Insight Enterprises, Inc. Reports Second Quarter Results
CHANDLER, Ariz.--( BUSINESS WIRE)--Insight Enterprises, Inc. (NASDAQ: NSIT) (the “Company”) today reported financial results for the quarter ended June 30, 2026. Highlights include:
In the second quarter of 2026, net sales increased 15%, year over year, to $2.4 billion, and gross profit increased 18%, year over year, to $521.6 million. Gross margin expanded 60 basis points compared to the second quarter of 2025 to 21.7%. Selling and administrative expenses increased 9%, year to year, while Adjusted selling and administrative expenses increased 12%, year to year. Earnings from operations of $131.0 million, or 5.5% of net sales, increased 51% compared to $86.5 million in the second quarter of 2025. Adjusted earnings from operations of $180.6 million, or 7.5% of net sales, increased 31% year over year compared to $138.0 million in the second quarter of 2025. Consolidated net earnings were $77.6 million, or 3.2% of net sales, in the second quarter of 2026, up 65% year over year compared to $46.9 million in the second quarter of 2025. Adjusted consolidated net earnings were $116.4 million, or 4.9% of net sales, in the second quarter of 2026, up 35% year over year compared to $86.0 million in the second quarter of 2025. Diluted earnings per share for the quarter was $2.57, up 76% year over year, and Adjusted diluted earnings per share was $3.86, up 44% year over year.
“I am pleased to report another strong quarter for Insight. Building on a strong first quarter, we delivered broad-based growth across our business and generated strong operating leverage, with strength in cloud, infrastructure, and services, driven by AI demand,” stated Jack Azagury, President and Chief Executive Officer. “This resulted in total gross profit growth of 18%, adjusted earnings from operations growth of 31%, and adjusted diluted earnings per share growth of 44%,” Azagury added.
KEY HIGHLIGHTS
Results for the Quarter:
In discussing financial results for the three and six months ended June 30, 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 are raising our gross profit growth expectations to 8% to 10% and expect gross margin to be between 21.5% and 22.0%. We now expect our Adjusted diluted earnings per share to be between $12.20 and $12.70. This represents approximately 16% growth at the midpoint of $12.45 compared to our full year 2025 Adjusted diluted earnings per share of $10.75.
This outlook assumes:
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 second 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, (ix) certain third-party data center service outage related expenses and recoveries, and (x) 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, (xii) stock-based compensation expense and (xiii) certain third-party data center service outage related expenses and recoveries, 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
June 30,
Six Months Ended
June 30,
2026
2025
change
2026
2025
change
Insight Enterprises, Inc.
Net sales:
Products
$
1,885,609
$
1,665,290
13%
$
3,552,155
$
3,373,090
5%
Services
$
513,888
$
426,192
21%
$
975,328
$
821,948
19%
Total net sales
$
2,399,497
$
2,091,482
15%
$
4,527,483
$
4,195,038
8%
Gross profit
$
521,602
$
442,327
18%
$
983,753
$
848,804
16%
Gross margin
21.7
%
21.1
%
60 bps
21.7
%
20.2
%
150 bps
Selling and administrative expenses
$
384,575
$
352,314
9%
$
768,558
$
691,487
11%
Severance and restructuring expenses, net
$
5,795
$
3,405
70%
$
12,280
$
10,431
18%
Acquisition and integration related expenses
$
265
$
76
> 100%
$
266
$
251
6%
Earnings from operations
$
130,967
$
86,532
51%
$
202,649
$
146,635
38%
Net earnings
$
77,569
$
46,932
65%
$
107,578
$
54,446
98%
Diluted earnings per share
$
2.57
$
1.46
76%
$
3.53
$
1.63
> 100%
Sales Mix
**
**
Hardware
60
%
57
%
21%
58
%
56
%
14%
Software
19
%
23
%
(6%)
20
%
25
%
(14%)
Services
21
%
20
%
21%
22
%
19
%
19%
100
%
100
%
15%
100
%
100
%
8%
North America
Net sales:
Products
$
1,570,451
$
1,374,612
14%
$
2,919,468
$
2,777,639
5%
Services
$
368,212
$
309,692
19%
$
702,000
$
607,308
16%
Total net sales
$
1,938,663
$
1,684,304
15%
$
3,621,468
$
3,384,947
7%
Gross profit
$
397,707
$
341,692
16%
$
751,033
$
661,144
14%
Gross margin
20.5
%
20.3
%
20 bps
20.7
%
19.5
%
120 bps
Selling and administrative expenses
$
282,948
$
270,340
5%
$
565,374
$
535,721
6%
Severance and restructuring expenses, net
$
2,048
$
2,554
(20%)
$
6,689
$
5,665
18%
Acquisition and integration related expenses
$
128
$
76
68%
$
189
$
246
(23%)
Earnings from operations
$
112,583
$
68,722
64%
$
178,781
$
119,512
50%
Sales Mix
**
**
Hardware
67
%
64
%
20%
65
%
61
%
13%
Software
14
%
18
%
(8%)
16
%
21
%
(19%)
Services
19
%
18
%
19%
19
%
18
%
16%
100
%
100
%
15%
100
%
100
%
7%
FINANCIAL SUMMARY TABLE (CONTINUED)
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
Three Months Ended
June 30,
Six Months Ended
June 30,
2026
2025
change
2026
2025
change
EMEA
Net sales:
Products
$
274,436
$
260,330
5%
$
556,391
$
527,490
5%
Services
$
100,758
$
88,284
14%
$
191,654
$
163,952
17%
Total net sales
$
375,194
$
348,614
8%
$
748,045
$
691,442
8%
Gross profit
$
93,426
$
82,434
13%
$
180,229
$
154,361
17%
Gross margin
24.9
%
23.6
%
130 bps
24.1
%
22.3
%
180 bps
Selling and administrative expenses
$
80,537
$
70,475
14%
$
159,001
$
133,538
19%
Severance and restructuring expenses, net
$
3,400
$
803
> 100%
$
5,150
$
4,656
11%
Acquisition and integration related expenses
$
—
$
—
*
$
(16
)
$
—
*
Earnings from operations
$
9,489
$
11,156
(15%)
$
16,094
$
16,167
*
Sales Mix
**
**
Hardware
34
%
31
%
20%
36
%
34
%
15%
Software
39
%
44
%
(5%)
38
%
42
%
(2%)
Services
27
%
25
%
14%
26
%
24
%
17%
100
%
100
%
8%
100
%
100
%
8%
APAC
Net sales:
Products
$
40,722
$
30,348
34%
$
76,296
$
67,961
12%
Services
$
44,918
$
28,216
59%
$
81,674
$
50,688
61%
Total net sales
$
85,640
$
58,564
46%
$
157,970
$
118,649
33%
Gross profit
$
30,469
$
18,201
67%
$
52,491
$
33,299
58%
Gross margin
35.6
%
31.1
%
450 bps
33.2
%
28.1
%
510 bps
Selling and administrative expenses
$
21,090
$
11,499
83%
$
44,183
$
22,228
99%
Severance and restructuring expenses, net
$
347
$
48
> 100%
$
441
$
110
> 100%
Acquisition and integration related expenses
$
137
$
—
> 100%
$
93
$
5
> 100%
Earnings from operations
$
8,895
$
6,654
34%
$
7,774
$
10,956
(29%)
Sales Mix
**
**
Hardware
19
%
15
%
86%
18
%
13
%
94%
Software
29
%
37
%
13%
30
%
44
%
(11%)
Services
52
%
48
%
59%
52
%
43
%
61%
100
%
100
%
46%
100
%
100
%
33%
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:
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
June 30,
Six Months Ended
June 30,
2026
2025
2026
2025
Net sales:
Products
$
1,885,609
$
1,665,290
$
3,552,155
$
3,373,090
Services
513,888
426,192
975,328
821,948
Total net sales
2,399,497
2,091,482
4,527,483
4,195,038
Costs of goods sold:
Products
1,692,240
1,480,777
3,179,884
3,012,603
Services
185,655
168,378
363,846
333,631
Total costs of goods sold
1,877,895
1,649,155
3,543,730
3,346,234
Gross profit:
Products
193,369
184,513
372,271
360,487
Services
328,233
257,814
611,482
488,317
Gross profit
521,602
442,327
983,753
848,804
Operating expenses:
Selling and administrative expenses
384,575
352,314
768,558
691,487
Severance and restructuring expenses, net
5,795
3,405
12,280
10,431
Acquisition and integration related expenses
265
76
266
251
Earnings from operations
130,967
86,532
202,649
146,635
Non-operating expense (income):
Interest expense, net
24,409
22,352
48,042
37,977
Other (income) expense, net
248
13
(1,204
)
25,482
Earnings before income taxes
106,310
64,167
155,811
83,176
Income tax expense
28,741
17,235
48,233
28,730
Net earnings
$
77,569
$
46,932
$
107,578
$
54,446
Net earnings per share:
Basic
$
2.58
$
1.48
$
3.54
$
1.71
Diluted
$
2.57
$
1.46
$
3.53
$
1.63
Shares used in per share calculations:
Basic
30,032
31,780
30,410
31,809
Diluted
30,174
32,121
30,515
33,402
INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In THOUSANDS)
(UNAUDITED)
June 30,
2026
December 31,
2025
ASSETS
Current assets:
Cash and cash equivalents
$
363,482
$
358,020
Accounts receivable, net
7,815,930
5,516,984
Inventories
247,889
160,648
Contract assets, net
58,589
65,745
Other current assets
309,554
260,990
Total current assets
8,795,444
6,362,387
Long-term contract assets, net
40,901
53,176
Property and equipment, net
186,314
188,449
Goodwill
1,166,420
1,169,734
Intangible assets, net
383,589
426,237
Long-term accounts receivable, net
699,011
763,923
Other assets
122,071
123,466
$
11,393,750
$
9,087,372
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable – trade
$
6,519,548
$
4,263,796
Accounts payable – inventory financing facilities
266,636
225,035
Accrued expenses and other current liabilities
647,774
615,464
Current portion of long-term debt
—
8
Total current liabilities
7,433,958
5,104,303
Long-term debt
1,475,089
1,361,327
Deferred income taxes
70,477
70,715
Long-term accounts payable
619,579
715,494
Other liabilities
189,622
186,659
9,788,725
7,438,498
Stockholders’ equity:
Preferred stock
—
—
Common stock
295
310
Additional paid-in capital
171,931
164,560
Retained earnings
1,486,649
1,520,404
Accumulated other comprehensive loss – foreign currency translation adjustments
(53,850
)
(36,400
)
Total stockholders’ equity
1,605,025
1,648,874
$
11,393,750
$
9,087,372
INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS)
(UNAUDITED)
Six Months Ended
June 30,
2026
2025
Cash flows from operating activities:
Net earnings
$
107,578
$
54,446
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities:
Depreciation and amortization
57,333
51,711
Provision for losses on accounts receivable
9,386
2,269
Provision for losses on contract assets
(744
)
3,926
Non-cash stock-based compensation
19,311
17,909
Net change on revaluation of earnout liabilities
25,570
15,364
Deferred income taxes
1,733
(13,689
)
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
2,033
12,588
Amortization of debt issuance costs
1,708
2,344
Other adjustments
61
(843
)
Changes in assets and liabilities:
Increase in accounts receivable
(2,393,734
)
(1,128,707
)
Increase in inventories
(90,534
)
(23,243
)
Decrease in contract assets
20,203
36,227
Decrease in long-term accounts receivable
62,276
103,073
Increase in other assets
(54,336
)
(61,411
)
Increase in accounts payable
2,329,960
950,439
Decrease in long-term accounts payable
(93,537
)
(103,511
)
Increase (decrease) in accrued expenses and other liabilities
16,944
(42,962
)
Net cash provided by (used in) operating activities:
20,140
(99,001
)
Cash flows from investing activities:
Proceeds from sale of assets
7,985
—
Purchases of property and equipment
(13,855
)
(11,978
)
Net cash used in investing activities:
(5,870
)
(11,978
)
Cash flows from financing activities:
Borrowings on ABL revolving credit facility
3,129,000
3,103,360
Repayments on ABL revolving credit facility
(3,008,787
)
(2,322,961
)
Warrants settlement
—
(221,968
)
Repayment of principal on the Convertible Notes
—
(333,091
)
Net borrowings under inventory financing facilities
42,559
2,077
Payment of debt issuance costs
(366
)
—
Repurchases of common stock
(150,000
)
(76,118
)
Earnout and acquisition related payments
(5,456
)
—
Other payments
(3,115
)
(12,181
)
Net cash provided by financing activities:
3,835
139,118
Foreign currency exchange effect on cash, cash equivalents and restricted cash balances
(12,321
)
21,959
Increase in cash, cash equivalents and restricted cash
5,784
50,098
Cash, cash equivalents and restricted cash at beginning of period
360,776
261,467
Cash, cash equivalents and restricted cash at end of period
$
366,560
$
311,565
INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
Three Months Ended
June 30,
Six Months Ended
June 30,
2026
2025
2026
2025
Adjusted Consolidated Earnings from Operations:
GAAP consolidated EFO
$
130,967
$
86,532
$
202,649
$
146,635
Amortization of intangible assets
21,045
18,668
42,104
37,216
Change in fair value of earnout liabilities
286
164
25,579
15,364
Transformation costs
9,830
7,005
16,334
8,275
Impairment loss on a long lived real estate asset held for sale
664
12,588
2,033
12,588
Severance and restructuring expenses, net
5,795
3,405
12,280
10,431
Acquisition and integration related expenses
265
76
266
251
Stock-based compensation expense
11,114
9,062
19,311
17,909
Other*
665
525
1,223
555
Adjusted non-GAAP consolidated EFO
$
180,631
$
138,025
$
321,779
$
249,224
GAAP EFO as a percentage of net sales
5.5
%
4.1
%
4.5
%
3.5
%
Adjusted non-GAAP EFO as a percentage of net sales
7.5
%
6.6
%
7.1
%
5.9
%
Adjusted Consolidated Net Earnings:
GAAP consolidated net earnings
$
77,569
$
46,932
$
107,578
$
54,446
Amortization of intangible assets
21,045
18,668
42,104
37,216
Change in fair value of earnout liabilities
286
164
25,579
15,364
Net loss on revaluation of warrant settlement liabilities
—
—
—
25,069
Transformation costs
9,830
7,005
16,334
8,275
Impairment loss on a long lived real estate asset held for sale
664
12,588
2,033
12,588
Severance and restructuring expenses, net
5,795
3,405
12,280
10,431
Acquisition and integration related expenses
265
76
266
251
Stock-based compensation expense
11,114
9,062
19,311
17,909
Other*
665
525
1,223
555
Income taxes on non-GAAP adjustments
(10,833
)
(12,381
)
(21,384
)
(20,936
)
Adjusted non-GAAP consolidated net earnings
$
116,400
$
86,044
$
205,324
$
161,168
GAAP net earnings as a percentage of net sales
3.2
%
2.2
%
2.4
%
1.3
%
Adjusted non-GAAP net earnings as a percentage of net sales
4.9
%
4.1
%
4.5
%
3.8
%
INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (CONTINUED)
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
Three Months Ended
June 30,
Six Months Ended
June 30,
2026
2025
2026
2025
Adjusted Diluted Earnings Per Share:
GAAP diluted EPS
$
2.57
$
1.46
$
3.53
$
1.63
Amortization of intangible assets
0.70
0.58
1.38
1.11
Change in fair value of earnout liabilities
0.01
0.01
0.84
0.46
Net loss on revaluation of warrant settlement liabilities
—
—
—
0.75
Transformation costs
0.33
0.22
0.54
0.25
Impairment loss on a long lived real estate asset held for sale
0.02
0.39
0.07
0.38
Severance and restructuring expenses, net
0.19
0.11
0.40
0.31
Acquisition and integration related expenses
0.01
—
0.01
0.01
Stock-based compensation expense
0.37
0.28
0.63
0.54
Other*
0.02
0.02
0.04
0.02
Income taxes on non-GAAP adjustments
(0.36
)
(0.39
)
(0.71
)
(0.63
)
Impact of benefit from note hedge
—
—
—
0.12
Adjusted non-GAAP diluted EPS
$
3.86
$
2.68
$
6.73
$
4.95
Shares used in diluted EPS calculation
30,174
32,121
30,515
33,402
Impact of benefit from note hedge
—
—
—
(865
)
Shares used in Adjusted non-GAAP diluted EPS calculation
30,174
32,121
30,515
32,537
Adjusted North America Earnings from Operations:
GAAP EFO from North America segment
$
112,583
$
68,722
$
178,781
$
119,512
Amortization of intangible assets
18,654
16,817
37,298
33,621
Gain on revaluation of earnout liabilities
(206
)
(3,299
)
21,080
11,901
Transformation costs
6,086
4,928
9,668
5,788
Impairment loss on a long lived real estate asset held for sale
664
12,588
2,033
12,588
Severance and restructuring expenses, net
2,048
2,554
6,689
5,665
Acquisition and integration related expenses
128
76
189
246
Stock-based compensation expense
8,432
7,046
14,492
13,941
Other*
665
525
1,223
555
Adjusted non-GAAP EFO from North America segment
$
149,054
$
109,957
$
271,453
$
203,817
GAAP EFO as a percentage of net sales
5.8
%
4.1
%
4.9
%
3.5
%
Adjusted non-GAAP EFO as a percentage of net sales
7.7
%
6.5
%
7.5
%
6.0
%
INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (CONTINUED)
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
Three Months Ended
June 30,
Six Months Ended
June 30,
2026
2025
2026
2025
Adjusted EMEA Earnings from Operations:
GAAP EFO from EMEA segment
$
9,489
$
11,156
$
16,094
$
16,167
Amortization of intangible assets
1,803
1,851
3,616
3,595
Gain on revaluation of earnout liabilities
—
3,463
—
3,463
Transformation costs
3,712
2,077
6,634
2,487
Severance and restructuring expenses, net
3,400
803
5,150
4,656
Acquisition and integration related expenses
—
—
(16
)
—
Stock-based compensation expense
2,178
1,641
3,866
3,222
Adjusted non-GAAP EFO from EMEA segment
$
20,582
$
20,991
$
35,344
$
33,590
GAAP EFO as a percentage of net sales
2.5
%
3.2
%
2.2
%
2.3
%
Adjusted non-GAAP EFO as a percentage of net sales
5.5
%
6.0
%
4.7
%
4.9
%
Adjusted APAC Earnings from Operations:
GAAP EFO from APAC segment
$
8,895
$
6,654
$
7,774
$
10,956
Amortization of intangible assets
588
—
1,190
—
Gain on revaluation of earnout liabilities
492
—
4,499
—
Transformation costs
32
—
32
—
Severance and restructuring expenses, net
347
48
441
110
Acquisition and integration related expenses
137
—
93
5
Stock-based compensation expense
504
375
953
746
Adjusted non-GAAP EFO from APAC segment
$
10,995
$
7,077
$
14,982
$
11,817
GAAP EFO as a percentage of net sales
10.4
%
11.4
%
4.9
%
9.2
%
Adjusted non-GAAP EFO as a percentage of net sales
12.8
%
12.1
%
9.5
%
10.0
%
INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (CONTINUED)
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
Three Months Ended
June 30,
Six Months Ended
June 30,
2026
2025
2026
2025
GAAP consolidated net earnings
$
77,569
$
46,932
$
107,578
$
54,446
Interest expense
26,587
24,293
52,197
42,032
Income tax expense
28,741
17,235
48,233
28,730
Depreciation and amortization of property and equipment
7,810
7,264
15,229
14,495
Amortization of intangible assets
21,045
18,668
42,104
37,216
Gain on revaluation of earnout liabilities
286
164
25,579
15,364
Net loss on revaluation of warrant settlement liability
—
—
—
25,069
Transformation costs
9,830
7,005
16,334
8,275
Impairment loss on a long lived real estate asset held for sale
664
12,588
2,033
12,588
Severance and restructuring expenses, net
5,795
3,405
12,280
10,431
Acquisition and integration related expenses
265
76
266
251
Stock-based compensation expense
11,114
9,062
19,311
17,909
Other*
665
525
1,223
555
Adjusted non-GAAP EBITDA
$
190,371
$
147,217
$
342,367
$
267,361
GAAP consolidated net earnings as a percentage of net sales
3.2
%
2.2
%
2.4
%
1.3
%
Adjusted non-GAAP EBITDA as a percentage of net sales
7.9
%
7.0
%
7.6
%
6.4
%
Three Months Ended
June 30,
Six Months Ended
June 30,
2026
2025
2026
2025
Adjusted Consolidated Selling and Administrative Expenses:
GAAP selling and administrative expenses
$
384,575
$
352,314
$
768,558
$
691,487
Less: Change in fair value of earnout liabilities
286
164
25,579
15,364
Amortization of intangible assets
21,045
18,668
42,104
37,216
Transformation costs
9,830
7,005
16,334
8,275
Impairment loss on a long lived real estate asset held for sale
664
12,588
2,033
12,588
Stock-based compensation expense
11,114
9,062
19,311
17,909
Other*
665
525
1,223
555
Adjusted non-GAAP selling and administrative expenses
$
340,971
$
304,302
$
661,974
$
599,580
GAAP selling and administrative expenses as a percentage of net sales
16.0
%
16.8
%
17.0
%
16.5
%
Adjusted non-GAAP selling and administrative expenses as a percentage of net sales
14.2
%
14.5
%
14.6
%
14.3
%
*
Other includes certain executive recruitment and hiring related expenses and certain third-party data center service outage related expenses and recoveries, net. Certain executive recruitment and hiring related expenses were $0.7 million and $1.2 million for the three and six months ended June 30, 2026, respectively, compared to immaterial amounts for the three and six months ended June 30, 2025. Certain third-party data center service outage related expenses were $0.5 million for both the three and six months ended June 30, 2025 with no comparable activity for both the three and six months ended June 30, 2026.
INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (CONTINUED)
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
Twelve Months Ended
June 30,
2026
2025
Adjusted return on invested capital:
GAAP consolidated EFO
$
390,937
$
304,160
Amortization of intangible assets
81,656
74,515
Change in fair value of earnout liabilities
35,518
31,722
Transformation costs
21,142
18,731
Impairment loss on a long lived real estate asset held for sale
2,033
12,588
Severance and restructuring expenses, net
38,980
34,940
Acquisition and integration related expenses
3,582
1,456
Stock-based compensation expense
35,140
34,980
Other 5
1,293
2,733
Adjusted non-GAAP consolidated EFO
610,281
515,825
Income tax expense 1
158,673
134,115
Adjusted non-GAAP consolidated EFO, net of tax
$
451,608
$
381,710
Average stockholders’ equity 2
$
1,608,542
$
1,716,177
Average debt 2
1,404,621
1,046,438
Average cash 2
(403,656
)
(292,795
)
Invested Capital
$
2,609,507
$
2,469,820
Adjusted non-GAAP ROIC (from GAAP consolidated EFO) 3
11.09
%
9.11
%
Adjusted non-GAAP ROIC (from non-GAAP consolidated EFO) 4
17.31
%
15.45
%
1
Assumed tax rate of 26.0%.
2
Average of previous five quarters.
3
Computed as GAAP consolidated EFO, net of tax of $101,644 and $79,082 for the twelve months ended June 30, 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. Certain executive recruitment and hiring related expenses were $1.9 million and $0.9 million for the twelve months ended June 30, 2026 and 2025, respectively. Net recoveries related to third-party data center service outages were $0.2 million for the twelve months ended June 30, 2026, compared to $1.8 million of outage-related expenses for the twelve months ended June 30, 2025.