Insight Enterprises, Inc. Reports First Quarter Results

Insight Enterprises, Inc. Reports First Quarter Results May 7, 2026 Insight Enterprises, Inc. (NASDAQ: NSIT) (the “Company”) today reported financial results for the quarter ended March 31, 2026. Highlights include: Consolidated net sales increased 1% year over yearGross profit increased 14% year over year to $462.2 million and gross margin expanded 240 basis points to 21.7%Consolidated net earnings increased more than 100% year over year to $30.0 millionAdjusted earnings before interest, tax, depreciation and amortization (“EBITDA”) increased 27% year over year to $152.0 millionDiluted earnings per share of $0.97 increased more than 100% year over yearAdjusted diluted earnings per share of $2.88 increased 26% year over yearCash flows provided by operating activities were $32.4 million In the first quarter of 2026, net sales increased 1%, year over year, to $2.1 billion, and gross profit increased 14%, year over year, to $462.2 million. Gross margin expanded 240 basis points compared to the first quarter of 2025 to 21.7%. Selling and administrative expenses increased 13%, year to year, while Adjusted selling and administrative expenses increased 9%, year to year. Earnings from operations of $71.7 million, or 3.4% of net sales, increased 19% compared to $60.1 million in the first quarter of 2025. Adjusted earnings from operations of $141.1 million, or 6.6% of net sales, increased 27% year over year compared to $111.2 million in the first quarter of 2025. Consolidated net earnings were $30.0 million, or 1.4% of net sales, in the first quarter of 2026, up more than 100% compared to the first quarter of 2025. Adjusted consolidated net earnings were $88.9 million, or 4.2% of net sales, up 18% compared to the first quarter of 2025. Diluted earnings per share for the quarter was $0.97, up more than 100% year over year, and Adjusted diluted earnings per share was $2.88, up 26% year over year. “In the first quarter, we delivered double-digit gross profit growth across every geography, as well as double-digit adjusted earnings from operations and adjusted diluted earnings per share growth. Total gross profit grew 14% with Cloud gross profit increasing 35% and Core Services gross profit growing 19%, the two critical priority areas of our strategy.” stated Jack Azagury, President and Chief Executive Officer. “The team has built a truly differentiated set of capabilities across hardware, software and services to deliver compelling solutions to our clients. I am excited to continue our transformation to become the leading Solutions Integrator and build upon this strong foundation.” Azagury added. KEY HIGHLIGHTS Results for the Quarter: Consolidated net sales for the first quarter of 2026 of $2.1 billion increased 1%, year over year, when compared to the first quarter of 2025. Product net sales decreased 2%, year to year, and services net sales increased 17%, year over year. Software product net sales decreased 21%, year to year, while hardware product net sales increased 7%, year over year.Net sales in North America decreased 1%, year to year, to $1.7 billion;Product net sales decreased 4%, year to year, to $1.3 billion;Services net sales increased 12%, year over year, to $333.8 million;Net sales in EMEA increased 9%, year over year, to $372.9 million; andNet sales in APAC increased 20%, year over year, to $72.3 million.Excluding the effects of fluctuating foreign currency exchange rates, consolidated net sales decreased 1%, year to year, with a decrease in net sales in North America of 1% year to year, partially offset by an increase in net sales in APAC of 11%, year over year. Net sales in EMEA was relatively flat year to year.Consolidated gross profit increased 14% compared to the first quarter of 2025 to $462.2 million, with consolidated gross margin expanding 240 basis points to 21.7% of net sales. Product gross profit increased 2%, year over year, and services gross profit increased 23%, year over year. Cloud gross profit increased 35%, year over year, and Insight Core services gross profit increased 19%, year over year. By segment, gross profit:increased 11% in North America, year over year, to $353.3 million (21.0% gross margin);increased 21% in EMEA, year over year, to $86.8 million (23.3% gross margin); andincreased 46% in APAC, year over year, to $22.0 million (30.4% gross margin).Excluding the effects of fluctuating foreign currency exchange rates, consolidated gross profit increased 11%, year over year, with gross profit growth in APAC, EMEA and North America of 35%, 11% and 10%, respectively, year over year.Consolidated earnings from operations increased 19% compared to the first quarter of 2025 to $71.7 million, or 3.4% of net sales. By segment, earnings from operations:increased 30% in North America, year over year, to $66.2 million, or 3.9% of net sales;increased 32% in EMEA, year over year, to $6.6 million, or 1.8% of net sales; anddecreased more than 100% in APAC, year to year, resulting in a net loss of $1.1 million, or (1.5)% of net sales.Excluding the effects of fluctuating foreign currency exchange rates, consolidated earnings from operations increased 17%, year over year, with increases in earnings from operations in North America and EMEA of 29% and 22%, respectively, year over year, partially offset by a decrease in APAC of 125% year to year.Adjusted earnings from operations increased 27% compared to the first quarter of 2025 to $141.1 million, or 6.6% of net sales. By segment, Adjusted earnings from operations:increased 30% in North America, year over year, to $122.4 million, or 7.3% of net sales;increased 17% in EMEA, year over year, to $14.8 million, or 4.0% of net sales; anddecreased 16% in APAC, year to year, to $4.0 million, or 5.5% of net sales.Excluding the effects of fluctuating foreign currency exchange rates, Adjusted consolidated earnings from operations increased 25%, with increases in Adjusted earnings from operations in North America and EMEA of 29% and 9%, respectively, year over year, partially offset by a decrease in APAC of 21% year to year.Consolidated net earnings and diluted earnings per share for the first quarter of 2026 were $30.0 million and $0.97, respectively, at an effective tax rate of 39.4%.Adjusted consolidated net earnings and Adjusted diluted earnings per share for the first quarter of 2026 were $88.9 million and $2.88, respectively. Excluding the effects of fluctuating foreign currency exchange rates, Adjusted diluted earnings per share increased 25%, year over year. In discussing financial results for the three months ended March 31, 2026 and 2025 in this press release, the Company refers to certain financial measures that are adjusted from the financial results prepared in accordance with United States generally accepted accounting principles (“GAAP”). When referring to non-GAAP measures, the Company refers to them as “Adjusted.” See “Use of Non-GAAP Financial Measures” for additional information. A tabular reconciliation of financial measures prepared in accordance with GAAP to the non-GAAP financial measures is included at the end of this press release. In some instances, the Company refers to changes in net sales, gross profit, earnings from operations and Adjusted earnings from operations on a consolidated basis and in North America, EMEA and APAC excluding the effects of fluctuating foreign currency exchange rates. In addition, the Company refers to changes in Adjusted diluted earnings per share on a consolidated basis excluding the effects of fluctuating foreign currency exchange rates. These are also considered to be non-GAAP measures. The Company believes providing this information excluding the effects of fluctuating foreign currency exchange rates provides valuable supplemental information to investors regarding its underlying business and results of operations, consistent with how the Company and its management evaluate the Company’s performance. In computing these changes and percentages, the Company compares the current year amount as translated into U.S. dollars under the applicable accounting standards to the prior year amount in local currency translated into U.S. dollars utilizing the weighted average translation rate for the current period. The performance measures excluding the effects of fluctuating foreign currency exchange rates should not be considered a substitute for, or superior to, the measures of financial performance prepared in accordance with GAAP. The tax effect of Adjusted amounts referenced herein were computed using the statutory tax rate for the taxing jurisdictions in the operating segment in which the related expenses were recorded, adjusted for the effects of valuation allowances on net operating losses in certain jurisdictions. GUIDANCE For the full year 2026, we expect Adjusted diluted earnings per share to be between $11.00 to $11.50, with a bias toward the high end of the range. This represents approximately 5% growth at the midpoint compared to the 2025 Adjusted diluted EPS of 10.75. We expect gross profit to grow in the low single digits and expect that our gross margin will be approximately 21.5%. This outlook assumes: interest and other expenses of approximately $90 million;an effective tax rate of 25.5% to 26.5% for the full year;capital expenditures between approximately $20 million and $30 million;an average share count for the full year of approximately 30.0 million shares. This outlook excludes acquisition-related intangibles amortization expense of approximately $83.4 million, excludes non-cash stock-based compensation expense and assumes no acquisition or integration related expenses, transformation or severance and restructuring expenses, net, no significant change in our debt instruments, and no significant change in the macroeconomic environment, whether due to tariffs or otherwise. Due to the inherent difficulty of forecasting some of these types of expenses, which impact net earnings, diluted earnings per share and selling and administrative expenses, the Company is unable to reasonably estimate the impact of such expenses, if any, to net earnings, diluted earnings per share and selling and administrative expenses. Accordingly, the Company is unable to provide a reconciliation of GAAP to non-GAAP diluted earnings per share for the full year 2026 forecast. CONFERENCE CALL AND WEBCAST The Company will host a conference call and live webcast today at 9:00 a.m. ET to discuss first quarter 2026 results of operations. A live webcast of the conference call (in listen-only mode) will be available on the Company’s web site at http://investor.insight.com/, and a replay of the webcast will be available on the Company’s web site for a limited time following the call. To access the live conference call, please register in advance using the event link on the Company's web site. Upon registering, participants will receive dial-in information via email, as well as a unique registrant ID, event passcode, and detailed instructions regarding how to join the call. USE OF NON-GAAP FINANCIAL MEASURES The non-GAAP financial measures are referred to as “Adjusted”. Adjusted earnings from operations, Adjusted net earnings, Adjusted diluted earnings per share and Adjusted selling and administrative expenses exclude (i) severance and restructuring expenses, net, (ii) certain executive recruitment and hiring related expenses, (iii) amortization of intangible assets, (iv) transformation costs, (v) certain acquisition and integration related expenses, (vi) gains and losses from revaluation of acquisition related earnout liabilities, (vii) impairment losses on long lived real estate assets held for sale, (viii) stock-based compensation expense, and (ix) the tax effects of each of these items, as applicable. Transformation costs represent costs we are incurring to transform our business to help us achieve our strategic objectives including becoming a leading solutions integrator. The Company excludes these items when internally evaluating earnings from operations, tax expense, net earnings and diluted earnings per share for the Company and earnings from operations for each of the Company’s operating segments. Adjusted net earnings and Adjusted diluted earnings per share also exclude a net loss on revaluation of warrant settlement liabilities, as applicable. Adjusted diluted earnings per share also includes the impact of the benefit from the note hedge where the Company’s average stock price for the period was in excess of $68.32, which was the initial conversion price of our previously outstanding convertible senior notes (the “Convertible Notes”), which matured in February 2025, as applicable. Adjusted EBITDA excludes (i) interest expense, (ii) income tax expense, (iii) depreciation and amortization of property and equipment, (iv) amortization of intangible assets, (v) severance and restructuring expenses, net, (vi) certain executive recruitment and hiring related expenses, (vii) transformation costs (viii) certain acquisition and integration related expenses, (ix) gains and losses from revaluation of acquisition related earnout liabilities, (x) gains and losses from the revaluation of warrant settlement liabilities, (xi) impairment losses on long lived real estate assets held for sale, and (xii) stock-based compensation expense, as applicable. Adjusted return on invested capital (“ROIC”) excludes (i) severance and restructuring expenses, net, (ii) certain executive recruitment and hiring related expenses, (iii) amortization of intangible assets, (iv) transformation costs, (v) certain acquisition and integration related expenses, (vi) certain third-party data center service outage related expenses and recoveries, (vii) gains and losses from revaluation of acquisition related earnout liabilities, (viii) impairment losses on long lived real estate assets held for sale, (ix) stock-based compensation expense, and (x) the tax effects of each of these items, as applicable. These non-GAAP measures are used by the Company and its management to evaluate financial performance against budgeted amounts, to calculate incentive compensation, to assist in forecasting future performance and to compare the Company’s results to those of the Company’s competitors. The Company believes that these non-GAAP financial measures are useful to investors because they allow for greater transparency, facilitate comparisons to prior periods and the Company’s competitors’ results and assist in forecasting performance for future periods. These non-GAAP financial measures are not prepared in accordance with GAAP and may be different from non-GAAP financial measures presented by other companies. Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. FINANCIAL SUMMARY TABLE (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA) (UNAUDITED) Three Months Ended March 31, 2026 2025 change Insight Enterprises, Inc. Net sales: Products $ 1,666,546 $ 1,707,800 (2%) Services $ 461,440 $ 395,756 17% Total net sales $ 2,127,986 $ 2,103,556 1% Gross profit $ 462,151 $ 406,477 14% Gross margin 21.7 % 19.3 % 240 bps Selling and administrative expenses $ 383,983 $ 339,173 13% Severance and restructuring expenses, net $ 6,485 $ 7,026 (8%) Acquisition and integration related expenses $ 1 $ 175 (99%) Earnings from operations $ 71,682 $ 60,103 19% Net earnings $ 30,009 $ 7,514 > 100% Diluted earnings per share $ 0.97 $ 0.22 > 100% Sales Mix ** Hardware 57 % 54 % 7% Software 21 % 27 % (21%) Services 22 % 19 % 17% 100 % 100 % 1% North America Net sales: Products $ 1,349,017 $ 1,403,027 (4%) Services $ 333,788 $ 297,616 12% Total net sales $ 1,682,805 $ 1,700,643 (1%) Gross profit $ 353,326 $ 319,452 11% Gross margin 21.0 % 18.8 % 220 bps Selling and administrative expenses $ 282,426 $ 265,381 6% Severance and restructuring expenses, net $ 4,641 $ 3,111 49% Acquisition and integration related expenses $ 61 $ 170 (64%) Earnings from operations $ 66,198 $ 50,790 30% Sales Mix ** Hardware 63 % 59 % 6% Software 17 % 23 % (28%) Services 20 % 18 % 12% 100 % 100 % (1%) FINANCIAL SUMMARY TABLE (CONTINUED) (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA) (UNAUDITED) Three Months Ended March 31, 2026 2025 change EMEA Net sales: Products $ 281,955 $ 267,160 6% Services $ 90,896 $ 75,668 20% Total net sales $ 372,851 $ 342,828 9% Gross profit $ 86,803 $ 71,927 21% Gross margin 23.3 % 21.0 % 230 bps Selling and administrative expenses $ 78,464 $ 63,063 24% Severance and restructuring expenses, net $ 1,750 $ 3,853 (55%) Acquisition and integration related expenses $ (16 ) $ — * Earnings from operations $ 6,605 $ 5,011 32% Sales Mix ** Hardware 39 % 38 % 11% Software 37 % 40 % —% Services 24 % 22 % 20% 100 % 100 % 9% APAC Net sales: Products $ 35,574 $ 37,613 (5%) Services $ 36,756 $ 22,472 64% Total net sales $ 72,330 $ 60,085 20% Gross profit $ 22,022 $ 15,098 46% Gross margin 30.4 % 25.1 % 530 bps Selling and administrative expenses $ 23,093 $ 10,729 > 100% Severance and restructuring expenses, net $ 94 $ 62 52% Acquisition and integration related expenses $ (44 ) $ 5 < (100%) Earnings from operations $ (1,121 ) $ 4,302 < (100%) Sales Mix ** Hardware 18 % 11 % > 100% Software 31 % 52 % (28%) Services 51 % 37 % 64% 100 % 100 % 20% * Percentage change not considered meaningful ** Change in sales mix represents growth/decline in category net sales on a U.S. dollar basis and does not exclude the effects of fluctuating foreign currency exchange rates FORWARD-LOOKING INFORMATION Certain statements in this release and the related conference call, webcast and presentation are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements, including those related to the impact of inflation and higher interest rates, the Company’s future financial performance and results of operations, including gross profit, Adjusted diluted earnings per share, gross margin, and Adjusted selling and administrative expenses, as well as the Company’s other key performance indicators, the Company’s anticipated effective tax rate, interest and other expenses, capital expenditures, and expected average share count, the Company’s expectations regarding cash flow, the Company’s expectations regarding supply constraints, future trends in the IT market, the effects of tariffs and trade policies, and the Company’s business strategy and strategic initiatives, all of which are inherently subject to risks and uncertainties, and some of which cannot be predicted or quantified. Future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements. There can be no assurances that the results discussed by the forward-looking statements will be achieved, and actual results may differ materially from those set forth in the forward-looking statements. Some of the important factors that could cause the Company’s actual results to differ materially from those projected in any forward-looking statements include, but are not limited to, the following, which are discussed in the Company’s filings with the Securities and Exchange Commission (the “SEC”), including in the “Risk Factors” sections of the Company’s most recently filed periodic reports on Form 10-K and Form 10-Q and subsequent filings with the SEC: actions of our competitors, including manufacturers and publishers of products we sell;our reliance on our partners for product availability, competitive products to sell and marketing funds and purchasing incentives, which can and do change significantly in the amounts made available and in the requirements year over year;our ability to keep pace with rapidly evolving technological advances including generative and agentic artificial intelligence (“AI”) and the evolving competitive marketplace;general economic conditions, economic uncertainties and changes in geopolitical conditions, including the possibility of a recession or a decline in market activity related to tariffs and trade policies, international conflicts including the war with Iran, or otherwise;changes in the IT industry and/or rapid changes in technology;our ability to provide high quality services to our clients;our reliance on independent shipping companies;the risks associated with our international operations including our expansion into the Middle East;supply constraints for products;natural disasters or other adverse occurrences, including public health issues such as pandemics or epidemics;disruptions in our IT systems and voice and data networks;cyberattacks, outages, or third-party breaches of data privacy as well as related breaches of government regulations;intellectual property infringement claims and challenges to our copyrights, patents, trademarks and trade names;potential liability and competitive risk based on the development, adoption, and use of generative and agentic AI;legal proceedings, client audits and failure to comply with laws and regulations;risks of termination, delays in payment, audits and investigations related to our public sector contracts;exposure to changes in, interpretations of, or enforcement trends related to tax rules and regulations;our potential to draw down a substantial amount of indebtedness;increased debt and interest expense and the possibility of decreased availability of funds under our financing facilities;possible significant fluctuations in our future operating results as well as seasonality and variability in client demands;potential contractual disputes or collection matters with our clients and third-party suppliers;our dependence on certain key personnel, our ability to attract, train and retain skilled teammates and our ability to manage the business during the transition of our new Chief Executive Officer;risks associated with the integration and operation of acquired businesses, including achievement of expected synergies and benefits; andfuture sales of the Company’s common stock or equity-linked securities in the public market could lower the market price for our common stock. Additionally, there may be other risks that are otherwise described from time to time in the reports that the Company files with the SEC. Any forward-looking statements in this release, the related conference call, webcast and presentation speak only as of the date on which they are made and should be considered in light of various important factors, including the risks and uncertainties listed above, as well as others. The Company assumes no obligation to update, and, except as may be required by law, does not intend to update, any forward-looking statements. The Company does not endorse any projections regarding future performance that may be made by third parties. INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (IN THOUSANDS, EXCEPT PER SHARE DATA) (UNAUDITED) Three Months Ended March 31, 2026 2025 Net sales: Products $ 1,666,546 $ 1,707,800 Services 461,440 395,756 Total net sales 2,127,986 2,103,556 Costs of goods sold: Products 1,487,644 1,531,826 Services 178,191 165,253 Total costs of goods sold 1,665,835 1,697,079 Gross profit: Products 178,902 175,974 Services 283,249 230,503 Gross profit 462,151 406,477 Operating expenses: Selling and administrative expenses 383,983 339,173 Severance and restructuring expenses, net 6,485 7,026 Acquisition and integration related expenses 1 175 Earnings from operations 71,682 60,103 Non-operating expense (income): Interest expense, net 23,633 15,625 Other (income) expense, net (1,452 ) 25,469 Earnings before income taxes 49,501 19,009 Income tax expense 19,492 11,495 Net earnings $ 30,009 $ 7,514 Net earnings per share: Basic $ 0.97 $ 0.24 Diluted $ 0.97 $ 0.22 Shares used in per share calculations: Basic 30,788 31,839 Diluted 30,856 34,683 INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In THOUSANDS) (UNAUDITED) March 31, 2026 December 31, 2025 ASSETS Current assets: Cash and cash equivalents $ 440,626 $ 358,020 Accounts receivable, net 6,421,861 5,516,984 Inventories 251,564 160,648 Contract assets, net 59,564 65,745 Other current assets 279,121 260,990 Total current assets 7,452,736 6,362,387 Long-term contract assets, net 46,560 53,176 Property and equipment, net 187,210 188,449 Goodwill 1,168,255 1,169,734 Intangible assets, net 404,845 426,237 Long-term accounts receivable, net 673,897 763,923 Other assets 121,774 123,466 $ 10,055,277 $ 9,087,372 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable – trade $ 4,820,923 $ 4,263,796 Accounts payable – inventory financing facilities 259,611 225,035 Accrued expenses and other current liabilities 1,053,424 615,464 Current portion of long-term debt 13 8 Total current liabilities 6,133,971 5,104,303 Long-term debt 1,469,032 1,361,327 Deferred income taxes 69,543 70,715 Long-term accounts payable 613,736 715,494 Other liabilities 166,399 186,659 8,452,681 7,438,498 Stockholders’ equity: Preferred stock — — Common stock 302 310 Additional paid-in capital 164,747 164,560 Retained earnings 1,480,197 1,520,404 Accumulated other comprehensive loss – foreign currency translation adjustments (42,650 ) (36,400 ) Total stockholders’ equity 1,602,596 1,648,874 $ 10,055,277 $ 9,087,372 INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (IN THOUSANDS) (UNAUDITED) Three Months Ended March 31, 2026 2025 Cash flows from operating activities: Net earnings $ 30,009 $ 7,514 Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation and amortization 28,478 25,779 Provision for losses on accounts receivable 3,429 3,666 Non-cash stock-based compensation 8,197 8,847 Net change on revaluation of earnout liabilities 25,284 15,200 Deferred income taxes (1,185 ) (7,772 ) Net loss on revaluation of warrant settlement liabilities — 25,069 Earnout payments in excess of acquisition date fair value (1,071 ) — Impairment loss on long lived real estate asset 1,369 — Amortization of debt issuance costs 850 1,281 Other adjustments (330 ) (22 ) Changes in assets and liabilities: Increase in accounts receivable (960,000 ) (391,354 ) Increase in inventories (92,033 ) (26,033 ) Decrease in contract assets 12,014 35,526 Decrease in long-term accounts receivable 88,065 30,816 Increase in other assets (14,827 ) (21,961 ) Increase in accounts payable 601,778 416,952 Decrease in long-term accounts payable (100,059 ) (31,160 ) Increase (decrease) in accrued expenses and other liabilities 402,415 (14,298 ) Net cash provided by operating activities: 32,383 78,050 Cash flows from investing activities: Purchases of property and equipment (5,995 ) (7,130 ) Acquisitions, net of cash and cash equivalents acquired — — Net cash used in investing activities: (5,995 ) (7,130 ) Cash flows from financing activities: Borrowings on ABL revolving credit facility 1,518,570 1,389,224 Repayments on ABL revolving credit facility (1,406,177 ) (965,452 ) Warrants settlement — (138,892 ) Repayment of principal on the Convertible Notes — (333,091 ) Net borrowings under inventory financing facilities 34,976 42,701 Repurchases of common stock (75,000 ) — Earnout and acquisition related payments (5,456 ) — Other payments (2,628 ) (9,963 ) Net cash provided by (used in) financing activities: 64,285 (15,473 ) Foreign currency exchange effect on cash, cash equivalents and restricted cash balances (7,776 ) 7,177 Increase in cash, cash equivalents and restricted cash 82,897 62,624 Cash, cash equivalents and restricted cash at beginning of period 360,776 261,467 Cash, cash equivalents and restricted cash at end of period $ 443,673 $ 324,091 INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (IN THOUSANDS, EXCEPT PER SHARE DATA) (UNAUDITED) Three Months Ended March 31, 2026 2025 Adjusted Consolidated Earnings from Operations: GAAP consolidated EFO $ 71,682 $ 60,103 Amortization of intangible assets 21,059 18,548 Change in fair value of earnout liabilities 25,293 15,200 Transformation costs 6,504 1,270 Impairment loss on a long lived real estate asset held for sale 1,369 — Severance and restructuring expenses, net 6,485 7,026 Acquisition and integration related expenses 1 175 Stock-based compensation expense 8,197 8,847 Other* 558 30 Adjusted non-GAAP consolidated EFO $ 141,148 $ 111,199 GAAP EFO as a percentage of net sales 3.4 % 2.9 % Adjusted non-GAAP EFO as a percentage of net sales 6.6 % 5.3 % Adjusted Consolidated Net Earnings: GAAP consolidated net earnings $ 30,009 $ 7,514 Amortization of intangible assets 21,059 18,548 Change in fair value of earnout liabilities 25,293 15,200 Net loss on revaluation of warrant settlement liabilities — 25,069 Transformation costs 6,504 1,270 Impairment loss on a long lived real estate asset held for sale 1,369 — Severance and restructuring expenses, net 6,485 7,026 Acquisition and integration related expenses 1 175 Stock-based compensation expense 8,197 8,847 Other* 558 30 Income taxes on non-GAAP adjustments (10,551 ) (8,555 ) Adjusted non-GAAP consolidated net earnings $ 88,924 $ 75,124 GAAP net earnings as a percentage of net sales 1.4 % 0.4 % Adjusted non-GAAP net earnings as a percentage of net sales 4.2 % 3.6 % Adjusted Diluted Earnings Per Share: GAAP diluted EPS $ 0.97 $ 0.22 Amortization of intangible assets 0.68 0.53 Change in fair value of earnout liabilities 0.82 0.44 Net loss on revaluation of warrant settlement liabilities — 0.72 Transformation costs 0.21 0.04 Impairment loss on a long lived real estate asset held for sale 0.04 — Severance and restructuring expenses, net 0.21 0.20 Acquisition and integration related expenses — 0.01 Stock-based compensation expense 0.27 0.26 Other* 0.02 — Income taxes on non-GAAP adjustments (0.34 ) (0.25 ) Impact of benefit from note hedge — 0.11 Adjusted non-GAAP diluted EPS $ 2.88 $ 2.28 Shares used in diluted EPS calculation 30,856 34,683 Impact of benefit from note hedge — (1,731 ) Shares used in Adjusted non-GAAP diluted EPS calculation 30,856 32,952 INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (CONTINUED) (IN THOUSANDS, EXCEPT PER SHARE DATA) (UNAUDITED) Three Months Ended March 31, 2026 2025 Adjusted North America Earnings from Operations: GAAP EFO from North America segment $ 66,198 $ 50,790 Amortization of intangible assets 18,644 16,804 Gain on revaluation of earnout liabilities 21,286 15,200 Transformation costs 3,582 860 Impairment loss on a long lived real estate asset held for sale 1,369 — Severance and restructuring expenses, net 4,641 3,111 Acquisition and integration related expenses 61 170 Stock-based compensation expense 6,060 6,895 Other* 558 30 Adjusted non-GAAP EFO from North America segment $ 122,399 $ 93,860 GAAP EFO as a percentage of net sales 3.9 % 3.0 % Adjusted non-GAAP EFO as a percentage of net sales 7.3 % 5.5 % Adjusted EMEA Earnings from Operations: GAAP EFO from EMEA segment $ 6,605 $ 5,011 Amortization of intangible assets 1,813 1,744 Transformation costs 2,922 410 Severance and restructuring expenses, net 1,750 3,853 Acquisition and integration related expenses (16 ) — Stock-based compensation expense 1,688 1,581 Adjusted non-GAAP EFO from EMEA segment $ 14,762 $ 12,599 GAAP EFO as a percentage of net sales 1.8 % 1.5 % Adjusted non-GAAP EFO as a percentage of net sales 4.0 % 3.7 % Adjusted APAC Earnings from Operations: GAAP EFO from APAC segment $ (1,121 ) $ 4,302 Amortization of intangible assets 602 — Gain on revaluation of earnout liabilities 4,007 — Severance and restructuring expenses, net 94 62 Acquisition and integration related expenses (44 ) 5 Stock-based compensation expense 449 371 Adjusted non-GAAP EFO from APAC segment $ 3,987 $ 4,740 GAAP EFO as a percentage of net sales (1.5 %) 7.2 % Adjusted non-GAAP EFO as a percentage of net sales 5.5 % 7.9 % INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (CONTINUED) (IN THOUSANDS, EXCEPT PER SHARE DATA) (UNAUDITED) Three Months Ended March 31, 2026 2025 Adjusted EBITDA: GAAP consolidated net earnings $ 30,009 $ 7,514 Interest expense 25,610 17,739 Income tax expense 19,492 11,495 Depreciation and amortization of property and equipment 7,419 7,231 Amortization of intangible assets 21,059 18,548 Gain on revaluation of earnout liabilities 25,293 15,200 Net loss on revaluation of warrant settlement liability — 25,069 Transformation costs 6,504 1,270 Impairment loss on a long lived real estate asset held for sale 1,369 — Severance and restructuring expenses, net 6,485 7,026 Acquisition and integration related expenses 1 175 Stock-based compensation expense 8,197 8,847 Other* 558 30 Adjusted non-GAAP EBITDA $ 151,996 $ 120,144 GAAP consolidated net earnings as a percentage of net sales 1.4 % 0.4 % Adjusted non-GAAP EBITDA as a percentage of net sales 7.1 % 5.7 % Three Months Ended March 31, 2026 2025 Adjusted Consolidated Selling and Administrative Expenses:​ GAAP selling and administrative expenses​ $ 383,983 $ 339,173 Less: Change in fair value of earnout liabilities 25,293 15,200 Amortization of intangible assets 21,059 18,548 Transformation costs 6,504 1,270 Impairment loss on a long lived real estate asset held for sale 1,369 — Stock-based compensation expense 8,197 8,847 Other* 558 30 Adjusted non-GAAP selling and administrative expenses​ $ 321,003 $ 295,278 GAAP selling and administrative expenses as a percentage of net sales 18.0 % 16.1 % Adjusted non-GAAP selling and administrative expenses as a percentage of net sales 15.1 % 14.0 % * Other includes certain executive recruitment and hiring related expenses. Certain executive recruitment and hiring related expenses were $0.6 million for the three months ended March 31, 2026, compared to immaterial amounts for the three months ended March 31, 2025. INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (CONTINUED) (IN THOUSANDS, EXCEPT PER SHARE DATA) (UNAUDITED) Twelve Months Ended March 31, 2026 2025 Adjusted return on invested capital: GAAP consolidated EFO $ 346,502 $ 348,701 Amortization of intangible assets 79,279 73,204 Change in fair value of earnout liabilities 35,396 6,410 Transformation costs 18,317 17,375 Impairment loss on a long lived real estate asset held for sale 13,957 — Severance and restructuring expenses, net 36,590 36,404 Acquisition and integration related expenses 3,393 1,570 Stock-based compensation expense 33,088 34,775 Other5 1,153 (690 ) Adjusted non-GAAP consolidated EFO 567,675 517,749 Income tax expense1 147,595 134,615 Adjusted non-GAAP consolidated EFO, net of tax $ 420,080 $ 383,134 Average stockholders’ equity2 $ 1,605,726 $ 1,746,178 Average debt2 1,301,841 957,752 Average cash2 (395,330 ) (306,790 ) Invested Capital $ 2,512,237 $ 2,397,140 Adjusted non-GAAP ROIC (from GAAP consolidated EFO)3 10.21 % 10.76 % Adjusted non-GAAP ROIC (from non-GAAP consolidated EFO)4 16.72 % 15.98 % 1 Assumed tax rate of 26.0%. 2 Average of previous five quarters. 3. Computed as GAAP consolidated EFO, net of tax of $90,091 and $90,662 for the twelve months ended March 31, 2026 and 2025, respectively, divided by invested capital. 4. Computed as Adjusted non-GAAP consolidated EFO, net of tax, divided by invested capital. 5 Other includes certain executive recruitment and hiring related expenses and certain third-party data center service outage related expenses and recoveries, net, as applicable. Net recoveries related to third-party data center service outages were $0.2 million and $2.1 million for the twelve months ended March 31, 2026 and 2025, respectively. Certain executive recruitment and hiring related expenses were $1.3 million and $1.4 million for the twelve months ended March 31, 2026 and 2025, respectively. Source: Insight Enterprises Inc.