Insight Enterprises, Inc. (NASDAQ:NSIT) (the "Company") today reported financial results for the quarter ended March 31, 2025. Results include:

Gross profit decreased 8% year to year to $406.5 million while gross margin expanded 80 basis points to 19.3%
- Cloud gross profit decreased 3% year to year
- Insight Core services gross profit decreased 4% year to year
Consolidated net earnings decreased 89% year to year to $7.5 million
Adjusted earnings before interest, tax, depreciation and amortization ("EBITDA") decreased 16% to $111.3 million year to year
Diluted earnings per share of $0.22 decreased 87% year to year
Adjusted diluted earnings per share of $2.06 decreased 13% year to year
Cash flows provided by operating activities were $78.1 million

In the first quarter of 2025, net sales decreased 12%, year to year, to $2.1 billion, and gross profit decreased 8%, year to year, to $406.5 million. Gross margin expanded 80 basis points compared to the first quarter of 2024 to 19.3%. Earnings from operations of $60.1 million decreased 40% compared to $100.0 million in the first quarter of 2024. Adjusted earnings from operations of $102.4 million decreased 16%, year to year compared to $121.8 million in the first quarter of 2024. Consolidated net earnings were $7.5 million, or 0.4% of net sales, in the first quarter of 2025, down compared to the first quarter of 2024, and attributable in part to a $15.2 million loss on revaluation of earnout liability and a net loss of $25.1 million recorded to reflect the revaluation of warrant settlement liabilities. Adjusted consolidated net earnings were $67.8 million, or 3.2% of net sales. Diluted earnings per share for the quarter was $0.22, down 87%, year to year, and Adjusted diluted earnings per share was $2.06, down 13%, year to year.

"In the first quarter, we delivered Adjusted earnings from operations and Adjusted diluted earnings per share in line with our expectations. We were pleased with the continued hardware momentum, led by commercial and corporate demand, and our gross margin expansion," stated Joyce Mullen, President and Chief Executive Officer. "While gross profit was slightly below our expectations, primarily due to product-related services performance, effective expense management allowed us to achieve our profitability target," Mullen stated.

KEY HIGHLIGHTS

Results for the Quarter:

Consolidated net sales for the first quarter of 2025 of $2.1 billion decreased 12%, year to year, when compared to the first quarter of 2024. Product net sales decreased 13%, year to year, and services net sales decreased 5%, year to year. Software product net sales decreased 32%, year to year, while hardware product net sales increased 1%, year over year.
- Net sales in North America decreased 11%, year to year, to $1.7 billion;
  - Product net sales decreased 12%, year to year, to $1.4 billion;
  - Services net sales decreased 7%, year to year, to $297.6 million;
- Net sales in EMEA decreased 17%, year to year, to $342.8 million; and
- Net sales in APAC decreased 3%, year to year, to $60.1 million.
Excluding the effects of fluctuating foreign currency exchange rates, consolidated net sales decreased 11%, year to year, with decreases in net sales in North America and EMEA of 10% and 15%, year to year, respectively, partially offset by an increase in APAC of 1%, year over year.
Consolidated gross profit decreased 8% compared to the first quarter of 2024 to $406.5 million, with consolidated gross margin expanding 80 basis points to 19.3% of net sales. Product gross profit decreased 9%, year to year, and services gross profit decreased 7%, year to year. Cloud gross profit decreased 3%, year to year, and Insight Core services gross profit decreased 4%, year to year. By segment, gross profit:
- decreased 9% in North America, year to year, to $319.5 million (18.8% gross margin);
- decreased 4% in EMEA, year to year, to $71.9 million (21.0% gross margin); and
- decreased 6% in APAC, year to year, to $15.1 million (25.1% gross margin).
Excluding the effects of fluctuating foreign currency exchange rates, consolidated gross profit was down 7%, year to year, with decreases in gross profit in North America, EMEA and APAC of 8%, 2% and 2%, respectively, year to year.
Consolidated earnings from operations decreased 40% compared to the first quarter of 2024 to $60.1 million, or 2.9% of net sales. By segment, earnings from operations:
- decreased 40% in North America, year to year, to $50.8 million, or 3.0% of net sales;
- decreased 55% in EMEA, year to year, to $5.0 million, or 1.5% of net sales; and
- decreased 10% in APAC, year to year, to $4.3 million, or 7.2% of net sales.
Excluding the effects of fluctuating foreign currency exchange rates, consolidated earnings from operations was down 39%, year to year, with decreases in earnings from operations in North America, EMEA and APAC of 39%, 54% and 7%, respectively, year to year.
Adjusted earnings from operations decreased 16% compared to the first quarter of 2024 to $102.4 million, or 4.9% of net sales. By segment, Adjusted earnings from operations:
- decreased 15% in North America, year to year, to $87.0 million, or 5.1% of net sales;
- decreased 21% in EMEA, year to year, to $11.0 million, or 3.2% of net sales; and
- decreased 12% in APAC, year to year, to $4.4 million, or 7.3% of net sales.
Excluding the effects of fluctuating foreign currency exchange rates, Adjusted consolidated earnings from operations decreased 15%, with decreases in Adjusted earnings from operations in North America, EMEA and APAC of 15%, 20% and 9%, respectively, year to year.
Consolidated net earnings and diluted earnings per share for the first quarter of 2025 were $7.5 million and $0.22, respectively, at an effective tax rate of 60.5%.
Adjusted consolidated net earnings and Adjusted diluted earnings per share for the first quarter of 2025 were $67.8 million and $2.06, respectively. Excluding the effects of fluctuating foreign currency exchange rates, Adjusted diluted earnings per share decreased 12%, year to year.

In discussing financial results for the three months ended March 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 2025, we expect Adjusted diluted earnings per share to be between $9.70 and $10.10. We expect to deliver gross profit growth in the low single-digits and expect that our gross margin will continue to be approximately 20%.

This outlook assumes:

interest expense of $70 to $75 million;
an effective tax rate of approximately 25% to 26% for the full year;
capital expenditures of $35 to $40 million; and
an average share count for the full year of 32.9 million shares, reflecting the settlement of the remaining warrants associated with our convertible senior notes (the "Convertible Notes") in 2025.

This outlook excludes acquisition-related intangibles amortization expense of approximately $74.3 million, 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 2025 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 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 and Adjusted diluted earnings per share 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, and (vii) 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. 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 first quarter of 2025 was in excess of $68.32, which was the initial conversion price of the Convertible Notes, which matured in February 2025. 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, and (x) gains and losses from the revaluation of warrant settlement liabilities. 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, and (viii) 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,
	2025			2024			change
Insight Enterprises, Inc.
Net sales:
Products	$	1,707,800		$	1,963,955		(13%)
Services	$	395,756		$	415,530		(5%)
Total net sales	$	2,103,556		$	2,379,485		(12%)
Gross profit	$	406,477		$	440,928		(8%)
Gross margin		19.3	%		18.5	%	80 bps
Selling and administrative expenses	$	339,173		$	337,434		1%
Severance and restructuring expenses, net	$	7,026		$	2,227		> 100%
Acquisition and integration related expenses	$	175		$	1,281		(86%)
Earnings from operations	$	60,103		$	99,986		(40%)
Net earnings	$	7,514		$	67,027		(89%)
Diluted earnings per share	$	0.22		$	1.74		(87%)

*Sales Mix*							**
Hardware		54	%		48	%	1%
Software		27	%		35	%	(32%)
Services		19	%		17	%	(5%)
		100	%		100	%	(12%)

North America
Net sales:
Products	$	1,403,027		$	1,586,306		(12%)
Services	$	297,616		$	318,516		(7%)
Total net sales	$	1,700,643		$	1,904,822		(11%)
Gross profit	$	319,452		$	349,843		(9%)
Gross margin		18.8	%		18.4	%	40 bps
Selling and administrative expenses	$	265,381		$	262,920		1%
Severance and restructuring expenses, net	$	3,111		$	1,619		92%
Acquisition and integration related expenses	$	170		$	1,281		(87%)
Earnings from operations	$	50,790		$	84,023		(40%)

*Sales Mix*							**
Hardware		59	%		52	%	2%
Software		23	%		31	%	(33%)
Services		18	%		17	%	(7%)
		100	%		100	%	(11%)

EMEA
Net sales:
Products	$	267,160		$	339,566		(21%)
Services	$	75,668		$	73,275		3%
Total net sales	$	342,828		$	412,841		(17%)
Gross profit	$	71,927		$	75,033		(4%)
Gross margin		21.0	%		18.2	%	280 bps
Selling and administrative expenses	$	63,063		$	63,305		*
Severance and restructuring expenses, net	$	3,853		$	538		> 100%
Earnings from operations	$	5,011		$	11,190		(55%)

*Sales Mix*							**
Hardware		38	%		33	%	(5%)
Software		40	%		49	%	(32%)
Services		22	%		18	%	3%
		100	%		100	%	(17%)

APAC
Net sales:
Products	$	37,613		$	38,083		(1%)
Services	$	22,472		$	23,739		(5)%
Total net sales	$	60,085		$	61,822		(3%)
Gross profit	$	15,098		$	16,052		(6)%
Gross margin		25.1	%		26.0	%	(90) bps
Selling and administrative expenses	$	10,729		$	11,209		(4)%
Severance and restructuring expenses, net	$	62		$	70		(11%)
Acquisition and integration related expenses	$	5		$	—		*
Earnings from operations	$	4,302		$	4,773		(10%)

*Sales Mix*							**
Hardware		11	%		12	%	(13%)
Software		52	%		50	%	2%
Services		37	%		38	%	(5)%
		100	%		100	%	(3%)

*		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 growth, 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, capital expenditures, and expected average share count, the Company's expectations regarding cash flow, the Company's intentions regarding the settlement of the remaining warrants related to the Convertible Notes, 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 report on Form 10-K 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 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;
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;
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 Artificial Intelligence;
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 with our clients and third-party suppliers;
our dependence on certain key personnel and our ability to attract, train and retain skilled teammates;
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,
	2025		2024
Net sales:
Products	$	1,707,800	$	1,963,955
Services		395,756		415,530
Total net sales		2,103,556		2,379,485
Costs of goods sold:
Products		1,531,826		1,771,584
Services		165,253		166,973
Total costs of goods sold		1,697,079		1,938,557
Gross profit		406,477		440,928
Operating expenses:
Selling and administrative expenses		339,173		337,434
Severance and restructuring expenses, net		7,026		2,227
Acquisition and integration related expenses		175		1,281
Earnings from operations		60,103		99,986
Non-operating expense (income):
Interest expense, net		15,625		12,557
Other expense (income), net		25,469		(763	)
Earnings before income taxes		19,009		88,192
Income tax expense		11,495		21,165
Net earnings	$	7,514	$	67,027

Net earnings per share:
Basic	$	0.24	$	2.06
Diluted	$	0.22	$	1.74

Shares used in per share calculations:
Basic		31,839		32,596
Diluted		34,683		38,435

INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In THOUSANDS)
(UNAUDITED)

	March 31, 2025			December 31, 2024
ASSETS
Current assets:
Cash and cash equivalents	$	321,850		$	259,234
Accounts receivable, net		4,608,997			4,172,104
Inventories		149,194			122,581
Contract assets, net		64,488			81,980
Other current assets		245,607			208,723
Total current assets		5,390,136			4,844,622

Long-term contract assets, net		69,055			86,953
Property and equipment, net		215,151			215,678
Goodwill		896,644			893,516
Intangible assets, net		409,345			426,493
Long-term accounts receivable		816,939			845,943
Other assets		125,303			135,373
	$	7,922,573		$	7,448,578

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable – trade	$	3,518,856		$	3,059,667
Accounts payable – inventory financing facilities		260,719			217,604
Accrued expenses and other current liabilities		606,210			512,052
Current portion of long-term debt		15			332,879
Total current liabilities		4,385,800			4,122,202

Long-term debt		961,172			531,233
Deferred income taxes		56,900			64,459
Long-term accounts payable		769,987			799,546
Other liabilities		157,770			160,527
		6,331,629			5,677,967
Stockholders' equity:
Preferred stock		—			—
Common stock		319			318
Additional paid-in capital		144,941			342,893
Retained earnings		1,516,072			1,508,558
Accumulated other comprehensive loss – foreign currency translation adjustments		(70,388	)		(81,158	)
Total stockholders' equity		1,590,944			1,770,611
	$	7,922,573		$	7,448,578

INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS)
(UNAUDITED)

	Three Months Ended March 31,
	2025			2024
Cash flows from operating activities:
Net earnings	$	7,514		$	67,027
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization		25,779			21,886
Provision for losses on accounts receivable		3,666			1,608
Non-cash stock-based compensation		8,847			8,043
Net change on revaluation of earnout liabilities		15,200			941
Deferred income taxes		(7,772	)		(4,423	)
Net loss on revaluation of warrant settlement liabilities		25,069			—
Amortization of debt issuance costs		1,281			1,224
Other adjustments		(22	)		3,168
Changes in assets and liabilities:
Increase in accounts receivable		(391,354	)		(25,294	)
(Increase) decrease in inventories		(26,033	)		12,115
Decrease in contract assets		35,526			32,142
Decrease (increase) in long-term accounts receivable		30,816			(206,154	)
Increase in other assets		(21,961	)		(26,821	)
Increase in accounts payable		416,952			184,511
(Decrease) increase in long-term accounts payable		(31,160	)		212,577
Decrease in accrued expenses and other liabilities		(14,298	)		(35,371	)
Net cash provided by operating activities:		78,050			247,179
Cash flows from investing activities:
Purchases of property and equipment		(7,130	)		(6,482	)
Net cash used in investing activities:		(7,130	)		(6,482	)
Cash flows from financing activities:
Borrowings on ABL revolving credit facility		1,389,224			1,144,826
Repayments on ABL revolving credit facility		(965,452	)		(1,186,997	)
Warrants settlement		(138,892	)		—
Repayment of principal on the Convertible Notes		(333,091	)		(16,895	)
Net borrowings (repayments) under inventory financing facilities		42,701			(4,545	)
Repurchases of common stock		—			(35,000	)
Earnout and acquisition related payments		—			(18,296	)
Other payments		(9,963	)		(8,360	)
Net cash used in financing activities:		(15,473	)		(125,267	)
Foreign currency exchange effect on cash, cash equivalents and restricted cash balances		7,177			(5,074	)
Increase in cash, cash equivalents and restricted cash		62,624			110,356
Cash, cash equivalents and restricted cash at beginning of period		261,467			270,785
Cash, cash equivalents and restricted cash at end of period	$	324,091		$	381,141

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,
	2025			2024
Adjusted Consolidated Earnings from Operations:
GAAP consolidated EFO	$	60,103		$	99,986
Amortization of intangible assets		18,548			14,925
Change in fair value of earnout liabilities		15,200			941
Other*		8,501			5,898
Adjusted non-GAAP consolidated EFO	$	102,352		$	121,750

GAAP EFO as a percentage of net sales		2.9	%		4.2	%
Adjusted non-GAAP EFO as a percentage of net sales		4.9	%		5.1	%

Adjusted Consolidated Net Earnings:
GAAP consolidated net earnings	$	7,514		$	67,027
Amortization of intangible assets		18,548			14,925
Change in fair value of earnout liabilities		15,200			941
Net loss on revaluation of warrant settlement liabilities		25,069			—
Other*		8,501			5,898
Income taxes on non-GAAP adjustments		(7,007	)		(5,439	)
Adjusted non-GAAP consolidated net earnings	$	67,825		$	83,352

GAAP net earnings as a percentage of net sales		0.4	%		2.8	%
Adjusted non-GAAP net earnings as a percentage of net sales		3.2	%		3.5	%

Adjusted Diluted Earnings Per Share:
GAAP diluted EPS	$	0.22		$	1.74
Amortization of intangible assets		0.53			0.39
Change in fair value of earnout liabilities		0.44			0.02
Net loss on revaluation of warrant settlement liabilities		0.72			—
Other		0.25			0.16
Income taxes on non-GAAP adjustments		(0.20	)		(0.14	)
Impact of benefit from note hedge		0.10			0.20
Adjusted non-GAAP diluted EPS	$	2.06		$	2.37

Shares used in diluted EPS calculation		34,683			38,435
Impact of benefit from note hedge		(1,731	)		(3,228	)
Shares used in Adjusted non-GAAP diluted EPS calculation		32,952			35,207

Adjusted North America Earnings from Operations:
GAAP EFO from North America segment	$	50,790		$	84,023
Amortization of intangible assets		16,804			13,146
Change in fair value of earnout liabilities		15,200			465
Other**		4,171			5,150
Adjusted non-GAAP EFO from North America segment	$	86,965		$	102,784

GAAP EFO as a percentage of net sales		3.0	%		4.4	%
Adjusted non-GAAP EFO as a percentage of net sales		5.1	%		5.4	%

Adjusted EMEA Earnings from Operations:
GAAP EFO from EMEA segment	$	5,011		$	11,190
Amortization of intangible assets		1,744			1,670
Change in fair value of earnout liabilities		—			476
Other		4,263			678
Adjusted non-GAAP EFO from EMEA segment	$	11,018		$	14,014

GAAP EFO as a percentage of net sales		1.5	%		2.7	%
Adjusted non-GAAP EFO as a percentage of net sales		3.2	%		3.4	%

Adjusted APAC Earnings from Operations:
GAAP EFO from APAC segment	$	4,302		$	4,773
Amortization of intangible assets		—			109
Other		67			70
Adjusted non-GAAP EFO from APAC segment	$	4,369		$	4,952

GAAP EFO as a percentage of net sales		7.2	%		7.7	%
Adjusted non-GAAP EFO as a percentage of net sales		7.3	%		8.0	%

Adjusted EBITDA:
GAAP consolidated net earnings	$	7,514		$	67,027
Interest expense		17,739			15,269
Income tax expense		11,495			21,165
Depreciation and amortization of property and equipment		7,231			6,961
Amortization of intangible assets		18,548			14,925
Change in fair value of earnout liabilities		15,200			941
Net loss on revaluation of warrant settlement liabilities		25,069			—
Other*		8,501			5,898
Adjusted non-GAAP EBITDA	$	111,297		$	132,186

GAAP consolidated net earnings as a percentage of net sales		0.4	%		2.8	%
Adjusted non-GAAP EBITDA as a percentage of net sales		5.3	%		5.6	%

*		Includes transformation costs of $1.3 million and $2.3 million for the three months ended March 31, 2025 and 2024, respectively. Includes severance and restructuring expenses, net of $7.0 million and $2.2 million for the three months ended March 31, 2025 and 2024, respectively.

**		Includes transformation costs of $0.9 million and $2.3 million for the three months ended March 31, 2025 and 2024, respectively. Includes severance and restructuring expenses, net of $3.1 million and $1.6 million for the three months ended March 31, 2025 and 2024, respectively.

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,
	2025			2024
Adjusted return on invested capital:
GAAP consolidated EFO	$	348,701		$	442,320
Amortization of intangible assets		73,204			42,846
Change in fair value of earnout liabilities		6,410			941
Other⁵		54,659			33,813
Adjusted non-GAAP consolidated EFO		482,974			519,920
Income tax expense¹		125,573			135,179
Adjusted non-GAAP consolidated EFO, net of tax	$	357,401		$	384,741
Average stockholders' equity²	$	1,746,178		$	1,651,965
Average debt²		957,752			739,136
Average cash²		(306,790	)		(252,769	)
Invested Capital	$	2,397,140		$	2,138,332

Adjusted non-GAAP ROIC (from GAAP consolidated EFO)³		10.76	%		15.31	%
Adjusted non-GAAP ROIC (from non-GAAP consolidated EFO)⁴		14.91	%		17.99	%

¹		Assumed tax rate of 26.0%.
²		Average of previous five quarters.
³		Computed as GAAP consolidated EFO, net of tax of $90,662 and $115,003 for the twelve months ended March 31, 2025 and 2024, respectively, divided by invested capital.
⁴		Computed as Adjusted non-GAAP consolidated EFO, net of tax, divided by invested capital.
⁵		Includes transformation costs of $17.4 million and $14.8 million for the twelve months ended March 31, 2025 and 2024, respectively. Includes certain third-party data center service outage related recoveries in excess of expenses of $2.1 million for the twelve months ended March 31, 2025. Includes certain third-party data center service outage related expenses, net of recoveries of $5.0 million for the twelve months ended March 31, 2024. Includes severance and restructuring expenses, net of $36.4 million and $4.5 million for the twelve months ended March 31, 2025 and 2024, respectively.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250501015554/en/

JAMES MORGADO

CHIEF FINANCIAL OFFICER

TEL. 480.333.3251

EMAIL james.morgado@insight.com

Insight Enterprises, Inc. Reports First Quarter Results