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What changed in INSIGHT ENTERPRISES INC's 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of INSIGHT ENTERPRISES INC's 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+250 added−270 removedSource: 10-K (2026-02-12) vs 10-K (2025-02-14)

Top changes in INSIGHT ENTERPRISES INC's 2025 10-K

250 paragraphs added · 270 removed · 206 edited across 8 sections

Item 1. Business

Business — how the company describes what it does

54 edited+16 added−18 removed32 unchanged
Biggest changeOur top five partners as a group for 2024 were Microsoft, TD Synnex (a distributor), Google, Cisco Systems and Ingram Micro (a distributor), and approximately 55% of our total purchases during 2024 came from this group of partners.
Biggest changePurchases from Microsoft and TD Synnex accounted for approximately 32% and 12%, respectively, of our aggregate purchases in 2025. No other partner accounted 6 INSIGHT ENTERPRISES, INC. for more than 10% of purchases in 2025. Our top five partners as a group for 2025 were Microsoft, TD Synnex (a distributor), Google, Cisco Systems and Ingram Micro (a distributor).
Our training is centered around our Leadership Commitments where we enhance our leaders' skills in the following areas: (1) Creating clarity; (2) Inspiring people; (3) Demonstrating thought leadership; and (4) Delivering results. • An important part of the Company’s culture is its commitment to diversity and inclusion.
Our training is centered around our Leadership Commitments where we enhance our leaders' skills in the following areas: (1) Creating clarity; (2) Inspiring people; (3) Demonstrating thought leadership; and (4) Delivering results. • An important part of the Company’s culture is its commitment to inclusion.
Amdaris also specializes in customized solutions for cloud, mobile, data analytics and web application development helping clients digitally transform faster; • 2023 - SADA Systems, LLC ("SADA"), a Google cloud service provider with engineering capabilities across the entire Google Cloud stack specializing in Google Cloud priority workloads.
Amdaris also specializes in customized solutions for cloud, mobile, data analytics and web application development helping clients digitally transform faster. • 2023 - SADA Systems, LLC ("SADA") is a Google cloud service provider with engineering capabilities across the entire Google Cloud stack specializing in Google Cloud priority workloads.
Insight began operations in Arizona in 1988, incorporated in Delaware in 1991 and completed its initial public offering in 1995. Our corporate headquarters are located in Chandler, Arizona. From our original location in the United States, we expanded nationwide and then entered Canada in 1997 and the United Kingdom in 1998.
Insight began operations in Arizona in 1988, incorporated in Delaware in 1991 and completed our initial public offering in 1995. Our corporate headquarters are located in Chandler, Arizona. From our original location in the United States, we expanded nationwide and then entered Canada in 1997 and the United Kingdom in 1998.
Crump has held controller positions with several public multinational companies in the software, medical services and semiconductor industries. Prior to joining Insight, Ms. Crump served as the Senior Director Controller, Global Accounting at Amkor Technology, Inc. a semiconductor product packaging and test services provider, from 2006 to 2016. Rob Green , Chief Digital Officer, Age 57 Mr.
Crump has held controller positions with several public multinational companies in the software, medical services and semiconductor industries. Prior to joining Insight, Ms. Crump served as the Senior Director Controller, Global Accounting at Amkor Technology, Inc. a semiconductor product packaging and test services provider, from 2006 to 2016. Rob Green , Chief Digital Officer, Age 58 Mr.
Our Partners We partner with market leaders offering the top technology brands as well as emerging entrants in the marketplace. During 2024, we purchased and resold products and software from over 6,000 partners. The majority (based on dollar volume) of these purchases were directly from manufacturers or software publishers, with the remaining balance purchased through distributors.
Our Partners We partner with market leaders offering the top technology brands as well as emerging entrants in the marketplace. During 2025, we purchased and resold products and software from over 6,000 partners. The majority (based on dollar volume) of these purchases were directly from manufacturers or software publishers, with the remaining balance purchased through distributors.
Most recently, he led Capgemini's global business lines in the North America market, with prior leadership roles spanning business services and engineering, U.S. strategy and portfolio, consulting, and innovation and digital services. Samuel C. Cowley , General Counsel and Secretary, Age 64 Mr. Cowley joined Insight in June 2016 as our General Counsel. Prior to joining Insight, Mr.
Most recently, he led Capgemini's global business lines in the North America market, with prior leadership roles spanning business services and engineering, U.S. strategy and portfolio, consulting, and innovation and digital services. Samuel C. Cowley , General Counsel and Secretary, Age 65 Mr. Cowley joined Insight in June 2016 as our General Counsel. Prior to joining Insight, Mr.
Sales of product from our top five manufacturers/publishers as a group (Microsoft, Cisco Systems, Dell, HP Inc. and Lenovo) accounted for approximately 50% of our consolidated net sales during 2024. We obtain incentives from certain product manufacturers, software publishers and distribution partners based typically upon our volume of sales or purchases of their products and services.
Sales of product from our top five manufacturers/publishers as a group (Microsoft, Dell, Cisco Systems, HP Inc. and Lenovo) accounted for approximately 50% of our consolidated net sales during 2025. We obtain incentives from certain product manufacturers, software publishers and distribution partners based typically upon our volume of sales or purchases of their products and services.
Prior to joining Insight, from November 2017 to December 2021, he served as the Vice President of Finance for Synopsys, Inc., an enterprise software engineering company focused on electronic design automation, where he was responsible for Corporate Planning, FP&A, Treasury, Procurement and Supply Chain Finance. Prior to Synopsys, Mr.
Prior to joining Insight, from November 2017 to December 2021, he served as the Vice President of Finance for Synopsys, Inc., an enterprise software engineering company focused on electronic design automation, where he was responsible for Corporate Planning, FP&A, Treasury, 10 INSIGHT ENTERPRISES, INC. Procurement and Supply Chain Finance. Prior to Synopsys, Mr.
Prior to Atos, he held roles at Hewlett-Packard Development Company, L.P., Fujitsu ICL, and Petroleum Shipping Ltd. James A. Morgado , Chief Financial Officer, Age 52 Mr. Morgado joined Insight in January 2022 as Senior Vice President of Finance and was promoted to Chief Financial Officer in January 2025.
Prior to Atos, he held roles at Hewlett-Packard Development Company, L.P., Fujitsu ICL, and Petroleum Shipping Ltd. James A. Morgado , Chief Financial Officer, Age 53 Mr. Morgado joined Insight in January 2022 as Senior Vice President of Finance and was promoted to Chief Financial Officer in January 2025.
Adrian Gregory , President – Insight EMEA, Age 51 Mr. Gregory joined Insight in January 2023 as President of the EMEA region. Prior to joining the Company, he served as Chief Executive Officer for North Europe and APAC at Atos, an IT services and consulting company. Prior to being named Chief Executive Officer in February of 2022, Mr.
Adrian Gregory , President – Insight EMEA, Age 52 Mr. Gregory joined Insight in January 2023 as President of the EMEA region. Prior to joining the Company, he served as Chief Executive Officer for North Europe and APAC at Atos, an IT services and consulting company. Prior to being named Chief Executive Officer in February of 2022, Mr.
Prior to that, he practiced law in the business and finance groups with the law firms of Snell & Wilmer and Reid & Priest. Rachael A. Crump , Chief Accounting Officer, Age 49 Ms. Crump joined Insight in December 2016 as Vice President of Finance, Controller – North America.
Prior to that, he practiced law in the business and finance groups with the law firms of Snell & Wilmer and Reid & Priest. Rachael A. Crump , Chief Accounting Officer, Age 50 Ms. Crump joined Insight in December 2016 as Vice President of Finance, Controller – North America.
The Company is organized in the following three operating segments, which are primarily defined by their related geographies: Operating Segment* Geography Percent of 2024 Consolidated Net Sales North America United States and Canada 81% EMEA Europe, Middle East and Africa 16% APAC Asia-Pacific 3% * Additional detailed segment and geographic information can be found in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 and in Note 19 to the Consolidated Financial Statements in Part II, Item 8 of this report.
The Company is organized in the following three operating segments, which are primarily defined by their related geographies: Operating Segment* Geography Percent of 2025 Consolidated Net Sales North America United States and Canada 81% EMEA Europe, Middle East and Africa 16% APAC Asia-Pacific 3% * Additional detailed segment and geographic information can be found in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 and in Note 20 to the Consolidated Financial Statements in Part II, Item 8 of this report.
Mullen also serves on the board of directors as well as the nominating and governance and compensation & human resources committees of The Toro Company. Jennifer Vasin , Chief Human Resources Officer, Age 50 Ms. Vasin was appointed Chief Human Resources Officer of Insight in February 2022. Ms.
Mullen also serves on the board of directors as well as the nominating and governance and compensation & human resources committees of The Toro Company. Jennifer Vasin , Chief Human Resources Officer, Age 51 Ms. Vasin was appointed Chief Human Resources Officer of Insight in February 2022. Ms.
Insight supports eleven teammate resource groups, which represent various diverse groups of teammates and boast 1,600+ active members. • Our leaders carefully review and monitor our annual Teammate Pulse Survey results and create action plans to increase teammate engagement. • A charitable foundation funded by the Company, its teammates and its partners provides financial support in crisis situations to support impacted teammates and their families. • Insight offers teammates paid days off to either volunteer their time to charitable organizations in the communities where they live and work or to use for mental health.
Insight supports twelve teammate resource groups, which represent various diverse groups of teammates and boast 1,600+ active members. • Our leaders carefully review and monitor our annual Teammate Pulse Survey results and create action plans to increase teammate engagement. • A charitable foundation funded by the Company, its teammates and its partners provides financial support in crisis situations to support impacted teammates and their families. 7 INSIGHT ENTERPRISES, INC. • Insight offers teammates paid days off to either volunteer their time to charitable organizations in the communities where they live and work or to use for mental health.
As a Fortune 500-ranked solutions integrator, we enable secure, end-to-end digital transformation and meet the needs of our clients through a comprehensive portfolio of solutions, far-reaching partnerships and 36 years of broad IT expertise. We amplify our solutions and services with global scale, local expertise and our e-commerce experience, enabling our clients to realize their digital ambitions in multiple ways.
As a Fortune 500-ranked Solutions Integrator, we deliver secure, end-to-end digital transformation and meet the needs of our clients through a comprehensive portfolio of solutions, far-reaching partnerships and 37 years of broad IT expertise. We amplify our solutions and services with global scale, local expertise and our e-commerce experience, enabling our clients to realize their digital ambitions in multiple ways.
We believe our key areas of solutions expertise are critical to our clients' success and to our identity as a solutions integrator: • Hybrid Multicloud • Cybersecurity • Data & Artificial Intelligence ("AI") • Digital Workplace • Intelligent Applications Each of the key areas of solutions expertise are described below: Hybrid Multicloud – Architect and modernize multicloud and networking solutions.
We believe our key areas of solutions expertise are critical to our clients' success and to our identity as a solutions integrator: • Hybrid Multicloud • Cybersecurity • Data & AI • Digital Workplace & Devices • Intelligent Applications Each of the key areas of solutions expertise are described below: Hybrid Multicloud – Architect and modernize multicloud and networking solutions.
For a discussion of risks associated with our intellectual property, see “Risk Factors – We may not be able to protect our intellectual property adequately, and we may be subject to intellectual property infringement claims,” in Part I, Item 1A of this report.
For a discussion of risks associated with our intellectual property, see “Risk Factors – Risks Related to Our Technology, Data and Intellectual Property - We may not be able to protect our intellectual property adequately, and we may be subject to intellectual property infringement claims,” in Part I, Item 1A of this report.
The SADA acquisition positioned Insight to further benefit from the growing trend of multicloud adoption and Gen AI, accelerating Insight’s progress toward its strategic objective of growing cloud services and solutions; and • 2024 - Infocenter.io ("Infocenter"), is a leader in digital transformation, leveraging their deep expertise in ServiceNow’s comprehensive suite of capabilities.
The SADA acquisition positions us to further benefit from the growing trend of multicloud adoption and Gen AI, accelerating Insight’s progress toward its strategic objective of growing cloud services and solutions. • 2024 - Infocenter.io ("Infocenter") is a leader in digital transformation, leveraging their deep expertise in ServiceNow’s comprehensive suite of capabilities.
Morgado worked for Juniper Networks, Inc., Cisco Systems, Inc., The Stephenz Group, Inc., Aramark Uniform Services, and Citigate Cunningham, Inc. in various leadership positions within Finance. 11 INSIGHT ENTERPRISES, INC. Joyce A. Mullen , President and Chief Executive Officer, Age 62 Ms. Mullen was appointed President and Chief Executive Officer and a director of Insight effective January 1, 2022. Ms.
Morgado worked for Juniper Networks, Inc., Cisco Systems, Inc., The Stephenz Group, Inc., Aramark Uniform Services, and Citigate Cunningham, Inc. in various leadership positions within Finance. Joyce A. Mullen , President and Chief Executive Officer, Age 63 Ms. Mullen was appointed President and Chief Executive Officer and a director of Insight effective January 1, 2022. Ms.
Typical outcomes for our clients include scaling their infrastructure foundation for innovation, increasing workload agility, resiliency and flexibility, improving visibility and control of 5 INSIGHT ENTERPRISES, INC. data assets, delivering better user and customer experiences, and enabling purposeful digital transformation. Cybersecurity – Enhance resilience, mitigate risk and safeguard critical assets.
Typical outcomes for our clients include scaling their infrastructure foundation for innovation, increasing workload agility, resiliency and flexibility, improving visibility and control of data assets, delivering better user and customer experiences, and enabling purposeful digital transformation. Cybersecurity – Enhance resilience, mitigate risk and safeguard critical assets.
We believe that these incentives (or partner funding) and other marketing assistance allow us to increase our marketing reach and strengthen our relationships with leading manufacturers and publishers. 7 INSIGHT ENTERPRISES, INC. We are always focused on understanding our partners’ changing objectives and developing plans and programs to grow our mutual businesses.
We believe that these incentives (or partner funding) and other marketing assistance allow us to increase our marketing reach and strengthen our relationships with leading manufacturers and publishers. We are always focused on understanding our partners’ changing objectives and developing plans and programs to grow our mutual businesses.
For example: • software and certain cloud sales are typically higher in our second and fourth quarters; • business clients, particularly larger enterprise businesses in the United States, tend to spend more, particularly on product, in our fourth quarter; • sales to the federal government in the United States are often stronger in our third quarter, while sales in the state and local government and education markets are also often stronger in our second quarter; and • sales to public sector clients in the United Kingdom are often stronger in our first quarter.
For example: • software and certain cloud sales are typically higher in our second and fourth quarters; • business clients, particularly larger enterprise businesses in the United States, tend to spend more, particularly on product, in our fourth quarter; 8 INSIGHT ENTERPRISES, INC. • sales to the federal government in the United States are often stronger in our third quarter, while sales in the state and local government and education markets are often stronger in our second quarter; and • sales to public sector clients in the United Kingdom are often stronger in our first quarter.
Additional detailed sales mix information by 6 INSIGHT ENTERPRISES, INC. operating segment can be found in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 and in Note 19 to the Consolidated Financial Statements in Part II, Item 8 of this report. Our Competition The IT industry is very fragmented and highly competitive.
Additional detailed sales mix information by operating segment can be found in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 and in Note 20 to the Consolidated Financial Statements in Part II, Item 8 of this report. Our Competition The IT industry is very fragmented and highly competitive.
We are shaping the future of work at Insight with a focus on (1) enhancing teammate engagement and culture, (2) attracting and developing top technical and strategic talent globally, (3) developing a high-performance culture, and (4) driving diversity programs that enhance teammate inclusion globally.
We are shaping the future of work at Insight with a focus on (1) enhancing teammate engagement and culture, (2) attracting and developing top technical and strategic talent globally, (3) developing a high-performance culture, and (4) enhancing teammate inclusion globally.
Building upon the strong foundation of our traditional technology business, we bring innovative and scalable solutions — a combination of services and products — that accelerate transformation and produce meaningful outcomes for our clients. To achieve our ambition, teammates are focused on our strategic objectives — put clients first, deliver differentiation, champion our culture, and drive profitable growth.
Building upon the strong foundation of our traditional technology business, we bring innovative and scalable solutions — a combination of services and products — that accelerate transformation and produce meaningful outcomes for our clients. To achieve our ambition, we are focused on our strategic objectives — put clients first, empower teammates, deliver impact with excellence, and drive profitable growth.
As of December 31, 2024, we employed 14,324 teammates. The number of teammates by operating segment were as follows: Operating Segment Number of Teammates North America 11,019 EMEA 2,809 APAC 496 Certain of our teammates provide services to clients and/or provide back-office support in offshore locations such as Armenia, India, Moldova, the Philippines, and Romania.
As of December 31, 2025, we employed 14,505 teammates. The number of teammates by operating segment were as follows: Operating Segment Number of Teammates North America 11,017 EMEA 2,759 APAC 729 Certain of our teammates provide services to clients and/or provide back-office support in offshore locations such as Armenia, India, Moldova, the Philippines, and Romania.
Insight continues to receive recognitions that we believe demonstrate the success of our strategy to attract, develop, and retain qualified and motivated teammates. • Insight was recognized in Forbes World’s Best Employers List (2024); • We were also named one of Forbes’ Best Large Employers for 2024; • We achieved a perfect score on the Human Rights Campaign Foundation’s Corporate Equality Index and the Disability Equality Index (2023-2024); and • Additionally, we received numerous Great Place to Work recognitions globally. 8 INSIGHT ENTERPRISES, INC.
Insight continues to receive recognitions that we believe demonstrate the success of our strategy to attract, develop, and retain qualified and motivated teammates. • Insight was recognized in Forbes World’s Best Employers List (2025); • We were named one of Forbes America's Best Employers for Company Culture (2025); • We achieved a perfect score on the Human Rights Campaign Foundation’s 2025 Corporate Equality Index; and • Additionally, we received numerous Great Place to Work recognitions globally.
Although brand names and individual products are important to our business, we believe that competitive sources of supply are available in substantially all of our product categories such that, with the exception of Microsoft, we are not dependent on any single partner for sourcing products.
Approximately 63% of our total purchases during 2025 came from this group of partners. Although brand names and individual products are important to our business, we believe that competitive sources of supply are available in substantially all of our product categories such that, with the exception of Microsoft, we are not dependent on any single partner for sourcing products.
Drive profitable growth We relentlessly pursue high performance, operational excellence and profitable growth. We are transforming our sales capabilities and aligning our incentives to focus on our solutions portfolio. We continue to streamline our account coverage to match skills with client needs and propensity to buy services.
Drive profitable growth We relentlessly pursue high performance, operational excellence and profitable growth. We continue to transform our sales capabilities and align our incentives to focus on our solutions portfolio. We are streamlining 4 INSIGHT ENTERPRISES, INC. our account coverage to match skills with client needs and propensity to buy services.
As with other areas, we compete with solutions providers, systems integrators, value-added resellers, and hyperscale vendors. We sometimes compete directly with publishers and manufacturer partners for many of these offerings, including Microsoft, Cisco Systems, Dell, HP Inc. and Adobe Systems. They sell products and services directly to business customers, particularly large enterprise and corporate customers.
We sometimes compete directly with publisher and manufacturer partners for many of these offerings, including Microsoft, Cisco Systems, Dell, HP Inc. and Adobe Systems. They sell products and services directly to business customers, particularly large enterprise and corporate customers.
On a consolidated basis, product (hardware and software) and services (including cloud solutions) represented approximately 81% and 19%, respectively, of our consolidated net sales in 2024. This compares to 83% and 17%, respectively, of our consolidated net sales in 2023 and 86% and 14%, respectively, of our consolidated net sales in 2022.
This compares to 81% and 19%, respectively, of our consolidated net sales in 2024 and 83% and 17%, respectively, of our consolidated net sales in 2023. On a consolidated basis, product (hardware and software) and services represented approximately 41% and 59%, respectively, of our gross profit in 2025.
Our teammates by job function were as follows: Job Function Number of Teammates Sales 3,722 Skilled, certified consulting and service delivery professionals 6,415 Total sales and client facing teammates 10,137 Management, support services and administration 3,705 Distribution 482 For a discussion of risks associated with our dependence on certain personnel, including sales personnel, see “Risk Factors – General Risk Factors – We depend on certain key personnel,” in Part I, Item 1A of this report.
Our teammates by job function were as follows: Job Function Number of Teammates Sales 3,561 Skilled, certified consulting and service delivery professionals 6,688 Total sales and client facing teammates 10,249 Management, support services and administration 3,745 Distribution 511 For a discussion of risks associated with our dependence on certain personnel, including sales personnel, see “Risk Factors – General Risk Factors – We depend on certain key management personnel and our ability to attract, train and retain skilled teammates to satisfy client demand, including highly skilled technical resources with experience in key digital areas” in Part I, Item 1A of this report.
During 2024, sales of Microsoft and Cisco Systems products accounted for approximately 18% and 11% of our consolidated net sales, respectively. No other manufacturer’s or publisher’s products represented 10% or more of our consolidated net sales in 2024.
During 2025, sales of Microsoft products accounted for approximately 17% of our consolidated net sales. No other manufacturer’s or publisher’s products represented 10% or more of our consolidated net sales in 2025.
Our Insight brand is a valuable intangible asset that is protected using common law and registered trademark rights. We also license our intellectual property rights to third parties. We have registered our key domain names and brands in the United States and in certain relevant foreign jurisdictions, and, from time to time, filed patent applications for our qualifying technical solutions.
Our Insight brand is a valuable intangible asset that is protected using common law and registered trademark rights. We also license our intellectual property rights to third parties. We protect our intellectual property by registering our key trademarks and domain names in the United States and relevant foreign jurisdictions.
Burger worked at Capgemini, a global leader in consulting, technology services and digital transformation, for 29 years in a diverse range of roles. His responsibilities encompassed leading integration of mergers and acquisitions, digital and cloud solutions, business 10 INSIGHT ENTERPRISES, INC. applications, consulting, strategy, and transformation.
Burger joined Insight in May 2022 as President of the North America region. Prior to joining Insight, Mr. Burger worked at Capgemini, a global leader in consulting, technology services and digital transformation, for 29 years in a diverse range of roles. His responsibilities encompassed leading integration of mergers and acquisitions, digital and cloud solutions, business applications, consulting, strategy, and transformation.
We refer to our customers as “clients,” our suppliers as “partners” and our employees as “teammates”. Our Market The worldwide total addressable market for enterprise IT spend is forecasted to be $4.9 trillion by 2027 according to Gartner, a leading IT research and advisory company.
We refer to our customers as “clients,” our suppliers as “partners” and our employees as “teammates”. Our Market The worldwide total addressable market for business IT spend is forecasted to exceed $6 trillion by 2029 according to Gartner, a leading IT research and advisory company. We believe our addressable market represents approximately $1.3 trillion in 2026.
Our Information Technology Systems We have committed significant resources to the digital systems that we develop, deploy and use to manage our business. Our success, in part, depends on our ability to provide prompt and efficient service and support to our clients based on the accuracy, quality and utilization of these systems.
Our Information Technology Systems We continue to invest in developing and deploying digital platforms and cloud-native systems that we use to operate our business and improve the customer experience. Our success, in part, depends on our ability to provide prompt and efficient service and support to our clients based on the accuracy, quality and utilization of these systems.
The competitive landscape in the industry is continually changing as various companies expand their product and services offerings. In addition, the shift to digital business such as data analytics, edge computing, hybrid infrastructure, modern workplace, cybersecurity, and other similar service offerings, has led to the emergence of new competitive players and opportunities through emerging models like AI and X as-a-service.
In addition, the shift to digital business such as data analytics, edge computing, hybrid infrastructure, modern workplace, cybersecurity, and other similar service offerings, has led to the emergence of new competitive players and opportunities through emerging models like AI and X as-a-service. As with other areas, we compete with solutions providers, systems integrators, value-added resellers, and hyperscale vendors.
By leveraging our expertise, clients benefit from improved application performance, streamlined development processes, and cutting-edge AI capabilities that enhance functionality and user experience. We empower businesses to achieve greater efficiency, organizational agility, and competitive advantage through intelligent application solutions. Our Solutions Mix Our solutions generally include hardware, software and services, including cloud solutions.
We help clients navigate the complexities of app modernization, updating and optimizing their legacy systems for today’s digital landscape. By leveraging our expertise, clients benefit from improved application performance, streamlined development processes and cutting-edge AI capabilities that enhance functionality and user experience. We empower businesses to achieve greater efficiency, organizational agility, and competitive advantage through intelligent application solutions.
Our intellectual property assets are important to us, and we continue to invest in their promotion and protection.
Additionally, we strategically file patent applications and have obtained patents for our proprietary technologies. Our intellectual property assets are important to us, and we continue to invest in their promotion and protection.
Hanu also has a recruiting and development academy which expanded our technical expertise in India; • 2023 - Amdaris Group Limited ("Amdaris"), a service provider with core expertise in providing software application and development services for clients, which added to 3 INSIGHT ENTERPRISES, INC. Insight’s global application and Data & AI practices.
Our recent acquisitions from 2023 through today include: • 2023 - Amdaris Group Limited ("Amdaris") is a service provider with core expertise in providing software application and development services for clients, which added to Insight’s global application and Data & artificial intelligence ("AI") practices.
The supply chain constraints that previously existed in recent years have largely normalized across all product categories. 9 INSIGHT ENTERPRISES, INC. Our Intellectual Property We do not maintain a traditional research and development group, but we recognize the importance of intellectual property and its ability to differentiate us from our competitors.
Our Intellectual Property We do not maintain a traditional research and development group, but we recognize the importance of intellectual property and its ability to differentiate us from our competitors.
On a consolidated basis, product (hardware and software) and services represented approximately 43% and 57%, respectively, of our gross profit in 2024. This compares to 46% and 54%, respectively, of our gross profit in 2023 and 51% and 49%, respectively, of our gross profit in 2022.
This compares to 43% and 57%, respectively, of our gross profit in 2024 and 46% and 54%, respectively, of our gross profit in 2023.
We invest internally as well as through acquisitions to advance our technical capabilities and better serve the needs of our clients. We have strong solutions expertise in high growth areas of the IT market that allows us to drive digital transformation and business outcomes for our clients.
We have strong solutions expertise in high growth areas of the IT market that allows us to drive digital transformation and business outcomes for our clients. Our most recent acquisitions of Infocenter, NWT, Inspire11, and Sekuro enhance our areas of expertise and expand the capabilities of our services, creating the opportunity to deliver more value for our clients.
Our Solutions Expertise We are differentiated in our ability to combine our expertise in technology integration with our technical services to create solutions that deliver meaningful client outcomes at scale. We adapt quickly to innovative technology trends such as Gen AI.
Our Solutions Expertise We are differentiated in our ability to combine our expertise in technology integration with our technical services to create solutions that deliver meaningful client outcomes at scale. We invest organically and through acquisitions to advance our technical capabilities and better serve the needs of our clients.
Item 1. Business Our Company Today, every business is a technology business. We help our clients accelerate their digital journey to modernize their businesses and maximize the value of technology. We serve these clients in North America; Europe, the Middle East and Africa (“EMEA”); and Asia-Pacific (“APAC”).
Item 1. Business Our Company Today, every business is a technology business. At Insight, we accelerate transformation by unlocking the power of people and technology. We turn complexity into clarity, helping clients achieve meaningful business outcomes and drive real results at scale. We serve these clients in North America; Europe, the Middle East and Africa (“EMEA”); and Asia-Pacific (“APAC”).
Our competition primarily includes: • Systems integrators and digital consultants such as ePlus, Presidio, World Wide Technology, EPAM, Accenture, Atos and Capgemini; and • Technology providers, value-added resellers and direct marketers such as CDW, Cognizant, Zones, Connection, SHI, Softchoice, Computacenter, Bechtle, and SoftwareONE.
Our competition primarily includes: • Systems integrators and digital consultants such as Accenture, Capgemini, Atos, HCL Technologies, Tata Consultancy Services and Infosys; and • Technology providers, value-added resellers and direct marketers such as CDW, Presidio, World Wide Technology, SHI and Computacenter. The competitive landscape in the industry is continually changing as various companies expand their product and services offerings.
We believe that we are well positioned in this highly fragmented global market with sales locations in 20 countries and our deep experience delivering IT solutions across the globe. Our Strategy Our ambition is clear — we aspire to be the leading solutions integrator, setting the pace and defining a new category in our industry.
Our Strategy Our ambition is clear — we aspire to be an AI-first, leading solutions integrator, setting the pace and defining a new category in our industry.
Insight excels in providing excellent collaborative experiences through technology, leading through change, and enabling secure work from anywhere operations. Intelligent Applications – Improve developer productivity and application scalability and maintenance with enhanced software quality and speed to market. Our intelligent applications solutions address our clients' unique business challenges by transforming and modernizing applications.
Intelligent Applications – Improve developer productivity and application scalability and maintenance with enhanced software quality and speed to market. Our intelligent applications solutions address our clients' unique business challenges by transforming and modernizing applications. Our approach focuses on enhancing the developer experience, integrating applications seamlessly and infusing AI to drive innovation.
We are focused on driving improvements in sales productivity and client experience through increased innovation and enhancements to our customer-facing e-commerce, cloud and managed services platforms and internal systems with the goals of continuously improving client satisfaction, consistently attracting new clients and increasing overall business efficiency.
Our IT strategy focuses on innovation and scalability to enhance customer-facing e-commerce, cloud and managed services platforms, as well as internal systems, with the goal of improving client satisfaction, attracting new clients, and increasing efficiency. We are also leveraging AI and machine learning to drive operational efficiency, improve security, and deliver personalized client experiences.
We are differentiated by our repeatable methodologies and agile, user-centric approach, which consistently enable clients to achieve their business goals and find greater value from their AI investments. Digital Workplace – Create a productive, flexible and secure workplace. Our digital workplace solutions focus on helping clients navigate workplace changes and meeting employee needs for seamless work experiences.
Our clients typically benefit from accelerated sales pipelines, unlocked revenue capacity, significant operational efficiencies, and a clear, scalable roadmap for their AI transformation. Digital Workplace & Devices – Create a productive, flexible and secure workplace. Our digital workplace solutions focus on helping clients navigate workplace changes and meeting employee needs for seamless work experiences.
For a discussion of risks associated with our internal and customer-facing systems, see “Risk Factors – Risks related to Our Technology, Data and Intellectual Property – Disruptions in our systems and voice and data networks could affect our ability to service our clients and cause us to incur additional expenses,” in Part I, Item 1A of this report.
For a discussion of risks related to internal and customer-facing systems, see “Risk Factors – Risks related to Our Technology, Data and Intellectual Property” in Part I, Item 1A of this report. 9 INSIGHT ENTERPRISES, INC. Information about our Executive Officers The following are our current executive officers: Dee Burger , President North America, Age 56 Mr.
Through a combination of acquisitions and organic growth, we continued to increase our geographic coverage and expand our technical capabilities. Our acquisitions were as follows: Prior to 2019, we acquired Software Spectrum, Inc. (2006), Calence, LLC (2008), MINX Limited (2008), Ensynch, Inc. (2011), Inmac GmbH (2012), Micro Warehouse BV (2012), BlueMetal Architects, Inc.
Through a combination of acquisitions and organic growth, we continue to increase our geographic coverage and expand our technical capabilities.
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(2015), Ignia, Pty Ltd (2016), Datalink Corporation (2017), Caase Group B.V. (2017), and Cardinal Solutions Group, Inc. (2018). Our acquisitions from 2019 through today included: • 2019 – PCM, Inc.
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Our offerings in North America and certain countries in EMEA and APAC include hardware, software and services, including cloud solutions. Our offerings in the remainder of our EMEA and APAC segments consist largely of software and certain software-related services and cloud solutions.
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(“PCM”), a provider of multi-vendor technology offerings, including hardware, software and services which complemented our supply chain expertise, adding scale and clients in the commercial space primarily in North America; • 2020 – vNext SAS (“vNext”), a French digital consulting services and managed services provider, increasing our capacity to deliver consulting and implementation services to support clients’ digital transformation initiatives to our clients in EMEA; • 2022 - Hanu Software Solutions, Inc. and Hanu Software Solutions (India) Private Ltd.
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The Infocenter acquisition increases our relevance to our clients driving digital transformation in their organizations. • 2024 - New World Tech Limited ("NWT") is a consultancy-led company that provides technology strategy and transformation services. • 2025 - Inspire11 LLC ("Inspire11") is an award-winning technology delivery firm with deep expertise in advisory, data, and AI.
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(collectively, "Hanu"), a global leading cloud technology services and solutions provider, which increased our capacity to provide cloud solutions to clients.
Added
Through its advanced capabilities and outcome-driven approach, Inspire11 helps empower us to close the AI gap by transforming bold ideas into tangible business outcomes with real-world impact. • 2025 - Sekuro Limited (“Sekuro”), is a global cybersecurity and digital resilience provider that offers end-to-end security services for enterprises and governments.
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The Infocenter acquisition increases our relevance to our clients driving digital transformation in their organizations. Our Purpose and Values Our purpose: We accelerate digital transformation by unlocking the power of people and technology.
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The acquisition significantly expands our 3 INSIGHT ENTERPRISES, INC. cybersecurity capabilities in APAC, positioning us to better meet the growing demand for comprehensive security solutions in an increasingly complex threat landscape. Our Purpose and Values Our purpose: We solve our clients’ technology challenges by combining the right hardware, software, and services.
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We believe our addressable market represents approximately $780 billion in annual sales and for the year ended December 31, 2024, our net sales of $8.7 billion represented approximately 1% of that highly diverse market.
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Our 2025 net sales of $8.2 billion represented less than 1% of that highly diverse market. We believe that we are well positioned in this highly fragmented global market with sales locations in 21 countries and our deep experience delivering IT solutions across the globe.
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Put Clients first Our primary goal is to put our clients first, becoming the partner they cannot live without, by delivering essential value for their technology transformation needs. We help our clients make the complex simple and look beyond the problems they are facing today to drive outcomes that energize future success.
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Put clients first Our primary goal is to put our clients first, earning the right to be essential. We deeply understand our clients’ business imperatives and always make decisions with our clients in mind. We know with precision and clarity what matters most to them and prioritize their success.
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We help them modernize their business by offering solutions that 4 INSIGHT ENTERPRISES, INC. maximize the value of technology and enable secure, end-to-end transformation solutions and services. Deliver differentiation We deliver differentiation through our innovative and scalable solutions, exceptional technical talent and a compelling portfolio built on over 36 years of IT experience.
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We assemble the right capabilities for their needs and know how to put all the pieces together. Empower teammates Our teammates are our biggest differentiator. We require accountability and a growth mindset. Teammates must own their decisions and their role in driving Insight’s growth. We cultivate curiosity, continuous learning, and skills-building. We act quickly and execute effectively.
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Combined with thoughtful strategic acquisitions, differentiated expertise and deep partner relationships, we deliver a compelling client experience driving faster outcomes. Our simple and strong portfolio of offerings and our robust roster of technical experts and industry leaders help us deliver client value efficiently and with the accountability our clients expect.
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Deliver impact with excellence Activity does not equal results. We measure what matters: the outcomes we deliver to our clients. We deliver those outcomes with the quality they have come to expect from Insight’s exceptional technical talent, compelling portfolio and deep partner relationships. We deliver client value with speed, agility, and innovation.
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Champion our culture We see our strong culture as a driver for growth. We are purpose-driven and values-led and are focused on championing our teammates to deliver exceptional client experience. We are building on this foundation, developing a culture of high performance, and continuing to push forward our culture of harmony, diversity and inclusion.
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Data & AI – Unlock tangible value and drive growth with data and AI. Our data and AI solutions focus on turning AI potential into tangible business results. We facilitate success by aligning our clients' business goals, technology, and people from day one.
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Our most recent acquisitions of Amdaris, SADA and Infocenter enhance our areas of expertise and expand the capabilities of our services, creating the opportunity to deliver more value for our clients.
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Our approach involves building a solid data foundation, architecting for speed and reusability, and managing the human element of change to foster a culture of innovation. By guiding clients from strategy and a data-backed business case to full execution, we help create a cycle of ongoing improvement.
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Data and AI – Drive more value, faster, with integrated AI, data platforms and business intelligence. Insight’s data and AI solutions leverage our deep expertise in data readiness and both traditional and generative AI to help clients innovate and grow. We excel in planning, building, and optimizing modern data platforms and architectures, ensuring effective data analytics and AI solutions.
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By tightly integrating our digital workplace practice with our market-leading Device-as-a-Service (DaaS) offerings, we deliver a differentiated, high-value solution that secures and optimizes the modern hybrid enterprise. This unified approach transforms a capital expense area into a 5 INSIGHT ENTERPRISES, INC. reliable stream of recurring services revenue and drives significant gross margin expansion.
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We deliver strategic and secure solutions, enhanced through our intellectual property, that transform business operations and user experiences. Clients working with Insight benefit from rapid scalability, well-prepared data estates for Gen AI adoption, increased visibility and informed decision-making, optimized resources and costs, and new revenue opportunities.
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Our end-to-end device lifecycle management, combined with deep expertise in endpoint management, identity controls and organizational change, helps ensure that our clients' employees are equipped for secure work from anywhere. This holistic service significantly elevates the employee experience, boosts productivity, and enhances data protection, all while simplifying IT lifecycle management and increasing the typical return on workplace technology investments.
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We offer a range of services, including endpoint management, identity and access controls, and organizational change management. Our solutions elevate employee and user experiences, increase return on workplace technology investments, enhance data protection, boost productivity and mobile capabilities, and simplify IT lifecycle management.
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Our Solutions Mix Our solutions generally include hardware, software and services, including cloud solutions. On a consolidated basis, product (hardware and software) and services (including cloud solutions) represented approximately 79% and 21%, respectively, of our consolidated net sales in 2025.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeIn addition, upon a default by the option counterparty, we may suffer adverse tax consequences and dilution with respect to our common stock. Our acquisition strategy may increase our outstanding debt and interest expense and decrease the availability under our financing facilities, all of which could have a material adverse effect on our results of operations and financial condition.
Biggest changeOur acquisition strategy may increase our outstanding debt and interest expense and decrease the availability under our financing facilities, all of which could have a material adverse effect on our results of operations and financial condition. To fund our acquisition initiatives, we increase our total borrowings from time to time, such as with the recent acquisitions of Inspire11 and Sekuro.
The development, adoption, and use of Gen AI technologies are complex and still in their early stages, and there are technical challenges associated with achieving the desired level of accuracy, efficiency, and reliability. For example, Gen AI systems that we deploy may be flawed or may be based on datasets that are biased or insufficient.
The development, adoption, and use of Gen AI and agentic AI technologies are complex and still in their early stages, and there are technical challenges associated with achieving the desired level of accuracy, efficiency, and reliability. For example the systems that we deploy may be flawed or may be based on datasets that are biased or insufficient.
For example, cloud, security, and digital-related solutions are continuously evolving, and there is rapid development and technological evolution in areas such as IoT, edge-computing, computer vision, advanced machine learning and AI (including Gen AI), automation, augmented reality, blockchain and as-a-service solutions.
For example, cloud, security, and digital-related solutions are continuously evolving, and there is rapid development and technological evolution in areas such as IoT, edge-computing, computer vision, advanced machine learning and AI (including Gen AI and agentic AI), automation, augmented reality, blockchain and as-a-service solutions.
These types of claims and challenges could have a material adverse effect on our business, financial condition and results of operations. The development, adoption and use of Gen AI may result in increased liability exposure and competitive risk.
These types of claims and challenges could have a material adverse effect on our business, financial condition and results of operations. The development, adoption and use of Gen AI and agentic AI may result in increased liability exposure and competitive risk.
Our substantial indebtedness could have important consequences, that could have a material adverse effect on our business, financial condition and results of operations, including the following: • requiring us to dedicate a substantial portion of our cash flow from operations to debt service payments on our and our subsidiaries’ debt, which reduces the funds available for working capital, capital expenditures, acquisitions and other general corporate purposes; 20 INSIGHT ENTERPRISES, INC. • requiring us to comply with restrictive covenants in our senior secured debt facility, which limits the manner in which we conduct our business; • limiting our flexibility in planning for, or reacting to, changes in the industry in which we operate; • placing us at a competitive disadvantage compared to any of our less-leveraged competitors; • increasing our vulnerability to both general and industry-specific adverse economic conditions; and • limiting our ability to obtain additional debt or equity financing to fund future working capital, capital expenditures, acquisitions or other general corporate requirements and increasing our cost of borrowing.
Our substantial indebtedness could have important consequences, that could have a material adverse effect on our business, financial condition and results of operations, including the following: • requiring us to dedicate a substantial portion of our cash flow from operations to debt service payments on our and our subsidiaries’ debt, which reduces the funds available for working capital, capital expenditures, acquisitions and other general corporate purposes; • requiring us to comply with restrictive covenants in our senior secured debt facility, which limits the manner in which we conduct our business; • limiting our flexibility in planning for, or reacting to, changes in the industry in which we operate; • placing us at a competitive disadvantage compared to any of our less-leveraged competitors; • increasing our vulnerability to both general and industry-specific adverse economic conditions; and • limiting our ability to obtain additional debt or equity financing to fund future working capital, capital expenditures, acquisitions or other general corporate requirements and increasing our cost of borrowing.
Our effective income tax rate could be adversely affected by various factors, many of which are outside of our control, including: • changes in pre-tax income in various jurisdictions in which we operate that have differing statutory tax rates; • increases in corporate tax rates and the availability of deductions or credits in the United States and elsewhere; • changes in tax laws, regulations, and/or interpretations of such tax laws in multiple jurisdictions, including but not limited to U.S. federal and state regulations or interpretations and enforcement trends; • tax effects related to acquisition accounting; and • resolutions of issues arising from tax examinations and any related interest or penalties.
Our effective income tax rate could be adversely affected by various factors, many of which are outside of our control, including: • changes in pre-tax income in various jurisdictions in which we operate that have differing statutory tax rates; • increases in corporate tax rates and the availability of deductions or credits in the United States and elsewhere; • changes in tax laws, regulations, and/or interpretations of such tax laws in multiple jurisdictions, including but not limited to U.S. federal and state regulations or interpretations and enforcement trends; • tax effects related to acquisition accounting; and • resolutions of issues arising from tax examinations and any related interest or penalties. 18 INSIGHT ENTERPRISES, INC.
Large contract damages payments could harm our business, reputation, operating results, and financial condition. Any dispute with respect to such obligations could have adverse effects on our relationships with existing or potential clients and suppliers, and harm our business, financial condition, reputation, and operating results.
Large contract damages payments could harm our business, reputation, operating results, and financial condition. Any dispute or collection matter with respect to such obligations could have adverse effects on our relationships with existing or potential clients and suppliers, and harm our business, financial condition, reputation, and operating results.
Malicious individuals, organizations, and nation-state threat actors have and may continue to attempt to penetrate or compromise our network systems, the products we sell, or services we and our third-party contractors provide in order to access, acquire, misappropriate, disclose, alter, or otherwise compromise our teammates’, clients’, and partners’ proprietary, confidential, technical business, and/or personal information in our possession or to which we have access, create system disruptions, cause system or operations shutdowns or perpetrate secondary attacks against our clients, partners, and teammates.
Malicious individuals, organizations, and nation-state threat actors have and may continue to attempt to penetrate or compromise our network systems, the products we sell, or services we and our third-party contractors provide in order to access, acquire, misappropriate, disclose, alter, or otherwise compromise our teammates’, clients’, and partners’ proprietary, 16 INSIGHT ENTERPRISES, INC. confidential, technical business, and/or personal information in our possession or to which we have access, create system disruptions, cause system or operations shutdowns or perpetrate secondary attacks against our clients, partners, and teammates.
For instance, while cloud-based solutions present an opportunity for us and make up a significant part of our business and future, cloud-based solutions and technologies developed by manufacturer and publisher partners are alternatively marketed directly to customers without utilizing solutions providers like 12 INSIGHT ENTERPRISES, INC. us, which can reduce the volume of hardware, software or services we sell, leading to a reduction in our sales and/or profitability.
For instance, while cloud-based solutions present an opportunity for us and make up a significant part of our business and future, cloud-based solutions and technologies developed by manufacturer and publisher partners are alternatively marketed directly to customers without utilizing solutions providers like us, which can reduce the volume of hardware, software or services we sell, leading to a reduction in our sales and/or profitability.
In addition, any latency, disruption, or failure in our Gen AI systems could result in vulnerabilities, delays or errors in our offerings and compromise the integrity, security, or privacy of the generated content and applicable infrastructure.
In addition, any latency, disruption, or failure in our systems could result in vulnerabilities, delays or errors in our offerings and compromise the integrity, security, or privacy of the generated content and applicable infrastructure.
If we do not invest sufficiently in new technologies, effectively market our capabilities with respect to such technologies, or successfully adapt to industry developments and evolving client demand at sufficient speed and scale, we may be unable to develop or maintain a competitive advantage in the market and execute on our growth strategy and initiatives, which could have a material adverse effect on our business.
If we do not invest sufficiently 12 INSIGHT ENTERPRISES, INC. in new technologies, effectively market our capabilities with respect to such technologies, or successfully adapt to industry developments and evolving client demand at sufficient speed and scale, we may be unable to develop or maintain a competitive advantage in the market and execute on our growth strategy and initiatives, which could have a material adverse effect on our business.
A prolonged slowdown in the global economy, including the possibility of recession or financial market instability or similar crisis, or in a particular region or business or industry sector, or the tightening of credit markets, could cause our clients to have difficulty accessing capital and credit sources, delay contractual payments, or delay or forgo decisions to upgrade or add to their existing IT environments, license new software or purchase products or services (particularly with respect to discretionary spending for hardware, software and services).
A prolonged slowdown in the global economy, including the possibility of recession or financial market instability or similar crisis, or in a particular region or business or industry sector related to tariffs and trade policies or otherwise, or the tightening of credit markets, could cause our clients to have difficulty accessing capital and credit sources, delay contractual payments, or delay or forgo decisions to upgrade or add to their existing IT environments, license new software or purchase products or services (particularly with respect to discretionary spending for hardware, software and services).
The continued integration activities of the acquired businesses into our business are difficult and time consuming, and we may be unable to achieve expected synergies and operating efficiencies over the long term. We cannot assure that these risks or other unforeseen factors will not offset the intended benefits of the acquisitions, in whole or in part.
The continued integration activities of the acquired businesses into our business are difficult and time consuming, and we may be unable to achieve expected synergies and operating efficiencies over the long term. We cannot assure that these risks or other unforeseen factors will not offset the intended benefits of the acquisitions, in whole or in part. 20 INSIGHT ENTERPRISES, INC.
Due to the constant risk of these types of attacks and incidents, we expend significant resources on information technology and data security tools, measures, and processes designed to protect our networks, systems, services, and the personal, confidential or proprietary information in our possession, and to ensure an effective response to any cyber-attack or data security 17 INSIGHT ENTERPRISES, INC. incident.
Due to the constant risk of these types of attacks and incidents, we expend significant resources on information technology and data security tools, measures, and processes designed to protect our networks, systems, services, and the personal, confidential or proprietary information in our possession, and to ensure an effective response to any cyber-attack or data security incident.
The disclosure of our trade secrets could impair our competitive position and could have a material adverse effect on our business, financial condition and results of operations. In addition, our registered trademarks and trade names are subject to challenge by third parties. This may 18 INSIGHT ENTERPRISES, INC. impact our ability to continue using those marks and names.
The disclosure of our trade secrets could impair our competitive position and could have a material adverse effect on our business, financial condition and results of operations. In addition, our registered trademarks and trade names are subject to challenge by third parties. This may impact our ability to continue using those marks and names.
Contractual disputes with our clients and third-party suppliers could be costly, time-consuming, and harm our business and reputation. Our business is contract intensive and we are party to contracts with our clients and suppliers in all of our regions.
Contractual disputes or collection matters with our clients and third-party suppliers could be costly, time-consuming, and harm our business and reputation. Our business is contract intensive and we are party to contracts with our clients and suppliers in all of our regions.
These limitations or failures could result in reputational damage, legal liabilities, increased regulatory scrutiny, or loss of client confidence which, in turn, could result in lower than anticipated demand and have a material adverse effect on our business, financial condition and results of operations .
These limitations or failures could result in reputational damage, legal liabilities, increased regulatory scrutiny, or loss of client confidence which, in turn, could result in lower than anticipated demand and have a material adverse effect on our business, financial condition and results of operations . 17 INSIGHT ENTERPRISES, INC.
Potential impacts related to conflicts, such as those ongoing in Ukraine and Gaza, include further market disruptions, including significant volatility in commodity prices, credit and capital markets, supply chain and logistics disruptions, adverse global economic conditions resulting from escalating geopolitical tensions, volatility and fluctuations in foreign currency exchange rates and interest rates, inflationary pressures on raw materials and heightened cybersecurity threats, all of which could adversely impact our business, particularly our European operations. 14 INSIGHT ENTERPRISES, INC.
Potential impacts related to conflicts, such as those ongoing in Ukraine and the Middle East, include further market disruptions, including significant volatility in commodity prices, credit and capital markets, supply chain and logistics disruptions, adverse global economic conditions resulting from escalating geopolitical tensions and tariffs, volatility and fluctuations in foreign currency exchange rates and interest rates, inflationary pressures on raw materials and heightened cybersecurity threats, all of which could adversely impact our business, particularly our European operations. 13 INSIGHT ENTERPRISES, INC.
Increased competition arising from industry consolidation and low demand for certain IT products and services may hinder our ability to maintain or improve our gross margins. These low gross margins magnify the impact of variations in revenue and operating costs on our operating results.
Increased competition arising from industry consolidation and low demand for certain IT products and services may hinder our ability to maintain or improve our gross margins. These low gross margins magnify the impact of variations in revenue and operating costs on our operating 19 INSIGHT ENTERPRISES, INC. results.
We have previously experienced and could in the future experience product constraints due to the failure of suppliers to accurately forecast demand, or to manufacture sufficient quantities of product to meet demand (including as a result of shortages of product components), among other reasons. 16 INSIGHT ENTERPRISES, INC.
We have previously experienced and could in the future experience product constraints due to the failure of suppliers to accurately forecast demand, or to manufacture sufficient quantities of product to meet demand (including as a result of shortages of product components), among other reasons.
Accordingly, we are dependent on continued innovations by our current vendor partners and our ability to partner with new and emerging technology providers. Generally, pricing competition is very aggressive in the industry, and we expect pricing pressures to continue.
Accordingly, we are dependent on continued 11 INSIGHT ENTERPRISES, INC. innovations by our current vendor partners and our ability to partner with new and emerging technology providers. Generally, pricing competition is very aggressive in the industry, and we expect pricing pressures to continue.
A natural disaster, act of terrorism, or public health issue or other adverse occurrence at any of our major sales offices could also negatively impact our business, results of operations or cash flows.
A natural disaster, act of terrorism, or public health issue or other adverse occurrence at any of our major sales offices could also negatively impact our business, results of operations or cash flows. 15 INSIGHT ENTERPRISES, INC.
Furthermore, if we are unable to maintain an environment for teammates that is competitive and appealing, it could have an adverse effect on engagement and retention, and a material adverse effect on our business. 22 INSIGHT ENTERPRISES, INC.
Furthermore, if we are unable to maintain an environment for teammates that is competitive and appealing, it could have an adverse effect on engagement and retention, and a material adverse effect on our business.
Our success depends on our ability to continue to develop and implement services and solutions that 13 INSIGHT ENTERPRISES, INC. anticipate and respond to rapid and continuing changes in technology and market demand to serve the needs of our clients.
Our success depends on our ability to continue to develop and implement services and solutions that anticipate and respond to rapid and continuing changes in technology and market demand to serve the needs of our clients.
Worldwide economic conditions and market volatility as a result of political leadership in certain countries and other disruptions to global and regional economies and markets, including continuing increases in inflation and interest rates, the possibility of recession, or financial market instability, may impact future business activities .
Worldwide economic conditions and market volatility as a result of political leadership in certain countries and other disruptions to global and regional economies and markets, including increases in inflation and interest rates, the effects of tariffs and other trade restrictions, the possibility of recession, trade disputes or financial market instability, may impact future business activities .
In addition, our 21 INSIGHT ENTERPRISES, INC. expense levels are based, in part, on anticipated net sales and the anticipated amount and timing of partner funding, and a portion of our operating expenses are relatively fixed.
In addition, our expense levels are based, in part, on anticipated net sales and the anticipated amount and timing of partner funding, and a portion of our operating expenses are relatively fixed.
Australia, Canada, France, Germany, India, the Netherlands, the Philippines, Ukraine and the United Kingdom, as well as sales offices throughout EMEA and APAC. In the regions in which we do not currently have a physical presence, we serve our clients through strategic relationships.
Outside of the United States, we have operation centers in Armenia, Australia, Canada, France, Germany, India, the Netherlands, the Philippines, Ukraine and the United Kingdom, as well as sales offices throughout EMEA and APAC. In the regions in which we do not currently have a physical presence, we serve our clients through strategic relationships.
As of December 31, 2024, we had $864.1 million of total long-term debt outstanding, as defined by U.S. generally accepted accounting principles (“GAAP”), and an additional $217.6 million of obligations outstanding under our inventory financing agreements.
As of December 31, 2025, we had $1,361.3 million of total long-term debt outstanding, as defined by U.S. generally accepted accounting principles (“GAAP”), and an additional $225.0 million of obligations outstanding under our inventory financing agreements.
We regularly experience partner funding program changes that reduce the incentives many partners make available to us and that change the requirements for earning such incentives.
We regularly experience partner funding program changes that reduce the incentives many partners make available to us and that change the requirements for earning such incentives. Recent changes in incentives for cloud-based solutions impacted our results.
There are risks associated with our international operations that are different than the risks associated with our operations in the United States, and our exposure to the risks of a global market could hinder our ability to maintain and expand international operations. Outside of the United States, we have operation centers in Armenia, 15 INSIGHT ENTERPRISES, INC.
There are risks associated with our international operations that are different than the risks associated with our operations in the United States, and our exposure to the risks of a global market could hinder our ability to maintain and expand international operations.
In implementing our international strategy, we may face barriers to entry and competition from local companies and other companies that already have established global businesses, as well as the risks generally associated with conducting business internationally.
We have begun expanding our presence in the Middle East, which presents additional complications and opportunities. In implementing our international strategy, we may face barriers to entry and competition from local companies and other companies that already have established global businesses, as well as the risks generally associated with conducting business internationally. 14 INSIGHT ENTERPRISES, INC.
If we were unable to maintain compliance or to repay the borrowed amounts, the lenders under our financing facilities could declare an event of default and demand payment within a specified period of time. General Risk Factors Our future operating results may fluctuate significantly.
Our ability to maintain compliance with our financial covenants and to make scheduled payments on our financing facilities depends on our financial and operating performance. If we were unable to maintain compliance or to repay the borrowed amounts, the lenders under our financing facilities could declare an event of default and demand payment within a specified period of time.
In addition, a substantial number of shares of our common stock are reserved for issuance upon the exercise of stock options, upon vesting of restricted stock units, upon conversion of the Convertible Notes and upon exercise of the Warrants.
In addition, a substantial number of shares of our common stock are reserved for issuance upon the exercise of outstanding stock options and the vesting of outstanding restricted stock units as well as for future issuances under our equity incentive plan.
Non-compliance with requisite procurement, billing or ordinance-specific administrative rules, 19 INSIGHT ENTERPRISES, INC. procedures, and processes could subject our contracts to protest or make them voidable regardless of whether we bear any responsibility for non-compliance.
Non-compliance with requisite procurement, billing or ordinance-specific administrative rules, procedures, and processes could subject our contracts to protest or make them voidable regardless of whether we bear any responsibility for non-compliance. This could also subject us to debarment, suspension, or disqualification from doing business with governmental entities, and could also result in civil, criminal, and administrative liability.
The covenants include, among other things, limitations on the payment of dividends and compliance with certain minimum fixed charge ratio and minimum receivables requirements, as well as meeting monthly, quarterly and annual reporting requirements. Our ability to maintain compliance with our financial covenants and to make scheduled payments on our financing facilities depends on our financial and operating performance.
Our financing facilities contain covenants that we must comply with in order to avoid an occurrence of an event of default. The covenants include, among other things, limitations on the payment of dividends and compliance with certain minimum fixed charge ratio and minimum receivables requirements, as well as meeting monthly, quarterly and annual reporting requirements.
As such, many of these arrangements with partners are easily terminable, and there can be no assurance that manufacturers and publishers will continue to sell or will not limit or curtail the availability of their product to resellers like us. The loss of, or change in business relationship with, any of our key vendor partners could negatively impact our business.
As such, many of these arrangements with partners are easily terminable, and there can be no assurance that manufacturers and publishers will continue to sell or will not limit or curtail the availability of their product to resellers like us. Additionally, we act as a paid pass-through agent in EMEA for certain clients and their vendors.
Additionally, certain of our financing facilities have interest rates that vary based on market conditions and on utilization, which increases our exposure to interest rate fluctuations and may result in greater interest expense than we have forecasted. Our financing facilities contain covenants that we must comply with in order to avoid an occurrence of an event of default.
These additional borrowings have the effect of increasing our future interest expenses and require escalating amortization payments. Additionally, certain of our financing facilities have interest rates that vary based on market conditions and on utilization, which increases our exposure to interest rate fluctuations and may result in greater interest expense than we have forecasted.
We also have the ability to borrow an additional $1.8 billion under our senior secured credit facility.
At December 31, 2025, $493.1 million of our outstanding debt relates to our 6.625% Senior Unsecured Notes that mature in May 2032 (the "Senior Notes") . We also have the ability to borrow an additional $1.1 billion under our senior secured credit facility as of December 31, 2025.
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This could also subject us to debarment, suspension, or disqualification from doing business with governmental entities, and could also result in civil, criminal, and administrative liability.
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There is no contractual requirement or guarantee that our clients and these vendors will continue to use us an agent in this capacity. The loss of, or change in business relationship with, any of our key vendor partners could negatively impact our business.
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At December 31, 2024, $332.9 million of our outstanding debt relates to the Convertible Notes that are convertible at the option of the holders and mature in February 2025, and as a result are classified as a current liability. Additionally, pursuant to an indenture, we issued an aggregate principal amount of $500.0 million in senior unsecured notes due 2032.
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General Risk Factors Our future operating results may fluctuate significantly.
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We are subject to counterparty risk with respect to the Call Spread Transactions. The option counterparties are financial institutions or affiliates of financial institutions, and we are subject to the risk that one or more of such option counterparties may default under the Call Spread Transactions.
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In addition, we are in the process of recruiting and hiring a new Chief Executive Officer and will be subject to risks related to the Company being able to attract a qualified candidate and management risks in transitioning to a new Chief Executive Officer, once hired.
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Our exposure to the credit risk of the option counterparties will not be secured by any collateral. If any option counterparty becomes subject to insolvency proceedings, we will become an unsecured creditor in those proceedings with a claim equal to our exposure at that time under the Call Spread Transaction.
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Our exposure will depend on many factors but, generally, the increase in our exposure will be correlated to the increase in our common stock market price and in the volatility of the market price of our common stock.
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To fund our acquisition initiatives, we increase our total borrowings from time to time, such as with the recent acquisitions of SADA and Infocenter. These additional borrowings have the effect of increasing our future interest expenses and require escalating amortization payments.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeWe also collaborate with thought leaders in cybersecurity including with key vendors, clients, business partners, industry 23 INSIGHT ENTERPRISES, INC. participants, and intelligence and law enforcement communities as part of our continuing efforts to evaluate and improve the effectiveness of our information security policies and procedures.
Biggest changeWe also collaborate with thought leaders in cybersecurity including with key vendors, clients, business partners, industry participants, and intelligence and law enforcement communities as part of our continuing efforts to evaluate and improve the effectiveness of our information security policies and procedures. This collaboration allows us to rapidly adopt industry best practices developed through firsthand experience mitigating cyber incidents.
For additional information regarding cybersecurity-related risks we face, see "Risk Factors – Risks Related to Our Technology, Data and Intellectual Property – Cyberattacks, data incidents and breaches in the security (i) of our information systems and networks, (ii) of the products we sell and services we provide, and (iii) of the electronic and confidential information in our possession could materially adversely impact our financial condition, results of operations, reputation, and relationships with clients, partners, vendors, and teammates," in Part I, Item 1A of this report. 24 INSIGHT ENTERPRISES, INC.
For additional information regarding cybersecurity-related risks we face, see "Risk Factors – Risks Related to Our Technology, Data and Intellectual Property – Cyberattacks, data incidents and breaches in the security (i) of our information systems and networks, (ii) of the products we sell and services we provide, and (iii) of the electronic and confidential information in our possession could materially adversely impact our financial condition, results of operations, reputation, and relationships with clients, partners, vendors, and teammates," in Part I, Item 1A of this report. 21 INSIGHT ENTERPRISES, INC.
This collaboration allows us to rapidly adopt industry best practices developed through firsthand experience mitigating cyber incidents. Our program also includes processes to oversee and identify risks from cybersecurity threats associated with our use of third-party service providers.
Our program also includes processes to oversee and identify risks from cybersecurity threats associated with our use of third-party service providers.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeInformation about significant sales, distribution, services and administration facilities in use as of December 31, 2024 is summarized in the following table: Operating Segment Location Primary Activities Own or Lease North America Chandler, Arizona, USA Executive Office, Sales and Administration, Network Operations Center and Client Support Center Own Hanover Park, Illinois, USA Services, Distribution and Administration Lease Conway, Arkansas, USA Sales and Administration Lease Fort Worth, Texas, USA Services, Distribution and Administration Lease Edmonton, Alberta, Canada Sales, Distribution and Administration Lease Winnipeg, Manitoba, Canada Sales and Administration Lease Montreal, Quebec, Canada Sales and Administration Lease Montreal, Quebec, Canada Distribution Lease Calgary, Alberta, Canada Sales, Distribution and Administration Lease Mississauga, Ontario, Canada Sales and Administration Lease EMEA Sheffield, United Kingdom Sales and Administration Lease Sheffield, United Kingdom Distribution Lease Uxbridge, United Kingdom Sales and Administration Lease Frankfurt, Germany Sales and Administration Lease Frankfurt, Germany Distribution Lease Paris, France Sales and Administration Lease Apeldoorn, Netherlands Sales and Administration Lease Chisinau, Moldova Services Lease Timisoara, Romania Services Lease APAC Sydney, Australia Sales and Administration Lease Perth, Australia Sales and Administration Lease Melbourne, Australia Sales and Administration Lease Auckland, New Zealand Sales and Administration Lease Hong Kong Sales and Administration Lease Shanghai, China Sales and Administration Lease Manila, Philippines Operations Center Lease 25 INSIGHT ENTERPRISES, INC.
Biggest changeInformation about significant sales, distribution, services and administration facilities in use as of December 31, 2025 is summarized in the following table: Operating Segment Location Primary Activities Own or Lease North America Chandler, Arizona, USA Executive Office, Sales and Administration, Network Operations Center and Client Support Center Own Hanover Park, Illinois, USA Services, Distribution and Administration Lease Conway, Arkansas, USA Sales and Administration Lease Fort Worth, Texas, USA Services, Distribution and Administration Lease Montreal, Quebec, Canada Sales, Distribution and Administration Lease Calgary, Alberta, Canada Sales, Distribution and Administration Lease EMEA Sheffield, United Kingdom Sales and Administration Lease Sheffield, United Kingdom Distribution Lease Uxbridge, United Kingdom Sales and Administration Lease Frankfurt, Germany Sales and Administration Lease Frankfurt, Germany Distribution Lease Paris, France Sales and Administration Lease Apeldoorn, Netherlands Sales and Administration Lease Chisinau, Moldova Services Lease Timisoara, Romania Services Lease APAC Sydney, Australia Sales and Administration Lease Perth, Australia Sales and Administration Lease Melbourne, Australia Sales and Administration Lease Singapore Sales and Administration Lease Hong Kong Sales and Administration Lease Shanghai, China Sales and Administration Lease Manila, Philippines Operations Center Lease Uttar Pradesh, India Operations Center Lease In addition to those listed above, we have leased sales offices in various cities across North America, EMEA and APAC.
Legal Proceedings For a discussion of legal proceedings, see “Legal Proceedings” in Note 16 to the Consolidated Financial Statements in Part II, Item 8 of this report, which is incorporated by reference herein. Item 4. Mine Safety Disclosures Not applicable. 26 INSIGHT ENTERPRISES, INC. PART II
Legal Proceedings For a discussion of legal proceedings, see “Legal Proceedings” in Note 17 to the Consolidated Financial Statements in Part II, Item 8 of this report, which is incorporated by reference herein. Item 4. Mine Safety Disclosures Not applicable. 23 INSIGHT ENTERPRISES, INC. PART II
At December 31, 2024, we owned or leased approximately 1.7 million square feet of office and warehouse space, and, while approximately 69% of the square footage is in the United States, we own or lease office and warehouse facilities in Canada and in 15 countries in EMEA and we lease office facilities in 7 countries in APAC.
At December 31, 2025, we owned or leased approximately 1.5 million square feet of office and warehouse space, and, while approximately 73% of the square footage is in the United States, we own or lease office and warehouse facilities in Canada and in 17 countries in EMEA and we lease office facilities in 9 countries in APAC.
In addition to those listed above, we have leased sales offices in various cities across North America, EMEA and APAC. For additional information on property and equipment and operating leases, see Notes 4 and 9 to the Consolidated Financial Statements in Part II, Item 8 of this report. Item 3.
For additional information on property and equipment and operating leases, see Notes 4 and 9 to the Consolidated Financial Statements in Part II, Item 8 of this report. 22 INSIGHT ENTERPRISES, INC. Item 3.

Item 4. Mine Safety Disclosures

Mine Safety Disclosures — required of mining issuers

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Biggest changeITEM 4. Mine Safety Disclosures 26 PART II ITEM 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 27 ITEM 6. [Reserved] 28 ITEM 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations 29 ITEM 7A. Quantitative and Qualitative Disclosures About Market Risk 46 ITEM 8.
Biggest changeITEM 4. Mine Safety Disclosures 23 PART II ITEM 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 24 ITEM 6. [Reserved] 25 ITEM 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations 26 ITEM 7A. Quantitative and Qualitative Disclosures About Market Risk 41 ITEM 8.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeIn accordance with the share repurchase plan, share repurchases may be made on the open market, subject to Rule 10b-18 or in privately negotiated transactions, through block trades, through 10b5-1 plans or otherwise, at management’s discretion.
Biggest changeAs of December 31, 2025, approximately $299.0 million remained available for repurchases under our share repurchase plan. In accordance with the share repurchase plan, share repurchases may be made on the open market, subject to Rule 10b-18 or in privately negotiated transactions, through block trades, through 10b5-1 plans or otherwise, at management’s discretion.
The graph assumes that $100 was invested on December 31, 2019 in our common stock and in each of the two Nasdaq indices, and that, as to such indices, dividends were reinvested. We have not, since our inception, paid any cash dividends on our common stock.
The graph assumes that $100 was invested on December 31, 2020 in our common stock and in each of the two Nasdaq indices, and that, as to such indices, dividends were reinvested. We have not, since our inception, paid any cash dividends on our common stock.
Historical stock price performance shown on the graph is not necessarily indicative of future price performance. Dec. 31, 2019 Dec. 31, 2020 Dec. 31, 2021 Dec. 31, 2022 Dec. 31, 2023 Dec. 31, 2024 Insight Enterprises, Inc.
Historical stock price performance shown on the graph is not necessarily indicative of future price performance. Dec. 31, 2020 Dec. 31, 2021 Dec. 31, 2022 Dec. 31, 2023 Dec. 31, 2024 Dec. 31, 2025 Insight Enterprises, Inc.
See further information on our share repurchase programs in Note 15 to the Consolidated Financial Statements in Part II, Item 8 of this report. 27 INSIGHT ENTERPRISES, INC.
See further information on our share repurchase programs in Note 16 to the Consolidated Financial Statements in Part II, Item 8 of this report. 24 INSIGHT ENTERPRISES, INC.
Issuer Purchases of Equity Securities Period (a) Total Number of Shares Purchased (b) Average Price Paid per Share (c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (d) Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs October 1, 2024 through October 31, 2024 — $ — — $ 300,000,476 November 1, 2024 through November 30, 2024 — — — 300,000,476 December 1, 2024 through December 31, 2024 — — — 300,000,476 — — On May 18, 2023, we announced that our Board of Directors authorized the repurchase of up to $300.0 million of our common stock, including $100.0 million that remained available from prior authorizations.
Issuer Purchases of Equity Securities Period (a) Total Number of Shares Purchased (b) Average Price Paid per Share (c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (d) Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs October 1, 2025 through October 31, 2025 — $ — — $ 148,882,848 November 1, 2025 through November 30, 2025 — — — 148,882,848 December 1, 2025 through December 31, 2025 — — — 299,000,000 — — On December 19, 2025, we announced that our Board of Directors authorized the repurchase of up to $299.0 million of our common stock, including approximately $149.0 million that remained from prior authorizations.
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Market Information Our common stock trades under the symbol “NSIT” on The Nasdaq Global Select Market. As of February 7, 2025, we had 31,777,678 shares of common stock outstanding held by 36 stockholders of record.
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Market Information Our common stock trades under the symbol “NSIT” on The Nasdaq Global Select Market. As of February 6, 2026, we had 30,996,502 shares of common stock outstanding held by 34 stockholders of record.
Removed
During 2024, this repurchase authorization was substantially exhausted. On September 11, 2024, we announced that our Board of Directors authorized the repurchase of up to $300.0 million of our common stock, in addition to any amount that remained from prior authorizations. As of December 31, 2024, approximately $300.0 million remained available for repurchases under our share repurchase plan.
Added
Common Stock (NSIT) $ 100.00 $ 140.00 $ 132.00 $ 233.00 $ 200.00 $ 107.00 Nasdaq US Benchmark TR Index (Market Index) 100.00 126.00 101.00 128.00 159.00 187.00 Nasdaq US Benchmark Computer Hardware TR Index (Industry Index) 100.00 135.00 99.00 148.00 193.00 214.00
Removed
Common Stock (NSIT) $ 100.00 $ 108.00 $ 152.00 $ 143.00 $ 252.00 $ 216.00 Nasdaq US Benchmark TR Index (Market Index) 100.00 121.00 153.00 123.00 155.00 193.00 Nasdaq US Benchmark Computer Hardware TR Index (Industry Index) 100.00 177.00 240.00 176.00 263.00 342.00

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

99 edited+24 added−38 removed40 unchanged
Biggest changeMANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued) Net cash used in financing activities. • In May 2024, we issued $500.0 million in principal amount of Senior Notes, which we used to pay down a portion of our borrowings under our ABL facility. • During 2024, we had net repayments on our long-term debt under our ABL facility of $554.1 million and had net repayments under our inventory financing facilities of $13.6 million. • During 2023, we had net borrowings on our long-term debt under our ABL facility of $299.6 million and had net repayments under our inventory financing facilities of $70.4 million. • In 2024, we made earnout and acquisition related payments of $20.3 million associated with our Amdaris and Hanu acquisitions. • In 2024, we also funded $200.0 million of repurchases of our common stock, compared to $217.1 million purchased during 2023. • We expect to partially settle the warrants associated with the Convertible Notes in cash in the first half of 2025. 2023 Compared to 2022 For a comparison of our cash flows for the fiscal years ended December 31, 2023 and 2022, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of our Annual Report on Form 10-K for the fiscal year ended December 31, 2023 filed with the SEC on February 22, 2024.
Biggest changeNet cash used in financing activities. • In May 2024, we issued $500.0 million aggregate principal amount of Senior Notes, which we used to pay down a portion of our borrowings under our ABL facility. • During 2025, we had net borrowings on our long-term debt under our ABL facility of $818.8 million, which were primarily used to fund the repayment of the remaining principal balance upon maturity of the Convertible Notes, to fund strategic acquisitions, to settle a portion of the Warrants and to repurchase shares of our common stock. • During 2024, we had net repayments on our long-term debt under our ABL facility of $554.1 million. • We had net borrowing under our inventory financing facilities of $6.4 million in 2025 and net repayments of $13.6 million in 2024. • In 2025, we repaid approximately $333.1 million for the remaining principal balance upon maturity of the Convertible Notes. • In 2024, we repaid approximately $16.9 million principal upon conversion of a portion of the Convertible Notes. • In 2025, we paid $222.0 million to settle a portion of the Warrants relating to the Call Spread Transactions associated with the Convertible Notes in cash. • In 2025, we made earnout and acquisition related payments of $20.2 million primarily associated with our acquisition of Infocenter. • In 2024, we made earnout and acquisition related payments of $20.3 million associated with our acquisitions of Amdaris and Hanu. • In 2025, we repurchased $151.1 million of our common stock, compared to $200.0 million repurchased during 2024. 2024 Compared to 2023 For a comparison of our cash flows for the fiscal years ended December 31, 2024 and 2023, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of our Annual Report on Form 10-K for the fiscal year ended December 31, 2024 filed with the SEC on February 14, 2025.
As of December 31, 2024, no such events have occurred. • Our ABL facility contains various covenants customary for transactions of this type, including complying with a minimum receivable and inventory requirement and meeting monthly, quarterly and annual reporting requirements. • The credit agreement contains customary affirmative and negative covenants and events of default. • At December 31, 2024, we were in compliance with all such covenants. • While the ABL facility has a stated maximum amount, the actual availability under the ABL facility is limited by a minimum accounts receivable and inventory requirement.
As of December 31, 2025, no such events have occurred. • Our ABL facility contains various covenants customary for transactions of this type, including complying with a minimum receivable and inventory requirement and meeting monthly, quarterly and annual reporting requirements. • The credit agreement contains customary affirmative and negative covenants and events of default. • At December 31, 2025, we were in compliance with all such covenants. • While the ABL facility has a stated maximum amount, the actual availability under the ABL facility is limited by a minimum accounts receivable and inventory requirement.
See Notes 1 and 20 to the Consolidated Financial Statements in Part II, Item 8 of this report for further discussion of our accounting policies related to acquisition accounting and recent acquisitions.
See Notes 1 and 21 to the Consolidated Financial Statements in Part II, Item 8 of this report for further discussion of our accounting policies related to acquisition accounting and recent acquisitions.
This net decrease reflects a decrease in software and hardware net sales, partially offset by an increase in services net sales. Net sales of software and hardware were down 20% and 8%, respectively, year to year, partially offset by an increase in services net sales of 23%, year over year.
This net decrease reflects a decrease in software and hardware net sales, partially offset by an increase in services net sales. Net sales of software and hardware were down 12% and 8%, respectively, year to year, partially offset by an increase in services net sales of 20%, year over year.
In discussing financial results for 2024 and 2023, the Company refers to certain financial measures that are adjusted from the financial results prepared in accordance with GAAP.
In discussing financial results for 2025 and 2024, the Company refers to certain financial measures that are adjusted from the financial results prepared in accordance with GAAP.
When referring to non-GAAP measures, the Company refers to them as “Adjusted.” See the "Use of Non-GAAP Financial Measures" section below for additional information and a reconciliation of such non-GAAP measures to the most directly comparable GAAP financial measures.
When referring to non-GAAP measures, the Company refers to them as “Adjusted.” See the "Use of Non-GAAP Financial Measures" section below for additional information and a reconciliation of such non-GAAP measures to the most directly comparable GAAP financial measures. 26 INSIGHT ENTERPRISES, INC.
RESULTS OF OPERATIONS The following table sets forth certain financial data as a percentage of net sales for the years ended December 31, 2024 and 2023: 2024 2023 Net sales 100.0 % 100.0 % Costs of goods sold 79.7 81.8 Gross profit 20.3 18.2 Operating expenses: Selling and administrative expenses 15.4 13.5 Severance and restructuring expenses and acquisition-related expenses, net 0.4 0.1 Earnings from operations 4.5 4.6 Non-operating expense, net 0.6 0.5 Earnings before income taxes 3.9 4.1 Income tax expense 1.0 1.0 Net earnings 2.9 % 3.1 % Our gross profit across the business and related to product versus services sales are, and will continue to be, impacted by partner incentives, which can and do change significantly in the amounts made available and the related product or services sales being incentivized by the partner.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued) RESULTS OF OPERATIONS The following table sets forth certain financial data as a percentage of net sales for the years ended December 31, 2025 and 2024: 2025 2024 Net sales 100.0 % 100.0 % Costs of goods sold 78.6 79.7 Gross profit 21.4 20.3 Operating expenses: Selling and administrative expenses 16.8 15.4 Severance and restructuring expenses and acquisition-related expenses, net 0.5 0.4 Earnings from operations 4.1 4.5 Non-operating expense, net 1.4 0.6 Earnings before income taxes 2.7 3.9 Income tax expense 0.8 1.0 Net earnings 1.9 % 2.9 % Our gross profit across the business and related to product versus services sales are, and will continue to be, impacted by partner incentives, which can and do change significantly in the amounts made available and the related product or services sales being incentivized by the partner.
Our assessments in the past three fiscal years have been qualitative assessments and no quantitative assessments have been deemed necessary. Additionally, during each of the years ended December 31, 2024, 2023 and 2022 we analyzed each of our reporting units and determined that no impairment charge was necessary.
Our assessments in the past three fiscal years have been qualitative assessments and no quantitative assessments have been deemed necessary. Additionally, during each of the years ended December 31, 2025, 2024 and 2023 we analyzed each of our reporting units and determined that no impairment charge was necessary. 40 INSIGHT ENTERPRISES, INC.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued) changes in accounting methodology or key assumptions used to recognize net sales during the past three fiscal years. We have not made any material adjustments to our financial statements as a result of actual results not being consistent with our estimates in the past three fiscal years.
We have not made any material changes in accounting methodology or key assumptions used to recognize net sales during the past three fiscal years. We have not made any material adjustments to our financial statements as a result of actual results not being consistent with our estimates in the past three fiscal years.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued) Inflation With the exception of the impact on our variable interest rate debt facilities, we have historically not been adversely affected by inflation, as technological advances and competition within the IT industry have generally caused the prices of the products we sell to decline and product life cycles tend to be short.
Inflation With the exception of the impact on our variable interest rate debt facilities, we have historically not been adversely affected by inflation, as technological advances and competition within the IT industry have generally caused the prices of the products we sell to decline and product life cycles tend to be short.
The changes in net foreign currency exchange gains/losses are due primarily to the underlying changes in the applicable exchange rates, partially mitigated by our use of foreign exchange forward contracts to offset the effects of fluctuations in foreign currencies on certain of our non-functional currency assets and liabilities. 36 INSIGHT ENTERPRISES, INC.
The changes in net foreign currency exchange gains/losses are due primarily to the underlying changes in the applicable exchange rates, partially mitigated by our use of foreign exchange forward contracts to offset the effects of fluctuations in foreign currencies on certain of our non-functional currency assets and liabilities. Income Tax Expense.
Acquisition Accounting/Business Combinations Description We account for acquired businesses using the acquisition method of accounting, which requires that once control of a business is obtained, all of the assets acquired and liabilities assumed, be recorded at the date of acquisition at their respective fair values, or other basis as applicable.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued) Acquisition Accounting/Business Combinations Description We account for acquired businesses using the acquisition method of accounting, which requires that once control of a business is obtained, all of the assets acquired and liabilities assumed, be recorded at the date of acquisition at their respective fair values, or other basis as applicable.
As a percentage of net sales, Adjusted earnings from operations increased by approximately 170 basis points to 10.5%. The increase in Adjusted earnings from operations reflects an increase in gross profit, partially offset by an increase in selling and administrative expenses. Non-Operating Expense (Income). Interest Expense, net.
As a percentage of net sales, Adjusted earnings from operations decreased by approximately 50 basis points to 10.0%. The decrease in Adjusted earnings from operations reflects an increase in selling and administrative expenses, partially offset by an increase in gross profit. Non-Operating Expense (Income). Interest Expense, Net.
Net sales of services and software increased 8% and 5%, respectively, year over year, partially offset by a decrease in hardware net sales of 19% year to year.
Net sales of services and hardware increased 5% and 2%, respectively, year over year, partially offset by a decrease in software net sales of 1% year to year.
The results of operations for 2024 include the following items: • severance and restructuring expenses, net of $25.0 million, $18.6 million net of tax; • acquisition and integration related expenses of $2.7 million, $2.5 million net of tax; and • the repurchase of approximately 1.0 million shares of the Company’s common stock for an aggregate cost of $200.0 million. 29 INSIGHT ENTERPRISES, INC.
The results of operations for 2024 include the following items: • severance and restructuring expenses, net of $31.6 million, $24.2 million net of tax; • acquisition and integration related expenses of $2.7 million, $2.5 million net of tax; and • the repurchase of approximately 1.0 million shares of the Company’s common stock for an aggregate cost of $200.0 million.
The excess purchase price over the estimated fair value of net assets acquired is recorded as goodwill. We use various models to determine the value of assets acquired and liabilities assumed such as the cost method, market method, relief from royalty method, multi-period excess earnings 45 INSIGHT ENTERPRISES, INC.
The excess purchase price over the estimated fair value of net assets acquired is recorded as goodwill. We use various models to determine the value of assets acquired and liabilities assumed such as the cost method, market method, relief from royalty method, multi-period excess earnings and discounted cash flow methods.
Our results of operations include the results of Amdaris, SADA and Infocenter from their respective acquisition dates. 2024 Compared to 2023 Net Sales. Net sales decreased 5%, or $0.5 billion, in 2024 compared to 2023.
Our results of operations include the results of Infocenter, Inspire11 and Sekuro from their respective acquisition dates. 2025 Compared to 2024 Net Sales. Net sales decreased 5%, or $0.5 billion, in 2025 compared to 2024.
Throughout the “Overview” and “Results of Operations” sections of this “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” we refer to changes in net sales, gross profit, selling and administrative expenses and earnings from operations on a consolidated basis and in North America, EMEA and APAC excluding the effects of fluctuating foreign currency exchange rates, which are also considered to be non-GAAP measures.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued) Throughout the “Overview” and “Results of Operations” sections of this “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” we refer to changes in net sales, gross profit,earnings from operations and Adjusted earnings from operations in EMEA and APAC excluding the effects of fluctuating foreign currency exchange rates, which are also considered to be non-GAAP measures.
Interest expense, net primarily relates to borrowings under our financing facilities and imputed interest under our inventory financing facilities, the Convertible Notes and the Senior Notes, partially offset by interest income generated from interest earned on cash and cash equivalent bank balances. Interest expense increased 41%, or $19.7 million, in 2024 compared to 2023.
Interest expense, net primarily relates to borrowings under our financing facilities and imputed interest under our inventory financing facilities, the Convertible Notes and the Senior Notes, as applicable, partially offset by interest income generated from interest earned on cash and cash equivalent bank balances. Interest expense net increased 46%, or $26.8 million, in 2025 compared to 2024.
See Note 1 to the Consolidated Financial Statements in Part II, Item 8 of this report for further discussion of our accounting policies related to sales recognition and for a detailed description of our product and services offerings.
See Note 1 to the Consolidated Financial Statements in Part II, Item 8 of this report for further discussion of our accounting policies related to sales recognition and for a detailed description of our product and services offerings. Goodwill Description We perform an annual review of our goodwill in the fourth quarter of every year.
Incentives from our largest partners are significant and changes in the incentive requirements, which occur regularly, could impact our results of operations to the extent we are unable to effectively shift our focus and efficiently respond to them.
Incentives from our largest partners are significant and changes in the incentive requirements, which occur regularly, could impact our results of operations to the extent we are unable to effectively shift our focus and efficiently respond to them. For example, recent changes in incentives for certain cloud-based solutions adversely impacted our results of operations in 2025.
Our offerings in the remainder of our EMEA and APAC segments consist largely of software and certain software-related services and cloud solutions.
Our offerings in North America and certain countries in EMEA and APAC include hardware, software and services, including cloud solutions. Our offerings in the remainder of our EMEA and APAC segments consist largely of software and certain software-related services and cloud solutions.
Goodwill Description We perform an annual review of our goodwill in the fourth quarter of every year. We continually assess if an event occurs or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying value and assess whether any indicators of impairment exist.
We continually assess if an event occurs or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying value and assess whether any indicators of impairment exist.
We completed two business combinations in fiscal 2024, including an acquisition in EMEA, and two business combinations in fiscal 2023. We have not made any material adjustments to our financial statements as a result of business combination key assumptions not being consistent with our estimates in the past three fiscal years.
We have not made any material adjustments to our financial statements as a result of business combination key assumptions not being consistent with our estimates in the past three fiscal years.
Net sales of products (hardware and software) decreased 8%, year to year, while net sales of services increased 9%, year over year, in 2024 compared to 2023.
Net sales of products (hardware and software) decreased 7%, year to year, while net sales of services increased 2%, year over year, in 2025 compared to 2024.
EMEA’s Adjusted earnings from operations increased 18% (increasing 16% excluding the effects of fluctuating foreign currency exchange rates), or $8.4 million, year over year, in 2024 compared to 2023. As a percentage of net sales, Adjusted earnings from operations increased by approximately 100 basis points to 4.0%.
EMEA’s Adjusted earnings from operations increased 10% (increasing 7% when excluding the effects of fluctuating foreign currency exchange rates), or $5.7 million, year over year, in 2025 compared to 2024. As a percentage of net sales, Adjusted earnings from operations increased by approximately 50 basis points to 4.5%.
However, if actual results are not consistent with our estimates or assumptions, it could have a material effect on our reported net sales, timing of revenue recognition and our results of operations. We have not made any material 43 INSIGHT ENTERPRISES, INC.
However, if actual results are not consistent with our estimates or assumptions, it could have a material effect on our reported net sales, timing of revenue recognition and our 39 INSIGHT ENTERPRISES, INC. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued) results of operations.
Our actual results could differ materially from those contained in forward-looking statements due to a number of factors, including those discussed in “Risk Factors” in Part I, Item 1A and elsewhere in this report. Overview Today, every business is a technology business. We help our clients accelerate their digital journey to modernize their businesses and maximize the value of technology.
Our actual results could differ materially from those contained in forward-looking statements due to a number of factors, including those discussed in “Risk Factors” in Part I, Item 1A and elsewhere in this report. Overview Today, every business is a technology business. At Insight, we accelerate transformation by unlocking the power of people and technology.
Our Adjusted earnings from operations and Adjusted earnings from operations as a percentage of net sales by operating segment were as follows for 2024 and 2023 (dollars in thousands): 2024 % of Net Sales 2023 % of Net Sales North America $ 421,977 6.0 % $ 424,359 5.7 % EMEA 55,936 4.0 % 47,570 3.0 % APAC 24,459 10.5 % 20,198 8.8 % Consolidated $ 502,372 5.8 % $ 492,127 5.4 % North America’s Adjusted earnings from operations decreased 1%, or $2.4 million, year to year, in 2024 compared to 2023.
Our Adjusted earnings from operations and Adjusted earnings from operations as a percentage of net sales by operating segment were as follows for 2025 and 2024 (dollars in thousands): 2025 % of Net Sales 2024 % of Net Sales North America $ 418,584 6.3 % $ 421,977 6.0 % EMEA 61,614 4.5 % 55,936 4.0 % APAC 23,790 10.0 % 24,459 10.5 % Consolidated $ 503,988 6.1 % $ 502,372 5.8 % North America’s Adjusted earnings from operations decreased 1%, or $3.4 million, year to year, in 2025 compared to 2024.
These amounts are classified separately as accounts payable - inventory financing facilities in our consolidated balance sheets. Notes 7 and 8 to the Consolidated Financial Statements in Part II, Item 8 of this report also include: a description of our financing facilities; amounts outstanding; amounts available and weighted average borrowings and interest rates during the year. 41 INSIGHT ENTERPRISES, INC.
Notes 7 and 8 to the Consolidated Financial Statements in Part II, Item 8 of this report also include: a description of our financing facilities; amounts outstanding; amounts available and weighted average borrowings and interest rates during the year.
We believe that none of our off-balance sheet arrangements have, or are reasonably likely to have, a material current or future effect on our financial condition, sales or expenses, results of operations, liquidity, capital expenditures or capital resources.
These arrangements are discussed in Note 17 to the Consolidated Financial Statements in Part II, Item 8 of this report. We believe that none of our off-balance sheet arrangements have, or are reasonably likely to have, a material current or future effect on our financial condition, sales or expenses, results of operations, liquidity, capital expenditures or capital resources.
Our earnings from operations and earnings from operations as a percentage of net sales by operating segment were as follows for 2024 and 2023 (dollars in thousands): 2024 % of Net Sales 2023 % of Net Sales North America $ 319,068 4.5 % $ 362,082 4.9 % EMEA 46,218 3.3 % 38,128 2.4 % APAC 23,298 10.0 % 19,585 8.5 % Consolidated $ 388,584 4.5 % $ 419,795 4.6 % North America’s earnings from operations decreased 12%, or $43.0 million, year to year, in 2024 compared to 2023.
Our earnings from operations and earnings from operations as a percentage of net sales by operating segment were as follows for 2025 and 2024 (dollars in thousands): 2025 % of Net Sales 2024 % of Net Sales North America $ 282,272 4.2 % $ 319,068 4.5 % EMEA 30,970 2.3 % 46,218 3.3 % APAC 21,681 9.1 % 23,298 10.0 % Consolidated $ 334,923 4.1 % $ 388,584 4.5 % North America’s earnings from operations decreased 12%, or $36.8 million, year to year, in 2025 compared to 2024.
In 2023, we reported net earnings of $281.3 million and diluted net earnings per share of $7.55.
In 2024, we reported net earnings of $249.7 million and diluted net earnings per share of $6.55.
We expect existing cash and cash flows from operations to continue to be sufficient to fund our operating cash activities and cash commitments for investing and financing activities, such as capital expenditures, strategic acquisitions, repurchases of our common stock, early settlement of a portion of the Warrants in cash (as discussed further below), principal payment on the Convertible Notes that mature in February 2025, debt repayments and repayment of our inventory financing facilities for the next 12 months.
We expect existing cash and cash flows from operations to continue to be sufficient to fund our operating cash activities and cash commitments for investing and financing activities, such as capital expenditures, strategic acquisitions, repurchases of our common stock, debt repayments and repayment of our inventory financing facilities for the next 12 months.
The increase in Adjusted earnings from operations was primarily driven by increases in gross profit, partially offset by an increase in selling and administrative expenses. APAC’s Adjusted earnings from operations increased 21% (increasing 22% excluding the effects of fluctuating foreign currency exchange rates), or $4.3 million, year over year, in 2024 compared to 2023.
The increase in Adjusted earnings from operations was primarily driven by an increase in gross profit, partially offset by a decrease in selling and administrative expenses. APAC’s Adjusted earnings from operations decreased 3% (decreasing 1% when excluding the effects of fluctuating foreign currency exchange rates), or $0.7 million, year to year, in 2025 compared to 2024.
The magnitude, timing and nature of any future acquisitions or investments will depend on a number of factors, including the availability of suitable candidates, the negotiation of acceptable terms, our financial capabilities and general economic and business conditions.
The magnitude, timing and nature of any future acquisitions or investments will depend on a number of factors, including the availability of suitable candidates, the negotiation of acceptable terms, our financial capabilities and general economic and business conditions. Financing for future transactions would result in the utilization of cash, incurrence of additional debt, 38 INSIGHT ENTERPRISES, INC.
This net decrease reflects a decrease in hardware net sales, partially offset by increases in software and services net sales. Net sales of hardware decreased 10%, year to year. Net sales of software and services increased 3% and 7%, respectively, year over year.
This net decrease reflects decreases in software and services net sales, partially offset by an increase in hardware net sales. Net sales of hardware increased 2%, year over year. Net sales of software and services decreased 27% and 2%, respectively, year to year.
As a percentage of net sales, Adjusted earnings from operations increased by approximately 30 basis points to 6.0%. The decrease in Adjusted earnings from operations was primarily driven by increases in selling and administrative expenses, partially offset by an increase in gross profit.
As a percentage of net sales, Adjusted earnings from operations increased by approximately 32 INSIGHT ENTERPRISES, INC. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued) 30 basis points to 6.3%. The decrease in Adjusted earnings from operations was primarily driven by a decrease in gross profit, partially offset by a decrease in selling and administrative expenses.
Use of Non-GAAP Financial Measures Adjusted non-GAAP earnings from operations 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) certain third-party data center service outage related expenses and recoveries, as applicable.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued) Use of Non-GAAP Financial Measures Adjusted non-GAAP earnings from operations (which we also refer to as "Adjusted earnings from operations") 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) gains and losses from revaluation of acquisition related earnout liabilities, (vii) certain third-party data center service outage related expenses and recoveries, and (viii) impairment losses on long lived real estate assets now held for sale, as applicable.
This increase was primarily due to higher margins on hardware compared to the prior year. APAC’s gross profit increased 11% (increased 12% excluding the effects of fluctuating foreign currency exchange rates), or $7.3 million, in 2024 compared to 2023. As a percentage of net sales, gross margin increased by approximately 270 basis points year over year.
This decrease was primarily due to lower margins on both hardware and software compared to the prior year. APAC’s gross profit increased 1% (increasing 3% when excluding the effects of fluctuating foreign currency exchange rates), or $1.0 million, in 2025 compared to 2024. As a percentage of net sales, gross margin decreased by approximately 20 basis points year to year.
On a consolidated basis, for the year ended December 31, 2024: • Net sales of $8.7 billion decreased 5% compared to 2023. • Gross profit of $1.8 billion increased 6% compared to 2023. • Consolidated gross margin expanded approximately 210 basis points to a record 20.3% of net sales in 2024.
On a consolidated basis, for the year ended December 31, 2025: • Net sales of $8.2 billion decreased 5% compared to 2024. • Gross profit of $1.8 billion was relatively flat compared to 2024. • Consolidated gross margin expanded approximately 110 basis points to a record 21.4% of net sales in 2025.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued) The results of operations for 2023 include the following items: • severance and restructuring expenses, net of $6.1 million, $4.4 million net of tax; • acquisition and integration related expenses of $7.4 million, $6.0 million net of tax; and • the repurchase of approximately 1.6 million shares of the Company’s common stock for an aggregate cost of $217.1 million.
The results of operations for 2025 include the following items: • severance and restructuring expenses, net of $37.1 million, $27.6 million net of tax; • acquisition and integration related expenses of $3.6 million, $3.0 million net of tax; and • the repurchase of approximately 1.2 million shares of the Company’s common stock for an aggregate cost of $151.1 million.
The net changes were primarily the result of the following: • The increase in services net sales was due to higher sales of cloud solution offerings that are recorded on a net sales recognition basis in the services net sales category and increased sales of Insight Delivered services. • The increase in software net sales was primarily due to higher volume of sales to enterprise and public sector clients, partially offset by the continued migration of on-premise software toward higher sales of cloud solution offerings. • The decrease in hardware net sales was due to lower volume of sales to large enterprise and corporate clients.
The changes were primarily the result of the following: • The decrease in software net sales was primarily due to lower volume of sales to large enterprise and public sector clients and the continued migration of on-premise software to cloud solutions, reported net in services net sales . • The decrease in hardware net sales was primarily due to lower volume of sales to large enterprise, corporate and public sector clients due to lower demand. • The increase in services net sales was primarily due to increased sales of Insight Delivered services and an increase in other agency net sales, partially offset by a net decrease in fees from cloud solution offerings primarily as a result of partner program changes. 29 INSIGHT ENTERPRISES, INC.
As of December 31, 2024, the current portion of our long-term debt primarily relates to the Convertible Notes. • Our objective is to pay our debt balances down while retaining adequate cash balances to meet overall business objectives. • The Convertible Notes are subject to certain events of default and certain acceleration clauses.
Financing Facilities • Our debt balance as of December 31, 2025 was $1.4 billion. • Our objective is to pay our debt balances down while retaining adequate cash balances to meet overall business objectives. • The Senior Notes are subject to certain events of default and certain acceleration clauses.
During 2023, we incurred $7.4 million in direct third-party costs primarily related to the acquisitions of SADA and Amdaris. See Note 20 to the Consolidated Financial Statements in Part II, Item 8 of this report for further discussion of our acquisitions. Earnings from Operations. Earnings from operations decreased 7%, or $31.2 million, year to year, in 2024 compared to 2023.
During 2024, we incurred $2.7 million in direct third-party costs primarily related to the acquisition of Infocenter. See Note 21 to the Consolidated Financial Statements in Part II, Item 8 of this report for further discussion of our acquisitions. As we execute our acquisition strategy, we expect to incur additional acquisition and integration related expenses. Earnings from Operations.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued) Our net sales by offering category for North America for 2024 and 2023 were as follows (dollars in thousands): North America Sales Mix 2024 2023 % Change Hardware $ 4,038,341 $ 4,498,466 (10 %) Software 1,721,403 1,669,046 3 % Services 1,294,836 1,214,842 7 % $ 7,054,580 $ 7,382,354 (4 %) Net sales in North America decreased 4%, or $327.8 million, in 2024 compared to 2023.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued) Our net sales by offering category for North America for 2025 and 2024 were as follows (dollars in thousands): North America Sales Mix 2025 2024 % Change Hardware $ 4,135,116 $ 4,038,341 2 % Software 1,256,691 1,721,403 (27 %) Services 1,262,730 1,294,836 (2 %) $ 6,654,537 $ 7,054,580 (6 %) Net sales in North America decreased 6%, or $400.0 million, in 2025 compared to 2024.
During 2023, we recorded severance expense, net of adjustments, totaling $12.9 million. These expenses were partially offset by net gains on the sale of properties due to restructuring of $6.8 million. Acquisition and Integration-related Expenses . During 2024, we incurred $2.7 million in direct third-party costs primarily related to the acquisition of Infocenter.
Total severance and restructuring expenses of $34.0 million incurred in 2024 were partially offset by net gains on the sale of properties due to restructuring of $2.4 million. Acquisition and Integration-related Expenses . During 2025, we incurred $3.6 million in direct third-party costs primarily related to the acquisition of Inspire11 and Sekuro.
Our net sales by operating segment for 2024 and 2023 were as follows (dollars in thousands): 2024 2023 % Change North America $ 7,054,580 $ 7,382,354 (4 %) EMEA 1,414,097 1,563,654 (10 %) APAC 233,021 229,832 1 % Consolidated $ 8,701,698 $ 9,175,840 (5 %) 31 INSIGHT ENTERPRISES, INC.
Our net sales by operating segment for 2025 and 2024 were as follows (dollars in thousands): 2025 2024 % Change North America $ 6,654,537 $ 7,054,580 (6 %) EMEA 1,355,148 1,414,097 (4 %) APAC 237,495 233,021 2 % Consolidated $ 8,247,180 $ 8,701,698 (5 %) 28 INSIGHT ENTERPRISES, INC.
These netted costs, while excluded from both net sales and cost of goods sold, are processed and applied to accounts receivable and accounts payable in each reporting period. As a result, our DSO and DPO calculated on the basis of unadjusted net sales and unadjusted cost of goods sold are inherently inflated.
These netted costs, while excluded from net sales and cost of goods sold, are processed and applied to accounts receivable and accounts payable in each reporting period.
This increase reflects expansion in margin from services net sales, primarily from growth in Insight Delivered services and cloud solution offerings. • Earnings from operations decreased to $388.6 million in 2024, a decrease of 7% compared to the prior year, which represented 4.5% of net sales. • Our effective tax rate in 2024 was 25.0%, which compares to our effective tax rate of 25.6% in 2023. • Net earnings and diluted net earnings per share were $249.7 million and $6.55, respectively, in 2024.
This increase reflects expansion in margin from services net sales, primarily from growth in other agency transactions and Insight Core services. • Earnings from operations decreased to $334.9 million in 2025, a decrease of 14% compared to the prior year, which represented 4.1% of net sales. • Our effective tax rate in 2025 was 30.3%, compared to our effective tax rate of 25.0% in 2024. • Net earnings and diluted net earnings per share were $157.3 million and $4.86, respectively, in 2025.
Net sales by category for North America, EMEA and APAC were as follows for 2024 and 2023: North America EMEA APAC Sales Mix 2024 2023 2024 2023 2024 2023 Hardware 57 % 61 % 36 % 35 % 15 % 19 % Software 25 % 23 % 44 % 50 % 40 % 39 % Services 18 % 16 % 20 % 15 % 45 % 42 % 100 % 100 % 100 % 100 % 100 % 100 % 33 INSIGHT ENTERPRISES, INC.
Net sales by category for North America, EMEA and APAC were as follows for 2025 and 2024: North America EMEA APAC Sales Mix 2025 2024 2025 2024 2025 2024 Hardware 62 % 57 % 34 % 36 % 15 % 15 % Software 19 % 25 % 41 % 44 % 39 % 40 % Services 19 % 18 % 25 % 20 % 46 % 45 % 100 % 100 % 100 % 100 % 100 % 100 % Gross Profit .
EMEA’s earnings from operations increased 21% (increasing 20% excluding the effects of fluctuating foreign currency exchange rates), or $8.1 million, year over year, in 2024 compared to 2023. As a percentage of net sales, earnings from operations increased by approximately 90 basis points to 3.3%.
EMEA’s earnings from operations decreased 33% (decreasing 35% when excluding the effects of fluctuating foreign currency exchange rates), or $15.2 million, year to year, in 2025 compared to 2024. As a percentage of net sales, earnings from operations decreased by approximately 100 basis points to 2.3%.
We may adjust the preliminary purchase price allocation, after the acquisition closing date and through the end of the measurement period of one year or less, as we finalize the valuation of acquired assets and liabilities. Judgments and Uncertainties Significant judgment is often required in estimating the fair value of assets acquired (particularly intangible assets), liabilities assumed, and contingent consideration.
We engage outside appraisal firms to assist in the fair value determination of identifiable intangible assets. We may adjust the preliminary purchase price allocation, after the acquisition closing date and through the end of the measurement period of one year or less, as we finalize the valuation of acquired assets and liabilities.
Our net sales by offering category for EMEA for 2024 and 2023, were as follows (dollars in thousands): EMEA Sales Mix 2024 2023 % Change Hardware $ 501,111 $ 546,621 (8 %) Software 626,372 784,717 (20 %) Services 286,614 232,316 23 % $ 1,414,097 $ 1,563,654 (10 %) Net sales in EMEA decreased 10% (decreased 11% excluding the effects of fluctuating foreign currency exchange rates), or $149.6 million, in 2024 compared to 2023.
Our net sales by offering category for EMEA for 2025 and 2024 were as follows (dollars in thousands): EMEA Sales Mix 2025 2024 % Change Hardware $ 458,802 $ 501,111 (8 %) Software 552,421 626,372 (12 %) Services 343,925 286,614 20 % $ 1,355,148 $ 1,414,097 (4 %) Net sales in EMEA decreased 4% (decreasing 8% when excluding the effects of fluctuating foreign currency exchange rates), or $58.9 million, in 2025 compared to 2024.
Net cash used in investing activities . • We paid $265.0 million to acquire Infocenter on May 1, 2024, net of cash and cash equivalents acquired of $5.1 million.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued) • We paid $265.0 million net of cash and cash equivalents acquired of $5.1 million, to acquire Infocenter on May 1, 2024.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued) changes to the global macroeconomic environment, including those impacting our supply chain and interest rates, and assessing the potential impacts these challenges may have on our current results, financial condition and liquidity.
We are actively monitoring changes to the global macroeconomic environment, including those impacting our supply chain, demand for our products whether due to tariffs or otherwise and interest rates, and assessing the potential impacts these challenges may have on our current results, financial condition and liquidity.
For a description of our various financing facilities, see Notes 7 and 8 to our Consolidated Financial Statements in Part II, Item 8 of this report. Other (Income) Expense, Net . Other (income) expense, net, consists primarily of foreign currency exchange gains and losses.
This was partially offset by lower ABL interest rates in 2025 compared to 2024. For a description of our various financing facilities, see Notes 7 and 8 to our Consolidated Financial Statements in Part II, Item 8 of this report. Other Income (Expense), Net .
Additionally, we paid $5.2 million, net of cash and cash equivalents acquired, for an entity in our EMEA segment, on July 1, 2024. • We acquired SADA and Amdaris for approximately $398.6 million and $82.9 million, respectively, net of cash and cash equivalents acquired and excluding earn outs and hold backs in 2023. • We received proceeds from the sale of assets, including properties held for sale, of $13.8 million and $15.5 million in 2024 and 2023, respectively. • Capital expenditures were $46.8 million and $39.3 million in 2024 and 2023, respectively.
Additionally, we paid $5.2 million, net of cash and cash equivalents acquired, for NWT in our EMEA segment, on July 1, 2024. • We received proceeds from the sale of assets, including properties held for sale, of $13.8 million in 2024 with no comparable activity in 2025. • Capital expenditures were $24.5 million and $46.8 million in 2025 and 2024, respectively.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued) Cash Requirements From Contractual Obligations At December 31, 2024, our contractual obligations for continuing operations primarily consist of: • $217.6 million under our inventory financing facilities due in 2025; • $96.8 million under operating leases, the majority of which are due from 2025 through 2028; • remaining contingent consideration (earnout payments) associated with our acquisition of SADA, up to a maximum of $240.0 million, payable upon certain defined contingencies being met for 2025 and 2026 that would be paid in 2026 and 2027, respectively; • contingent consideration (earnout payments) associated with our acquisition of Amdaris, up to a maximum of $9.0 million, payable upon certain defined contingencies being met for 2025 that would be paid in 2026; • contingent consideration (earnout payments) associated with our acquisition of Infocenter, up to a maximum of $106.3 million, payable upon certain defined contingencies being met for the years ended April 30, 2025 and April 30, 2026 that would be paid in 2025 and 2026, respectively; • a purchase commitment related to cloud services of $78.9 million that must be met by September 2029; • a purchase commitment related to software as a service of $26.1 million that must be met by November 2026; • $39.0 million outstanding under our ABL facility maturing in 2027; • $500.0 million outstanding under our Senior Notes maturing in 2032; and • $333.1 million principal amount due on the Convertible Notes maturing in February 2025.
Cash Requirements From Contractual Obligations At December 31, 2025, our contractual obligations for continuing operations primarily consist of: • $225.0 million under our inventory financing facilities due in 2026; • $91.0 million under operating leases, the majority of which are due from 2026 through 2029; • remaining contingent consideration (earnout payment) associated with our acquisition of SADA, up to a maximum of $120.0 million, payable upon certain defined contingencies being met for 2026 that would be paid in 2027; • contingent consideration (earnout payment) associated with our acquisition of Amdaris of approximately $6.8 million for 2025, that will be paid in 2026; • contingent consideration (earnout payment) associated with our acquisition of Infocenter, up to a maximum of $53.1 million, payable upon certain defined contingencies being met for the 12-month period ended April 30, 2026 that would be paid in 2026; • contingent consideration (earnout payments) associated with our acquisition of Inspire11, up to a maximum of $66.0 million, payable upon certain defined contingencies being met for the12-month periods ended September 30, 2026 and September 30, 2027 that would be paid in 2026 and 2027, respectively; • contingent consideration (earnout payments) associated with our acquisition of Sekuro, up to a maximum of AUD 122.5 million, payable upon certain defined contingencies being met for the 12-month periods ended October 31, 2026 and October 31, 2027 that would be paid in 2026 and 2027, respectively; • a purchase commitment related to cloud services of $59.0 million that must be met by September 2029; • a purchase commitment related to a service contract of $13.1 million that was paid in January 2026; • $868.2 million outstanding under our ABL facility maturing in 2030; and • $493.1 million outstanding under our Senior Notes maturing in 2032.
See Note 11 to the Consolidated Financial Statements in Part II, Item 8 of this report for further discussion of income tax expense.
These increases were partially offset by research and transferable energy tax credits. See Note 11 to the Consolidated Financial Statements in Part II, Item 8 of this report for further discussion of income tax expense. 33 INSIGHT ENTERPRISES, INC.
Our gross profit and gross profit as a percent of net sales by operating segment for 2024 and 2023 were as follows (dollars in thousands): 2024 % of Net Sales 2023 % of Net Sales North America $ 1,401,994 19.9 % $ 1,345,955 18.2 % EMEA 293,188 20.7 % 259,987 16.6 % APAC 70,834 30.4 % 63,583 27.7 % Consolidated $ 1,766,016 20.3 % $ 1,669,525 18.2 % North America’s gross profit increased 4%, or $56.0 million, in 2024 compared to 2023.
Our gross profit and gross profit as a percentage of net sales by operating segment for 2025 and 2024 were as follows (dollars in thousands): 2025 % of Net Sales 2024 % of Net Sales North America $ 1,366,343 20.5 % $ 1,401,994 19.9 % EMEA 323,270 23.9 % 293,188 20.7 % APAC 71,814 30.2 % 70,834 30.4 % Consolidated $ 1,761,427 21.4 % $ 1,766,016 20.3 % North America’s gross profit decreased 3%, or $35.7 million, in 2025 compared to 2024.
The majority of the capital expenditures in 2024 were used for our new Texas distribution facility and to fund technology related projects. • We expect total capital expenditures in 2025 to be in the range of $35.0 to $40.0 million. 40 INSIGHT ENTERPRISES, INC.
The majority of the capital expenditures in 2025 were used to fund leasehold improvements and for technology related projects. • We expect total capital expenditures in 2026 to be in the range of $20.0 to $30.0 million.
We are also mindful of the potential impact these conditions could have on our clients, partners and prospects in 2025 and beyond.
We are also mindful of the potential effects these conditions could have on our clients, partners and prospects as we enter 2026. 27 INSIGHT ENTERPRISES, INC.
The year over year net increase in gross margin was primarily attributable to the following: • An expansion in services margin year over year of 321 basis points primarily due to higher margins from increased sales of Insight Delivered services from Amdaris. • A net increase in product margin of 90 basis points year over year.
The year over year net expansion in gross margin was primarily attributable to the following: • An expansion in services margin year over year of 45 basis points primarily due to margins from increased cloud solution offerings, despite partner program changes as well as margin contributed by increased sales of Insight Delivered services from Infocenter and Inspire11. • A net increase in product margin of 20 basis points year over year.
Our net sales by offering category for APAC for 2024 and 2023, were as follows (dollars in thousands): APAC Sales Mix 2024 2023 % Change Hardware $ 35,448 $ 43,850 (19 %) Software 92,965 88,688 5 % Services 104,608 97,294 8 % $ 233,021 $ 229,832 1 % Net sales in APAC increased 1% (increased 2% excluding the effects of fluctuating foreign currency rates), or $3.2 million, in 2024 compared to 2023.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued) Our net sales by offering category for APAC for 2025 and 2024 were as follows (dollars in thousands): APAC Sales Mix 2025 2024 % Change Hardware $ 36,199 $ 35,448 2 % Software 91,779 92,965 (1 %) Services 109,517 104,608 5 % $ 237,495 $ 233,021 2 % Net sales in APAC increased 2% (increasing 4% when excluding the effects of fluctuating foreign currency exchange rates), or $4.5 million, in 2025 compared to 2024.
As a percentage of net sales, earnings from operations decreased by approximately 40 basis points to 4.5%. The decrease in earnings from operations was primarily driven by increases in selling and administrative expenses and severance and restructuring expenses, partially offset by an increase in gross profit and a decrease in acquisition and integration related expenses.
As a percentage of net sales, earnings from operations decreased by approximately 30 basis points to 4.2%. The decrease in earnings from operations was primarily driven by the decrease in gross profit.
We believe this trend could continue into future periods as we focus on selling solutions and increasing our services net sales. As a result of certain partner program changes, we believe we may not experience significant growth in cloud gross profit in 2025 compared to 2024. Operating Expenses. Selling and Administrative Expenses.
We believe this trend could continue into future periods as we focus on selling solutions and increasing our services net sales. Operating Expenses. Selling and Administrative Expenses. Selling and administrative expenses increased $42.7 million in 2025 compared to 2024. Selling and administrative expenses also increased approximately 140 basis points as a percentage of net sales in 2025 compared to 2024.
Adjusting our cash conversion cycle calculation by adding netted costs to both daily net sales and daily costs of goods sold results in an increase in our cash conversion cycle from 7 days to 14 days in the fourth quarter of 2024 and a reduction from 29 days to 22 days in the fourth quarter of 2023, which we believe provides a more accurate reflection of our cash flow operating metrics. • We expect that cash flow from operations will be used, at least partially, to fund working capital as we typically pay our partners on average terms that are shorter than the average terms we grant to our clients in order to take advantage of supplier discounts. • We intend to use cash generated in 2025, in excess of working capital needs to pay down our ABL facility and inventory financing facilities, to settle a portion of the Warrants in cash, and for strategic acquisitions.
For example, netted costs were $4.0 billion and $2.2 billion in the fourth quarter of 2025 and 2024, respectively. • We expect that cash flow from operations will be used, at least partially, to fund working capital as we typically pay our partners on average terms that are shorter than the average terms we grant to our clients in order to take advantage of supplier discounts. • We intend to use cash generated in 2026 in excess of working capital needs to pay down our ABL facility and inventory financing facilities, to repurchase shares of our common stock and for strategic acquisitions.
This was primarily due to the issuance of the Senior Notes and higher loan balances under our ABL facility. This was partially offset by higher interest income earned in 2024 and decreased imputed interest under our inventory financing facilities. Imputed interest under our inventory financing facilities decreased $3.6 million due to lower average daily balances in 2024 compared to 2023.
This was primarily due to higher loan balances under our ABL facility, primarily resulting from the cash settlement of the Convertible Notes and a portion of the Warrants in 2025, the issuance of the Senior Notes in May 2024, lower interest income earned and increased imputed interest under our inventory financing facilities in 2025.
Our North America organic business excludes SADA, which we acquired on December 1, 2023 and excludes Infocenter, which we acquired on May 1, 2024. • The increase in software net sales was primarily due to a significant multiyear transaction in the first quarter, partially offset by changes in certain vendor relationships (shifting from a principal to agent role), as well as the continued migration of on-premise software to cloud solutions, in each case, reported net in services net sales.
The net changes were primarily the result of the following: • The decrease in software net sales was primarily due to a significant multiyear transaction in the first quarter of 2024 with no comparable transaction in 2025, changes in certain vendor relationships (shifting us from a principal to an agent role), as well as the continued migration of on-premise software to cloud solutions, reported net in services net sales. • The decrease in services net sales was primarily due to a decrease in certain fees from cloud solution offerings as a result of partner program changes and a decline in sales of Insight Delivered services from our North America organic business.
Events or circumstances that could trigger an impairment review include a significant adverse change in legal factors or in the business climate, unanticipated competition, significant changes in the manner of our use of the acquired assets or the strategy 44 INSIGHT ENTERPRISES, INC.
Events or circumstances that could trigger an impairment review include a significant adverse change in legal factors or in the business climate, unanticipated competition, significant changes in the manner of our use of the acquired assets or the strategy for our overall business, significant negative industry or economic trends, significant declines in our stock price for a sustained period or significant underperformance relative to expected historical or projected future cash flows or results of operations.
Liquidity and Capital Resources The following table sets forth certain consolidated cash flow information for 2024 and 2023 (in thousands): 2024 2023 Net cash provided by operating activities $ 632,845 $ 619,531 Net cash used in investing activities (303,278) (505,201) Net cash used in financing activities (321,271) (16,712) Foreign currency exchange effect on cash, cash equivalent and restricted cash balances (17,614) 7,449 (Decrease) increase in cash, cash equivalents and restricted cash (9,318) 105,067 Cash, cash equivalents and restricted cash at beginning of period 270,785 165,718 Cash, cash equivalents and restricted cash at end of period $ 261,467 $ 270,785 Cash and Cash Flow • Our primary uses of cash during 2024 were to fund the acquisition of Infocenter, repay debt, including principal upon conversion of a portion of the Convertible Notes, fund repurchases of our common stock and to pay earnouts and other acquisition related payments. 38 INSIGHT ENTERPRISES, INC.
Liquidity and Capital Resources The following table sets forth certain consolidated cash flow information for 2025 and 2024 (in thousands): 2025 2024 Net cash provided by operating activities $ 303,827 $ 632,845 Net cash used in investing activities (309,803) (303,278) Net cash provided by (used in) financing activities 82,292 (321,271) Foreign currency exchange effect on cash, cash equivalent and restricted cash balances 22,993 (17,614) Increase (decrease) in cash, cash equivalents and restricted cash 99,309 (9,318) Cash, cash equivalents and restricted cash at beginning of period 261,467 270,785 Cash, cash equivalents and restricted cash at end of period $ 360,776 $ 261,467 35 INSIGHT ENTERPRISES, INC.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued) • Operating activities generated $632.8 million in cash in 2024, compared to $619.5 million in 2023. • We received proceeds from the sale of assets of $13.8 million in 2024, compared to $15.5 million in 2023. • We had net repayments under our inventory financing facilities of $13.6 million in 2024 compared to net repayments of $70.4 million in 2023. • Net repayments under our ABL facility were $554.1 million in 2024.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued) Cash and Cash Flow • Our primary uses of cash during 2025 were to repay the remaining principal balance upon maturity of the Convertible Notes, to fund strategic acquisitions, to fund the cash settlement of a portion of the Warrants, and to repurchase shares of our common stock. • Operating activities generated $303.8 million in cash in 2025, compared to $632.8 million in 2024. • We received proceeds from the sale of assets of $13.8 million in 2024 with no comparable activity in 2025. • We had net borrowings under our inventory financing facilities of $6.4 million in 2025 compared to net repayments of $13.6 million in 2024. • Net borrowings under our ABL facility were $818.8 million in 2025.
As a percentage of net sales, gross margin expanded by approximately 170 basis points year over year. The year over year net increase in gross margin was primarily attributable to the following: • A net increase in product margin of 15 basis points year over year.
As a percentage of net sales, gross margin expanded approximately 60 basis points year over year.
EMEA’s gross profit increased 13% (increased 11% excluding the effects of fluctuating foreign currency exchange rates), or $33.2 million, in 2024 compared to 2023. As a percentage of net sales, gross margin expanded 410 basis points to 20.7%.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued) EMEA’s gross profit increased 10% (increasing 6% when excluding the effects of fluctuating foreign currency exchange rates), or $30.1 million, in 2025 compared to 2024. As a percentage of net sales, gross margin expanded 320 basis points to 23.9%.
Full year 2024 financial and operational highlights included the following: • We reported gross profit of $1.8 billion and record gross margin of 20.3%, primarily driven by margin expansion in North America. • We generated cash flows from operations of $632.8 million. • In May 2024, we acquired Infocenter to strengthen our digital transformation capabilities leveraging their deep expertise in ServiceNow’s comprehensive suite of capabilities.
Full year 2025 financial and operational highlights included the following: • We reported gross profit of $1.8 billion and record gross margin of 21.4%, primarily driven by margin expansion in North America and EMEA. • We generated cash flows from operations of $303.8 million. • We strengthened our capabilities through two strategic acquisitions: Inspire11, enhancing our AI and data expertise, and Sekuro, expanding cybersecurity and digital resilience across APAC.
The overall net increase in expenses reflects an increase of $43.9 million in personnel costs, including teammate benefits, an increase in depreciation and amortization expense of $35.5 million, and a net increase in other expenses of $15.5 million, year over year.
The overall net increase in expenses reflects a net increase of $51.9 million in other expenses and an increase of $8.6 million in depreciation and amortization expenses, partially offset by a decrease of $9.1 million in personnel costs, including teammate benefits, a decrease of $4.0 million in professional fees and a decrease of $3.3 million in facility expenses.
We currently expect to fund known cash commitments beyond the next 12 months through operating cash activities and/or other available financing resources. Net cash provided by operating activities. • Cash flow from operating activities in 2024 was $632.8 million, compared to $619.5 million in 2023.
We currently expect to fund known cash commitments beyond the next 12 months through operating cash activities and/or other available financing resources. Net cash provided by operating activities. • We have an inverted cash cycle resulting from typically paying partners on shorter terms than we provide to our clients.
This increase was primarily due to slightly higher margins on software net sales compared to the prior year. • An expansion in services margin year over year of 149 basis points was due to higher margins generated from increased cloud solution offerings, including margin expansion contributed by SADA and from increased sales of Insight Delivered services from SADA and Infocenter.
The year over year net expansion in gross margin was primarily attributable to the following: • An expansion in services margin year over year of 424 basis points primarily due to higher margins from increased sales of other agency net sales and Insight Delivered services, partially offset by a net decrease in fees from cloud solution offerings primarily as a result of partner program changes.
We serve these clients in North America; Europe, the Middle East and Africa (“EMEA”); and Asia-Pacific (“APAC”). As a Fortune 500-ranked solutions integrator, we enable secure, end-to-end transformation and meet the needs of our clients through a comprehensive portfolio of solutions, far-reaching partnerships and 36 years of broad IT expertise.
As a Fortune 500-ranked Solutions Integrator, we deliver secure, end-to-end digital transformation and meet the needs of our clients through a comprehensive portfolio of solutions, far-reaching partnerships and 37 years of broad IT expertise. We amplify our solutions and services with global scale, local expertise and our e-commerce experience, enabling our clients to realize their digital ambitions in multiple ways.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeItem 7A. Quantitative and Qualitative Disclosures About Market Risk The information contained in Note 12 to the Consolidated Financial Statements in Part II, Item 8 of this report concerning a description of market risk management, including interest rate risk and foreign currency exchange risk, is incorporated by reference herein. 46 INSIGHT ENTERPRISES, INC. INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
Biggest changeItem 7A. Quantitative and Qualitative Disclosures About Market Risk The information contained in Notes 12 and 13 to the Consolidated Financial Statements in Part II, Item 8 of this report concerning a description of market risk management, including interest rate risk and foreign currency exchange risk, is incorporated by reference herein. 41 INSIGHT ENTERPRISES, INC. INDEX TO CONSOLIDATED FINANCIAL STATEMENTS

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