Insight Enterprises, Inc. Reports First Quarter Results

Key Terms

ebitda financial

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It measures a company's profitability by focusing on the money it makes from its core operations, ignoring expenses like taxes and accounting adjustments. Investors use EBITDA to compare how well different companies are performing financially, as it provides a clearer picture of operational success without the influence of financial structure or accounting choices.

non-gaap financial

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

return on invested capital financial

A percentage that shows how effectively a company turns the money invested in its business—both borrowed funds and shareholders’ equity—into operating profit after taxes. It tells investors whether a company earns more from its core operations than it costs to fund those operations; think of it like the annual return you’d expect from renovating a rental property—higher percentages mean the company uses capital more efficiently and is more likely to create value for shareholders.

convertible senior notes financial

Convertible senior notes are a type of loan that a company issues to investors, which can be turned into company shares later on. They are called "senior" because they are paid back before other debts if the company runs into trouble. This allows investors to earn interest like a loan but also have the chance to own part of the company if its value rises.

note hedge financial

A note hedge is a tactic used to reduce the financial risk tied to a promissory note or debt instrument by taking offsetting positions—often with derivatives or stock trades—so changes in interest rates, a company’s share price, or creditworthiness have smaller effects. Think of it like buying an umbrella for a specific loan: if the weather (market) turns, the hedge helps limit losses. Investors care because hedges change the real exposure, potential returns and safety of a note investment.

CHANDLER, Ariz.--(BUSINESS WIRE)-- Insight Enterprises, Inc. (NASDAQ: NSIT) (the “Company”) today reported financial results for the quarter ended March 31, 2026. Highlights include:

• Consolidated net sales increased 1% year over year
• Gross profit increased 14% year over year to $462.2 million and gross margin expanded 240 basis points to 21.7%
• Consolidated net earnings increased more than 100% year over year to $30.0 million
• Adjusted earnings before interest, tax, depreciation and amortization (“EBITDA”) increased 27% year over year to $152.0 million
• Diluted earnings per share of $0.97 increased more than 100% year over year
• Adjusted diluted earnings per share of $2.88 increased 26% year over year
• Cash flows provided by operating activities were $32.4 million

In the first quarter of 2026, net sales increased 1%, year over year, to $2.1 billion, and gross profit increased 14%, year over year, to $462.2 million. Gross margin expanded 240 basis points compared to the first quarter of 2025 to 21.7%. Selling and administrative expenses increased 13%, year to year, while Adjusted selling and administrative expenses increased 9%, year to year. Earnings from operations of $71.7 million, or 3.4% of net sales, increased 19% compared to $60.1 million in the first quarter of 2025. Adjusted earnings from operations of $141.1 million, or 6.6% of net sales, increased 27% year over year compared to $111.2 million in the first quarter of 2025. Consolidated net earnings were $30.0 million, or 1.4% of net sales, in the first quarter of 2026, up more than 100% compared to the first quarter of 2025. Adjusted consolidated net earnings were $88.9 million, or 4.2% of net sales, up 18% compared to the first quarter of 2025. Diluted earnings per share for the quarter was $0.97, up more than 100% year over year, and Adjusted diluted earnings per share was $2.88, up 26% year over year.

“In the first quarter, we delivered double-digit gross profit growth across every geography, as well as double-digit adjusted earnings from operations and adjusted diluted earnings per share growth. Total gross profit grew 14% with Cloud gross profit increasing 35% and Core Services gross profit growing 19%, the two critical priority areas of our strategy.” stated Jack Azagury, President and Chief Executive Officer. “The team has built a truly differentiated set of capabilities across hardware, software and services to deliver compelling solutions to our clients. I am excited to continue our transformation to become the leading Solutions Integrator and build upon this strong foundation.” Azagury added.

KEY HIGHLIGHTS

Results for the Quarter:

• Consolidated net sales for the first quarter of 2026 of $2.1 billion increased 1%, year over year, when compared to the first quarter of 2025. Product net sales decreased 2%, year to year, and services net sales increased 17%, year over year. Software product net sales decreased 21%, year to year, while hardware product net sales increased 7%, year over year.
  • Net sales in North America decreased 1%, year to year, to $1.7 billion;
    • Product net sales decreased 4%, year to year, to $1.3 billion;
    • Services net sales increased 12%, year over year, to $333.8 million;
  • Net sales in EMEA increased 9%, year over year, to $372.9 million; and
  • Net sales in APAC increased 20%, year over year, to $72.3 million.
• Excluding the effects of fluctuating foreign currency exchange rates, consolidated net sales decreased 1%, year to year, with a decrease in net sales in North America of 1% year to year, partially offset by an increase in net sales in APAC of 11%, year over year. Net sales in EMEA was relatively flat year to year.
• Consolidated gross profit increased 14% compared to the first quarter of 2025 to $462.2 million, with consolidated gross margin expanding 240 basis points to 21.7% of net sales. Product gross profit increased 2%, year over year, and services gross profit increased 23%, year over year. Cloud gross profit increased 35%, year over year, and Insight Core services gross profit increased 19%, year over year. By segment, gross profit:
  • increased 11% in North America, year over year, to $353.3 million (21.0% gross margin);
  • increased 21% in EMEA, year over year, to $86.8 million (23.3% gross margin); and
  • increased 46% in APAC, year over year, to $22.0 million (30.4% gross margin).
• Excluding the effects of fluctuating foreign currency exchange rates, consolidated gross profit increased 11%, year over year, with gross profit growth in APAC, EMEA and North America of 35%, 11% and 10%, respectively, year over year.
• Consolidated earnings from operations increased 19% compared to the first quarter of 2025 to $71.7 million, or 3.4% of net sales. By segment, earnings from operations:
  • increased 30% in North America, year over year, to $66.2 million, or 3.9% of net sales;
  • increased 32% in EMEA, year over year, to $6.6 million, or 1.8% of net sales; and
  • decreased more than 100% in APAC, year to year, resulting in a net loss of $1.1 million, or (1.5)% of net sales.
• Excluding the effects of fluctuating foreign currency exchange rates, consolidated earnings from operations increased 17%, year over year, with increases in earnings from operations in North America and EMEA of 29% and 22%, respectively, year over year, partially offset by a decrease in APAC of 125% year to year.
• Adjusted earnings from operations increased 27% compared to the first quarter of 2025 to $141.1 million, or 6.6% of net sales. By segment, Adjusted earnings from operations:
  • increased 30% in North America, year over year, to $122.4 million, or 7.3% of net sales;
  • increased 17% in EMEA, year over year, to $14.8 million, or 4.0% of net sales; and
  • decreased 16% in APAC, year to year, to $4.0 million, or 5.5% of net sales.
• Excluding the effects of fluctuating foreign currency exchange rates, Adjusted consolidated earnings from operations increased 25%, with increases in Adjusted earnings from operations in North America and EMEA of 29% and 9%, respectively, year over year, partially offset by a decrease in APAC of 21% year to year.
• Consolidated net earnings and diluted earnings per share for the first quarter of 2026 were $30.0 million and $0.97, respectively, at an effective tax rate of 39.4%.
• Adjusted consolidated net earnings and Adjusted diluted earnings per share for the first quarter of 2026 were $88.9 million and $2.88, respectively. Excluding the effects of fluctuating foreign currency exchange rates, Adjusted diluted earnings per share increased 25%, year over year.

In discussing financial results for the three months ended March 31, 2026 and 2025 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, we expect Adjusted diluted earnings per share to be between $11.00 to $11.50, with a bias toward the high end of the range. This represents approximately 5% growth at the midpoint compared to the 2025 Adjusted diluted EPS of 10.75. We expect gross profit to grow in the low single digits and expect that our gross margin will be approximately 21.5%.

This outlook assumes:

• interest and other expenses of approximately $90 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 30.0 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 first quarter 2026 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) impairment losses on long lived real estate assets held for sale, (viii) stock-based compensation expense, 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) impairment losses on long lived real estate assets held for sale, and (xii) stock-based compensation expense, as applicable. 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 held for sale, (ix) stock-based compensation expense, and (x) 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.

FINANCIAL SUMMARY TABLE (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA) (UNAUDITED)
		Three Months Ended March 31,
			2026				2025			change
Insight Enterprises, Inc.
Net sales:
Products		$	1,666,546			$	1,707,800			(2%)
Services		$	461,440			$	395,756			17%
Total net sales		$	2,127,986			$	2,103,556			1%
Gross profit		$	462,151			$	406,477			14%
Gross margin			21.7	%			19.3	%		240 bps
Selling and administrative expenses		$	383,983			$	339,173			13%
Severance and restructuring expenses, net		$	6,485			$	7,026			(8%)
Acquisition and integration related expenses		$	1			$	175			(99%)
Earnings from operations		$	71,682			$	60,103			19%
Net earnings		$	30,009			$	7,514			> 100%
Diluted earnings per share		$	0.97			$	0.22			> 100%
Sales Mix										**
Hardware			57	%			54	%		7%
Software			21	%			27	%		(21%)
Services			22	%			19	%		17%
			100	%			100	%		1%
North America
Net sales:
Products		$	1,349,017			$	1,403,027			(4%)
Services		$	333,788			$	297,616			12%
Total net sales		$	1,682,805			$	1,700,643			(1%)
Gross profit		$	353,326			$	319,452			11%
Gross margin			21.0	%			18.8	%		220 bps
Selling and administrative expenses		$	282,426			$	265,381			6%
Severance and restructuring expenses, net		$	4,641			$	3,111			49%
Acquisition and integration related expenses		$	61			$	170			(64%)
Earnings from operations		$	66,198			$	50,790			30%
Sales Mix										**
Hardware			63	%			59	%		6%
Software			17	%			23	%		(28%)
Services			20	%			18	%		12%
			100	%			100	%		(1%)

FINANCIAL SUMMARY TABLE (CONTINUED) (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA) (UNAUDITED)
		Three Months Ended March 31,
			2026				2025			change
EMEA
Net sales:
Products		$	281,955			$	267,160			6%
Services		$	90,896			$	75,668			20%
Total net sales		$	372,851			$	342,828			9%
Gross profit		$	86,803			$	71,927			21%
Gross margin			23.3	%			21.0	%		230 bps
Selling and administrative expenses		$	78,464			$	63,063			24%
Severance and restructuring expenses, net		$	1,750			$	3,853			(55%)
Acquisition and integration related expenses		$	(16	)		$	—			*
Earnings from operations		$	6,605			$	5,011			32%
Sales Mix										**
Hardware			39	%			38	%		11%
Software			37	%			40	%		—%
Services			24	%			22	%		20%
			100	%			100	%		9%
APAC
Net sales:
Products		$	35,574			$	37,613			(5%)
Services		$	36,756			$	22,472			64%
Total net sales		$	72,330			$	60,085			20%
Gross profit		$	22,022			$	15,098			46%
Gross margin			30.4	%			25.1	%		530 bps
Selling and administrative expenses		$	23,093			$	10,729			> 100%
Severance and restructuring expenses, net		$	94			$	62			52%
Acquisition and integration related expenses		$	(44	)		$	5			< (100%)
Earnings from operations		$	(1,121	)		$	4,302			< (100%)
Sales Mix										**
Hardware			18	%			11	%		> 100%
Software			31	%			52	%		(28%)
Services			51	%			37	%		64%
			100	%			100	%		20%

*	Percentage change not considered meaningful
**	Change in sales mix represents growth/decline in category net sales on a U.S. dollar basis and does not exclude the effects of fluctuating foreign currency exchange rates

FORWARD-LOOKING INFORMATION

Certain statements in this release and the related conference call, webcast and presentation are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements, including those related to the impact of inflation and higher interest rates, the Company’s future financial performance and results of operations, including gross profit, Adjusted diluted earnings per share, gross margin, and Adjusted selling and administrative expenses, as well as the Company’s other key performance indicators, the Company’s anticipated effective tax rate, interest and other expenses, capital expenditures, and expected average share count, the Company’s expectations regarding cash flow, the Company’s expectations regarding supply constraints, future trends in the IT market, the effects of tariffs and trade policies, and the Company’s business strategy and strategic initiatives, all of which are inherently subject to risks and uncertainties, and some of which cannot be predicted or quantified. Future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements. There can be no assurances that the results discussed by the forward-looking statements will be achieved, and actual results may differ materially from those set forth in the forward-looking statements. Some of the important factors that could cause the Company’s actual results to differ materially from those projected in any forward-looking statements include, but are not limited to, the following, which are discussed in the Company’s filings with the Securities and Exchange Commission (the “SEC”), including in the “Risk Factors” sections of the Company’s most recently filed periodic reports on Form 10-K and Form 10-Q and subsequent filings with the SEC:

• actions of our competitors, including manufacturers and publishers of products we sell;
• our reliance on our partners for product availability, competitive products to sell and marketing funds and purchasing incentives, which can and do change significantly in the amounts made available and in the requirements year over year;
• our ability to keep pace with rapidly evolving technological advances including generative and agentic artificial intelligence (“AI”) and the evolving competitive marketplace;
• general economic conditions, economic uncertainties and changes in geopolitical conditions, including the possibility of a recession or a decline in market activity related to tariffs and trade policies, international conflicts including the war with Iran, or otherwise;
• changes in the IT industry and/or rapid changes in technology;
• our ability to provide high quality services to our clients;
• our reliance on independent shipping companies;
• the risks associated with our international operations including our expansion into the Middle East;
• supply constraints for products;
• natural disasters or other adverse occurrences, including public health issues such as pandemics or epidemics;
• disruptions in our IT systems and voice and data networks;
• cyberattacks, outages, or third-party breaches of data privacy as well as related breaches of government regulations;
• intellectual property infringement claims and challenges to our copyrights, patents, trademarks and trade names;
• potential liability and competitive risk based on the development, adoption, and use of generative and agentic AI;
• legal proceedings, client audits and failure to comply with laws and regulations;
• risks of termination, delays in payment, audits and investigations related to our public sector contracts;
• exposure to changes in, interpretations of, or enforcement trends related to tax rules and regulations;
• our potential to draw down a substantial amount of indebtedness;
• increased debt and interest expense and the possibility of decreased availability of funds under our financing facilities;
• possible significant fluctuations in our future operating results as well as seasonality and variability in client demands;
• potential contractual disputes or collection matters with our clients and third-party suppliers;
• our dependence on certain key personnel, our ability to attract, train and retain skilled teammates and our ability to manage the business during the transition of our new Chief Executive Officer;
• risks associated with the integration and operation of acquired businesses, including achievement of expected synergies and benefits; and
• future sales of the Company’s common stock or equity-linked securities in the public market could lower the market price for our common stock.

Additionally, there may be other risks that are otherwise described from time to time in the reports that the Company files with the SEC. Any forward-looking statements in this release, the related conference call, webcast and presentation speak only as of the date on which they are made and should be considered in light of various important factors, including the risks and uncertainties listed above, as well as others. The Company assumes no obligation to update, and, except as may be required by law, does not intend to update, any forward-looking statements. The Company does not endorse any projections regarding future performance that may be made by third parties.

INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (IN THOUSANDS, EXCEPT PER SHARE DATA) (UNAUDITED)
	Three Months Ended March 31,
		2026				2025
Net sales:
Products	$	1,666,546			$	1,707,800
Services		461,440				395,756
Total net sales		2,127,986				2,103,556
Costs of goods sold:
Products		1,487,644				1,531,826
Services		178,191				165,253
Total costs of goods sold		1,665,835				1,697,079
Gross profit:
Products		178,902				175,974
Services		283,249				230,503
Gross profit		462,151				406,477
Operating expenses:
Selling and administrative expenses		383,983				339,173
Severance and restructuring expenses, net		6,485				7,026
Acquisition and integration related expenses		1				175
Earnings from operations		71,682				60,103
Non-operating expense (income):
Interest expense, net		23,633				15,625
Other (income) expense, net		(1,452	)			25,469
Earnings before income taxes		49,501				19,009
Income tax expense		19,492				11,495
Net earnings	$	30,009			$	7,514
Net earnings per share:
Basic	$	0.97			$	0.24
Diluted	$	0.97			$	0.22
Shares used in per share calculations:
Basic		30,788				31,839
Diluted		30,856				34,683

INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In THOUSANDS) (UNAUDITED)
	March 31, 2026				December 31, 2025
ASSETS
Current assets:
Cash and cash equivalents	$	440,626			$	358,020
Accounts receivable, net		6,421,861				5,516,984
Inventories		251,564				160,648
Contract assets, net		59,564				65,745
Other current assets		279,121				260,990
Total current assets		7,452,736				6,362,387
Long-term contract assets, net		46,560				53,176
Property and equipment, net		187,210				188,449
Goodwill		1,168,255				1,169,734
Intangible assets, net		404,845				426,237
Long-term accounts receivable, net		673,897				763,923
Other assets		121,774				123,466
	$	10,055,277			$	9,087,372
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable – trade	$	4,820,923			$	4,263,796
Accounts payable – inventory financing facilities		259,611				225,035
Accrued expenses and other current liabilities		1,053,424				615,464
Current portion of long-term debt		13				8
Total current liabilities		6,133,971				5,104,303
Long-term debt		1,469,032				1,361,327
Deferred income taxes		69,543				70,715
Long-term accounts payable		613,736				715,494
Other liabilities		166,399				186,659
		8,452,681				7,438,498
Stockholders’ equity:
Preferred stock		—				—
Common stock		302				310
Additional paid-in capital		164,747				164,560
Retained earnings		1,480,197				1,520,404
Accumulated other comprehensive loss – foreign currency translation adjustments		(42,650	)			(36,400	)
Total stockholders’ equity		1,602,596				1,648,874
	$	10,055,277			$	9,087,372

INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (IN THOUSANDS) (UNAUDITED)
	Three Months Ended March 31,
		2026				2025
Cash flows from operating activities:
Net earnings	$	30,009			$	7,514
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization		28,478				25,779
Provision for losses on accounts receivable		3,429				3,666
Non-cash stock-based compensation		8,197				8,847
Net change on revaluation of earnout liabilities		25,284				15,200
Deferred income taxes		(1,185	)			(7,772	)
Net loss on revaluation of warrant settlement liabilities		—				25,069
Earnout payments in excess of acquisition date fair value		(1,071	)			—
Impairment loss on long lived real estate asset		1,369				—
Amortization of debt issuance costs		850				1,281
Other adjustments		(330	)			(22	)
Changes in assets and liabilities:
Increase in accounts receivable		(960,000	)			(391,354	)
Increase in inventories		(92,033	)			(26,033	)
Decrease in contract assets		12,014				35,526
Decrease in long-term accounts receivable		88,065				30,816
Increase in other assets		(14,827	)			(21,961	)
Increase in accounts payable		601,778				416,952
Decrease in long-term accounts payable		(100,059	)			(31,160	)
Increase (decrease) in accrued expenses and other liabilities		402,415				(14,298	)
Net cash provided by operating activities:		32,383				78,050
Cash flows from investing activities:
Purchases of property and equipment		(5,995	)			(7,130	)
Acquisitions, net of cash and cash equivalents acquired		—				—
Net cash used in investing activities:		(5,995	)			(7,130	)
Cash flows from financing activities:
Borrowings on ABL revolving credit facility		1,518,570				1,389,224
Repayments on ABL revolving credit facility		(1,406,177	)			(965,452	)
Warrants settlement		—				(138,892	)
Repayment of principal on the Convertible Notes		—				(333,091	)
Net borrowings under inventory financing facilities		34,976				42,701
Repurchases of common stock		(75,000	)			—
Earnout and acquisition related payments		(5,456	)			—
Other payments		(2,628	)			(9,963	)
Net cash provided by (used in) financing activities:		64,285				(15,473	)
Foreign currency exchange effect on cash, cash equivalents and restricted cash balances		(7,776	)			7,177
Increase in cash, cash equivalents and restricted cash		82,897				62,624
Cash, cash equivalents and restricted cash at beginning of period		360,776				261,467
Cash, cash equivalents and restricted cash at end of period	$	443,673			$	324,091

INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (IN THOUSANDS, EXCEPT PER SHARE DATA) (UNAUDITED)
		Three Months Ended March 31,
			2026				2025
Adjusted Consolidated Earnings from Operations:
GAAP consolidated EFO		$	71,682			$	60,103
Amortization of intangible assets			21,059				18,548
Change in fair value of earnout liabilities			25,293				15,200
Transformation costs			6,504				1,270
Impairment loss on a long lived real estate asset held for sale			1,369				—
Severance and restructuring expenses, net			6,485				7,026
Acquisition and integration related expenses			1				175
Stock-based compensation expense			8,197				8,847
Other*			558				30
Adjusted non-GAAP consolidated EFO		$	141,148			$	111,199
GAAP EFO as a percentage of net sales			3.4	%			2.9	%
Adjusted non-GAAP EFO as a percentage of net sales			6.6	%			5.3	%
Adjusted Consolidated Net Earnings:
GAAP consolidated net earnings		$	30,009			$	7,514
Amortization of intangible assets			21,059				18,548
Change in fair value of earnout liabilities			25,293				15,200
Net loss on revaluation of warrant settlement liabilities			—				25,069
Transformation costs			6,504				1,270
Impairment loss on a long lived real estate asset held for sale			1,369				—
Severance and restructuring expenses, net			6,485				7,026
Acquisition and integration related expenses			1				175
Stock-based compensation expense			8,197				8,847
Other*			558				30
Income taxes on non-GAAP adjustments			(10,551	)			(8,555	)
Adjusted non-GAAP consolidated net earnings		$	88,924			$	75,124
GAAP net earnings as a percentage of net sales			1.4	%			0.4	%
Adjusted non-GAAP net earnings as a percentage of net sales			4.2	%			3.6	%
Adjusted Diluted Earnings Per Share:
GAAP diluted EPS		$	0.97			$	0.22
Amortization of intangible assets			0.68				0.53
Change in fair value of earnout liabilities			0.82				0.44
Net loss on revaluation of warrant settlement liabilities			—				0.72
Transformation costs			0.21				0.04
Impairment loss on a long lived real estate asset held for sale			0.04				—
Severance and restructuring expenses, net			0.21				0.20
Acquisition and integration related expenses			—				0.01
Stock-based compensation expense			0.27				0.26
Other*			0.02				—
Income taxes on non-GAAP adjustments			(0.34	)			(0.25	)
Impact of benefit from note hedge			—				0.11
Adjusted non-GAAP diluted EPS		$	2.88			$	2.28
Shares used in diluted EPS calculation			30,856				34,683
Impact of benefit from note hedge			—				(1,731	)
Shares used in Adjusted non-GAAP diluted EPS calculation			30,856				32,952

INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (CONTINUED) (IN THOUSANDS, EXCEPT PER SHARE DATA) (UNAUDITED)
		Three Months Ended March 31,
			2026				2025
Adjusted North America Earnings from Operations:
GAAP EFO from North America segment		$	66,198			$	50,790
Amortization of intangible assets			18,644				16,804
Gain on revaluation of earnout liabilities			21,286				15,200
Transformation costs			3,582				860
Impairment loss on a long lived real estate asset held for sale			1,369				—
Severance and restructuring expenses, net			4,641				3,111
Acquisition and integration related expenses			61				170
Stock-based compensation expense			6,060				6,895
Other*			558				30
Adjusted non-GAAP EFO from North America segment		$	122,399			$	93,860
GAAP EFO as a percentage of net sales			3.9	%			3.0	%
Adjusted non-GAAP EFO as a percentage of net sales			7.3	%			5.5	%
Adjusted EMEA Earnings from Operations:
GAAP EFO from EMEA segment		$	6,605			$	5,011
Amortization of intangible assets			1,813				1,744
Transformation costs			2,922				410
Severance and restructuring expenses, net			1,750				3,853
Acquisition and integration related expenses			(16	)			—
Stock-based compensation expense			1,688				1,581
Adjusted non-GAAP EFO from EMEA segment		$	14,762			$	12,599
GAAP EFO as a percentage of net sales			1.8	%			1.5	%
Adjusted non-GAAP EFO as a percentage of net sales			4.0	%			3.7	%
Adjusted APAC Earnings from Operations:
GAAP EFO from APAC segment		$	(1,121	)		$	4,302
Amortization of intangible assets			602				—
Gain on revaluation of earnout liabilities			4,007				—
Severance and restructuring expenses, net			94				62
Acquisition and integration related expenses			(44	)			5
Stock-based compensation expense			449				371
Adjusted non-GAAP EFO from APAC segment		$	3,987			$	4,740
GAAP EFO as a percentage of net sales			(1.5	%)			7.2	%
Adjusted non-GAAP EFO as a percentage of net sales			5.5	%			7.9	%

INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (CONTINUED) (IN THOUSANDS, EXCEPT PER SHARE DATA) (UNAUDITED)
		Three Months Ended March 31,
			2026				2025
Adjusted EBITDA:
GAAP consolidated net earnings		$	30,009			$	7,514
Interest expense			25,610				17,739
Income tax expense			19,492				11,495
Depreciation and amortization of property and equipment			7,419				7,231
Amortization of intangible assets			21,059				18,548
Gain on revaluation of earnout liabilities			25,293				15,200
Net loss on revaluation of warrant settlement liability			—				25,069
Transformation costs			6,504				1,270
Impairment loss on a long lived real estate asset held for sale			1,369				—
Severance and restructuring expenses, net			6,485				7,026
Acquisition and integration related expenses			1				175
Stock-based compensation expense			8,197				8,847
Other*			558				30
Adjusted non-GAAP EBITDA		$	151,996			$	120,144
GAAP consolidated net earnings as a percentage of net sales			1.4	%			0.4	%
Adjusted non-GAAP EBITDA as a percentage of net sales			7.1	%			5.7	%

		Three Months Ended March 31,
			2026				2025
Adjusted Consolidated Selling and Administrative Expenses:​
GAAP selling and administrative expenses​		$	383,983			$	339,173
Less: Change in fair value of earnout liabilities			25,293				15,200
Amortization of intangible assets			21,059				18,548
Transformation costs			6,504				1,270
Impairment loss on a long lived real estate asset held for sale			1,369				—
Stock-based compensation expense			8,197				8,847
Other*			558				30
Adjusted non-GAAP selling and administrative expenses​		$	321,003			$	295,278
GAAP selling and administrative expenses as a percentage of net sales			18.0	%			16.1	%
Adjusted non-GAAP selling and administrative expenses as a percentage of net sales			15.1	%			14.0	%

*	Other includes certain executive recruitment and hiring related expenses. Certain executive recruitment and hiring related expenses were $0.6 million for the three months ended March 31, 2026, compared to immaterial amounts for the three months ended March 31, 2025.

INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (CONTINUED) (IN THOUSANDS, EXCEPT PER SHARE DATA) (UNAUDITED)
		Twelve Months Ended March 31,
			2026				2025
Adjusted return on invested capital:
GAAP consolidated EFO		$	346,502			$	348,701
Amortization of intangible assets			79,279				73,204
Change in fair value of earnout liabilities			35,396				6,410
Transformation costs			18,317				17,375
Impairment loss on a long lived real estate asset held for sale			13,957				—
Severance and restructuring expenses, net			36,590				36,404
Acquisition and integration related expenses			3,393				1,570
Stock-based compensation expense			33,088				34,775
Other5			1,153				(690	)
Adjusted non-GAAP consolidated EFO			567,675				517,749
Income tax expense1			147,595				134,615
Adjusted non-GAAP consolidated EFO, net of tax		$	420,080			$	383,134
Average stockholders’ equity2		$	1,605,726			$	1,746,178
Average debt2			1,301,841				957,752
Average cash2			(395,330	)			(306,790	)
Invested Capital		$	2,512,237			$	2,397,140
Adjusted non-GAAP ROIC (from GAAP consolidated EFO)3			10.21	%			10.76	%
Adjusted non-GAAP ROIC (from non-GAAP consolidated EFO)4			16.72	%			15.98	%

1	Assumed tax rate of 26.0%.
2	Average of previous five quarters.
3.	Computed as GAAP consolidated EFO, net of tax of $90,091 and $90,662 for the twelve months ended March 31, 2026 and 2025, respectively, divided by invested capital.
4.	Computed as Adjusted non-GAAP consolidated EFO, net of tax, divided by invested capital.
5	Other includes certain executive recruitment and hiring related expenses and certain third-party data center service outage related expenses and recoveries, net, as applicable. Net recoveries related to third-party data center service outages were $0.2 million and $2.1 million for the twelve months ended March 31, 2026 and 2025, respectively. Certain executive recruitment and hiring related expenses were $1.3 million and $1.4 million for the twelve months ended March 31, 2026 and 2025, respectively.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20260507865035/en/

JAMES MORGADO
CHIEF FINANCIAL OFFICER
TEL. 480.333.3251
EMAIL james.morgado@insight.com

Source: Insight Enterprises Inc.