acquisition earnout liability and an increase in fees for service agreements. We also incurred transformation costs in the current and prior year periods of $1.3 million and $2.3 million, respectively, however, these costs are unique in nature and are not expected to recur in the longer term. The increase in depreciation and amortization expenses primarily reflects higher amortization of intangible assets associated with the Infocenter acquisition. These increases were partially offset by a net decrease in personnel costs, including teammate benefits of $16.8 million. The decrease in personnel costs reflects a decrease in overall teammate headcount as well as a reduction in variable compensation compared to the prior year period.
Current wording
Selling and administrative expenses increased approximately 210 basis points as a percentage of net sales in the six months ended June 30, 2025 compared to the six months ended June 30, 2024. The overall net increase in selling and administrative expenses primarily reflects increases in other expenses and depreciation and amortization expenses of approximately $68.1 million and $5.5 million, respectively. These increases were partially offset by a net decrease in personnel costs, including teammate benefits of approximately $29.8 million, year over year due to a decrease in overall teammate headcount. The net increase in other expenses primarily reflects a gain on revaluation of earnout liabilities in the prior year period of approximately $24.2 million compared to a net loss on revaluation of earnout liabilities of approximately $15.4 million in the current year period. We incurred an impairment loss of approximately $12.6 million on a real estate asset that was reclassified to held for sale in April 2025 with no comparable activity in the prior year period. We also incurred transformation costs in the current and prior year periods of $8.3 million and $7.9 million, respectively, however, these costs are unique in nature and are not expected to recur in the longer term. There was an increase in fees for service agreements of approximately $6.2 million compared to the prior year period. For the six months ended June 30, 2024, we recovered approximately $3.4 million in costs we previously incurred related to a third-party data center service outage that occurred in July 2023 with no significant comparable activity in the current year period. The increase in depreciation and amortization expenses reflects higher amortization of intangible assets associated with the Infocenter acquisition.
Previous wording
Severance and Restructuring Expenses, net. During the three months ended March 31, 2025, we recorded severance and restructuring expenses, net of adjustments, of approximately $7.0 million. Comparatively, during the three months ended March 31, 2024, we recorded severance and restructuring expenses, net of adjustments, of approximately $2.2 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, 2025, we recorded severance and restructuring expenses, net of adjustments, of approximately $3.4 million. Comparatively, during the three months ended June 30, 2024, we recorded severance and restructuring expenses, net of adjustments, of approximately $4.9 million. The severance charges in both periods primarily related to a realignment of certain roles and responsibilities and reductions in workforce.
Previous wording
Acquisition and Integration Related Expenses. During the three months ended March 31, 2024, we recorded acquisition and integration related expenses of approximately $1.3 million. During the three months ended March 31, 2025, we had no significant comparable activity. As the Company executes its acquisition strategy, we expect to incur additional acquisition and integration related expenses.
Current wording
Acquisition and Integration Related Expenses. During the three months ended June 30, 2025, we recorded acquisition and integration related expenses of approximately $0.1 million. During the three months ended June 30, 2024, we recorded acquisition and integration related expenses of approximately $0.2 million.
Previous wording
Earnings from Operations. Earnings from operations decreased 40%, or $39.9 million, for the three months ended March 31, 2025 compared to the three months ended March 31, 2024. Our 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, 2025 and 2024 (dollars in thousands):
Current wording
Earnings from Operations. Earnings from operations decreased 34%, or $44.5 million, for the three months ended June 30, 2025 compared to the three months ended June 30, 2024. Earnings from operations decreased 37%, or $84.4 million, for the six months ended June 30, 2025 compared to the six months ended June 30, 2024. Earnings from operations and earnings from operations as a percentage of net sales by operating segment were as follows for the three and six months ended June 30, 2025 and 2024 (dollars in thousands):
Previous wording
North America's earnings from operations for the three months ended March 31, 2025 decreased 40%, or $33.2 million, compared to the three months ended March 31, 2024. As a percentage of net sales, earnings from operations decreased by approximately 140 basis points to 3.0%. The decrease in earnings from operations was primarily driven by a decrease in gross profit combined with an increase in selling and administrative expenses and severance and restructuring expenses, net, partially offset by a decrease in acquisition and integration related expenses, when compared to the three months ended March 31, 2024.
Current wording
North America's earnings from operations for the three months ended June 30, 2025 decreased 33%, or $33.1 million, compared to the three months ended June 30, 2024. As a percentage of net sales, earnings from operations decreased by approximately 180 basis points to 4.1%. The decrease in earnings from operations was primarily driven by a decrease in gross profit combined with an increase in selling and administrative expenses when compared to the three months ended June 30, 2024.
Previous wording
EMEA’s Adjusted earnings from operations for the three months ended March 31, 2025 decreased 21% (decreasing 20% excluding the effects of fluctuating foreign currency exchange rates), or $3.0 million, compared to the three months ended March 31, 2024. As a percentage of net sales, Adjusted earnings from operations decreased by approximately 20 basis points to 3.2%. The decrease in Adjusted earnings from operations was primarily driven by a decrease in gross profit.
Current wording
EMEA's earnings from operations for the three months ended June 30, 2025 decreased 47%, or $9.9 million (decreasing 49% when excluding the effects of fluctuating foreign currency exchange rates), compared to the three months ended June 30, 2024. As a percentage of net sales, earnings from operations decreased by approximately 250 basis points to 3.2%. The decrease in earnings from operations was primarily driven by an increase in selling and administrative expenses, partially offset by an increase in gross profit, when compared to the three months ended June 30, 2024.
Previous wording
Adjusted Earnings from Operations. Adjusted earnings from operations decreased 16%, or $19.4 million, year to year, in three months ended March 31, 2025 compared to three months ended March 31, 2024. Our Adjusted earnings from operations and Adjusted earnings from operations as a percentage of net sales by operating segment were as follows for the three months ended March 31, 2025 and 2024 (dollars in thousands):
Current wording
Adjusted Earnings from Operations. Adjusted earnings from operations decreased 2%, or $2.1 million, year to year, in three months ended June 30, 2025 compared to three months ended June 30, 2024. Adjusted earnings from operations decreased 9%, or $21.5 million, year to year, in the six months ended June 30, 2025 compared to the six months ended June 30, 2024. Adjusted earnings from operations as a percentage of net sales by operating segment were as follows for the three and six months ended June 30, 2025 and 2024 (dollars in thousands):
Previous wording
North America’s Adjusted earnings from operations for the three months ended March 31, 2025 decreased 15%, or $15.8 million, compared to the three months ended March 31, 2024. As a percentage of net sales, Adjusted earnings from operations decreased by approximately 30 basis points to 5.1%. The decrease in Adjusted earnings from operations was primarily driven by a decrease in gross profit, partially offset by a decrease in selling and administrative expenses.
Current wording
North America’s Adjusted earnings from operations for the three months ended June 30, 2025 decreased 1%, or $0.5 million, compared to the three months ended June 30, 2024. As a percentage of net sales, Adjusted earnings from operations increased by approximately 10 basis points to 6.1%. The decrease in Adjusted earnings from operations was primarily driven by a decrease in gross profit, partially offset by a decrease in selling and administrative expenses.
Previous 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, 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, 2025 increased 24%, or $3.1 million, compared to the three months ended March 31, 2024. This was primarily due to the issuance of the Senior Notes in May 2024, the maturity of the Convertible Notes in February 2025 and decreased interest income partially offset by lower interest rates and lower loan balances under our ABL facility and decreased imputed interest under our inventory financing facilities.
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, 2025 increased 58%, or $8.2 million, compared to the three months ended June 30, 2024. This was primarily due to the issuance of the Senior Notes in May 2024, the maturity of the Convertible Notes in February 2025, higher loan balances under our ABL facility and decreased interest income partially offset by lower interest rates. Interest expense, net for the six months ended June 30, 2025 increased 42%, or $11.2 million, compared to the six months ended June 30, 2024. The increase in the six months ended June 30, 2025 was primarily due to a higher loan balance under our ABL facility, the issuance of the Senior Notes, the maturity of the Convertible Notes in February 2025 and decreased interest income, partially offset by the lower interest rates.
Previous wording
Imputed interest under our inventory financing facilities was $2.4 million for the three months ended March 31, 2025 compared to $2.5 million for the three months ended March 31, 2024. The decrease in imputed interest under our inventory financing facilities was a result of lower average daily balances under the facilities during the period. For a description of our various financing facilities, see Note 4 to our Consolidated Financial Statements in Part I, Item 1 of this report.
Current wording
Imputed interest under our inventory financing facilities was $2.4 million and $4.8 million for the three and six months ended June 30, 2025, compared to $2.3 million and $4.8 million for the three and six months ended June 30, 2024. For a description of our various financing facilities, see Note 5 to our Consolidated Financial Statements in Part I, Item 1 of this report.
Previous wording
Other Expense (Income), Net. Other expense (income), 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 outstanding Warrants, with no comparable activity in the three months ended March 31, 2024. For additional information regarding the Warrants, see Note 4 to our Consolidated Financial Statements in Part I, Item 1 of this report.
Current wording
Other Expense (Income), Net. Other expense (income), 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 outstanding Warrants, with no comparable activity in the three or six months ended June 30, 2024. For additional information regarding the Warrants, see Note 5 to our Consolidated Financial Statements in Part I, Item 1 of this report.
Previous wording
Income Tax Expense. Our effective tax rate of 60.5% for the three months ended March 31, 2025 was higher than our effective tax rate of 24.0% for the three months ended March 31, 2024. The increase in the effective tax rate for the three months ended March 31, 2025 was primarily due to the non-deductibility of both net losses related to fair value adjustments associated with the warrant settlement liability and the revaluation of the Infocenter earnout liability. These increases are partially offset by the reduction in the valuation allowance related to our foreign tax credit carryforward.
Current wording
Our effective tax rate of 34.5% for the six months ended June 30, 2025 was higher than our effective tax rate of 24.8% for the six months ended June 30, 2024. The increase in the effective tax rate for the six months ended June 30, 2025 was primarily due to the non-deductibility of both net losses related to fair value adjustments associated with the warrant settlement liabilities and the revaluation of earnout liabilities in the current year period. These increases were partially offset by the reduction in the valuation allowance related to our foreign tax credit carryforward in the current year period.
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Rearranged current paragraphs (7)
Current report — wording carried from elsewhere
•The decrease in software net sales was primarily due to changes in certain vendor relationships (shifting us from a principal to an agent role), as well as the continued migration of on-premise software to cloud solutions, in each case, reported net in services net sales.
Current report — wording carried from elsewhere
•The decrease in services net sales was primarily due to a decrease in certain fees from cloud solution offerings as a result of partner program changes and a decline in sales of Insight Delivered services from our organic business. The decrease in Insight Delivered services from our organic business was partially offset by an increase in net sales from Infocenter. Our North America organic business excludes Infocenter, which we acquired on May 1, 2024.
Current report — wording carried from elsewhere
•The increase in software net sales was due to higher volume of sales to enterprise clients.
Current report — wording carried from elsewhere
•The decrease in hardware net sales was primarily the result of lower volume of sales to enterprise and commercial clients.
Current report — wording carried from elsewhere
•The expansion in product margin reflects an increase in margin contribution from hardware net sales due to changes in product mix towards higher margin products, partially offset by a decrease in margin from software net sales.
Current report — wording carried from elsewhere
•The increase in services margin is primarily the result of increased margin contribution from Insight Core services and an increase in agency net sales, partially offset by a decline in margin contribution from fees for cloud solution offerings.
Current report — wording carried from elsewhere
During the six months ended June 30, 2025, we recorded severance and restructuring expense, net of adjustments, of approximately $10.4 million. Comparatively, during the six months ended June 30, 2024, we recorded severance and restructuring expense, net of adjustments, of approximately $7.1 million. The charges in both periods primarily related to a realignment of certain roles and responsibilities.
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, 2025 and 2024 (dollars in thousands):
Previous report — wording carried elsewhere
•The decrease in services net sales was primarily due to a decrease in fees from cloud solution offerings.