Insight Enterprises, Inc. Reports Fourth Quarter and Full Year Results

• Consolidated net sales decreased 1% year to year, for the fourth quarter and decreased 5% for the full year
• Gross profit for the fourth quarter increased 9% year over year to $478.4 million and gross margin expanded 220 basis points to 23.4% for the fourth quarter
• Gross profit remained flat at $1.8 billion for the full year and gross margin expanded 110 basis points to 21.4% for the full year
• Consolidated net earnings increased 40% year over year to $52.0 million for the fourth quarter and decreased 37% year to year to $157.3 million for the full year
• Adjusted earnings before interest, tax, depreciation and amortization (“EBITDA”) increased 11% year over year to $156.2 million for the fourth quarter and was relatively flat at $542.6 million for the full year
• Diluted earnings per share of $1.67 increased 69% year over year for the fourth quarter and diluted earnings per share of $4.86 decreased 26% for the full year
• Adjusted diluted earnings per share of $2.96 increased 11% year over year for the fourth quarter and increased 2% to $9.87 for the full year
• Cash flows provided by operating activities were $153.8 million for the fourth quarter and $303.8 million for the full year

In the fourth quarter of 2025, net sales decreased 1%, year to year, to $2.0 billion, and gross profit increased 9%, year over year, to $478.4 million. Gross margin expanded 220 basis points compared to the fourth quarter of 2024 to 23.4%. Selling and administrative expenses increased 1%, year to year, while Adjusted selling and administrative expenses increased 7%, year to year. Earnings from operations of $95.2 million, or 4.6% of net sales, increased 47% compared to $64.7 million in the fourth quarter of 2024. Adjusted earnings from operations of $146.2 million, or 7.1% of net sales, increased 13% year over year compared to $129.4 million in the fourth quarter of 2024. Consolidated net earnings were $52.0 million, or 2.5% of net sales, in the fourth quarter of 2025, up 40% compared to the fourth quarter of 2024. Adjusted consolidated net earnings were $91.9 million, or 4.5% of net sales, up 1% compared to the fourth quarter of 2024. Diluted earnings per share for the quarter was $1.67, up 69% year over year, and Adjusted diluted earnings per share was $2.96, up 11% year over year.

For the full year 2025, net sales decreased 5%, year to year, to $8.2 billion, while gross profit was relatively flat, year to year, at $1.8 billion. Gross margin expanded 110 basis points from the prior year to 21.4%. Selling and administrative expenses increased 3%, year to year, while Adjusted selling and administrative expenses was flat, year over year. Earnings from operations of $334.9 million decreased 14% compared to $388.6 million in 2024, primarily driven by the net loss on revaluation of earnout liabilities of $25.3 million in 2025 compared to a net gain of $7.8 million in 2024. Adjusted earnings from operations of $504.0 million was flat, year over year compared to $502.4 million in 2024. Consolidated net earnings were $157.3 million, or 1.9% of net sales, for the full year, down 37% compared to 2024. The decrease year to year reflects higher interest expense in 2025 compared to 2024 and a net loss of $25.1 million recorded to reflect the revaluation of warrant settlement liabilities. Adjusted consolidated net earnings were $315.1 million, or 3.8% of net sales. Diluted earnings per share for the full year was $4.86, down 26%, year to year, and Adjusted diluted earnings per share was $9.87, up 2%, year over year.

"We are pleased with our fourth quarter results and the momentum in our business after a challenging year," stated Joyce Mullen, President and Chief Executive Officer. “Strong execution in our Cloud business and strong growth in our Core Services business driven by our recent acquisitions, enabled us to deliver record gross profit, gross margin and adjusted earnings from operations margin. We also delivered strong growth in adjusted earnings from operations across every geography and achieved 11% growth in adjusted diluted earnings per share,” Mullen added.

KEY HIGHLIGHTS

Results for the Quarter:

• Consolidated net sales for the fourth quarter of 2025 of $2.0 billion decreased 1%, year to year, when compared to the fourth quarter of 2024. Product net sales decreased 4%, year to year, and services net sales increased 11%, year over year. Software product net sales decreased 18%, year to year, while hardware product net sales increased 2%, year over year.
  • Net sales in North America decreased 3%, year to year, to $1.6 billion;
    • Product net sales decreased 5%, year to year, to $1.3 billion;
    • Services net sales increased 5%, year over year, to $338.2 million;
  • Net sales in EMEA increased 8%, year over year, to $343.9 million; and
  • Net sales in APAC increased 15% year over year, to $60.1 million.

• Excluding the effects of fluctuating foreign currency exchange rates, consolidated net sales decreased 2%, year to year, with a decrease in net sales in North America of 3%, year to year, partially offset by increases in net sales in APAC and EMEA of 15% and 1%, respectively, year over year.

• Consolidated gross profit increased 9% compared to the fourth quarter of 2024 to $478.4 million, with consolidated gross margin expanding 220 basis points to 23.4% of net sales. Product gross profit decreased 2%, year to year, and services gross profit increased 17%, year over year. Cloud gross profit increased 11%, year over year, and Insight Core services gross profit increased 16%, year over year. By segment, gross profit:
  • increased 4% in North America, year over year, to $362.9 million (22.1% gross margin);
  • increased 30% in EMEA, year over year, to $94.7 million (27.5% gross margin); and
  • increased 22% in APAC, year over year, to $20.8 million (34.7% gross margin).

• Excluding the effects of fluctuating foreign currency exchange rates, consolidated gross profit increased 8%, year over year, with gross profit growth in EMEA, APAC and North America of 23%, 22% and 4%, respectively, year over year.

• Consolidated earnings from operations increased 47% compared to the fourth quarter of 2024 to $95.2 million, or 4.6% of net sales. By segment, earnings from operations:
  • increased 51% in North America, year over year, to $79.1 million, or 4.8% of net sales;
  • increased 40% in EMEA, year over year, to $10.3 million, or 3.0% of net sales; and
  • increased 17% in APAC, year over year, to $5.8 million, or 9.6% of net sales.

• Excluding the effects of fluctuating foreign currency exchange rates, consolidated earnings from operations increased 46%, year over year, with increases in earnings from operations in North America, EMEA and APAC of 51%, 32% and 18%, respectively, year over year.

• Adjusted earnings from operations increased 13% compared to the fourth quarter of 2024 to $146.2 million, or 7.1% of net sales. By segment, Adjusted earnings from operations:
  • increased 9% in North America, year over year, to $118.8 million, or 7.2% of net sales;
  • increased 42% in EMEA, year over year, to $20.7 million, or 6.0% of net sales; and
  • increased 20% in APAC, year over year, to $6.7 million, or 11.1% of net sales.

• Excluding the effects of fluctuating foreign currency exchange rates, Adjusted consolidated earnings from operations increased 12%, with increases in Adjusted earnings from operations in EMEA, APAC and North America of 33%, 20% and 9%, respectively, year over year.

• Consolidated net earnings and diluted earnings per share for the fourth quarter of 2025 were $52.0 million and $1.67, respectively, at an effective tax rate of 27.8%.

• Adjusted consolidated net earnings and Adjusted diluted earnings per share for the fourth quarter of 2025 were $91.9 million and $2.96, respectively. Excluding the effects of fluctuating foreign currency exchange rates, Adjusted diluted earnings per share increased 10%, year over year.

Results for the Year:

• Consolidated net sales of $8.2 billion for 2025 decreased 5%, year to year, when compared to 2024.
  • Net sales in North America decreased 6%, year to year, to $6.7 billion;
    • Product net sales decreased 6%, year to year, to $5.4 billion;
    • Services net sales decreased 2%, year to year, to $1.3 billion;
  • Net sales in EMEA decreased 4%, year to year, to $1.4 billion; and
  • Net sales in APAC increased 2%, year over year, to $237.5 million.

• Excluding the effects of fluctuating foreign currency exchange rates, consolidated net sales decreased 6%, year to year, with decreases in net sales in EMEA and North America of 8% and 6%, year to year, respectively, partially offset by an increase in net sales in APAC of 4%, year over year.

• Consolidated gross profit was relatively flat, year to year, at $1.8 billion, with consolidated gross margin expanding 110 basis points to 21.4% of net sales. Product gross profit decreased 5%, year to year, and services gross profit increased 4%, year over year. Cloud gross profit grew 2%, year over year, and Insight Core services gross profit increased 2%, year over year. By segment, gross profit:
  • decreased 3% in North America, year to year, to $1.4 billion (20.5% gross margin);
  • increased 10% in EMEA, year over year, to $323.3 million (23.9% gross margin); and
  • increased 1% in APAC, year over year, to $71.8 million (30.2% gross margin).

• Excluding the effects of fluctuating foreign currency exchange rates, consolidated gross profit was down 1%, year to year, with a decline in gross profit in North America of 2%, year to year, partially offset by gross profit growth in EMEA and APAC of 6% and 3%, respectively, year over year.

• Consolidated earnings from operations decreased 14% compared to the full year of 2024 to $334.9 million, or 4.1% of net sales. By segment, earnings from operations:
  • decreased 12% in North America, year to year, to $282.3 million, or 4.2% of net sales;
  • decreased 33% in EMEA, year to year, to $31.0 million, or 2.3% of net sales; and
  • decreased 7% in APAC, year to year, to $21.7 million, or 9.1% of net sales.

• Excluding the effects of fluctuating foreign currency exchange rates, consolidated earnings from operations were down 14%, year to year, with decreased earnings from operations in EMEA, North America and APAC of 35%, 11% and 5%, year to year, respectively.

• Adjusted earnings from operations was relatively flat, year over year, at $504.0 million, or 6.1% of net sales. By segment, Adjusted earnings from operations:
  • decreased 1% in North America, year to year, to $418.6 million, or 6.3% of net sales;
  • increased 10% in EMEA, year over year, to $61.6 million, or 4.5% of net sales; and
  • decreased 3% in APAC, year to year, to $23.8 million, or 10.0% of net sales.

• Excluding the effects of fluctuating foreign currency exchange rates, Adjusted consolidated earnings from operations was flat, year over year, with increased Adjusted earnings from operations in EMEA of 7%, offset by decreases of 1% in both APAC and North America, year to year.

• Consolidated net earnings and diluted earnings per share for the full year of 2025 were $157.3 million and $4.86, respectively, at an effective tax rate of 30.3%.

• Adjusted consolidated net earnings and Adjusted diluted earnings per share for the full year of 2025 were $315.1 million and $9.87, respectively. Excluding the effects of fluctuating foreign currency exchange rates, Adjusted diluted earnings per share increased 2% year over year.

In discussing financial results for the quarters and years ended December 31, 2025 and 2024 in this press release, the Company refers to certain financial measures that are adjusted from the financial results prepared in accordance with United States generally accepted accounting principles (“GAAP”). When referring to non-GAAP measures, the Company refers to them as “Adjusted.” See “Use of Non-GAAP Financial Measures” for additional information. A tabular reconciliation of financial measures prepared in accordance with GAAP to the non-GAAP financial measures is included at the end of this press release.

In some instances, the Company refers to changes in net sales, gross profit, earnings from operations and Adjusted earnings from operations on a consolidated basis and in North America, EMEA and APAC excluding the effects of fluctuating foreign currency exchange rates. In addition, the Company refers to changes in Adjusted diluted earnings per share on a consolidated basis excluding the effects of fluctuating foreign currency exchange rates. These are also considered to be non-GAAP measures. The Company believes providing this information excluding the effects of fluctuating foreign currency exchange rates provides valuable supplemental information to investors regarding its underlying business and results of operations, consistent with how the Company and its management evaluate the Company’s performance. In computing these changes and percentages, the Company compares the current year amount as translated into U.S. dollars under the applicable accounting standards to the prior year amount in local currency translated into U.S. dollars utilizing the weighted average translation rate for the current period. The performance measures excluding the effects of fluctuating foreign currency exchange rates should not be considered a substitute for, or superior to, the measures of financial performance prepared in accordance with GAAP.

The tax effect of Adjusted amounts referenced herein were computed using the statutory tax rate for the taxing jurisdictions in the operating segment in which the related expenses were recorded, adjusted for the effects of valuation allowances on net operating losses in certain jurisdictions.

GUIDANCE

For the full year 2026, including stock-based compensation expense, we expect Adjusted diluted earnings per share to be between $10.10 and $10.60. Beginning in 2026, our adjusted guidance will exclude stock-based compensation expense. On this basis, we expect our Adjusted diluted earnings per share will be between $11.00 to $11.50. This represents 5% growth at the midpoint compared to the 2025 Adjusted diluted EPS of $10.75, excluding stock-based compensation expense. We expect gross profit to be in the low single digits and expect that our gross margin will be approximately 21%.

This outlook assumes:

• interest and other expenses of approximately $85 million;
• an effective tax rate of 25.5% to 26.5% for the full year;
• capital expenditures between approximately $20 million and $30 million;
• an average share count for the full year of approximately 31.0 million shares.

This outlook excludes acquisition-related intangibles amortization expense of approximately $83.4 million, excludes non-cash stock based compensation expense and assumes no acquisition or integration related expenses, transformation or severance and restructuring expenses, net, no significant change in our debt instruments, and no significant change in the macroeconomic environment, whether due to tariffs or otherwise. Due to the inherent difficulty of forecasting some of these types of expenses, which impact net earnings, diluted earnings per share and selling and administrative expenses, the Company is unable to reasonably estimate the impact of such expenses, if any, to net earnings, diluted earnings per share and selling and administrative expenses. Accordingly, the Company is unable to provide a reconciliation of GAAP to non-GAAP diluted earnings per share for the full year 2026 forecast.

CONFERENCE CALL AND WEBCAST

The Company will host a conference call and live webcast today at 9:00 a.m. ET to discuss fourth quarter and full year 2025 results of operations. A live webcast of the conference call (in listen-only mode) will be available on the Company’s web site at http://investor.insight.com/, and a replay of the webcast will be available on the Company’s web site for a limited time following the call. To access the live conference call, please register in advance using the event link on the Company's web site. Upon registering, participants will receive dial-in information via email, as well as a unique registrant ID, event passcode, and detailed instructions regarding how to join the call.

USE OF NON-GAAP FINANCIAL MEASURES

The non-GAAP financial measures are referred to as “Adjusted”. Adjusted earnings from operations, Adjusted net earnings, Adjusted diluted earnings per share and Adjusted selling and administrative expenses exclude (i) severance and restructuring expenses, net, (ii) certain executive recruitment and hiring related expenses, (iii) amortization of intangible assets, (iv) transformation costs, (v) certain acquisition and integration related expenses, (vi) gains and losses from revaluation of acquisition related earnout liabilities, (vii) certain third-party data center service outage related expenses and recoveries, (viii) impairment losses on long lived real estate assets now held for sale, and (ix) the tax effects of each of these items, as applicable. Transformation costs represent costs we are incurring to transform our business to help us achieve our strategic objectives including becoming a leading solutions integrator. The Company excludes these items when internally evaluating earnings from operations, tax expense, net earnings and diluted earnings per share for the Company and earnings from operations for each of the Company’s operating segments. Adjusted net earnings and Adjusted diluted earnings per share also exclude a net loss on revaluation of warrant settlement liabilities, as applicable. Adjusted diluted earnings per share also includes the impact of the benefit from the note hedge where the Company’s average stock price for the period was in excess of $68.32, which was the initial conversion price of our previously outstanding convertible senior notes (the “Convertible Notes”), which matured in February 2025, as applicable. Adjusted EBITDA excludes (i) interest expense, (ii) income tax expense, (iii) depreciation and amortization of property and equipment, (iv) amortization of intangible assets, (v) severance and restructuring expenses, net, (vi) certain executive recruitment and hiring related expenses, (vii) transformation costs, (viii) certain acquisition and integration related expenses, (ix) gains and losses from revaluation of acquisition related earnout liabilities, (x) gains and losses from the revaluation of warrant settlement liabilities, (xi) certain third-party data center service outage related expenses and recoveries, and (xii) impairment losses on long lived real estate assets now held for sale. Adjusted return on invested capital (“ROIC”) excludes (i) severance and restructuring expenses, net, (ii) certain executive recruitment and hiring related expenses, (iii) amortization of intangible assets, (iv) transformation costs, (v) certain acquisition and integration related expenses, (vi) certain third-party data center service outage related expenses and recoveries, (vii) gains and losses from revaluation of acquisition related earnout liabilities, (viii) impairment losses on long lived real estate assets now held for sale, and (ix) the tax effects of each of these items, as applicable.

These non-GAAP measures are used by the Company and its management to evaluate financial performance against budgeted amounts, to calculate incentive compensation, to assist in forecasting future performance and to compare the Company’s results to those of the Company’s competitors. The Company believes that these non-GAAP financial measures are useful to investors because they allow for greater transparency, facilitate comparisons to prior periods and the Company’s competitors’ results and assist in forecasting performance for future periods. These non-GAAP financial measures are not prepared in accordance with GAAP and may be different from non-GAAP financial measures presented by other companies. Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP.