Ingram Micro Holding Corp

Previous wording

Our product, service and solution offerings consist of Client and Endpoint Solutions, Advanced Solutions, Cloud-based Solutions and Other, which include the product and service categories further described below. Our results are impacted by changes in demand levels and related product mix, including entry or expansion into new markets, new product offerings and the exit or retraction of certain business. Furthermore, we have invested most heavily in recent years into Advanced Solutions and Cloud-based Solutions and capabilities globally, for which an increased need for more complex solutions coupled with more products being consumed on an as-a-service basis is driving a more rapid shift towards these offerings. Advanced Solutions and Cloud sales now collectively comprise more than one-third of our net sales and more than half of our gross profit.

Current wording

Our product, service and solution offerings consist of Client and Endpoint Solutions, Advanced Solutions, Cloud-based Solutions and Other, as described in further detail below. Our results are impacted by changes in demand levels and related product mix, including entry or expansion into new markets, new product offerings and the exit or retraction of certain business. Furthermore, we have invested most heavily in recent years into Advanced Solutions and Cloud-based Solutions and capabilities globally, for which an increased need for more complex solutions coupled with more products being consumed on an as-a-service basis is driving a more rapid shift towards these offerings. Advanced Solutions and Cloud sales collectively comprise more than one-third of our net sales and more than half of our gross profit.

Previous wording

As part of our global presence in each of our four geographic regions, we offer customers a full spectrum of hardware and software, cloud-based solutions, services and logistics expertise through our four main lines of business described below. In each of our geographic segments we offer customers the product categories listed below broken down under the respective line of business.

Current wording

As part of our global presence in each of our four geographic regions, we offer customers a full spectrum of hardware and software, Cloud-based solutions, services and logistics expertise through our four main lines of business described below.

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 generally account for lower volumes than Client and Endpoint Solutions but higher margins individually and collectively in the form of solutions and related services. While Advanced Solutions offerings often require 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, and power and cooling solutions. This category also includes training, professional services and financing solutions related to these product sets. We also offer customers graphics processing units (“GPU”) and artificial intelligence (“AI”) infrastructure-related products and offerings, as well as data capture-point of sale (“DC / POS”), physical security, audio visual & digital signage, Unified Communications and Collaboration (“UCC”), and Internet-of-Things (smart office/home automation) 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 generally account for lower volumes than Client and Endpoint Solutions but higher margins individually and collectively in the form of solutions and related services. While Advanced Solutions offerings often require 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 solutions and graphics processing units (“GPU”) and artificial intelligence (“AI”) infrastructure-related products and offerings. 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”), and Internet-of-Things (smart office/home automation) 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 historically have been 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.

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. This previously includedour former 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 and was sold during the third quarter of 2025.

Previous 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.

Current wording

•Other. We provide customers with IT Asset Disposition (“ITAD”), reverse logistics and repair and other related solutions. Also included in this line of business is our more recent ramp up of Supply Chain Services, which is effectively a set of logistics-as-a-service offerings. These offerings represent less than 5% of net sales for all periods presented herein.

Previous wording

Another key area for our overall profitability management is the monitoring and control of our level of SG&A expenses. On an ongoing basis, we regularly look to optimize and drive efficiencies throughout our operations, which includes the use of a temporary workforce to address staffing needs, particularly in our warehouse operations where demand levels are more impactful on workloads. SG&A expenses also include the cost of investment in certain initiatives to accelerate growth and profitability and optimize our operations. We continue to increase our presence in cloud which generally has higher gross margins but also requires higher automation and investment in technology. We are likewise investing in the development and deployment of our Ingram Micro Xvantage TM platform to address our market opportunities and partner experience in a more automated and efficient manner. These investments include both ongoing servicing, maintenance, and incremental enhancement activities, as well as certain discrete development, implementation, and integration initiatives with defined scopes and implementation timelines. These costs are expected to be completed by the end of fiscal year 2027 and are not expected to recur.

Current wording

Another key area for our overall profitability management is the monitoring and control of our level of SG&A expenses. On an ongoing basis, we regularly look to optimize and drive efficiencies throughout our operations, which includes the use of temporary workforce to address staffing needs, particularly in our warehouse operations where demand levels are more impactful on workloads. SG&A expenses also include the cost of investment in certain initiatives to accelerate growth and profitability and optimize our operations. We continue to increase our presence in cloud which generally has higher gross margins but also requires higher automation and investment in technology. We are likewise investing in the development and deployment of our Ingram Micro Xvantage TM platform to address our market opportunities and partner experience in a more automated and efficient manner. These investments include both ongoing servicing, maintenance, and incremental enhancement activities, as well as certain discrete development, implementation, and integration initiatives with defined scopes and implementation timelines. These costs are expected to be completed by the end of fiscal year 2027 and are not expected to recur.

Previous wording

Consolidated net sales were $28,494,050 for the Twenty-Six Weeks Ended June 27, 2026, compared to $25,074,799 for the Twenty-Six Weeks Ended June 28, 2025. The 13.6% 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 12%, Advanced Solutions offerings increased by 16% and Cloud-based Solutions increased by 38%. This growth was partially offset by a 6% decline in Other services. The divestiture of CloudBlue in the third quarter of 2025 had a negative 10% impact on the year-over-year comparison of net sales of Cloud-based Solutions. 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 2%. On a constant currency basis, net sales of Client and Endpoint Solutions increased by 10%, Advanced Solutions increased by 14%, and Cloud-based Solutions increased by 34%, while Other services declined by 9%.

Current wording

Consolidated net sales were $15,220,461 for the Thirteen Weeks Ended September 26, 2026, compared to $12,603,755 for the Thirteen Weeks Ended September 27, 2025. The 20.8% increase was the result of year-over-year increases in net sales across each of our geographic segments. Globally, Advanced Solutions offerings increased by 40%, Client and Endpoint Solutions increased by 10%, Cloud-based Solutions increased by 31%, and Other services increased by 35%. The divestiture of CloudBlue in the third quarter of 2025 had a negative 6% impact on the year-over-year comparison of net sales of Cloud-based Solutions. The translation impact of foreign currencies relative to the U.S. dollar did not have an impact on the comparison of our global net sales year-over-year. On a constant currency basis, net sales of Advanced Solutions offerings increased by 40%, Client and Endpoint Solutions increased by 10%, Cloud-based Solutions increased by 30%, and Other services increased by 35%.

Previous wording

The $297,928, or 6.0%, increase in North American net sales for the Thirteen Weeks Ended June 27, 2026 compared to the Thirteen Weeks Ended June 28, 2025, was primarily driven by an 8% increase in net sales of Client and Endpoint Solutions driven by growth in notebooks and desktops in the United States and Canada. Net sales of Advanced Solutions offerings increased by 3% driven by growth in net sales of storage, cybersecurity and infrastructure software in the United States. Cloud-based Solutions net sales increased by 35%. Excluding the impact of our CloudBlue divestiture, net sales of Cloud-based Solutions were up by 54% year-over-year. Net sales of Other services were flat year-over-year.

Current wording

The $1,394,777, or 31.5%, increase in North American net sales for the Thirteen Weeks Ended September 26, 2026 compared to the Thirteen Weeks Ended September 27, 2025, was primarily driven by a 61% increase in net sales of Advanced Solutions offerings driven by growth in networking and server in the United States as well as growth in GPU and AI-infrastructure product sets in the region. Net sales of Client and Endpoint Solutions increased by 7% driven by growth in notebooks and desktops in the United States and Canada as well as growth in mobility distribution, particularly smartphones, in the United States. Net sales of Other services increased by 114% year-over-year, driven by growth in our U.S. Reverse Logistics and Repair business and, to a lesser degree, our re-entry into Supply Chain Services. Net sales of Cloud-based Solutions increased by 21%. Excluding the impact of our CloudBlue divestiture, net sales of Cloud-based Solutions were up by 30% year-over-year.

Previous wording

The $266,905, or 7.7%, increase in EMEA net sales for the Thirteen Weeks Ended June 27, 2026 compared to the Thirteen Weeks Ended June 28, 2025, was primarily a result of a 7% increase in net sales of Client and Endpoint Solutions driven by growth in notebooks in Germany, the United Arab Emirates and the United Kingdom, as well as growth in desktops in the United Arab Emirates, Turkey and Germany. Net sales of Advanced Solutions offerings increased by 10% driven by growth in server net sales in Poland and Germany, networking in Romania and Germany, as well as cybersecurity in Saudi Arabia and Germany. Additionally, net sales of Cloud-based Solutions increased by 44%, led by growth in the United Kingdom, Germany and Spain. These results were partially offset by a 14% decrease in net sales of Other services. The translation impact of foreign currencies relative to the U.S. dollar had a positive impact of 2% 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%, Advanced Solutions offerings increased by 7% and Cloud-based Solutions increased by 42%, while Other services decreased by 15%.

Current wording

The $268,334, or 7.3%, increase in EMEA net sales for the Thirteen Weeks Ended September 26, 2026 compared to the Thirteen Weeks Ended September 27, 2025, was primarily a result of a 24% increase in net sales of Advanced Solutions offerings driven by growth in server net sales in Poland, the United Kingdom, Germany and Turkey, as well as growth in storage net sales in Germany, Turkey and the United Arab Emirates, as well as growth in GPU and AI-infrastructure product sets in the region. Net sales of Cloud-based Solutions increased by 39%, led by growth in Germany, the United Arab Emirates and Spain. These results were partially offset by a 1% decrease in net sales of Client and Endpoint Solutions, driven by a decrease in net sales of components in Poland as well as a decrease in net sales of peripherals in Germany and the Netherlands. Net sales of Other services also declined by 13% in the region. The translation impact of foreign currencies relative to the U.S. dollar had a negative impact of 1% on the year-over-year comparison of the region’s net sales. On a constant currency basis, net sales of Advanced Solutions offerings increased by 25%, Cloud-based Solutions increased by 40%, Client and Endpoint Solutions increased by 1% and Other services decreased by 13%.

Previous wording

The $942,015, or 27.1%, increase in Asia-Pacific net sales for the Thirteen Weeks Ended June 27, 2026 compared to the Thirteen Weeks Ended June 28, 2025 was driven by a 19% increase in net sales of Client and Endpoint Solutions, due to growth in mobility distribution, particularly smartphones, in India. Additionally, the region saw growth in components and desktops in China. Net sales of Advanced Solutions offerings increase by 51% driven by GPU and AI-infrastructure product sets in China. Net sales of Cloud-based Solutions increased by 87% driven by growth in India, Australia and Singapore. Net sales of Other services decreased by 9% in the region. The translation impact of foreign currencies relative to the U.S. dollar had a negative 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 20%, Cloud-based Solutions increased by 85% and Advanced Solutions offerings increased by 50%, while Other services decreased by 7%.

Current wording

The $792,639, or 22.3%, increase in Asia-Pacific net sales for the Thirteen Weeks Ended September 26, 2026 compared to the Thirteen Weeks Ended September 27, 2025 was driven by a 25% increase in net sales of Advanced Solutions offerings driven by GPU and AI-infrastructure product sets in China. Net sales of Client and Endpoint Solutions increased by 21% due to growth in mobility distribution, particularly smartphones in India and China, as well as growth in notebooks in India and Australia. Net sales of Cloud-based Solutions increased by 44% driven by growth in Singapore and Australia. Net sales of Other services increased by 39% in the region. 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 of Advanced Solutions offerings increased by 25%, Client and Endpoint Solutions increased by 23%, Cloud-based Solutions increased by 42% and Other services increased by 38%.

Previous wording

The $230,265, or 27.0%, increase in Latin American net sales for the Thirteen Weeks Ended June 27, 2026 compared to the Thirteen Weeks Ended June 28, 2025 was primarily driven by a 32% increase in net sales of Client and Endpoint Solutions, due to growth in notebooks in Miami Export, Peru and Chile, as well as growth in desktops in Mexico, Peru and Colombia. Net sales of Advanced Solutions offerings increased by 9%, led by growth in DC/POS in Brazil and networking in Peru. Net sales of Cloud-based Solutions increased by 71% year-over-year driven by growth in Brazil, while net sales of Other services increased by 57% year-over-year. The translation impact of foreign currencies relative to the U.S. dollar had a positive impact of 8% 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 25%, Cloud-based Solutions increased by 54% and Other services increased by 40%, while net sales of Advanced Solutions were flat.

Current wording

The $160,956, or 16.7%, increase in Latin American net sales for the Thirteen Weeks Ended September 26, 2026 compared to the Thirteen Weeks Ended September 27, 2025 was primarily driven by a 16% increase in net sales of Client and Endpoint Solutions, due to growth in mobility distribution, particularly smartphones in Peru and Chile, as well as growth in desktops and consumer electronics in Mexico. Net sales of Advanced Solutions offerings increased by 17%, led by growth in net sales of server and cyber security product sets in Brazil. Net sales of Cloud-based Solutions increased by 56% year-over-year driven by growth in Brazil, while net sales of Other services increased by 65% year-over-year. The translation impact of foreign currencies relative to the U.S. dollar had a positive impact of 6% 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 10%, Advanced Solutions offerings increased by 10%, Cloud-based Solutions increased by 47% and Other services increased by 57%.

Previous wording

Gross profit was $958,679 for the Thirteen Weeks Ended June 27, 2026, compared to $839,159 for the Thirteen Weeks Ended June 28, 2025. Gross margin increased by 4 basis points in the Thirteen Weeks Ended June 27, 2026 compared to the Thirteen Weeks Ended June 28, 2025. The increase in gross profit dollars was primarily attributable to the previously described increase in our net sales. The increase in gross margin was largely driven by the prior year impact of a write-down of $10,480 recorded in cost of sales in the Thirteen Weeks Ended June 28, 2025 in connection with the held-for-sale accounting for the sale of a group of assets related to non-core operations in our North America region, which negatively impacted the prior year period gross margin by 8 basis points. This was partially offset by a shift in sales mix towards lower-margin AI-infrastructure products in the Thirteen Weeks Ended June 27, 2026 compared to the Thirteen Weeks Ended June 28, 2025. The translation impact of foreign currencies relative to the U.S. dollar had a positive impact of 5 basis points on the year-over-year comparison of gross margin.

Current wording

Gross profit was $996,926 for the Thirteen Weeks Ended September 26, 2026, compared to $869,647 for the Thirteen Weeks Ended September 27, 2025. Gross margin decreased by 35 basis points in the Thirteen Weeks Ended September 26, 2026 compared to the Thirteen Weeks Ended September 27, 2025. The increase in gross profit dollars was primarily attributable to the previously described increase in our net sales. The decrease in gross margin was largely driven by our Advanced Solutions offerings category due to a mix shift towards lower-margin, low cost-to-serve GPU and AI-infrastructure product sets during the Thirteen Weeks Ended September 26, 2026 compared to the Thirteen Weeks Ended September 27, 2025. Excluding GPU and AI-Infrastructure sales in both years, gross margin decreased by 4 basis points. 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 $85,773, but decreased by 33 basis points of net sales in the Twenty-Six Weeks Ended June 27, 2026 compared to the Twenty-Six Weeks Ended June 28, 2025. The increase in SG&A dollars was driven by an increase in bad debt expense of $26,498, an increase in compensation and headcount expenses of $21,903, an increase in professional and outside service costs of $18,408 and an increase in stock-based compensation of $15,122. The decrease in SG&A expense as a percentage of net sales is a function of the improved leverage on operating expenses across the year-over-year sales increase, resulting from cost reductions taken over the past year and operating efficiencies from automation under our Xvantage TM platform. The translation impact of foreign currencies relative to the U.S. dollar had a negative impact of 14 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 $55,001 but, as a percentage of net sales, improved by 52 basis points in the Thirteen Weeks Ended September 26, 2026 compared to the Thirteen Weeks Ended September 27, 2025. The increase in SG&A dollars was driven by an increase in professional and outside service costs of $17,939, an increase of $15,992 in compensation and headcount expenses, driven in part by variable compensation on higher gross profit generation, an increase in legal claims and settlement expenses of $12,029 and an increase in bad debt expense, primarily in India, China and the United States, of $11,628. These factors were partially offset by a decrease in integration and transition costs of $5,742 and a decrease in corporate costs of $4,178, compared to the prior year. The decrease in SG&A expense as a percentage of net sales is a function of the improved leverage on operating expenses across the year-over-year sales increase, resulting from cost reductions taken over the past year and operating efficiencies from automation under our Xvantage TM platform. The translation impact of foreign currencies relative to the U.S. dollar had a negative impact of 2 basis points on the year-over-year comparison of SG&A expenses as a percentage of net sales.

Previous wording

During the Thirteen Weeks Ended June 27, 2026, we incurred $8,290, or 6 basis points of net sales, of restructuring costs that primarily related to restructuring actions taken that impacted certain back office and operational functions as well as certain operational facilities primarily in our EMEA and North America regions. See Note 8 “Restructuring Costs” to our unaudited condensed consolidated financial statements for further information regarding the restructuring activities.

Current wording

During the Thirteen Weeks Ended September 26, 2026, we incurred $5,562, or 4 basis points of net sales, of restructuring costs that primarily related to restructuring actions taken that impacted certain back office, operational and commercial functions as well as certain operational facilities primarily in our EMEA and North America regions. This is an increase from $3,539, or 3 basis points of net sales, incurred during the Thirteen Weeks Ended September 27, 2025. See Note 8 “Restructuring Costs” to our unaudited condensed consolidated financial statements for further information regarding the restructuring activities.

Previous wording

Income from operations was $235,970, or 1.62% of net sales, in the Thirteen Weeks Ended June 27, 2026, compared to $142,816, or 1.12% of net sales, in the Thirteen Weeks Ended June 28, 2025. The comparison of income from operations margin was favorably impacted by the prior year write-downs related to held-for-sale accounting for the sale of our CloudBlue operations and another non-core business in our North America region, which reduced income from operations by $43,237 and operating margin by 34 basis points in the Thirteen Weeks Ended June 28, 2025. Additionally, income from operations margin was positively impacted by the improved leverage of SG&A expenses as a percentage of net sales, as 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.

Current wording

Income from operations was $293,768, or 1.93% of net sales, in the Thirteen Weeks Ended September 26, 2026, compared to $223,513, or 1.77% of net sales, in the Thirteen Weeks Ended September 27, 2025. Income from operations margin was positively impacted by the improved leverage of SG&A expenses as a percentage of net sales, partially offset by the decrease in gross margin, 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.

Previous wording

Our North American income from operations margin increased 73 basis points in the Thirteen Weeks Ended June 27, 2026 compared to the Thirteen Weeks Ended June 28, 2025. The comparison benefited from the impact in the prior year period of write-downs relating to held-for-sale accounting of our CloudBlue operations and another non-core business described above, which had a negative impact of 87 basis points to the region’s income from operations in the Thirteen Weeks Ended June 28, 2025. The region also saw a 47 basis point reduction in compensation and headcount expenses largely as a result of the restructuring initiatives taken in the current and prior year. This benefit was partially offset by a decline in gross margin due to a shift in sales mix towards our lower-margin Client and Endpoint Solutions in the Thirteen Weeks Ended June 27, 2026 compared to the Thirteen Weeks Ended June 28, 2025, as well as a 9 basis point increase in professional and outside service costs and a 9 basis point increase in other miscellaneous expenses.

Current wording

Our North American income from operations margin increased 17 basis points in the Thirteen Weeks Ended September 26, 2026 compared to the Thirteen Weeks Ended September 27, 2025. The increase was driven by a decrease in expenses as a percentage of net sales in the region, including a 102 basis point reduction in compensation and headcount expenses and a 12 basis point reduction in rental and occupancy costs largely as a result of the restructuring initiatives taken in the current and prior year, coupled with efficiencies of continued optimization and automation. The comparison benefited from the impact in the prior year period of write-downs relating to held-for-sale accounting of our CloudBlue operations and another non-core business, which had a negative impact of 12 basis points on the region’s income from operations margin in the Thirteen Weeks Ended September 27, 2025. These factors were partially offset by a decline in gross margin due to a shift in sales mix towards lower-margin AI-infrastructure product sets in the Thirteen Weeks Ended September 26, 2026 compared to the Thirteen Weeks Ended September 27, 2025.

Previous wording

Our EMEA income from operations margin decreased 14 basis points in the Thirteen Weeks Ended June 27, 2026 compared to the Thirteen Weeks Ended June 28, 2025. This decrease was driven by an increase in expenses as a percentage of net sales in the region, including a 16 basis point increase in restructuring costs and a 7 basis point increase in bad debt expense. These were partially offset by a 3 basis point reduction in depreciation expense and a 2 basis point reduction in repair and maintenance expenses. 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 the region’s income from operations margin.

Current wording

Our EMEA income from operations margin increased 3 basis points in the Thirteen Weeks Ended September 26, 2026 compared to the Thirteen Weeks Ended September 27, 2025. The increase was driven by a decrease in expenses as a percentage of net sales in the region, including a 10 basis point reduction in compensation and headcount expenses, a 4 basis point reduction in rental and occupancy costs, a 2 basis point reduction in depreciation expense and a 2 basis point reduction in bad debt expense. These were partially offset by a decline in gross margin due to a shift in sales mix towards lower-margin AI-infrastructure product sets in the Thirteen Weeks Ended September 26, 2026 compared to the Thirteen 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 the region’s income from operations margin.

Previous wording

Our Asia-Pacific income from operations margin increased 88 basis points in the Thirteen Weeks Ended June 27, 2026 compared to the Thirteen Weeks Ended June 28, 2025. This increase was primarily driven by a reduction in SG&A expenses as a percentage of net sales in the region including a 22 basis point reduction in compensation and headcount expenses as well as a 21 basis point reduction in legal claims and settlement expenses. The region also saw a net positive impact of 28 basis points from higher gross margin achievement across all product categories, driven particularly by growth in our higher-margin Cloud-based Solutions category as described above. These factors were partially offset by a 7 basis point increase in bad debt expense. 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 the region’s income from operations margin.

Current wording

Our Asia-Pacific income from operations margin increased 10 basis points in the Thirteen Weeks Ended September 26, 2026 compared to the Thirteen Weeks Ended September 27, 2025. This increase was primarily driven by higher gross margin driven by growth in our higher-margin Cloud-based Solutions category. These factors were partially offset by an increase in expenses as a percentage of net sales in the region, including a 35 basis point increase in legal claims and settlement expenses and a 12 basis point increase in bad debt expense. The translation impact of foreign currencies relative to the U.S. dollar had a negative impact of 4 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 27, 2026, Corporate costs included $13,815 of costs primarily related to the write-off of assets following the discontinuation of a project, $3,165 of costs incurred for external services and other expenses relating to the July 2025 ransomware incident and $2,322 related to investments in certain initiatives to accelerate our growth and profitability and optimize our operations. 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 operations.

Current wording

In the Thirteen Weeks Ended September 26, 2026, Corporate costs included $1,759 related to investments in certain initiatives to accelerate our growth and profitability and optimize our operations and $194 of costs incurred for external services and other expenses stemming from the July 2025 ransomware incident. In the Thirteen Weeks Ended September 27, 2025, Corporate costs included $2,995 of costs incurred for external services and other expenses stemming from the July 2025 ransomware incident and $2,608 of costs associated with retention bonuses related to the sale of our CloudBlue operations.

Previous wording

Cash-based compensation expense decreased by $2,846 in the Thirteen Weeks Ended June 27, 2026 compared to the Thirteen Weeks Ended June 28, 2025 due to the transition to stock-based compensation for certain employees subsequent to our initial public offering in October 2024 (the “IPO”).

Current wording

Cash-based compensation expense decreased by $2,095 and stock-based compensation increased by $3,963 in the Thirteen Weeks Ended September 26, 2026 compared to the Thirteen Weeks Ended September 27, 2025 due to the transition from cash-based to stock-based compensation for certain employees subsequent to our initial public offering in October 2024 (the “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 $78,427 in the Thirteen Weeks Ended June 27, 2026 compared to $82,931 in the Thirteen Weeks Ended June 28, 2025. The year-over-year variance was largely a result of a variance in net foreign exchange loss, which was $11,716 in the Thirteen Weeks Ended June 27, 2026 compared to a loss of $20,611 in the Thirteen Weeks Ended June 28, 2025, driven primarily by the relatively favorable movement of the U.S. dollar, particularly against the euro and Mexican peso. Additionally, interest income increased by $4,832. These factors were partially offset by a lower equity fair value gain of $5,175, recorded in other expense (income), in the Thirteen Weeks Ended June 27, 2026 compared to the Thirteen Weeks Ended June 28, 2025.

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 $106,775 in the Thirteen Weeks Ended September 26, 2026 compared to $72,984 in the Thirteen Weeks Ended September 27, 2025. The year-over-year variance was largely a result of a variance in net foreign exchange loss, which was $14,616 in the Thirteen Weeks Ended September 26, 2026 compared to a gain of $10,207 in the Thirteen Weeks Ended September 27, 2025, driven by the movement of the U.S. dollar against the net position of multiple currencies in which we operate. The change was also driven by a decrease in unrealized gain of $3,083 related to our investments held in Rabbi Trust as well as an increase in factoring fees of $2,957 in the Thirteen Weeks Ended September 26, 2026 compared to the Thirteen Weeks Ended September 27, 2025.

Previous wording

We recorded an income tax provision of $46,677, or an effective tax rate of 29.6%, in the Thirteen Weeks Ended June 27, 2026, compared to $22,059, or an effective tax rate of 36.8% in the Thirteen Weeks Ended June 28, 2025. The tax provision for the Thirteen Weeks Ended June 27, 2026, included $5,731 of tax expense, or 3.6 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 28, 2025, this same withholding tax impact was $4,721 of tax expense, or 7.9 percentage points of the effective tax rate.

Current wording

We recorded an income tax provision of $55,913, or an effective tax rate of 29.9%, in the Thirteen Weeks Ended September 26, 2026, compared to $51,072, or an effective tax rate of 33.9%, in the Thirteen Weeks Ended September 27, 2025. The tax provision for the Thirteen Weeks Ended September 26, 2026, included $5,964 of tax expense, or 3.2 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 27, 2025, this same withholding tax impact was $7,090 of tax expense, or 4.7 percentage points of the effective tax rate.

Previous wording

Consolidated net sales were $14,531,069 for the Thirteen Weeks Ended June 27, 2026, compared to $12,793,956 for the Thirteen Weeks Ended June 28, 2025. The 13.6% 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 13%, Advanced Solutions offerings increased by 14% and Cloud-based Solutions increased by 47%. This growth was partially offset by an 8% decline in Other services. The divestiture of CloudBlue in the third quarter of 2025 had a negative 11% impact on the year-over-year comparison of net sales of Cloud-based Solutions. 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 1%. On a constant currency basis, net sales of Client and Endpoint Solutions increased by 12%, Advanced Solutions increased by 13%, Cloud-based Solutions increased by 44%, and Other services declined by 8%.

Current wording

Consolidated net sales were $43,714,511 for the Thirty-Nine Weeks Ended September 26, 2026, compared to $37,678,554 for the Thirty-Nine Weeks Ended September 27, 2025. The 16.0% increase was the result of year-over-year increases in net sales across each of our geographic segments. Globally, Advanced Solutions offerings increased by 27%, Client and Endpoint Solutions increased by 10%, Cloud-based Solutions increased by 36% and Other services increased by 6%. The divestiture of CloudBlue in the third quarter of 2025 had a negative 8% impact on the year-over-year comparison of net sales of Cloud-based Solutions. 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 2%. On a constant currency basis, net sales of Client and Endpoint Solutions increased by 8%, Advanced Solutions increased by 26%, Cloud-based Solutions increased by 33% and Other services increased by 5%.

Previous wording

The $861,756, or 9.2%, increase in North American net sales for the Twenty-Six Weeks Ended June 27, 2026 compared to the Twenty-Six Weeks Ended June 28, 2025, was primarily driven by a 16% increase in net sales of Advanced Solutions offerings driven by growth in storage net sales in the United States. Net sales of Client and Endpoint Solutions increased by 4% driven by notebooks in the United States. Cloud-based Solutions net sales increased by 32%. Excluding the impact of our CloudBlue divestiture, net sales of Cloud-based Solutions were up by 49% year-over-year. Other services net sales declined by 1% year-over-year.

Current wording

The $2,256,533, or 16.3%, increase in North American net sales for the Thirty-Nine Weeks Ended September 26, 2026 compared to the Thirty-Nine Weeks Ended September 27, 2025, was primarily driven by a 31% increase in net sales of Advanced Solutions offerings driven by growth in networking and server net sales in the United States, as well as growth in GPU and AI-infrastructure product sets in the region. Net sales of Client and Endpoint Solutions increased by 4% driven by notebooks. Cloud-based Solutions net sales increased by 29%. Excluding the impact of our CloudBlue divestiture, net sales of Cloud-based Solutions were up by 43% year-over-year. Other services net sales increased by 31% year-over-year.

Previous wording

The $748,422, or 10.8%, increase in EMEA net sales for the Twenty-Six Weeks Ended June 27, 2026 compared to the Twenty-Six Weeks Ended June 28, 2025, was primarily driven by an 11% increase in net sales of Client and Endpoint Solutions driven by growth in notebooks in Germany, France and the United Kingdom, as well as growth in desktops in Turkey, France and Poland. Net sales of Advanced Solutions offerings increased by 12% driven by growth in networking in Turkey, Saudi Arabia, the United Kingdom and Poland, as well as growth in server net sales in Germany, Poland, France and Spain. Additionally, net sales of Cloud-based Solutions increased by 37%, led by growth in the United Kingdom, Germany and Spain. These results were partially offset by an 11% decrease in net sales of Other services. The translation impact of foreign currencies relative to the U.S. dollar had a positive impact of 6% 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%, Advanced Solutions offerings increased by 6% and Cloud-based Solutions increased by 30%, while Other services decreased by 15%.

Current wording

The $1,016,755, or 9.6%, increase in EMEA net sales for the Thirty-Nine Weeks Ended September 26, 2026 compared to the Thirty-Nine Weeks Ended September 27, 2025, was primarily driven by a 17% increase in net sales of Advanced Solutions offerings, driven by growth in server net sales in Germany, Poland and the United Kingdom, growth in networking net sales in Turkey, Romania, Poland and Spain as well as growth in storage net sales in Germany, Turkey and Belgium. Net sales of Client and Endpoint Solutions increased by 6% driven by growth in notebooks in France, Germany and the United Kingdom, as well as growth in desktops in Turkey, Poland, and the United Arab Emirates. Additionally, net sales of Cloud-based Solutions increased by 37%, led by growth in the United Kingdom, Germany and Spain. These results were partially offset by a 12% decrease in net sales of Other services. The translation impact of foreign currencies relative to the U.S. dollar had a positive impact of 4% on the year-over-year comparison of the region’s net sales. On a constant currency basis, net sales of Advanced Solutions offerings increased by 14%, Client and Endpoint Solutions increased by 2%, and Cloud-based Solutions increased by 33%, while Other services decreased by 14%.

Previous wording

The $1,429,710, or 20.1%, increase in Asia-Pacific net sales for the Twenty-Six Weeks Ended June 27, 2026 compared to the Twenty-Six Weeks Ended June 28, 2025 was driven by a 19% increase in net sales of Client and Endpoint Solutions, due to growth in components and desktops in China as well as growth in notebooks in India and Australia. Net sales of Advanced Solutions offerings increased by 23% driven by GPU and AI-infrastructure product sets in China. Net sales of Cloud-based Solutions increased by 51% driven by growth in India, Australia, Hong Kong and Singapore. These results were partially offset by a 3% decrease in net sales of Other services in the region. 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 net sales.

Current wording

The $2,222,349, or 20.9%, increase in Asia-Pacific net sales for the Thirty-Nine Weeks Ended September 26, 2026 compared to the Thirty-Nine Weeks Ended September 27, 2025 was driven by a 16% increase in net sales of Client and Endpoint Solutions, due to growth in mobility distribution, particularly smartphones, in India. Additionally, the region saw growth in notebooks in India and Australia, growth in desktops in China and India as well as growth in consumer electronics in India. Net sales of Advanced Solutions offerings increased by 35% driven by GPU and AI-infrastructure product sets in China, as well as growth in server net sales in Singapore, China and Malaysia. Net sales of Cloud-based Solutions increased by 49% driven by growth in Australia, India, Singapore and Hong Kong. Additionally, net sales of Other services increased by 10% in the region. 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 net sales.

Previous wording

The $379,363, or 22.9%, increase in Latin American net sales for the Twenty-Six Weeks Ended June 27, 2026 compared to the Twenty-Six Weeks Ended June 28, 2025 was primarily driven by a 26% increase in net sales of Client and Endpoint Solutions, due to growth in notebooks in Miami Export, Peru and Mexico, growth in mobility distribution in Chile, as well as growth in desktops in Mexico. Net sales of Advanced Solutions offerings increased by 12%, led by growth in DC/POS in Brazil, as well as networking and cybersecurity in Peru. Net sales of Cloud-based Solutions increased by 60% year-over-year driven by growth in Brazil, and net sales of Other services increased by 23% compared to the prior year period. The translation impact of foreign currencies relative to the U.S. dollar had a positive impact of 8% 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 18%, Advanced Solutions increased by 3%, Cloud-based Solutions increased by 44% and Other services increased by 10%.

Current wording

The $540,320, or 20.6%, increase in Latin American net sales for the Thirty-Nine Weeks Ended September 26, 2026 compared to the Thirty-Nine Weeks Ended September 27, 2025 was primarily driven by a 22% increase in net sales of Client and Endpoint Solutions, due to growth in mobility distribution, particularly smartphones, in Peru. Additionally, the region saw growth in notebooks in Miami Export, Peru and Colombia, as well as growth in desktops in Mexico and Peru. Net sales of Advanced Solutions offerings increased by 13%, led by server net sales in Brazil, Mexico and Colombia. Net sales of Cloud-based Solutions increased by 59% year-over-year driven by growth in Brazil, and net sales of Other services increased by 36% compared to the prior year period. The translation impact of foreign currencies relative to the U.S. dollar had a positive impact of 7% 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 15%, Advanced Solutions increased by 5%, Cloud-based Solutions increased by 45% and Other services increased by 24%.

Previous wording

Gross profit was $1,884,695 for the Twenty-Six Weeks Ended June 27, 2026, compared to $1,667,921 for the Twenty-Six Weeks Ended June 28, 2025. Gross margin decreased by 4 basis points in the Twenty-Six Weeks Ended June 27, 2026 compared to the Twenty-Six Weeks Ended June 28, 2025. 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 our Advanced Solutions offerings category due to a mix shift towards lower-margin GPU and AI-infrastructure products during the Twenty-Six Weeks Ended June 27, 2026 compared to the Twenty-Six Weeks Ended June 28, 2025. The comparison benefited from the impact in the prior year period of a write-down 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 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 positive impact of 4 basis points on the year-over-year comparison of gross margin.

Current wording

Gross profit was $2,881,621 for the Thirty-Nine Weeks Ended September 26, 2026, compared to $2,537,568 for the Thirty-Nine Weeks Ended September 27, 2025. Gross margin decreased by 14 basis points in the Thirty-Nine Weeks Ended September 26, 2026 compared to the Thirty-Nine Weeks Ended September 27, 2025. 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 our Advanced Solutions offerings category due to a mix shift towards lower-margin, low cost-to-serve GPU and AI-infrastructure product sets during the Thirty-Nine Weeks Ended September 26, 2026 compared to the Thirty-Nine Weeks Ended September 27, 2025. Excluding GPU and AI-infrastructure sales in both years, gross margin increased by 10 basis points. The year-over-year comparison benefited from the impact in the prior year period of a write-down of $10,480, or 3 basis points, recorded in cost of sales in connection with the held-for-sale accounting for the 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 positive impact of 4 basis points on the year-over-year comparison of gross margin.

Previous wording

Total SG&A expenses increased $18,097, but decreased by 52 basis points of net sales in the Thirteen Weeks Ended June 27, 2026 compared to the Thirteen Weeks Ended June 28, 2025. The increase in SG&A dollars was driven by an increase in compensation and headcount expenses of $11,020, an increase in Corporate costs of $10,310, an increase in bad debt expense of $10,257, an increase in other miscellaneous expenses of $6,946, an increase in professional and outside service costs of $6,412 and an increase in stock-based compensation expense of $4,684. These were partially offset by a decrease in integration and transition costs of $31,972, which relates primarily to the previously noted held-for-sale accounting on non-core businesses in North America. The decrease in SG&A expense as a percentage of net sales is a function of the improved leverage on operating expenses across the year-over-year sales increase, resulting from cost reductions taken over the past year and operating efficiencies from automation under our Xvantage TM platform. The translation impact of foreign currencies relative to the U.S. dollar had a negative impact of 8 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 $140,774 but, as a percentage of net sales, improved by 39 basis points in the Thirty-Nine Weeks Ended September 26, 2026 compared to the Thirty-Nine Weeks Ended September 27, 2025. The increase in SG&A dollars was driven by an increase in bad debt expense of $38,126, an increase of $37,895 in compensation and headcount expenses, driven in part by variable compensation on increased profit generation, an increase in professional and outside service costs of $36,347 and an increase in stock-based compensation of $19,085. These were partially offset by a decrease in integration and transition costs of $39,518, which relates primarily to the previously noted held-for-sale accounting on non-core businesses in North America. The decrease in SG&A expense as a percentage of net sales is a function of the improved leverage on operating expenses across the year-over-year sales increase, resulting from cost reductions taken over the past year and operating efficiencies from automation under our Xvantage TM platform. The translation impact of foreign currencies relative to the U.S. dollar had a negative impact of 9 basis points 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 27, 2026, we incurred $17,750 of restructuring costs, or 6 basis points of net sales, that primarily related to restructuring actions taken that impacted certain back office and operational functions as well as certain operational facilities primarily in our EMEA and North America regions. See Note 8 “Restructuring Costs” to our unaudited condensed consolidated financial statements for further information regarding the restructuring activities.

Current wording

During the Thirty-Nine Weeks Ended September 26, 2026, we incurred $23,312 of restructuring costs, or 5 basis points of net sales, that primarily related to restructuring actions taken that impacted certain back office, operational and commercial functions as well as certain operational facilities primarily in our EMEA and North America regions. This is an increase from $5,493, or 1 basis point of net sales, incurred during the Thirty-Nine Weeks Ended September 27, 2025. See Note 8 “Restructuring Costs” to our unaudited condensed consolidated financial statements for further information regarding the restructuring activities.

Previous wording

Income from operations was $458,885, or 1.61% of net sales, in the Twenty-Six Weeks Ended June 27, 2026, compared to $343,680, or 1.37% of net sales, in the Twenty-Six Weeks Ended June 28, 2025. The comparison of income from operations margin was favorably impacted by the prior year write-downs related to held-for-sale accounting for the sale of our CloudBlue operations and another non-core business in our North America region, which reduced income from operations margin by $43,237, or 17 basis points in the Twenty-Six Weeks Ended June 28, 2025. Additionally, income from operations margin was positively impacted by the reduction in SG&A expenses as a percentage of net sales, as 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 $752,653, or 1.72% of net sales, in the Thirty-Nine Weeks Ended September 26, 2026, compared to $567,193, or 1.51% of net sales, in the Thirty-Nine Weeks Ended September 27, 2025. Income from operations margin was positively impacted by the reduction in SG&A expenses as a percentage of net sales. This was partially offset by the decrease in gross margin, as well as the impact of $23,312 or 5 basis points as a percentage of net sales, of restructuring costs incurred in the Thirty-Nine Weeks Ended September 26, 2026, 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 increased 28 basis points in the Twenty-Six Weeks Ended June 27, 2026 compared to the Twenty-Six Weeks Ended June 28, 2025. The comparison benefited from the impact in the prior year period of write-downs relating to held-for-sale accounting of our CloudBlue operations and another non-core business described above, which had a negative impact of 46 basis points to the region’s income from operations in the Twenty-Six Weeks Ended June 28, 2025. The region also saw a 65 basis point reduction in compensation and headcount expenses largely as a result of the restructuring initiatives taken in the current and prior year. This benefit was partially offset by an 8 basis point increase in bad debt expense as well as a decline in gross margin driven by a mix shift within our Advanced Solutions offerings category toward lower-margin GPU and AI-infrastructure products during the Twenty-Six Weeks Ended June 27, 2026.

Current wording

Our North American income from operations margin increased 26 basis points in the Thirty-Nine Weeks Ended September 26, 2026 compared to the Thirty-Nine Weeks Ended September 27, 2025. The comparison benefited from the impact in the prior period of write-downs relating to held-for-sale accounting of our CloudBlue operations and another non-core business described above, which had a negative impact of 35 basis points on the region’s income from operations margin in the Thirty-Nine Weeks Ended September 27, 2025. The region also saw a 79 basis point reduction in compensation and headcount expenses largely as a result of the restructuring initiatives taken in the current and prior year, coupled with efficiencies of continued optimization and automation. This benefit was partially offset by a 14 basis point increase in professional and outside service costs as well as a decline in gross margin driven by a mix shift within our Advanced Solutions offerings category toward lower-margin GPU and AI-infrastructure product sets during the Thirty-Nine Weeks Ended September 26, 2026.

Previous wording

Our EMEA income from operations margin decreased 11 basis points in the Twenty-Six Weeks Ended June 27, 2026 compared to the Twenty-Six Weeks Ended June 28, 2025. This decrease was driven by a 6 basis point decline in gross margin, which was partially driven by lower gross margins on larger enterprise customer deals in our Advanced Solutions offerings categories during the Twenty-Six Weeks Ended June 27, 2026. Additionally, the region’s expenses as a percentage of net sales increased during the Twenty-Six Weeks Ended June 27, 2026 compared to the Twenty-Six Weeks Ended June 28, 2025 including a 9 basis point increase in restructuring costs and a 5 basis point increase in bad debt expense. 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 EMEA income from operations margin decreased 7 basis points in the Thirty-Nine Weeks Ended September 26, 2026 compared to the Thirty-Nine Weeks Ended September 27, 2025. This decrease was driven by a 6 basis point decline in gross margin, which was partially driven by lower gross margins on larger enterprise customer deals in our Advanced Solutions offerings categories as well as a shift in sales mix towards lower-margin AI-infrastructure product sets in the Thirty-Nine Weeks Ended September 26, 2026. SG&A expenses as a percentage of net sales were neutral to the region’s income from operations margin, as higher bad debt expense and miscellaneous other expenses as a percentage of net sales were offset by lower compensation and headcount expenses, rental and occupancy costs and depreciation expense. 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 the region’s income from operations margin.

Previous wording

Our Asia-Pacific income from operations margin increased 60 basis points in the Twenty-Six Weeks Ended June 27, 2026 compared to the Twenty-Six Weeks Ended June 28, 2025, 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 15 basis points, legal claims and settlement expenses decreased by 10 basis points and professional and outside service costs decreased by 7 basis points. The region also saw a net positive impact of 24 basis points from higher gross margin achievement across all product categories, driven particularly by growth in our higher-margin Cloud-based Solutions as described above. These factors were partially offset by an 8 basis point increase in bad debt expense. 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 the region’s income from operations margin.

Current wording

Our Asia-Pacific income from operations margin increased 43 basis points in the Thirty-Nine Weeks Ended September 26, 2026 compared to the Thirty-Nine Weeks Ended September 27, 2025, primarily as a result of lower expenses as a percentage of net sales in the region, including a 17 basis point reduction in compensation and headcount expenses and an 8 basis point reduction in professional and outside service costs. The region also saw a net positive impact of 19 basis points from higher gross margin driven by a shift in sales mix towards our higher-margin Advanced Solutions offerings category as well as growth in our higher-margin Cloud-based Solutions category as described above. 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 the region’s income from operations margin.

Previous wording

Our Latin American income from operations margin increased 80 basis points in the Thirteen Weeks Ended June 27, 2026 compared to the Thirteen Weeks Ended June 28, 2025, primarily as a result of an increase in gross margin across all product categories, with particular income from operations margin impact coming from our higher-margin Cloud-based Solutions as a result of the increase in net sales within this category as described above. These factors combined to yield a net positive impact of 76 basis points on the region’s income from operations margin. The region also benefited from a reduction in SG&A expenses as a percentage of net sales due to improved leverage on operating expenses as net sales increased from the prior year including a 29 basis point reduction in rental and occupancy costs as well as a 13 basis point reduction in compensation and headcount expenses. These factors were partially offset by an 18 basis point increase in bad debt expense. The translation impact of foreign currencies relative to the U.S. dollar had a positive impact of 9 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 58 basis points in the Thirty-Nine Weeks Ended September 26, 2026 compared to the Thirty-Nine Weeks Ended September 27, 2025, primarily as a result of an increase in gross margin across all product categories, with particular income from operations margin impact coming from our higher-margin Cloud-based Solutions as a result of the increase in net sales within this category as described above. The region also saw lower expenses as a percentage of net sales including a 5 basis point reduction in rental and occupancy costs, a 4 basis point reduction in compensation and headcount expenses, partially offset by an 8 basis point increase in integration and transition costs. The translation impact of foreign currencies relative to the U.S. dollar had a positive impact of 6 basis points on the year-over-year comparison of the region’s income from operations margin.

Previous wording

In the Thirteen Weeks Ended June 27, 2026, Corporate costs included $11,627 of costs primarily related to the write-off of assets following the discontinuation of a project, $1,122 of costs incurred for external services and other expenses relating to the July 2025 ransomware incident and $140 related to investments in certain initiatives to accelerate our growth and profitability and optimize our operations. 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”) in 2022, as well as $458 of costs associated with retention bonuses.

Current wording

In the Thirty-Nine Weeks Ended September 26, 2026, Corporate costs included $13,853 of costs primarily related to the write-off of assets following the discontinuation of a project, $4,081 related to investments in certain initiatives to accelerate our growth and profitability and optimize our operations and $3,360 of costs incurred for external services and other expenses stemming from the July 2025 ransomware incident. 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 operations, $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 sale of substantial portion of our Commercial & Lifecycle Services business in 2022 (the “CLS Sale”), as well as $1,627 related to investments in certain initiatives to accelerate our growth and profitability and optimize our operations.

Previous wording

Cash-based compensation expense decreased by $7,170 in the Twenty-Six Weeks Ended June 27, 2026 compared to the Twenty-Six Weeks Ended June 28, 2025 due to the transition to stock-based compensation for certain employees subsequent to our IPO.

Current wording

Cash-based compensation expense decreased by $9,265 and stock-based compensation increased by $19,085 in the Thirty-Nine Weeks Ended September 26, 2026 compared to the Thirty-Nine Weeks Ended September 27, 2025 due to the transition from cash-based to stock-based compensation for certain employees 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 $160,733 in the Twenty-Six Weeks Ended June 27, 2026 compared to $183,392 in the Twenty-Six Weeks Ended June 28, 2025. The year-over-year variance was largely a result of a decrease in foreign exchange loss, which was $11,414 in the Twenty-Six Weeks Ended June 27, 2026, compared to a loss of $44,328 in the Twenty-Six Weeks Ended June 28, 2025, driven primarily by the relatively favorable movement of the U.S. dollar, particularly against our euro-denominated payables. This was partially offset by a lower equity fair value gain of $6,936, recorded in other expense (income), in the Twenty-Six Weeks Ended June 27, 2026 compared to the Twenty-Six Weeks Ended June 28, 2025.

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 $267,508 in the Thirty-Nine Weeks Ended September 26, 2026 compared to $256,376 in the Thirty-Nine Weeks Ended September 27, 2025. The year-over-year variance was largely a result of an increase in factoring fees of $8,348, a lower equity fair value gain of $7,835, as well as a decrease in unrealized gain of $3,197 related to our investments held in Rabbi Trust in the Thirty-Nine Weeks Ended September 26, 2026 compared to the Thirty-Nine Weeks Ended September 27, 2025. These factors were partially offset by a decrease in foreign exchange loss, which was $26,030 in the Thirty-Nine Weeks Ended September 26, 2026, compared to a loss of $34,121 in the Thirty-Nine Weeks Ended September 27, 2025, driven by the movement of the U.S. dollar against the net position of multiple currencies in which we operate.

Previous wording

We recorded an income tax provision of $88,416, or an effective tax rate of 29.7%, in the Twenty-Six Weeks Ended June 27, 2026, compared to $53,273, or an effective tax rate of 33.2% in the Twenty-Six Weeks Ended June 28, 2025. The tax provision for the Twenty-Six Weeks Ended June 27, 2026, included $10,849 of tax expense, or 3.6 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 28, 2025, this same withholding tax impact was $7,819 of tax expense, or 4.9 percentage points of the effective tax rate.

Current wording

We recorded an income tax provision of $144,329, or an effective tax rate of 29.7%, in the Thirty-Nine Weeks Ended September 26, 2026, compared to $104,345, or an effective tax rate of 33.6% in the Thirty-Nine Weeks Ended September 27, 2025. The tax provision for the Thirty-Nine Weeks Ended September 26, 2026, included $16,813 of tax expense, or 3.5 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 27, 2025, this same withholding tax impact was $14,909 of tax expense, or 4.8 percentage points of the effective tax rate.

Previous wording

Our cash and cash equivalents totaled $808,973 and $1,864,724 at June 27, 2026 and December 27, 2025, respectively. We finance our working capital needs and investments in the business largely through net income before non-cash 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 $4,902,107 at June 27, 2026 and $3,553,339 at December 27, 2025.

Current wording

Our cash and cash equivalents totaled $1,003,506 and $1,864,724 at September 26, 2026 and December 27, 2025, respectively. We finance our working capital needs and investments in the business largely through net income before non-cash 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 $5,041,897 at September 26, 2026 and $3,553,339 at December 27, 2025.