Ingram Micro Holding Corp

Previous wording

•Advanced Solutions. We offer enterprise-grade hardware and software products aimed at corporate and enterprise users and generally characterized by specific projects, which account for lower volumes than Client and Endpoint Solutions but higher margins individually and collectively in the form of solutions and related services. And while Advanced Solutions requires higher operational expenditures, primarily in the form of technical capabilities to serve the market, the operating margin delivered by this business is also generally stronger than Client and Endpoint Solutions. Within this product category, we offer servers, storage, networking, hybrid and software-defined solutions, cyber security, power and cooling and virtualization (software and hardware) solutions. This category also includes training, professional services and financing solutions related to these product sets. We also offer customers data capture-point of sale (“DC / POS”), physical security, audio visual & digital signage, Unified Communications and Collaboration, Internet-of-Things (smart office/home automation) and artificial intelligence products.

Current wording

•Advanced Solutions. We offer enterprise-grade hardware and software products aimed at corporate and enterprise users and generally characterized by specific projects, which account for lower volumes than Client and Endpoint Solutions but higher margins individually and collectively in the form of solutions and related services. And while Advanced Solutions requires higher operational expenditures, primarily in the form of technical capabilities to serve the market, the operating margin delivered by this business is also generally stronger than Client and Endpoint Solutions. Within this product category, we offer servers, storage, networking, hybrid and software-defined solutions, cybersecurity, power and cooling and virtualization (software and hardware) solutions. This category also includes training, professional services and financing solutions related to these product sets. We also offer customers data capture-point of sale (“DC / POS”), physical security, audio visual & digital signage, Unified Communications and Collaboration ("UCC"), Internet-of-Things (smart office/home automation) and artificial intelligence products.

Previous wording

•Cloud-based Solutions. Our cloud portfolio comprises third-party services and subscriptions spanning a breadth of products from solution software through infrastructure-as-a-service. As technology consumption increasingly moves to anything-as-a-service, we have expanded our cloud solutions to more than 200 third-party cloud-based services or subscription offerings, including business applications, security, communications and collaboration, cloud enablement solutions and infrastructure-as-a-service. Also included here are the offerings of our CloudBlue business, which provides customers with multichannel and multi-tier catalog management, subscription management, billing and orchestration capabilities through a software-as-a-service model. Our CloudBlue operations are a part of thedivestiture committed to during the second quarter of 2025 (see the “Held for Sale” section in Note 2, “Summary of Significant Accounting Policies” to our unaudited condensed consolidated financial statements).

Current wording

•Cloud-based Solutions. Our cloud portfolio comprises third-party services and subscriptions spanning a breadth of products from solution software through infrastructure-as-a-service. As technology consumption increasingly moves to anything-as-a-service, we have expanded our cloud solutions to more than 200 third-party cloud-based services or subscription offerings, including business applications, security, communications and collaboration, cloud enablement solutions and infrastructure-as-a-service. Also included here for the periods up to, and including, the third quarter of 2025 are the offerings of our CloudBlue business, which provided customers with multichannel and multi-tier catalog management, subscription management, billing and orchestration capabilities through a software-as-a-service model. Our CloudBlue operations were sold during the third quarter of 2025 (see the “Loss on Sale of Subsidiaries” section in Note 2, “Summary of Significant Accounting Policies” to our unaudited condensed consolidated financial statements).

Previous wording

•Other. We provide customers with IT Asset Disposition, reverse logistics and repair and other related solutions. These offerings represent less than 5% of net sales for all periods presented herein.

Current wording

•Other. We provide customers with IT Asset Disposition (“ITAD”), reverse logistics and repair and other related solutions. These offerings represent less than 5% of net sales for all periods presented herein.

Previous wording

As our international operations constitute a significant portion of our consolidated net sales, they are subject to fluctuations in the U.S. dollar against foreign currencies. In order to provide a framework for assessing our financial performance we exclude the effect of foreign currency fluctuations for certain periods by comparing the percent change in net sales and other key metrics on a constant currency basis. These key metrics on a constant currency basis are not accounting principles generally accepted in the United States of America (“U.S. GAAP”) financial measures. Amounts presented on a constant currency basis remove the impact of changes in exchange rates between the U.S. dollar and the local currencies of our foreign subsidiaries by translating the current period amounts into U.S. dollars using the same foreign currency exchange rates that were used to translate the amounts for the previous comparable period.

Current wording

As our international operations constitute a significant portion of our consolidated net sales, they are subject to fluctuations in the U.S. dollar against foreign currencies. In order to provide a framework for assessing our financial performance we exclude the effect of foreign currency fluctuations for certain periods by comparing the percent change to prior period in net sales and other key metrics on a constant currency basis. These key metrics on a constant currency basis are not accounting principles generally accepted in the United States of America (“U.S. GAAP”) financial measures. Amounts presented on a constant currency basis remove the impact of changes in exchange rates between the U.S. dollar and the local currencies of our foreign subsidiaries by translating the current period amounts into U.S. dollars using the same foreign currency exchange rates that were used to translate the amounts for the previous comparable period.

Previous wording

The $601,920, or 13.7%, increase in North American net sales for the Thirteen Weeks Ended June 28, 2025 compared to the Thirteen Weeks Ended June 29, 2024, was primarily driven by a 17% increase in net sales of advanced solutions offerings, driven by growth in server and storage net sales in the United States. Additionally, net sales of client and endpoint solutions increased by 13% driven by growth in notebooks and desktops in the United States. These factors were partially offset by a 19% decrease in net sales of Other services in the Thirteen Weeks Ended June 28, 2025 compared to the Thirteen Weeks Ended June 29, 2024 due to declines in our Reverse Logistics and Repair business in the United States. Additionally, cloud-based solutions net sales decreased by 2% in the Thirteen Weeks Ended June 28, 2025 compared to the Thirteen Weeks Ended June 29, 2024 due to declines in both the United States and Canada. The net sales in North America remained heavily concentrated toward large enterprise customers in the Thirteen Weeks Ended June 28, 2025.

Current wording

The $142,211, or 3.3%, increase in North American net sales for the Thirteen Weeks Ended September 27, 2025 compared to the Thirteen Weeks Ended September 28, 2024, was primarily driven by a 15% increase in net sales of client and endpoint solutions driven by growth in desktops and notebooks in the United States. This growth was partially offset by a 7% decrease in net sales of advanced solutions offerings in the Thirteen Weeks Ended September 27, 2025 compared to the Thirteen Weeks Ended September 28, 2024 due to declines in virtualization as well as specialty products such as UCC and digital signage in the United States. Other services net sales decreased by 40% due to declines in our Reverse Logistics and Repair business and our ITAD business in the United States. Additionally, cloud-based solutions net sales decreased by 12%, driven significantly by a higher mix of sales in products for which sales are recorded on a net basis as described above. The net sales in North America remained heavily concentrated toward large enterprise customers in the Thirteen Weeks Ended September 27, 2025.

Previous wording

The $159,556, or 4.8%, increase in EMEA net sales for the Thirteen Weeks Ended June 28, 2025 compared to the Thirteen Weeks Ended June 29, 2024, was a result of a 5% increase in net sales of client and endpoint solutions driven primarily by growth in desktops in the United Kingdom, Germany and Austria, growth in notebooks in the United Kingdom and Poland, and growth in components in Poland and France, partially offset by declines in mobility distribution in the United Kingdom and Poland. Additionally, advanced solutions offerings net sales increased by 3% due to growth in specialty products, specifically DC/POS in Germany and the United Kingdom as well as growth in server net sales in the United Arab Emirates. Additionally, Other services net sales increased by 25% driven by growth in our Reverse Logistics and Repair business in France, while cloud-based solutions net sales increased by 36%. The translation impact of foreign currencies relative to the U.S. dollar had a positive impact of 5% on the year-over-year comparison of the region’s net sales. On a constant currency basis, net sales of cloud-based solutions increased by 29%, Other services increased by 19%, advanced solutions offerings decreased by 1% while client and endpoint solutions was flat compared to the prior year.

Current wording

The $191,802, or 5.5%, increase in EMEA net sales for the Thirteen Weeks Ended September 27, 2025 compared to the Thirteen Weeks Ended September 28, 2024, was a result of a 12% increase in net sales of client and endpoint solutions driven primarily by growth in notebooks in the United Kingdom and Germany, and growth in desktops in Germany, the United Kingdom and Switzerland, partially offset by declines in mobility distribution in the United Kingdom, Poland and Italy. Other services net sales increased by 24% driven by growth in our Reverse Logistics and Repair business in the United Kingdom. Additionally, cloud-based solutions net sales increased by 16%, primarily led by growth in Germany. These factors were partially offset by a 6% decrease in net sales of advanced solutions offerings, primarily reflecting a decline in infrastructure software in Germany, which in the prior year benefited from a large project that closed in the quarter. The translation impact of foreign currencies relative to the U.S. dollar had a positive impact of 5% on the year-over-year comparison of the region’s net sales. On a constant currency basis, net sales of client and endpoint solutions increased by 5%, Other services increased by 19% and cloud-based solutions increased by 11% while advanced solutions offerings decreased by 10%.

Previous wording

The $7,163, or 0.8%, increase in Latin American net sales for the Thirteen Weeks Ended June 28, 2025 compared to the Thirteen Weeks Ended June 29, 2024 was primarily driven by an increase of 10% in net sales of client and endpoint solutions, attributed to growth in mobility distribution, particularly smartphones in Peru, as well as growth in tablets in Miami Export. Additionally, net sales of cloud-based solutions increased by 26% year-over-year. These results were partially offset by a decrease of 20% in advanced solutions offerings net sales driven by declines in servers and specialty products in Mexico, declines in data center in Colombia and networking in Peru, Brazil, and Mexico. Additionally, Other services net sales decreased by 15% driven by declines in our ITAD business in Brazil. The translation impact of foreign currencies relative to the U.S. dollar had a negative impact of 6% on the year-over-year comparison of the region’s net sales. On a constant currency basis, net sales for client and endpoint solutions increased by 15% and cloud-based solutions increased by 36%, while advanced solutions offerings decreased by 15% and Other services decreased by 8%.

Current wording

The $111,327, or 13.0%, increase in Latin American net sales for the Thirteen Weeks Ended September 27, 2025 compared to the Thirteen Weeks Ended September 28, 2024 was primarily driven by an increase of 17% in net sales of client and endpoint solutions, attributed to growth in notebooks in Mexico and Peru, mobility distribution in Mexico and Miami Export, as well as tablets in Miami Export. Advanced solutions offerings net sales increased by 1% driven by growth in DC/POS in Brazil and Mexico. Additionally, cloud-based solutions net sales increased by 15% year-over-year driven by growth in Brazil. These results were partially offset by a decrease of 20% in Other services net sales. The translation impact of foreign currencies relative to the U.S. dollar had a positive impact of 1% on the year-over-year comparison of the region’s net sales. On a constant currency basis, net sales for client and endpoint solutions increased by 17%, advanced solutions offerings increased by 1% and cloud-based solutions increased by 13%, while Other services decreased by 22%.

Previous wording

Gross profit was $839,159 for the Thirteen Weeks Ended June 28, 2025, compared to $828,430 for the Thirteen Weeks Ended June 29, 2024. Gross margin decreased by 62 basis points in the Thirteen Weeks Ended June 28, 2025 compared to the Thirteen Weeks Ended June 29, 2024. The increase in gross profit dollars was primarily attributable to the previously described increase in our net sales. The decrease in gross margin was driven by a shift in sales mix towards our lower-margin client and endpoint solutions, particularly in Asia-Pacific and Latin America, with a high concentration of mobility device sales. Also impacting the gross margin comparison is mix within our advanced solutions product categories more towards lower-margin server and storage product sets during the Thirteen Weeks Ended June 28, 2025 compared to the Thirteen Weeks Ended June 29, 2024. Furthermore, we continued to see customer mix concentrated more towards large enterprise customers across each geographic segment, and geographic mix impact of our highest sales growth coming from our lower-margin, lower-cost-to-serve Asia-Pacific region. The decrease in gross margin also includes the impact of a write-down of $10,480 recorded in cost of sales, or 8 basis points of net sales, in connection with the held for sale accounting for the planned sale of a group of assets related to non-core operations in our North America region. The translation impact of foreign currencies relative to the U.S. dollar had no impact on the year-over-year comparison of gross margin.

Current wording

Gross profit was $869,647 for the Thirteen Weeks Ended September 27, 2025, compared to $845,492 for the Thirteen Weeks Ended September 28, 2024. Gross margin decreased by 29 basis points in the Thirteen Weeks Ended September 27, 2025 compared to the Thirteen Weeks Ended September 28, 2024. The increase in gross profit dollars was primarily attributable to the previously described increase in our net sales. The decrease in gross margin was driven by a shift in sales mix towards our lower-margin client and endpoint solutions across all of our geographic segments. Also impacting the gross margin comparison is mix within our advanced solutions product categories more towards lower-margin server and storage product sets during the Thirteen Weeks Ended September 27, 2025 compared to the Thirteen Weeks Ended September 28, 2024. Furthermore, we continued to see customer mix concentrated more towards large enterprise customers across each geographic segment, and geographic mix impact of our highest sales growth coming from our lower-margin, lower-cost-to-serve Asia-Pacific region. The translation impact of foreign currencies relative to the U.S. dollar had a positive impact of 2 basis points on the year-over-year comparison of gross margin.

Previous wording

Total SG&A expenses increased $48,880, and decreased by 17 basis points of net sales in the Thirteen Weeks Ended June 28, 2025 compared to the Thirteen Weeks Ended June 29, 2024. The increase in SG&A dollars includes a write-down of $32,757, or 26 basis points of net sales, related to the held for sale accounting for the planned sale of a group of assets related to our CloudBlue operations and a group of assets related to other non-core operations in our North America region. These charges were incurred to write down the carrying amount of the disposal group to their estimated fair values less costs to sell (see the “Held for Sale” section in Note 2, “Summary of Significant Accounting Policies” to our unaudited condensed consolidated financial statements). Additionally, compensation and headcount expenses increased by $7,954, legal claims and settlement costs increased by $7,010, stock-based compensation increased by $6,325 and software-related costs increased by $4,245. The decrease in SG&A expenses as a percentage of net sales is a function of the improved leverage on operating expenses as sales increased from the prior year, reflective also of cost actions we have taken as recently as the end of our fiscal year ended December 28, 2024. The translation impact of foreign currencies relative to the U.S. dollar had a negative impact of 3 basis points on the year-over-year comparison of SG&A expenses as a percentage of net sales.

Current wording

Total SG&A expenses increased $14,770, and decreased by 23 basis points of net sales in the Thirteen Weeks Ended September 27, 2025 compared to the Thirteen Weeks Ended September 28, 2024. The increase in SG&A dollars was driven by an increase in stock-based compensation of $6,018, an increase in compensation and headcount expenses of $5,511 partially driven by higher variable costs on the higher level of net sales, and an increase in bad debt expense of $4,407. The increase in SG&A dollars also includes the $5,491 (4 basis points of net sales) impact of a loss related to the sales of our CloudBlue operations and other non-core operations in our North America region during the Thirteen Weeks Ended September 27, 2025. The decrease in SG&A expenses as a percentage of net sales is a function of the improved leverage on operating expenses as sales increased from the prior year, including operating efficiencies from cost reductions taken over the past year, as well as the mix of business generally favoring lower-cost-to-sell categories. The translation impact of foreign currencies relative to the U.S. dollar had a negative impact of 7 basis points on the year-over-year comparison of SG&A expenses as a percentage of net sales.

Previous wording

Income from operations was $142,816, or 1.12% of net sales, in the Thirteen Weeks Ended June 28, 2025, compared to $181,128, or 1.57% of net sales, in the Thirteen Weeks Ended June 29, 2024. This decrease includes the write-down impacts noted above totaling $43,237, or 34 basis points of net sales, related to the held for sale accounting in the Thirteen Weeks Ended June 28, 2025, for the planned sale of our CloudBlue operations and another non-core business in our North America region. Income from operations margin was also negatively impacted by the decrease in gross margin described above. These results were partially offset by the reduction in SG&A expenses as a percentage of net sales, described above. The translation impact of foreign currencies relative to the U.S. dollar had a positive impact of 1 basis point on the year-over-year comparison of our consolidated income from operations margin.

Current wording

Income from operations was $223,513, or 1.77% of net sales, in the Thirteen Weeks Ended September 27, 2025, compared to $218,174, or 1.85% of net sales, in the Thirteen Weeks Ended September 28, 2024. Income from operations margin was negatively impacted by the decrease in gross margin, as well as the impact of $3,539, or 3 basis points as a percentage of net sales, of restructuring costs incurred in the Thirteen Weeks Ended September 27, 2025, described above. The decrease in income from operations margin also includes the impact of $5,491, or 4 basis points of net sales, relating to the loss on sale of our CloudBlue operations and another non-core business in our North America region in the Thirteen Weeks Ended September 27, 2025. These results were partially offset by the reduction in SG&A expenses as a percentage of net sales, described above. The translation impact of foreign currencies relative to the U.S. dollar had no impact on the year-over-year comparison of our consolidated income from operations margin.

Previous wording

Our North American income from operations margin decreased 23 basis points in the Twenty-Six Weeks Ended June 28, 2025 compared to the Twenty-Six Weeks Ended June 29, 2024. The decrease reflects the write down impact of $43,237, or 46 basis points of North American net sales, attributable to held for sale accounting for two non-core businesses described above. These factors, as well as the additional negative impact of softer margins due to sales mix, were partially offset by a decrease in certain SG&A expenses as a percentage of sales. Most notably compensation and headcount expenses decreased by 71 basis points, largely as a result of the restructuring initiatives taken in the prior year.

Current wording

Our North American income from operations margin decreased 16 basis points in the Thirteen Weeks Ended September 27, 2025 compared to the Thirteen Weeks Ended September 28, 2024. The decrease was largely driven by the impact of softer margins due to sales mix, as well as an increase in certain SG&A expenses as a percentage of net sales including restructuring costs of 6 basis points, software-related costs of 5 basis points, insurance costs of 4 basis points and depreciation expense of 4 basis points. The region’s income from operations margin also reflects the impact of a loss of $5,491, or 12 basis points of North American net sales, relating to the sale of the two non-core businesses described above. These results were partially offset by a reduction in compensation and headcount expenses of 36 basis points, largely as a result of the restructuring initiatives taken in the prior year.

Previous wording

Our Asia-Pacific income from operations margin decreased 80 basis points in the Thirteen Weeks Ended June 28, 2025 compared to the Thirteen Weeks Ended June 29, 2024, primarily as a result of lower gross margin achievement from three primary factors: (1) geographic mix more towards our lower-margin, lower-cost-to-serve China market, (2) a heavier concentration of lower-margin mobility sales and (3) a heightened competitive market in India creating market pressure on overall margin. These factors were partially offset by a decrease in SG&A expenses as a percentage of net sales in the region. Most notably, compensation and headcount expenses decreased by 22 basis points and rental and occupancy costs decreased by 3 basis points. The translation impact of foreign currencies relative to the U.S. dollar had a positive impact of 1 basis point on the year-over-year comparison of the region’s income from operations margin.

Current wording

Our Asia-Pacific income from operations margin increased 6 basis points in the Thirteen Weeks Ended September 27, 2025 compared to the Thirteen Weeks Ended September 28, 2024, primarily as a result of lower SG&A expenses as a percentage of net sales in the region. Most notably, compensation and headcount expenses decreased by 17 basis points and rental and occupancy costs decreased by 3 basis points. These results were partially offset by lower gross margin as a result of the shift in sales mix described above. The translation impact of foreign currencies relative to the U.S. dollar had no impact on the year-over-year comparison of the region’s income from operations margin.

Previous wording

Our Latin American income from operations margin increased 19 basis points in the Thirteen Weeks Ended June 28, 2025 compared to the Thirteen Weeks Ended June 29, 2024. This improvement was primarily driven by a decrease in SG&A expenses as a percentage of net sales in the region. Most notably, compensation and headcount expenses decreased by 23 basis points, rental and occupancy costs decreased by 9 basis points and bad debt expense decreased by 8 basis points. These factors helped to offset softer gross margins on the shift in sales mix factors described above. The translation impact of foreign currencies relative to the U.S. dollar had a negative impact of 6 basis points on the year-over-year comparison of the region’s income from operations margin.

Current wording

Our Latin American income from operations margin decreased 4 basis points in the Thirteen Weeks Ended September 27, 2025 compared to the Thirteen Weeks Ended September 28, 2024, primarily as a result of higher SG&A expenses as a percentage of net sales in the region. Most notably, bad debt expense increased 37 basis points, largely driven by the positive impact of a large recovery in the prior year period. The region also experienced softer gross margins on the shift in sales mix factors described above. These results were partially offset by a 16 basis point decrease in integration and transition costs and a 10 basis point decrease in compensation and headcount expenses. The translation impact of foreign currencies relative to the U.S. dollar had a positive impact of 1 basis point on the year-over-year comparison of the region’s income from operations margin.

Previous wording

In the Thirteen Weeks Ended June 28, 2025, Corporate costs included $1,293 of stranded costs resulting from the termination of certain operations and IT services under the transition services agreement with CMA CGM Group following the sale of a substantial portion of our Commercial & Lifecycle Services (the “CLS Sale”) business in 2022, as well as $458 of costs associated with retention bonuses. In the Thirteen Weeks Ended June 29, 2024, Corporate costs consisted primarily of $6,250 of advisory fees paid to Platinum Equity Advisors, LLC (“Platinum Advisors”), and $2,544 related to investments in certain initiatives to accelerate our growth and profitability and optimize our operations.

Current wording

In the Thirteen Weeks Ended September 27, 2025, Corporate costs included $2,608 of costs associated with retention bonuses related to the sale of our CloudBlue operations. In the Thirteen Weeks Ended September 28, 2024, Corporate included $6,250 of advisory fees paid to Platinum Equity Advisors, LLC (“Platinum Advisors”), $3,315 of stranded costs resulting from the termination of certain operations and IT services under the transition services agreement with CMA CGM Group following the sale of a substantial portion of our Commercial & Lifecycle Services (the “CLS Sale”) business in 2022 and $2,329 related to investments in certain initiatives to accelerate our growth and profitability and optimize our operations.

Previous wording

Cash-based compensation expense decreased by $1,330 in the Thirteen Weeks Ended June 28, 2025 compared to the Thirteen Weeks Ended June 29, 2024 due to the transition to stock-based compensation subsequent to our initial public offering (the “IPO”).

Current wording

Cash-based compensation expense decreased by $2,162 in the Thirteen Weeks Ended September 27, 2025 compared to the Thirteen Weeks Ended September 28, 2024 due to the transition to stock-based compensation for certain employees subsequent to our initial public offering (the “IPO”).

Previous wording

Stock-based compensation expense increased by $6,325 in the Thirteen Weeks Ended June 28, 2025 compared to the Thirteen Weeks Ended June 29, 2024, due to employee grants of time-vesting and performance-vesting restricted stock units in connection with and subsequent to our IPO (see Note 3, “Employee Awards,” to our unaudited condensed consolidated financial statements).

Current wording

Stock-based compensation expense increased by $6,018 in the Thirteen Weeks Ended September 27, 2025 compared to the Thirteen Weeks Ended September 28, 2024, due to employee grants of time-vesting and performance-vesting restricted stock units in connection with and subsequent to our IPO (see Note 3, “Employee Awards,” to our unaudited condensed consolidated financial statements).

Previous wording

Total other (income) expense consists primarily of interest income, interest expense, foreign currency exchange gains and losses, and other non-operating gains and losses. We incurred total other (income) expense of $82,931 in the Thirteen Weeks Ended June 28, 2025 compared to $97,965 in the Thirteen Weeks Ended June 29, 2024. The decrease is largely driven by a reduction of $14,657 in other expense (income) driven primarily by the fact that the Thirteen Weeks Ended June 28, 2025 includes a gain in fair value of certain equity investments of $5,786, while the Thirteen Weeks Ended June 29, 2024 includes an equity loss in fair value of certain equity investments of $4,161. Additionally, we recognized an unrealized gain of $5,921 in the Thirteen Weeks Ended June 28, 2025 compared to an unrealized gain of $337 in the Thirteen Weeks Ended June 29, 2024 related to our investments held in our Rabbi Trust. Additionally, interest expense decreased by $14,040, primarily as a result of lower average debt outstanding in the current quarter due in particular to voluntary principal payments of $483,100 on our senior secured term loan credit facility (the “Term Loan Credit Facility”) made in fiscal year 2024. Additionally, we voluntarily repaid an incremental $125,000 on our Term Loan Credit Facility in late March 2025. This was partially offset by an increase of $13,674 in net foreign currency exchange loss driven primarily by the weakening of the U.S. dollar.

Current wording

Total other (income) expense consists primarily of interest income, interest expense, foreign currency exchange gains and losses, and other non-operating gains and losses. We incurred total other (income) expense of $72,984 in the Thirteen Weeks Ended September 27, 2025 compared to $98,951 in the Thirteen Weeks Ended September 28, 2024. The year-over-year variance was largely driven by a change from a net foreign currency exchange gain, driven primarily by the favorable movement of the U.S. dollar against our residual exposure, of $10,207 in the Thirteen Weeks Ended September 27, 2025, compared to a net foreign currency exchange loss of $10,675 in the Thirteen Weeks Ended September 28, 2024. Additionally, interest expense decreased by $4,534, primarily as a result of lower average debt outstanding in the current quarter due in particular to voluntary principal payments of $483,100 on our senior secured term loan credit facility (the “Term Loan Credit Facility”) made in fiscal year 2024. Additionally, we voluntarily repaid an incremental $125,000 on our Term Loan Credit Facility in late March 2025.

Previous wording

We recorded an income tax provision of $22,059, or an effective tax rate of 36.8%, in the Thirteen Weeks Ended June 28, 2025, compared to $28,578, or an effective tax rate of 34.4% in the Thirteen Weeks Ended June 29, 2024. The tax provision for the Thirteen Weeks Ended June 28, 2025 included $4,721 of tax expense, or 7.9 percentage points of the effective tax rate, which is associated with withholding tax expense from our business operations in the Latin America region, primarily from our Miami Export business, while in the Thirteen Weeks Ended June 29, 2024, this same withholding tax impact was $3,273 of tax expense, or 3.9 percentage points of the effective tax rate. The tax provision for the Thirteen Weeks Ended June 29, 2024, also included $1,678 of tax expense, or 2.0 percentage points of the effective tax rate, due to a reduction in estimated U.S. foreign tax credit utilization in 2024.

Current wording

We recorded an income tax provision of $51,072, or an effective tax rate of 33.9%, in the Thirteen Weeks Ended September 27, 2025, compared to $42,254, or an effective tax rate of 35.4% in the Thirteen Weeks Ended September 28, 2024. The tax provision for the Thirteen Weeks Ended September 27, 2025, included $7,090 of tax expense, or 4.7 percentage points of the effective tax rate, which is associated with withholding tax expense from our business operations in the Latin America region, primarily from our Miami Export business, while in the Thirteen Weeks Ended September 28, 2024, this same withholding tax impact was $4,481 of tax expense, or 3.8 percentage points of the effective tax rate. The tax provision for the Thirteen Weeks Ended September 28, 2024, also included $4,139 of tax expense, or 3.5 percentage points of the effective tax rate, due to a reduction in estimated U.S. foreign tax credit utilization in 2024.

Previous wording

Consolidated net sales were $12,793,956 for the Thirteen Weeks Ended June 28, 2025, compared to $11,541,439 for the Thirteen Weeks Ended June 29, 2024. The 10.9% increase for the Thirteen Weeks Ended June 28, 2025 compared to the Thirteen Weeks Ended June 29, 2024, was the result of year-over-year increases in net sales across each of our geographic segments. Globally, client and endpoint solutions increased by 15%, advanced solutions increased by 5%, cloud-based solutions increased by 7% and Other services increased by 1%. The translation impact of foreign currencies relative to the U.S. dollar positively impacted the comparison of our global net sales year-over-year by 0.7%. On a constant currency basis, net sales of client and endpoint solutions increased by 14%, advanced solutions increased by 5%, cloud-based solutions increased by 6%, and Other services declined by 2%.

Current wording

Consolidated net sales were $37,678,554 for the Thirty-Nine Weeks Ended September 27, 2025 compared to $34,639,001 for the Thirty-Nine Weeks Ended September 28, 2024. The 8.8% increase was the result of year-over-year increases in net sales across each of our geographic segments. Globally, client and endpoint solutions increased by 14%, advanced solutions offerings increased by 1% and cloud-based solutions increased by 3%. This growth was partially offset by a 2% decline in Other services globally. The translation impact of foreign currencies relative to the U.S. dollar negatively impacted the comparison of our global net sales year-over-year by 0.2%. On a constant currency basis, net sales of client and endpoint solutions increased by 14%, advanced solutions increased by 1%, cloud-based solutions increased by 3%, and Other services decreased by 3%.

Previous wording

The $996,132, or 11.8%, increase in our North American net sales for the Twenty-Six Weeks Ended June 28, 2025 compared to the Twenty-Six Weeks Ended June 29, 2024, was primarily driven by a 13% increase in net sales of client and endpoint solutions, namely notebooks and desktops in the United States. Additionally, net sales of advanced solutions offerings increased by 12%, driven by growth in server net sales in the United States. These results were partially offset by a decrease of 11% in net sales of Other services driven by declines in our U.S. Reverse Logistics and Repair business, as well as a decrease of 2% in cloud-based solutions driven by declines in both the United States and Canada during the Twenty-Six Weeks Ended June 28, 2025 compared to the Twenty-Six Weeks Ended June 29, 2024.

Current wording

The $1,138,343, or 9.0%, increase in our North American net sales for the Thirty-Nine Weeks Ended September 27, 2025 compared to the Thirty-Nine Weeks Ended September 28, 2024, was primarily driven by a 13% increase in net sales of client and endpoint solutions, namely desktops and notebooks in the United States. Additionally, net sales of advanced solutions offerings increased by 6%, driven by growth in server net sales in the United States. These results were partially offset by a decrease of 21% in net sales of Other services driven by declines in our U.S. Reverse Logistics and Repair business, as well as a decrease of 5% in cloud-based solutions during the Thirty-Nine Weeks Ended September 27, 2025 compared to the Thirty-Nine Weeks Ended September 28, 2024, driven by a higher mix of sales of cloud-based products for which sales are recorded on a net basis.

Previous wording

The $179,988, or 2.7%, increase in EMEA net sales for the Twenty-Six Weeks Ended June 28, 2025 compared to the Twenty-Six Weeks Ended June 29, 2024 was a result of a 5% increase in net sales of client and endpoint solutions driven by growth in notebooks in the United Kingdom and Poland and desktops in the United Kingdom, Germany, and Turkey, partially offset by declines in mobility distribution in the United Kingdom and peripherals in Germany. Additionally, net sales of Other services increased by 18% due to growth in our Reverse Logistics and Repair business in France, while net sales of cloud-based solutions increased by 31%. These results were partially offset by a 2% decrease in net sales of advanced solutions offerings primarily due to declines in specialty products in the United Arab Emirates. The translation impact of foreign currencies relative to the U.S. dollar had a positive impact of 1% on the year-over year comparison of the region’s net sales. On a constant currency basis, net sales of client and endpoint solutions increased by 3%, Other services increased by 16%, and cloud-based solutions increased by 30%, while advanced solutions offerings decreased by 3%.

Current wording

The $371,791, or 3.6%, increase in EMEA net sales for the Thirty-Nine Weeks Ended September 27, 2025 compared to the Thirty-Nine Weeks Ended September 28, 2024 was a result of a 7% increase in net sales of client and endpoint solutions driven by growth in notebooks in the United Kingdom and Poland and desktops in the United Kingdom, and Germany, partially offset by declines in mobility distribution in the United Kingdom, as well as peripherals in Germany. Additionally, net sales of Other services increased by 20% due to growth in our Reverse Logistics and Repair business in the United Kingdom. Additionally, net sales of cloud-based solutions increased by 26% driven by the United Kingdom, the Netherlands, Spain, and Belgium. These results were partially offset by a 4% decrease in net sales of advanced solutions offerings primarily due to declines in infrastructure software in Germany, which benefited from a large project in the prior year period. The translation impact of foreign currencies relative to the U.S. dollar had a positive impact of 3% on the year-over year comparison of the region’s net sales. On a constant currency basis, net sales of client and endpoint solutions increased by 4%, Other services increased by 17%, and cloud-based solutions increased by 23%, while advanced solutions offerings decreased by 6%.

Previous wording

The $1,089,883, or 18.1%, increase in Asia-Pacific net sales for the Twenty-Six Weeks Ended June 28, 2025 compared to the Twenty-Six Weeks Ended June 29, 2024 was driven by a 26% increase in net sales of client and endpoint solutions, due to growth in mobility distribution, particularly smartphones in China. Additionally, net sales of desktops and tablets grew in China, while net sales of consumer electronics grew in India. Cloud-based solutions net sales grew by 6% driven by growth in India, and Other services net sales grew by 6%. Advanced solutions offerings net sales were flat compared to the prior year period. The translation impact of foreign currencies relative to the U.S. dollar had a negative impact of 2% on the year-over-year comparison of the region’s net sales. On a constant currency basis, net sales for client and endpoint solutions increased by 28%, advanced solutions offerings increased by 1%, cloud-based solutions increased by 8% and Other services increased by 7%.

Current wording

The $1,485,670, or 16.2%, increase in Asia-Pacific net sales for the Thirty-Nine Weeks Ended September 27, 2025 compared to the Thirty-Nine Weeks Ended September 28, 2024 was driven by a 22% increase in net sales of client and endpoint solutions, due to growth in mobility distribution, particularly smartphones in China. Additionally, net sales of tablets and components grew in China, while consumer electronics grew in India and Australia. Net sales of advanced solutions offerings grew by 2% driven by networking in China and net sales of cloud-based solutions grew by 11% driven by growth in India. These results were partially offset by a 17% decrease in net sales of Other services driven by a decline in our ITAD business. The translation impact of foreign currencies relative to the U.S. dollar had a negative impact of 2% on the year-over-year comparison of the region’s net sales. On a constant currency basis, net sales for client and endpoint solutions increased by 24%, advanced solutions offerings increased by 3% and cloud-based solutions increased by 12%, while Other services decreased by 16%.

Previous wording

Gross profit was $1,667,921 for the Twenty-Six Weeks Ended June 28, 2025, compared to $1,663,368 for the Twenty-Six Weeks Ended June 29, 2024. Gross margin decreased by 62 basis points in the Twenty-Six Weeks Ended June 28, 2025 compared to the Twenty-Six Weeks Ended June 29, 2024. The increase in gross profit dollars was primarily attributable to the previously described increases in our net sales. The decrease in gross margin was driven by a shift in sales mix towards our lower-margin client and endpoint solutions, particularly in Asia-Pacific, Latin America, and EMEA, as well as a decline in gross margin in advanced solutions driven by a mix shift more towards lower-margin servers during the Twenty-Six Weeks Ended June 28, 2025 compared to the Twenty-Six Weeks Ended June 29, 2024. The customer mix has also skewed more heavily towards large enterprise customers, and geographic mix towards our lower-margin, lower-cost-to-serve Asia-Pacific region in the current year. The decrease in gross margin also includes the impact of a write-down impact of $10,480 recorded in cost of sales, or 4 basis points of net sales, in connection with the held for sale accounting for the planned sale of a group of assets related to non-core operations in the North America region. The translation impact of foreign currencies relative to the U.S. dollar had a negative impact of 1 basis point on the year-over-year comparison of gross margin.

Current wording

Gross profit was $2,537,568 for the Thirty-Nine Weeks Ended September 27, 2025, compared to $2,508,860 for the Thirty-Nine Weeks Ended September 28, 2024. Gross margin decreased by 51 basis points in the Thirty-Nine Weeks Ended September 27, 2025 compared to the Thirty-Nine Weeks Ended September 28, 2024. The increase in gross profit dollars was primarily attributable to the previously described increases in our net sales. The decrease in gross margin was driven by a shift in sales mix towards our lower-margin client and endpoint solutions across all of our geographic segments, as well as a decline in gross margin in advanced solutions driven by a mix shift more towards lower-margin servers during the Thirty-Nine Weeks Ended September 27, 2025 compared to the Thirty-Nine Weeks Ended September 28, 2024. The customer mix has also skewed more heavily towards large enterprise customers, and geographic mix towards our Asia-Pacific region in the current year, both of which are lower margin, but also lower cost-to-serve. The decrease in gross margin also includes the impact of $10,480 recorded in cost of sales, or 3 basis points of net sales, relating to the loss on sale of non-core operations in the North America region. The translation impact of foreign currencies relative to the U.S. dollar had no impact on the year-over-year comparison of gross margin.

Previous wording

Total SG&A expenses increased $32,693, and decreased by 37 basis points of net sales in the Twenty-Six Weeks Ended June 28, 2025 compared to the Twenty-Six Weeks Ended June 29, 2024. The increase in SG&A dollars includes a write-down impact of $32,757, or 13 basis points of net sales, in connection with the held for sale accounting for the planned sale of a group of assets related to our CloudBlue operations and a group of assets related to other non-core operations in our North America region to write down the carrying amount of the disposal group to their estimated fair values less costs to sell (see the “Held for Sale” section in Note 2, “Summary of Significant Accounting Policies” to our unaudited condensed consolidated financial statements). These results were partially offset by a decrease in Corporate costs of $15,829 as described below. The decrease in SG&A expenses as a percentage of net sales is a function of the improved leverage on operating expenses as net sales increased from the prior year, reflective also of cost actions we have taken as recently as the end of our fiscal year ended December 28, 2024. The translation impact of foreign currencies relative to the U.S. dollar had a positive impact of 4 basis points on the year-over-year comparison of SG&A expenses as a percentage of net sales.

Current wording

Total SG&A expenses increased $47,463, and decreased by 34 basis points of net sales in the Thirty-Nine Weeks Ended September 27, 2025 compared to the Thirty-Nine Weeks Ended September 28, 2024. The increase in SG&A dollars was driven by an increase in stock-based compensation of $15,107, an increase in software-related costs of $7,511 and an increase in depreciation expense of $7,345. The increase in SG&A dollars also includes the impact of a loss of $38,248, or 10 basis points of net sales, related to the sale of our CloudBlue operations and other non-core operations in our North America region in the Thirty-Nine Weeks Ended September 27, 2025. The decrease in SG&A expenses as a percentage of net sales is a function of the improved leverage on operating expenses as net sales increased from the prior year, reflective also of cost actions we have taken as recently as the end of our fiscal year ended December 28, 2024, and a mix of business generally favoring lower cost-to-serve categories. The translation impact of foreign currencies relative to the U.S. dollar had no impact on the year-over-year comparison of SG&A expenses as a percentage of net sales.

Previous wording

During the Twenty-Six Weeks Ended June 28, 2025, we recognized $1,954 of restructuring costs, or 1 basis point of net sales, which relates to efforts that began in the fourth quarter of 2024 to enhance organization efficiency and strengthen customer service capabilities to better position the Company for long-term, sustainable growth. These charges included organizational and staffing changes as well as headcount reductions. During the Twenty-Six Weeks Ended June 29, 2024, we recognized $22,525 of restructuring costs, or 10 basis points of net sales, which represented further actions taken under our global restructuring plan originally announced in July 2023 (see Note 8 “Restructuring Costs” for further information).

Current wording

During the Thirty-Nine Weeks Ended September 27, 2025, we recognized $5,493 of restructuring costs, or 1 basis point of net sales, which relates to efforts that began in the fourth quarter of 2024 to enhance organization efficiency and strengthen customer service capabilities to better position the Company for long-term, sustainable growth. These charges included organizational and staffing changes as well as headcount reductions. Additionally, in the third quarter of 2025, we took targeted restructuring actions across certain parts of our North America and EMEA businesses. During the Thirty-Nine Weeks Ended September 28, 2024, we recognized $22,018 of restructuring costs, or 6 basis points of net sales, which represented further actions taken under our global restructuring plan originally announced in July 2023 (see Note 8 “Restructuring Costs” for further information).

Previous wording

Income from operations was $343,680, or 1.37%, of net sales in the Twenty-Six Weeks Ended June 28, 2025, compared to $351,249, or 1.54% of net sales, in the Twenty-Six Weeks Ended June 29, 2024. This decrease includes the write-down impacts of $43,237, or 17 basis points of net sales, relating to the held for sale accounting in the Twenty-Six Weeks Ended June 28, 2025 for the planned sale of our CloudBlue operations and another non-core business in our North America region. The 17 basis point year-over-year decrease in income from operations margin was primarily due to the decrease in gross margin, offset by the decrease in SG&A expenses as a percentage of net sales, as well as the decrease in restructuring costs of 9 basis points of net sales, described above. The translation impact of foreign currencies relative to the U.S. dollar had a negative impact of 1 basis point on the year-over-year comparison of our consolidated income from operations margin.

Current wording

Income from operations was $567,193, or 1.51%, of net sales in the Thirty-Nine Weeks Ended September 27, 2025, compared to $569,423, or 1.64% of net sales, in the Thirty-Nine Weeks Ended September 28, 2024. The 13 basis point year-over-year decrease in income from operations margin was primarily due to the decrease in gross margin, partially offset by the decrease in SG&A expenses as a percentage of net sales, as well as the decrease in restructuring costs of 5 basis points of net sales, described above. The decrease in income from operations margin also includes the impact of $48,728, or 13 basis points of net sales, relating to the loss on sale of our CloudBlue operations and another non-core business in our North America region in the Thirty-Nine Weeks Ended September 27, 2025. The translation impact of foreign currencies relative to the U.S. dollar had no impact on the year-over-year comparison of our consolidated income from operations margin.

Previous wording

Our North American income from operations margin decreased 80 basis points in the Thirteen Weeks Ended June 28, 2025 compared to the Thirteen Weeks Ended June 29, 2024. The decrease includes the write-down impacts of $43,237, or 87 basis points of North American net sales, relating to the held for sale accounting of the two non-core businesses described above. This factor, as well as the additional negative impact of softer margins due to sales mix, were partially offset by a decrease in certain SG&A expenses as a percentage of net sales. Most notably compensation and headcount expenses decreased by 60 basis points, which is largely the result of the restructuring initiatives taken in the prior year.

Current wording

Our North American income from operations margin decreased 21 basis points in the Thirty-Nine Weeks Ended September 27, 2025 compared to the Thirty-Nine Weeks Ended September 28, 2024. The decrease is largely driven by a decrease in gross margin due to the shift in sales mix factors described above, which had a combined negative impact of 46 basis points on the region’s income from operations margin. The region’s income from operations margin also reflects the impact of $48,728, or 35 basis points of North American net sales, relating to the loss on sale of two non-core businesses described above. These factors were partially offset by a decrease in SG&A as a percentage of net sales in the region, most notably compensation and headcount expenses which decreased by 59 basis points, largely as a result of the restructuring initiatives taken in the prior year.

Previous wording

Our EMEA income from operations margin increased 13 basis points in the Twenty-Six Weeks Ended June 28, 2025 compared to the Twenty-Six Weeks Ended June 29, 2024 primarily due to a decrease in SG&A expenses as a percentage of net sales in the region. Most notably, restructuring costs decreased by 15 basis points of net sales. These factors helped to offset a decrease in gross margin, due to the shift in sales mix factors described above and some write-offs related to inventory. The translation impact of foreign currencies relative to the U.S. dollar had a positive impact of 1 basis point on the year-over-year comparison of the region’s income from operations margin.

Current wording

Our EMEA income from operations margin increased 1 basis point in the Thirty-Nine Weeks Ended September 27, 2025 compared to the Thirty-Nine Weeks Ended September 28, 2024. This was driven by reductions in SG&A expenses as a percentage of net sales, most notably restructuring costs, which decreased by 9 basis points. These factors more than offset a decrease in gross margin due to the shift in sales mix factors described above and some write-offs related to inventory. The translation impact of foreign currencies relative to the U.S. dollar had no impact on the year-over-year comparison of the region’s income from operations margin.

Previous wording

Our Asia-Pacific income from operations margin decreased 59 basis points in the Twenty-Six Weeks Ended June 28, 2025 compared to the Twenty-Six Weeks Ended June 29, 2024, primarily as a result of lower gross margin achievement from three primary factors: (1) geographic mix more towards our lower-margin, lower-cost-to-serve China market, (2) a heavier concentration of lower-margin mobility sales and (3) a heightened competitive market in India creating market pressure on overall margin. These factors were partially offset by a decrease in SG&A expense as a percentage of net sales in the region. Most notably, compensation and headcount expenses decreased by 26 basis points, primarily due to improved leverage of operating expenses across increased net sales, and rental and occupancy costs decreased by 4 basis points. The translation impact of foreign currencies relative to the U.S. dollar had no impact on the year-over-year comparison of the region’s income from operations margin.

Current wording

Our Asia-Pacific income from operations margin decreased 38 basis points in the Thirty-Nine Weeks Ended September 27, 2025 compared to the Thirty-Nine Weeks Ended September 28, 2024, primarily as a result of lower gross margin achievement from three primary factors: (1) geographic mix more towards our lower-margin, lower-cost-to-serve China market, (2) a heavier concentration of lower-margin mobility sales and (3) a heightened competitive market in India creating market pressure on overall margin. These factors were partially offset by a decrease in SG&A expense as a percentage of net sales in the region. Most notably, compensation and headcount expenses decreased by 23 basis points, primarily due to improved leverage of operating expenses across increased net sales, and rental and occupancy costs decreased by 4 basis points. The translation impact of foreign currencies relative to the U.S. dollar had no impact on the year-over-year comparison of the region’s income from operations margin.

Previous wording

Our Latin American income from operations margin increased 13 basis points in the Twenty-Six Weeks Ended June 28, 2025 compared to the Twenty-Six Weeks Ended June 29, 2024. The improvement was primarily driven by higher gross margin achievement on net sales of advanced solutions, as well as a 15 basis point decrease in charges related to inventory write-offs in the region during the Twenty-Six Weeks Ended June 28, 2025 compared to the Twenty-Six Weeks Ended June 29, 2024. The region also benefited from a reduction in SG&A expense as a percentage of net sales. Most notably, depreciation expense decreased by 6 basis points and bad debt expense decreased by 6 basis points. These were partially offset by an increase in compensation and headcount expenses of 8 basis points. The translation impact of foreign currencies relative to the U.S. dollar had a negative impact of 12 basis points on the year-over-year comparison of the region’s income from operations margin.

Current wording

Our Latin American income from operations margin increased 8 basis points in the Thirty-Nine Weeks Ended September 27, 2025 compared to the Thirty-Nine Weeks Ended September 28, 2024. The improvement was primarily driven by a reduction in SG&A expense as a percentage of net sales. Most notably, rental and occupancy costs decreased by 16 basis points and depreciation expense decreased by 6 basis points. These were partially offset by an increase in bad debt expense of 9 basis points. The translation impact of foreign currencies relative to the U.S. dollar had a negative impact of 7 basis points on the year-over-year comparison of the region’s income from operations margin.

Previous wording

In the Twenty-Six Weeks Ended June 28, 2025, Corporate costs included $2,580 of stranded costs resulting from the termination of certain operations and IT services under the transition services agreement with CMA CGM Group following the CLS Sale in 2022, as well as $1,462 related to investments in certain initiatives to accelerate our growth and profitability and optimize our operations. In the Twenty-Six Weeks Ended June 29, 2024, Corporate costs included $12,500 of advisory fees paid to Platinum Advisors and $4,924 related to investments in certain initiatives to accelerate our growth and profitability and optimize our operations.

Current wording

In the Thirty-Nine Weeks Ended September 27, 2025, Corporate costs included $3,218 of costs associated with retention bonuses related primarily to the sale of our CloudBlue operation, $1,953 of stranded costs resulting from the termination of certain operations and IT services under the transition services agreement with CMA CGM Group following the CLS Sale, as well as $1,627 related to investments in certain initiatives to accelerate our growth and profitability and optimize our operations. In the Thirty-Nine Weeks Ended September 28, 2024, Corporate costs included $18,750 of advisory fees paid to Platinum Advisors and $7,253 related to investments in certain initiatives to accelerate our growth and profitability and optimize our operations.

Previous wording

Cash-based compensation expense decreased by $2,277 in the Twenty-Six Weeks Ended June 28, 2025 compared to the Twenty-Six Weeks Ended June 29, 2024 due to the transition to stock-based compensation subsequent to our IPO.

Current wording

Cash-based compensation expense decreased by $4,439 in the Thirty-Nine Weeks Ended September 27, 2025 compared to the Thirty-Nine Weeks Ended September 28, 2024 due to the transition to stock-based compensation for certain employees subsequent to our IPO.

Previous wording

Stock-based compensation expense increased by $9,089 in the Twenty-Six Weeks Ended June 28, 2025 compared to the Twenty-Six Weeks Ended June 29, 2024 due to employee grants of time-vesting and performance-vesting restricted stock units in connection with and subsequent to our IPO (see Note 3, “Employee Awards,” to our unaudited condensed consolidated financial statements).

Current wording

Stock-based compensation expense increased by $15,107 in the Thirty-Nine Weeks Ended September 27, 2025 compared to the Thirty-Nine Weeks Ended September 28, 2024 due to employee grants of time-vesting and performance-vesting restricted stock units in connection with and subsequent to our IPO (see Note 3, “Employee Awards,” to our unaudited condensed consolidated financial statements).

Previous wording

Total other (income) expense consists primarily of interest income, interest expense, foreign currency exchange gains and losses, and other non-operating gains and losses. We incurred total other (income) expense of $183,392 in the Twenty-Six Weeks Ended June 28, 2025 compared to $191,405 in the Twenty-Six Weeks Ended June 29, 2024. The decrease is largely driven by lower interest expense of $23,763 primarily as a result of lower average debt outstanding in the current year period, due in particular to voluntary principal payments of $483,100 on our Term loan Credit Facility made in fiscal year 2024. Additionally, we voluntarily repaid an incremental $125,000 on our Term Loan Credit Facility in late March 2025. The decrease is also driven by lower other expense of $5,797 driven by the fact that the Twenty-Six Weeks Ended June 28, 2025 includes an equity fair value gain of $9,835, while the Twenty-Six Weeks Ended June 29, 2024 includes an equity fair value gain of only $2,536. The decrease was partially offset by an increase of $25,065 in net foreign currency exchange loss in the Twenty-Six Weeks Ended June 28, 2025 compared to the Twenty-Six Weeks Ended June 29, 2024 driven primarily by the weakening of the U.S. dollar.

Current wording

Total other (income) expense consists primarily of interest income, interest expense, foreign currency exchange gains and losses, and other non-operating gains and losses. We incurred total other (income) expense of $256,376 in the Thirty-Nine Weeks Ended September 27, 2025 compared to $290,356 in the Thirty-Nine Weeks Ended September 28, 2024. The decrease is largely driven by lower interest expense of $28,297 primarily as a result of lower average debt outstanding in the current year period, due in particular to voluntary principal payments of $483,100 on our Term Loan Credit Facility made in fiscal year 2024. Additionally, we voluntarily repaid an incremental $125,000 on our Term Loan Credit Facility in late March 2025. The decrease is also driven by lower other expense of $5,229 driven by an increase in an equity fair value gain of $7,344, partially offset by a decrease in unrealized gain of $3,142 related to our investments held in Rabbi Trust. The decrease was partially offset by an increase of $4,183 in net foreign currency exchange loss in the Thirty-Nine Weeks Ended September 27, 2025 compared to the Thirty-Nine Weeks Ended September 28, 2024 driven by the unfavorable movement of the U.S. dollar against our residual exposure.

Previous wording

We recorded an income tax provision of $53,273, or an effective tax rate of 33.2%, in the Twenty-Six Weeks Ended June 28, 2025, compared to $55,707, or an effective tax rate of 34.9%, in the Twenty-Six Weeks Ended June 29, 2024. The tax provision for the Twenty-Six Weeks Ended June 28, 2025, included $7,819 of tax expense, or 4.9 percentage points of the effective tax rate, which is associated with withholding tax expense from our business operations in the Latin America region, primarily from our Miami Export business, while in the Twenty-Six Weeks Ended June 29, 2024, this same withholding tax impact was $5,926 of tax expense, or 3.7 percentage points of the effective tax rate. In addition, the tax provision for the Twenty-Six Weeks Ended June 29, 2024, included $1,945 of tax expense, or 1.2 percentage points of the effective tax rate, due to foreign exchange losses generated by a foreign subsidiary that is under valuation allowance. The tax provision for the Twenty-Six Weeks Ended June 29, 2024, also included $1,678 of tax expense, or 1.0 percentage points of the effective tax rate, due to a reduction in estimated U.S. foreign tax credit utilization in 2024.

Current wording

We recorded an income tax provision of $104,345, or an effective tax rate of 33.6%, in the Thirty-Nine Weeks Ended September 27, 2025, compared to $97,961, or an effective tax rate of 35.1%, in the Thirty-Nine Weeks Ended September 28, 2024. The tax provision for the Thirty-Nine Weeks Ended September 27, 2025, included $14,909 of tax expense, or 4.8 percentage points of the effective tax rate, which is associated with withholding tax expense from our business operations in the Latin America region, primarily from our Miami Export business, while in the Thirty-Nine Weeks Ended September 28, 2024, this same withholding tax impact was $10,407 of tax expense, or 3.7 percentage points of the effective tax rate. In addition, the tax provision for the Thirty-Nine Weeks Ended September 28, 2024, included $1,878 of tax expense, or 0.7 percentage points of the effective tax rate, due to foreign exchange losses generated by a foreign subsidiary that is under valuation allowance. The tax provision for the Thirty-Nine Weeks Ended September 28, 2024, also included $5,817 of tax expense, or 2.1 percentage points of the effective tax rate, due to a reduction in estimated U.S. foreign tax credit utilization in 2024.

Previous wording

Our cash and cash equivalents totaled $856,668 and $918,401 at June 28, 2025 and December 28, 2024, respectively. We finance our working capital needs and investments in the business largely through net income before noncash items, available cash, trade and supplier credit and various financing facilities. As a distributor, our business requires significant investment in working capital, particularly trade accounts receivable and inventory, which is partially financed by vendor trade accounts payable. As a general rule, when sales volumes are increasing, our net investment in working capital dollars typically increases, which generally results in decreased cash flow generated from operating activities. Conversely, when sales volume decreases, our net investment in working capital typically decreases, which generally results in increases in cash flows generated from operating activities. Working capital dollars are calculated at any point in time by adding the trade accounts receivable and inventory less the trade accounts payable balance at that point in time. Our working capital dollars were $4,611,017 at June 28, 2025 and $4,142,013 at December 28, 2024.

Current wording

Our cash and cash equivalents totaled $802,630 and $918,401 at September 27, 2025 and December 28, 2024, respectively. We finance our working capital needs and investments in the business largely through net income before noncash items, available cash, trade and supplier credit and various financing facilities. As a distributor, our business requires significant investment in working capital, particularly trade accounts receivable and inventory, which is partially financed by vendor trade accounts payable. As a general rule, when sales volumes are increasing, our net investment in working capital dollars typically increases, which generally results in decreased cash flow generated from operating activities. Conversely, when sales volume decreases, our net investment in working capital typically decreases, which generally results in increases in cash flows generated from operating activities. Working capital dollars are calculated at any point in time by adding the trade accounts receivable and inventory less the trade accounts payable balance at that point in time. Our working capital dollars were $4,949,901 at September 27, 2025 and $4,142,013 at December 28, 2024.

Previous wording

Operating activities used net cash of $498,390 and provided net cash of $300,918 during the Twenty-Six Weeks Ended June 28, 2025 and Twenty-Six Weeks Ended June 29, 2024, respectively. The variance year-over-year primarily relates to heavier investment in inventory in the Twenty-Six Weeks Ended June 28, 2025 to capture demand and pricing opportunities as well as a lower book overdraft balance driven by a shift from check to wire payments, which reduced the volume of checks outstanding as of June 28, 2025, partially offset by improved cash flows from the use of accounts payable to vendors in the current year.

Current wording

Operating activities used net cash of $644,428 and provided net cash of $23,878 during the Thirty-Nine Weeks Ended September 27, 2025 and Thirty-Nine Weeks Ended September 28, 2024, respectively. The cash used in the Thirty-Nine Weeks Ended September 27, 2025 primarily reflects heavier investment in inventory to capture demand and pricing opportunities of the higher sales levels in the Thirty-Nine Weeks Ended September 27, 2025, along with a reduction of payables driven by timing of payments under vendor terms and conditions, partially offset by improved collections of account receivables from customers in the current year.

Previous wording

Investing activities provided net cash of $116,718 and $47,067 during the Twenty-Six Weeks Ended June 28, 2025 and Twenty-Six Weeks Ended June 29, 2024, respectively. The net cash provided during the Twenty-Six Weeks Ended June 28, 2025 was primarily driven by proceeds from the deferred purchase price of factored receivables of $141,445, proceeds from sale of equity investments of $20,805, and proceeds from notes receivable of $20,510, partially offset by capital expenditures of $64,961 and issuance of notes receivable to certain customers of $12,501. The net cash provided during the Twenty-Six Weeks Ended June 29, 2024 was primarily driven by proceeds from the deferred purchase price of factored receivables of $128,515 and proceeds from notes receivable of $21,597, partially offset by capital expenditures of $68,688 and issuance of notes receivable to certain customers of $43,374.

Current wording

Investing activities provided net cash of $182,857 and $77,008 during the Thirty-Nine Weeks Ended September 27, 2025 and Thirty-Nine Weeks Ended September 28, 2024, respectively. The net cash provided during the Thirty-Nine Weeks Ended September 27, 2025 was primarily driven by proceeds from the deferred purchase price of factored receivables of $206,507, proceeds from notes receivable of $31,172, proceeds from sale of equity investments of $20,805, and proceeds from sale of subsidiaries of $17,500, partially offset by capital expenditures of $93,929 and issuance of notes receivable to certain customers of $12,501. The net cash provided during the Thirty-Nine Weeks Ended September 28, 2024 was primarily driven by proceeds from the deferred purchase price of factored receivables of $188,877, proceeds from notes receivable of $29,465 and proceeds from sale of equity investments of $12,012, partially offset by capital expenditures of $106,643 and issuance of notes receivable to certain customers of $48,692.

Previous wording

Financing activities provided net cash of $272,973 and used net cash of $310,663 during the Twenty-Six Weeks Ended June 28, 2025 and Twenty-Six Weeks Ended June 29, 2024, respectively. The net cash provided during the Twenty-Six Weeks Ended June 28, 2025 was primarily driven by net proceeds from revolving and other credit facility of $452,161 and gross proceeds from other debt of $29,820, partially offset by voluntary repayments of our term loan totaling $125,000, dividends paid to stockholders of $40,828 and gross repayments of other debt of $32,574. The net cash used during the Twenty-Six Weeks Ended June 29, 2024 was primarily driven by the voluntary repayment of our term loan totaling $150,000, net repayments of revolving and other credit facility of $136,918, gross repayments of other debt of $49,833, the change in unremitted cash collections from servicing factored receivables of $8,630 and dividends paid to stockholders of $6,174, partially offset by gross proceeds from other debt of $41,826.

Current wording

Financing activities provided net cash of $315,632 and used net cash of $158,424 during the Thirty-Nine Weeks Ended September 27, 2025 and Thirty-Nine Weeks Ended September 28, 2024, respectively. The net cash provided during the Thirty-Nine Weeks Ended September 27, 2025 was primarily driven by net proceeds from revolving and other credit facility of $528,497 and gross proceeds from other debt of $66,716, partially offset by voluntary repayments of our term loan totaling $125,000, gross repayments of other debt of $79,697, and dividends paid to stockholders of $59,146. The net cash used during the Thirty-Nine Weeks Ended September 28, 2024 was primarily driven by the voluntary repayment of our term loan totaling $250,000, gross repayments of other debt of $105,002, the purchase of the remaining minority interest of Colsof in Colombia totaling $21,846 and the change in unremitted cash collections from servicing factored receivables of $15,612, partially offset by net proceeds from revolving and other credit facilities of $162,617 and gross proceeds from other debt of $89,132.

Previous wording

We have a range of financing facilities which are diversified by type, maturity and geographic region with various financial institutions worldwide with a total capacity of approximately $7,526,211, of which $3,723,645 was outstanding, at June 28, 2025. These facilities have staggered maturities through 2031. Our cash and cash equivalents totaled $856,668 and $918,401 at June 28, 2025 and December 28, 2024, respectively, of which $790,376 and $856,051, respectively, resided in operations outside of the United States. Cash and cash equivalents located in China were approximately 10% of our total cash and cash equivalents at June 28, 2025 and December 28, 2024, along with lesser amounts in Brazil, Luxembourg, Malaysia, Mexico, Canada, and Australia. Cash held by foreign subsidiaries, including China, can generally be used to finance local operations and cannot, under the current legal and regulatory environment, be transferred to finance other foreign subsidiaries’ operations. Additionally, our ability to repatriate these funds to the United States in an economical manner may be limited. Our cash balances are deposited and/or invested with various financial institutions globally that we endeavor to monitor regularly for credit quality. However, we are exposed to risk of loss on funds deposited with the various financial institutions and money market mutual funds, and we may experience significant disruptions in our liquidity needs if one or more of these financial institutions were to suffer bankruptcy or similar restructuring. As of June 28, 2025 and December 28, 2024, we had book overdrafts of $360,002 and $544,029, respectively, representing checks issued on disbursement bank accounts but not yet paid by such banks. These amounts are classified as accounts payable in our Condensed Consolidated Balance Sheets and are typically paid by the banks in a relatively short period of time.

Current wording

We have a range of financing facilities which are diversified by type, maturity and geographic region with various financial institutions worldwide with a total capacity of approximately $7,504,414, of which $3,793,856 was outstanding, at September 27, 2025. These facilities have staggered maturities through 2031. Our cash and cash equivalents totaled $802,630 and $918,401 at September 27, 2025 and December 28, 2024, respectively, of which $740,103 and $856,051, respectively, resided in operations outside of the United States. Cash and cash equivalents located in China were approximately 10% of our total cash and cash equivalents at September 27, 2025 and December 28, 2024, along with lesser amounts in Brazil, Luxembourg, Malaysia, Mexico, Canada, Australia, Chile, and Turkey. Cash held by foreign subsidiaries, including China, can generally be used to finance local operations and cannot, under the current legal and regulatory environment, be transferred to finance other foreign subsidiaries’ operations. Additionally, our ability to repatriate these funds to the United States in an economical manner may be limited. Our cash balances are deposited and/or invested with various financial institutions globally that we endeavor to monitor regularly for credit quality. However, we are exposed to risk of loss on funds deposited with the various financial institutions and money market mutual funds, and we may experience significant disruptions in our liquidity needs if one or more of these financial institutions were to suffer bankruptcy or similar restructuring. As of September 27, 2025 and December 28, 2024, we had book overdrafts of $371,505 and $544,029, respectively, representing checks issued on disbursement bank accounts but not yet paid by such banks. These amounts are classified as accounts payable in our Condensed Consolidated Balance Sheets and are typically paid by the banks in a relatively short period of time.