Ingram Micro Holding Corp

Previous wording

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our unaudited condensed consolidated financial statements and related notes included elsewhere in this Quarterly Report on Form 10-Q and our audited consolidated financial statements and the related notes and the discussion under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations” for the year ended December 28, 2024 included in our Annual Report. In addition to historical consolidated financial information, the following discussion contains forward-looking statements that reflect our plans, estimates, and beliefs that involve significant risks and uncertainties. Our actual results could differ materially from those discussed in the forward-looking statements. Factors that could cause or contribute to those differences include those discussed below and elsewhere in this Quarterly Report on Form 10-Q and the Annual Report, particularly in “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements.”

Current wording

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our unaudited condensed consolidated financial statements and related notes included elsewhere in this Quarterly Report on Form 10-Q and our audited consolidated financial statements and the related notes and the discussion under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations” for the year ended December 27, 2025 included in our Annual Report. In addition to historical consolidated financial information, the following discussion contains forward-looking statements that reflect our plans, estimates, and beliefs that involve significant risks and uncertainties. Our actual results could differ materially from those discussed in the forward-looking statements. Factors that could cause or contribute to those differences include those discussed below and elsewhere in this Quarterly Report on Form 10-Q and the Annual Report, particularly in “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements.” All financial data included in this Management’s Discussion and Analysis of Financial Condition and Results of Operations are in thousands, except as otherwise indicated.

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 four main lines of business: Client and Endpoint Solutions, Advanced Solutions, Cloud-based solutions and Other. 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. In each of our geographic segments we offer customers the product categories listed below broken down under the respective line of business.

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, 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.

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. And 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.

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 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).

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 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.

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 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.

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 the 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

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 Platform to address our market opportunities and partner experience in a more automated and efficient manner.

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 costs are expected to be completed within the next four to six quarters and are not expected to recur.

Previous wording

The financial statements of our foreign subsidiaries for which the functional currency is the local currency are translated into U.S. dollars using (i) the exchange rate at each balance sheet date for assets and liabilities and (ii) an average exchange rate for each period for statement of income items. Translation adjustments are recorded in accumulated other comprehensive income, a component of stockholders’ equity. The functional currency of a small number of operations within our EMEA, Asia-Pacific and Latin America regions is the U.S. dollar; accordingly, the monetary assets and liabilities of these subsidiaries are remeasured into U.S. dollars at the exchange rate in effect at the applicable balance sheet date. Revenues, expenses, gains or losses are remeasured at the average exchange rate for the period, and nonmonetary assets and liabilities are remeasured at historical rates. The resultant remeasurement gains and losses of these operations as well as gains and losses from foreign currency transactions are included in the Condensed Consolidated Statements of Income.

Current wording

The financial statements of our foreign subsidiaries for which the functional currency is the local currency are translated into U.S. dollars using (i) the exchange rate at each balance sheet date for assets and liabilities and (ii) an average exchange rate for each period for statement of income items. Translation adjustments are recorded in accumulated other comprehensive income, a component of stockholders’ equity. For foreign currency remeasurement from each local currency into the appropriate functional currency, the monetary assets and liabilities of these subsidiaries are remeasured to the functional currencies at the exchange rate in effect at the applicable balance sheet date. Revenues, expenses, gains or losses are remeasured at the average exchange rate for the period, and nonmonetary assets and liabilities are remeasured at historical rates. The resultant remeasurement gains and losses of these operations as well as gains and losses from foreign currency transactions are included in the Condensed Consolidated Statements of Income.

Previous wording

Consolidated net sales were $12,603,755 for the Thirteen Weeks Ended September 27, 2025, compared to $11,762,628 for the Thirteen Weeks Ended September 28, 2024. The 7.2% 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%. This growth was partially offset by a 4% decline in advanced solutions offerings, a 12% decline in Other services and a 3% decline in cloud-based solutions globally. The sale of our CloudBlue operations that closed during the quarter ended September 27, 2025 generated a nearly 5% negative impact on the year-over-year comparison of net sales of cloud-based solutions. Cloud-based solutions net sales were further diluted by a higher mix of sales in products for which sales are recorded on a net basis. 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 13%, advanced solutions declined by 5%, Other services declined by 14%, and cloud-based solutions declined by 4%.

Current wording

Consolidated net sales were $13,962,981 for the Thirteen Weeks Ended March 28, 2026, compared to $12,280,843 for the Thirteen Weeks Ended March 29, 2025. The 13.7% 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 18% and Cloud-based Solutions increased by 31%. This growth was partially offset by a 5% decline in Other services. The divestiture of CloudBlue in the third quarter of 2025 had a negative 9% 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 4%. On a constant currency basis, net sales of Client and Endpoint Solutions increased by 8%, Advanced Solutions increased by 14%, Cloud-based Solutions increased by 25%, and Other services declined by 9%.

Previous 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.

Current wording

Gross profit was $926,016 for the Thirteen Weeks Ended March 28, 2026, compared to $828,762 for the Thirteen Weeks Ended March 29, 2025. Gross margin decreased by 12 basis points in the Thirteen Weeks Ended March 28, 2026 compared to the Thirteen Weeks Ended March 29, 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 Thirteen Weeks Ended March 28, 2026 compared to the Thirteen Weeks Ended March 29, 2025. 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 $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.

Current wording

Total SG&A expenses increased $67,676, but decreased by 12 basis points of net sales in the Thirteen Weeks Ended March 28, 2026 compared to the Thirteen Weeks Ended March 29, 2025. The increase in SG&A dollars was driven by an increase in bad debt expense of $16,241, an increase in professional and outside service costs of $11,996, an increase in compensation and headcount expenses of $10,882 and an increase in stock-based compensation of $10,438. 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 19 basis points on the year-over-year comparison of SG&A expenses as a percentage of net sales.

Previous 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.

Current wording

Income from operations was $222,915, or 1.60% of net sales, in the Thirteen Weeks Ended March 28, 2026, compared to $200,864, or 1.64% of net sales, in the Thirteen Weeks Ended March 29, 2025. Income from operations margin was negatively impacted by the decrease in gross margin, as well as the impact of $9,460, or 7 basis points as a percentage of net sales, of restructuring costs incurred in the Thirteen Weeks Ended March 28, 2026, as described above. These results were partially offset 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 3 basis points on the year-over-year comparison of our consolidated income from operations margin.

Previous 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.

Current wording

Our Asia-Pacific income from operations margin increased 31 basis points in the Thirteen Weeks Ended March 28, 2026 compared to the Thirteen Weeks Ended March 29, 2025, primarily as a result of an increase in gross margin due to higher achievement on Client and Endpoint Solutions and Cloud-based Solutions net sales as well as the favorable impact of a decline in inventory write-offs, offset partially by growth in lower margin, lower cost-to-serve GPU and AI-infrastructure sales. These factors combined to yield a net positive impact of 18 basis points on the region’s income from operations margin. The region’s income from operations margin also benefited from lower SG&A expenses as a percentage of net sales in the region. Most notably, compensation and headcount expenses decreased by 9 basis points and professional and outside services costs decreased by 7 basis points. 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 the region’s income from operations margin.

Previous 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.

Current wording

In the Thirteen Weeks Ended March 28, 2026, Corporate costs included $2,188 of costs associated with the write-off of an asset, $2,182 related to investments in certain initiatives to accelerate our growth and profitability and optimize our operations and $2,044 of costs incurred for external services and other expenses in response to the July 2025 ransomware incident. In the Thirteen Weeks Ended March 29, 2025, Corporate costs included $1,287 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 $1,241 related to investments in certain initiatives to accelerate our growth and profitability and optimize operations.

Previous 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”).

Current wording

Cash-based compensation expense decreased by $4,324 in the Thirteen Weeks Ended March 28, 2026 compared to the Thirteen Weeks Ended March 29, 2025 due to lower achievement of expected performance targets in the current quarter as well as the transition to stock-based compensation for certain employees subsequent to our initial public offering in October 2024 (the “IPO”).

Previous 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).

Current wording

Stock-based compensation expense increased by $10,438 in the Thirteen Weeks Ended March 28, 2026 compared to the Thirteen Weeks Ended March 29, 2025, primarily due to the acceleration of expense for awards granted to certain employees that are retirement eligible in the Thirteen Weeks Ended March 28, 2026 (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 $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.

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 $82,306 in the Thirteen Weeks Ended March 28, 2026 compared to $100,461 in the Thirteen Weeks Ended March 29, 2025. The year-over-year variance was largely driven by a change from a foreign exchange gain, driven primarily by the favorable movement of the U.S. dollar, particularly against our Euro-denominated payables, of $302 in the Thirteen Weeks Ended March 28, 2026, compared to a net foreign currency exchange loss of $23,717 in the Thirteen Weeks Ended March 29, 2025. Additionally, interest expense decreased by $4,353, primarily as a result of lower average debt outstanding in the current quarter due in particular to voluntary principal payments on our senior term loan credit facility (the “Term Loan Credit Facility”), including an incremental voluntary repayment of $200,000 on our Term Loan Credit Facility in February 2026.

Previous 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.

Current wording

We recorded an income tax provision of $41,739, or an effective tax rate of 29.7%, in the Thirteen Weeks Ended March 28, 2026, compared to $31,214, or an effective tax rate of 31.1% in the Thirteen Weeks Ended March 29, 2025. The tax provision for the Thirteen Weeks Ended March 28, 2026, included $5,118 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 March 29, 2025, this same withholding tax impact was $3,098 of tax expense, or 3.1 percentage points of the effective tax rate.

Previous 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.

Current wording

Our cash and cash equivalents totaled $915,987 and $1,864,724 at March 28, 2026 and December 27, 2025, 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 $4,419,471 at March 28, 2026 and $3,553,339 at December 27, 2025.

Previous 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.

Current wording

Operating activities used net cash of $977,877 and $200,430 during the Thirteen Weeks Ended March 28, 2026 and Thirteen Weeks Ended March 29, 2025, respectively. The higher cash used in the Thirteen Weeks Ended March 28, 2026 primarily reflects slower collections of accounts receivables from customers, partially offset by improved cash flows from the use of accounts payable to vendors in the current year.

Previous 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.

Current wording

Investing activities provided net cash of $24,238 and $58,291 during the Thirteen Weeks Ended March 28, 2026 and Thirteen Weeks Ended March 29, 2025, respectively. The net cash provided during the Thirteen Weeks Ended March 28, 2026 was primarily driven by proceeds from the deferred purchase price of factored receivables of $51,834 and proceeds from notes receivable of $10,179, partially offset by capital expenditures of $36,303 and issuance of notes receivable to certain customers of $12,375. The net cash provided during the Thirteen Weeks Ended March 29, 2025 was primarily driven by proceeds from the deferred purchase price of factored receivables of $71,031, partially offset by capital expenditures of $29,737.

Previous 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.

Current wording

Financing activities provided net cash of $42,458 and $96,759 during the Thirteen Weeks Ended March 28, 2026 and Thirteen Weeks Ended March 29, 2025, respectively. The net cash provided during the Thirteen Weeks Ended March 28, 2026 was primarily driven by net proceeds from revolving and other credit facility of $338,696 and gross proceeds from other debt of $20,885, partially offset by the voluntary repayment of our term loan of $200,000, repurchase of Common Stock of $75,000, dividends paid to stockholders of $18,995, and gross repayments of other debt of $15,233. The net cash provided during the Thirteen Weeks Ended March 29, 2025 was primarily driven by net proceeds from revolving and other credit facilities of $235,374 and gross proceeds from other debt of $17,228, partially offset by the voluntary repayment of our term loan of $125,000, dividends paid to stockholders of $17,377 and gross repayments of other debt of $15,854.

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 $7,504,414, 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.

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 $7,364,330, of which $3,338,169 was outstanding, at March 28, 2026. These facilities have staggered maturities through 2031. Our cash and cash equivalents totaled $915,987 and $1,864,724 at March 28, 2026 and December 27, 2025, respectively, of which $849,990 and $1,074,301, 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 March 28, 2026 and December 27, 2025, along with additional balances held in Luxembourg, India, Brazil, Malaysia, Canada, and Mexico. 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 March 28, 2026 and December 27, 2025, we had book overdrafts of $404,386 and $416,799, 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.

Previous wording

On July 2, 2021, we entered into the Term Loan Credit Facility for $2,000,000, the proceeds of which were also used to, among other things, finance a portion of the acquisition of Ingram Micro by Platinum and repay certain of our existing indebtedness. We recognized $1,920,761, net of debt issuance costs and discount of $59,239 and $20,000, respectively, related to this facility. The Term Loan Credit Facility had an original maturity of July 2, 2028 and amortized in equal quarterly installments aggregating to 1.00% per annum. In June 2023, we voluntarily prepaid $500,000 on our Term Loan Credit Facility over and above normal quarterly installments, which, as a result of this prepayment, are no longer mandatory. In September 2023, we refinanced our Term Loan Credit Facility, reducing the interest rate spread over Secured Overnight Financing Rate (“SOFR”) by 50 basis points. In September 2024, we refinanced our Term Loan Credit Facility, reducing the interest rate spread over SOFR by 25 basis points, eliminating the credit-spread adjustments and extending the maturity date to September 19, 2031. In June 2025, we again amended the Term Loan Credit Facility to reduce the interest rate by 50 basis points. Borrowings under the Term Loan Credit Facility now bear interest at a rate per annum equal to, at our option, either (1) the base rate (which is the highest of (a) the then-current federal funds rate set by the Federal Reserve Bank of New York, plus 0.50%, (b) the prime rate on such day and (c) the one-month SOFR rate published on such date plus 1.00% and is subject to a 1.50% floor) plus a margin of 1.25% or (2) one-, three- or six-month SOFR (subject to a 0.50% floor) plus a margin of 2.25%. In connection with these refinancings, we repaid an incremental $50,000 and $100,000 in September 2023 and September 2024, respectively, of our Term Loan Credit Facility and in June 2024 we voluntarily repaid an incremental $150,000. Upon the closing of the IPO, we used the net proceeds from the offering to repay $233,100 of debt outstanding under our Term Loan Credit Facility and in March 2025 we voluntarily repaid an incremental $125,000. As of September 27, 2025 and December 28, 2024, $763,568 and $885,882 respectively, remained outstanding under the Term Loan Credit Facility.

Current wording

On July 2, 2021, we entered into the Term Loan Credit Facility for $2,000,000, the proceeds of which were also used to, among other things, finance a portion of the acquisition of Ingram Micro by Platinum and repay certain of our existing indebtedness. We recognized $1,920,761, net of debt issuance costs and discount of $59,239 and $20,000, respectively, related to this facility. The Term Loan Credit Facility had an original maturity of July 2, 2028 and amortized in equal quarterly installments aggregating to 1.00% per annum. In June 2023, we voluntarily prepaid $500,000 on our Term Loan Credit Facility over and above normal quarterly installments, which, as a result of this prepayment, are no longer mandatory. In September 2023, we refinanced our Term Loan Credit Facility, reducing the interest rate spread over Secured Overnight Financing Rate (“SOFR”) by 50 basis points. In September 2024, we refinanced our Term Loan Credit Facility, reducing the interest rate spread over SOFR by 25 basis points, eliminating the credit-spread adjustments and extending the maturity date to September 19, 2031. In June 2025, we again amended the Term Loan Credit Facility to reduce the interest rate by 50 basis points. Borrowings under the Term Loan Credit Facility now bear interest at a rate per annum equal to, at our option, either (1) the base rate (which is the highest of (a) the then-current federal funds rate set by the Federal Reserve Bank of New York, plus 0.50%, (b) the prime rate on such day and (c) the one-month SOFR rate published on such date plus 1.00% and is subject to a 1.50% floor) plus a margin of 1.25% or (2) one-, three- or six-month SOFR (subject to a 0.50% floor) plus a margin of 2.25%. In connection with these refinancings, we repaid an incremental $50,000 and $100,000 in September 2023 and September 2024, respectively, of our Term Loan Credit Facility and in June 2024 we voluntarily repaid an incremental $150,000. Upon the closing of the IPO, we used the net proceeds from the offering to repay $233,100 of debt outstanding under our Term Loan Credit Facility and in March 2025 and February 2026, we voluntarily repaid an incremental $125,000 and $200,000, respectively. As of March 28, 2026 and December 27, 2025, $566,119 and $764,849 respectively, remained outstanding under the Term Loan Credit Facility.

Previous wording

On July 2, 2021, we entered into new ABL Credit Facilities (as defined below) providing for senior secured asset-based, multi-currency revolving loans and letter of credit availability in an aggregate amount of up to $3,500,000 (the “ABL Revolving Credit Facility”) and a senior secured asset-based term loan facility of $500,000 (the “ABL Term Loan Facility”), together with the ABL Revolving Credit Facility, the (“ABL Credit Facilities”), both of which had contractual maturity dates in July 2026. The ABL Term Loan Facility was repaid fully in April 2022. We may borrow under the ABL Revolving Credit Facility only up to our available borrowing base capacity. Borrowings under the ABL Revolving Credit Facility bear interest at a rate per annum equal to, at our option, either (1) the base rate plus a margin ranging (based on the availability under the ABL Revolving Credit Facility) from 0.25% to 0.75% or (2) SOFR (subject to a 0% floor) plus a margin ranging (based on the availability under the ABL Revolving Credit Facility) from 1.25% to 1.75%. In September 2024, we amended the ABL Revolving Credit Facility to, among other things, extend the maturity date to September 20, 2029. As of September 27, 2025 and December 28, 2024, we had borrowings of $355,000 and $0, respectively, under this facility. The weighted-average interest rate on the outstanding borrowings under this facility, as amended, was 6.2% and 6.7% per annum at September 27, 2025 and December 28, 2024, respectively.

Current wording

On July 2, 2021, we entered into new ABL Credit Facilities (as defined below) providing for senior secured asset-based, multi-currency revolving loans and letter of credit availability in an aggregate amount of up to $3,500,000 (the “ABL Revolving Credit Facility”) and a senior secured asset-based term loan facility of $500,000 (the “ABL Term Loan Facility”), together with the ABL Revolving Credit Facility, the (“ABL Credit Facilities”), both of which had contractual maturity dates in July 2026. The ABL Term Loan Facility was repaid fully in April 2022. We may borrow under the ABL Revolving Credit Facility only up to our available borrowing base capacity. Borrowings under the ABL Revolving Credit Facility bear interest at a rate per annum equal to, at our option, either (1) the base rate plus a margin ranging (based on the availability under the ABL Revolving Credit Facility) from 0.25% to 0.75% or (2) SOFR (subject to a 0% floor) plus a margin ranging (based on the availability under the ABL Revolving Credit Facility) from 1.25% to 1.75%. In September 2024, we amended the ABL Revolving Credit Facility to, among other things, extend the maturity date to September 20, 2029. As of March 28, 2026 and December 27, 2025, we had borrowings of $80,000 and $0, respectively, under this facility. The weighted-average interest rate on the outstanding borrowings under this facility, as amended, was 5.5% and 6.2% per annum at March 28, 2026 and December 27, 2025, respectively.

Previous wording

Additionally, our European ABS Facility provides for a borrowing capacity of up to €375,000, or approximately $438,488 at September 27, 2025 exchange rates. This program, which matures in October 2026, requires certain commitment fees and borrowings incur financing costs based on the local short-term bank indicator rate for the currency in which the drawing is made plus a predetermined margin. At September 27, 2025 and December 28, 2024, we had borrowings of $321,012 and $312,630 under this financing program in Europe. The weighted-average interest rate on the outstanding borrowings under this facility, as amended, was 3.6% and 4.9% per annum at September 27, 2025 and December 28, 2024, respectively.

Current wording

Additionally, our European ABS Facility provides for a borrowing capacity of up to €375,000, or approximately $431,738 at March 28, 2026 exchange rates. This program, which matures in October 2026, requires certain commitment fees and borrowings incur financing costs based on the local short-term bank indicator rate for the currency in which the drawing is made plus a predetermined margin. At March 28, 2026 and December 27, 2025, we had borrowings of $296,896 and $353,100 under this financing program in Europe. The weighted-average interest rate on the outstanding borrowings under this facility, as amended, was 3.2% and 3.5% per annum at March 28, 2026 and December 27, 2025, respectively.

Previous wording

At September 27, 2025, our actual aggregate capacity under our ABL Revolving Credit Facility and other receivable-backed programs was approximately $3,937,715, of which $676,012 was used. Even if we do not borrow or choose not to borrow to the full available capacity of certain programs, most of our trade accounts receivable-backed financing programs are subject to certain restrictions outlined in our ABL Credit Facilities. These restrictions generally prohibit us from assigning or transferring the underlying eligible receivables as collateral for other financing programs, unless the underlying eligible receivables are sold in conjunction with a dedicated, non-recourse facility.

Current wording

At March 28, 2026, our actual aggregate capacity under our ABL Revolving Credit Facility and other receivable-backed programs was approximately $3,930,897, of which $376,896 was used. Even if we do not borrow or choose not to borrow to the full available capacity of certain programs, most of our trade accounts receivable-backed financing programs are subject to certain restrictions outlined in our ABL Credit Facilities. These restrictions generally prohibit us from assigning or transferring the underlying eligible receivables as collateral for other financing programs, unless the underlying eligible receivables are sold in conjunction with a dedicated, non-recourse facility.

Previous wording

We also have additional lines of credit, short-term overdraft facilities and other credit facilities with various financial institutions worldwide, which provide for borrowing capacity aggregating to $828,099 at September 27, 2025. Most of these arrangements are on an uncommitted basis and are reviewed periodically for renewal. At September 27, 2025 and December 28, 2024, respectively, we had $379,245 and $182,713 outstanding under these facilities. The weighted-average interest rate on the outstanding borrowings under these facilities, which may fluctuate depending on geographic mix, was 5.4% and 6.9% per annum at September 27, 2025 and December 28, 2024, respectively. At September 27, 2025 and December 28, 2024, letters of credit totaling $183,423 and $166,613, respectively, were issued to various customs agencies and landlords to support our subsidiaries. The issuance of these letters of credit reduces our available capacity under the corresponding agreements by the same amount.

Current wording

We also have additional lines of credit, short-term overdraft facilities and other credit facilities with various financial institutions worldwide, which provide for borrowing capacity aggregating to $888,774 at March 28, 2026. Most of these arrangements are on an uncommitted basis and are reviewed periodically for renewal. At March 28, 2026 and December 27, 2025, respectively, we had $416,613 and $102,836 outstanding under these facilities. The weighted-average interest rate on the outstanding borrowings under these facilities, which may fluctuate depending on geographic mix, was 5.6% and 7.3% per annum at March 28, 2026 and December 27, 2025, respectively. At March 28, 2026 and December 27, 2025, letters of credit totaling $177,422 and $168,254, respectively, were issued to various customs agencies and landlords to support our subsidiaries. The issuance of these letters of credit reduces our available capacity under the corresponding agreements by the same amount.

Previous wording

We have several uncommitted factoring programs under which trade accounts receivable of several customers may be sold, without recourse, to financial institutions. Available capacity under these programs is dependent on the level of our trade accounts receivable eligible to be sold into these programs and the financial institutions’ willingness to purchase such receivables. At September 27, 2025 and December 28, 2024, we had a total of $702,719 and $737,302, respectively, of trade accounts receivable sold to and held by the financial institutions under these programs.

Current wording

We have several uncommitted factoring programs under which trade accounts receivable of several customers may be sold, without recourse, to financial institutions. Available capacity under these programs is dependent on the level of our trade accounts receivable eligible to be sold into these programs and the financial institutions’ willingness to purchase such receivables. At March 28, 2026 and December 27, 2025, we had a total of $853,863 and $936,934, respectively, of trade accounts receivable sold to and held by the financial institutions under these programs.

Previous wording

We have guarantees to third parties that provide financing to a limited number of our customers. Net sales under these arrangements accounted for less than one percent of our consolidated net sales for each of the periods presented. The guarantees require us to reimburse the third party for defaults by these customers up to an aggregate of$2,164. The fair value of these guarantees has been recognized as cost of sales on the Consolidated Statements of Income to these customers and is included in accrued expenses and other on the Condensed Consolidated Balance Sheets.

Current wording

We have guarantees to third parties that provide financing to a limited number of our customers. Net sales under these arrangements accounted for less than one percent of our consolidated net sales for each of the periods presented. The guarantees require us to reimburse the third party for defaults by these customers up to an aggregate of$1,171. The fair value of these guarantees has been recognized as cost of sales on the Consolidated Statements of Income to these customers and is included in accrued expenses and other on the Condensed Consolidated Balance Sheets.

Previous wording

See Note 2,“Summary of Significant Accounting Policies,” to the Condensed Financial Statements included in Part I, Item 1, of this Quarterly Report on Form 10-Q.

Current wording

See Note 2,“Summary of Significant Accounting Policies,” to the condensed consolidated financial statements included in Part I, Item 1, of this Quarterly Report on Form 10-Q.