Insight Enterprises Inc

Latest Results (20.11.2025):

Insight Enterprises Inc reported results for the third quarter of 2025: consolidated net sales of $2.0 billion (down 4% year-over-year), flat gross profit of $434.2 million with a 100-basis-point expansion in gross margin to 21.7%, consolidated net earnings of $50.9 million (down 12%), and adjusted diluted EPS of $2.43 (up 11%). Adjusted EBITDA rose to $137.0 million and operating cash flow was $249.1 million.

Revenue

Consolidated net sales were $2.0 billion, down 4% YoY. Product net sales fell 6% while services net sales rose 3%. Software product sales declined sharply (‑19%), offset partly by hardware product growth of 1%.

Profitability & Margins

Gross profit was flat at $434.2 million, but gross margin expanded to 21.7% (up 100 bps YoY). Product gross profit declined 8% while services gross profit grew 7%; cloud gross profit rose 7% and Insight Core services gross profit fell 3%.

Earnings & EPS

Consolidated net earnings were $50.9 million (2.5% of sales), down 12% YoY, primarily due to higher interest expense from an increased ABL loan balance. Diluted EPS was $1.62 (up 7% YoY). Adjusted consolidated net earnings were $76.8 million and adjusted diluted EPS was $2.43 (up 11% YoY).

Adjusted Measures

Adjusted earnings from operations increased 5% to $126.4 million (6.3% of sales). Adjusted EBITDA rose 6% to $137.0 million. Excluding FX effects, adjusted diluted EPS increased ~10% YoY.

Segment & Regional Performance

North America net sales decreased 5% to $1.6 billion; EMEA sales increased 2% to $319.8 million; APAC was flat at $58.8 million. By region, gross profit was $342.3M (NA, 21.1% margin), $74.2M (EMEA, 23.2%), and $17.7M (APAC, 30.1%). Earnings from operations: NA $83.6M (+3%), EMEA $4.5M (‑33%), APAC $4.9M (‑7%). On an adjusted basis, all three regions showed YoY increases in adjusted earnings from operations.

Cash Flow & Balance Sheet Items

Cash flows from operating activities were $249.1 million. The company cited elevated interest expense tied to a higher ABL facility balance as a driver of lower GAAP net earnings in the quarter.

Management Commentary

CEO Joyce Mullen highlighted 11% adjusted diluted EPS growth, record gross margin, consecutive commercial net sales growth (six quarters), stronger-than-expected cloud gross profit, and disciplined adjusted SG&A, partially offset by softer Insight Core services and hardware.

Guidance (Full Year 2025)

Full-year adjusted diluted EPS guidance is $9.60–$9.90. The company expects gross profit to be slightly down vs. 2024 with an approximate full-year gross margin of 21%. Assumptions include ~$85M interest/other expense, a 25–26% effective tax rate, ~$25M capex, and an average share count of ~32.0M. Guidance excludes ~ $74.4M of acquisition-related amortization and assumes no significant acquisitions or restructuring costs.