Insight Enterprises, Inc. Reports Third Quarter Results

Continued strong financial performance and sustained broad-based growth Insight raises full-year 2026 outlook CHANDLER, Ariz.--(BUSINESS WIRE)-- Insight Enterprises, Inc. (NASDAQ: NSIT) (the “Company”) today reported financial results for the quarter ended September 30, 2026. Highlights include: Consolidated net sales increased 22% year over year Gross profit increased 20% year over year to $523.2 million and gross margin contracted 30 basis points to 21.4% Consolidated net earnings decreased 57% year to year to $22.2 million Adjusted consolidated net earnings increased 28% year over year to $107.3 million Adjusted earnings before interest, tax, depreciation and amortization (“EBITDA”) increased 22% year over year to $177.4 million Diluted earnings per share of $0.74 decreased 54% year to year Adjusted diluted earnings per share of $3.59 increased 34% year over year Cash flows provided by operating activities were $128.4 million In the third quarter of 2026, net sales increased 22%, year over year, to $2.4 billion, and gross profit increased 20%, year over year, to $523.2 million. Gross margin contracted 30 basis points compared to the third quarter of 2025 to 21.4%. Selling and administrative expenses increased 29%, year over year, while Adjusted selling and administrative expenses increased 19%, year over year. The increase in selling and administrative expenses primarily reflects higher earnout valuation adjustments, increased variable compensation expense associated with stronger performance of the business, and increased expenses associated with acquisitions completed in the fourth quarter of 2025, which were not present in the comparable prior-year period. Earnings from operations of $68.7 million, or 2.8% of net sales, decreased 26% compared to $93.1 million in the third quarter of 2025. The decrease in earnings from operations was primarily attributable to higher earnout valuation adjustments compared to the prior-year period, as well as higher severance and restructuring costs in the current period, including costs associated with the Company’s voluntary separation program initiated in the third quarter of 2026. Adjusted earnings from operations of $166.9 million, or 6.8% of net sales, increased 23% year over year compared to $135.3 million in the third quarter of 2025. Consolidated net earnings were $22.2 million, or 0.9% of net sales, in the third quarter of 2026, down 57% year to year compared to $50.9 million in the third quarter of 2025. Adjusted consolidated net earnings were $107.3 million, or 4.4% of net sales, in the third quarter of 2026, up 28% year over year compared to $84.1 million in the third quarter of 2025. Diluted earnings per share for the quarter was $0.74, down 54% year to year, and Adjusted diluted earnings per share was $3.59, up 34% year over year. “We delivered another strong quarter, with broad-based momentum across our business. Gross profit increased 20%, adjusted earnings from operations grew 23%, and adjusted diluted earnings per share increased 34%,” stated Jack Azagury, President and Chief Executive Officer. “We continue to see strong performance in our strategic growth priorities, with infrastructure hardware gross profit increasing more than 50% and more than 20% gross profit growth across Cloud and Insight Core Services,” Azagury added. KEY HIGHLIGHTS Results for the Quarter: Consolidated net sales for the third quarter of 2026 of $2.4 billion increased 22%, year over year, when compared to the third quarter of 2025. Product net sales increased 22%, year over year, and services net sales increased 20%, year over year. Software product net sales decreased 3%, year to year, while hardware product net sales increased 32%, year over year. Net sales in North America increased 22%, year over year, to $2.0 billion; Product net sales increased 24%, year over year, to $1.6 billion; Services net sales increased 15%, year over year, to $364.7 million; Net sales in EMEA increased 6%, year over year, to $338.0 million; and Net sales in APAC increased 104%, year over year, to $120.0 million. Excluding the effects of fluctuating foreign currency exchange rates, consolidated net sales increased 22%, year over year, with increases in net sales in APAC, North America and EMEA of 93%, 22% and 7%, respectively, year over year. Consolidated gross profit increased 20% compared to the third quarter of 2025 to $523.2 million, with consolidated gross margin contracting 30 basis points to 21.4% of net sales. Product gross profit increased 17%, year over year, and services gross profit increased 23%, year over year. Cloud gross profit increased 26%, year over year, and Insight Core services gross profit increased 21%, year over year. By segment, gross profit: Increased 15% in North America, year over year, to $393.6 million (19.8% gross margin); Increased 22% in EMEA, year over year, to $90.5 million (26.8% gross margin); and Increased 121% in APAC, year over year, to $39.0 million (32.5% gross margin). Excluding the effects of fluctuating foreign currency exchange rates, consolidated gross profit increased 20%, year over year, with gross profit growth in APAC, EMEA and North America of 109%, 23% and 15%, respectively, year over year. Consolidated earnings from operations decreased 26% compared to the third quarter of 2025 to $68.7 million, or 2.8% of net sales. By segment, earnings from operations: Increased 1% in North America, year over year, to $84.1 million, or 4.2% of net sales; Increased 53% in EMEA, year over year, to $6.9 million, or 2.0% of net sales; and Decreased by more than 100% in APAC, year to year, to a loss of $22.3 million, or (18.6)% of net sales. Excluding the effects of fluctuating foreign currency exchange rates, consolidated earnings from operations decreased 26%, year to year, with increases in earnings from operations in EMEA and North America of 55% and 1%, respectively, year over year, partially offset by a decrease in APAC of more than 100%, year to year. Adjusted earnings from operations increased 23% compared to the third quarter of 2025 to $166.9 million, or 6.8% of net sales. By segment, Adjusted earnings from operations: Increased 13% in North America, year over year, to $132.0 million, or 6.7% of net sales; Increased 52% in EMEA, year over year, to $18.4 million, or 5.5% of net sales; and Increased 156% in APAC, year over year, to $16.5 million, or 13.7% of net sales. Excluding the effects of fluctuating foreign currency exchange rates, Adjusted consolidated earnings from operations increased 23%, with increases in Adjusted earnings from operations in APAC, EMEA and North America of 148%, 53% and 13%, respectively, year over year. Consolidated net earnings and diluted earnings per share for the third quarter of 2026 were $22.2 million and $0.74, respectively, at an effective tax rate of 49.9%. Adjusted consolidated net earnings and Adjusted diluted earnings per share for the third quarter of 2026 were $107.3 million and $3.59, respectively. Excluding the effects of fluctuating foreign currency exchange rates, Adjusted diluted earnings per share increased 36%, year over year. In discussing financial results for the three and nine months ended September 30, 2026 and 2025 in this press release, the Company refers to certain financial measures that are adjusted from the financial results prepared in accordance with United States generally accepted accounting principles (“GAAP”). When referring to non-GAAP measures, the Company refers to them as “Adjusted.” See “Use of Non-GAAP Financial Measures” for additional information. A tabular reconciliation of financial measures prepared in accordance with GAAP to the non-GAAP financial measures is included at the end of this press release. In some instances, the Company refers to changes in net sales, gross profit, earnings from operations and Adjusted earnings from operations on a consolidated basis and in North America, EMEA and APAC excluding the effects of fluctuating foreign currency exchange rates. In addition, the Company refers to changes in Adjusted diluted earnings per share on a consolidated basis excluding the effects of fluctuating foreign currency exchange rates. These are also considered to be non-GAAP measures. The Company believes providing this information excluding the effects of fluctuating foreign currency exchange rates provides valuable supplemental information to investors regarding its underlying business and results of operations, consistent with how the Company and its management evaluate the Company’s performance. In computing these changes and percentages, the Company compares the current year amount as translated into U.S. dollars under the applicable accounting standards to the prior year amount in local currency translated into U.S. dollars utilizing the weighted average translation rate for the current period. The performance measures excluding the effects of fluctuating foreign currency exchange rates should not be considered a substitute for, or superior to, the measures of financial performance prepared in accordance with GAAP. The tax effects of Adjusted amounts referenced herein were computed using the statutory tax rate for the taxing jurisdictions in the operating segment in which the related expenses were recorded, adjusted for the effects of valuation allowances on net operating losses in certain jurisdictions. GUIDANCE For the full year 2026, we are raising our gross profit growth expectations to be between 12.5% to 14.0% and expect gross margin to be approximately 21.5%. We now expect our Adjusted diluted earnings per share to be between $13.55 and $13.75. This represents approximately 27% growth at the midpoint of $13.65 compared to our full year 2025 Adjusted diluted earnings per share of $10.75. This outlook assumes: interest and other expenses of approximately $95 million; an effective tax rate of approximately 25.5% 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 Adjusted 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 third 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, net on long lived real estate assets held for sale, (viii) stock-based compensation expense, (ix) certain third-party data center service outage related expenses and recoveries, and (x) the tax effects of each of these items, as applicable. Transformation costs represent costs we are incurring to transform our business to help us achieve our strategic objectives including becoming a leading solutions integrator. The Company excludes these items when internally evaluating earnings from operations, tax expense, net earnings and diluted earnings per share for the Company and earnings from operations for each of the Company’s operating segments. Adjusted net earnings and Adjusted diluted earnings per share also exclude a net loss on revaluation of warrant settlement liabilities, as applicable. Adjusted diluted earnings per share also includes the impact of the benefit from the note hedge where the Company’s average stock price for the period was in excess of $68.32, which was the initial conversion price of our previously outstanding convertible senior notes (the “Convertible Notes”), which matured in February 2025, as applicable. Adjusted EBITDA excludes (i) interest expense, (ii) income tax expense, (iii) depreciation and amortization of property and equipment, (iv) amortization of intangible assets, (v) severance and restructuring expenses, net, (vi) certain executive recruitment and hiring related expenses, (vii) transformation costs, (viii) certain acquisition and integration related expenses, (ix) gains and losses from revaluation of acquisition related earnout liabilities, (x) gains and losses from the revaluation of warrant settlement liabilities, (xi) impairment losses, net on long lived real estate assets held for sale, (xii) stock-based compensation expense and (xiii) certain third-party data center service outage related expenses and recoveries, as applicable. Adjusted return on invested capital (“ROIC”) excludes (i) severance and restructuring expenses, net, (ii) certain executive recruitment and hiring related expenses, (iii) amortization of intangible assets, (iv) transformation costs, (v) certain acquisition and integration related expenses, (vi) certain third-party data center service outage related expenses and recoveries, (vii) gains and losses from revaluation of acquisition related earnout liabilities, (viii) impairment losses, net 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 September 30, Nine Months Ended September 30, 2026 2025 change 2026 2025 change Insight Enterprises, Inc. Net sales: Products $ 1,929,575 $ 1,577,772 22% $ 5,481,730 $ 4,950,862 11% Services $ 511,935 $ 426,073 20% $ 1,487,263 $ 1,248,021 19% Total net sales $ 2,441,510 $ 2,003,845 22% $ 6,968,993 $ 6,198,883 12% Gross profit $ 523,203 $ 434,195 20% $ 1,506,956 $ 1,282,999 17% Gross margin 21.4 % 21.7 % (30) bps 21.6 % 20.7 % 90 bps Selling and administrative expenses $ 428,619 $ 332,907 29% $ 1,197,177 $ 1,024,394 17% Severance and restructuring expenses, net $ 25,660 $ 5,390 > 100% $ 37,940 $ 15,821 > 100% Acquisition and integration related expenses $ 233 $ 2,831 (92%) $ 499 $ 3,082 (84%) Earnings from operations $ 68,691 $ 93,067 (26%) $ 271,340 $ 239,702 13% Net earnings $ 22,161 $ 50,947 (57%) $ 129,739 $ 105,393 23% Diluted earnings per share $ 0.74 $ 1.62 (54%) $ 4.28 $ 3.22 33% Sales Mix ** ** Hardware 62 % 57 % 32% 60 % 56 % 20% Software 17 % 22 % (3%) 19 % 24 % (11%) Services 21 % 21 % 20% 21 % 20 % 19% 100 % 100 % 22% 100 % 100 % 12% North America Net sales: Products $ 1,618,749 $ 1,308,045 24% $ 4,538,217 $ 4,085,684 11% Services $ 364,712 $ 317,257 15% $ 1,066,712 $ 924,565 15% Total net sales $ 1,983,461 $ 1,625,302 22% $ 5,604,929 $ 5,010,249 12% Gross profit $ 393,643 $ 342,263 15% $ 1,144,676 $ 1,003,407 14% Gross margin 19.8 % 21.1 % (130) bps 20.4 % 20.0 % 40 bps Selling and administrative expenses $ 291,280 $ 253,665 15% $ 856,654 $ 789,386 9% Severance and restructuring expenses, net $ 18,219 $ 3,069 > 100% $ 24,908 $ 8,734 > 100% Acquisition and integration related expenses $ 21 $ 1,898 (99%) $ 210 $ 2,144 (90%) Earnings from operations $ 84,123 $ 83,631 1% $ 262,904 $ 203,143 29% Sales Mix ** ** Hardware 67 % 63 % 30% 66 % 62 % 19% Software 15 % 18 % —% 15 % 20 % (14%) Services 18 % 19 % 15% 19 % 18 % 15% 100 % 100 % 22% 100 % 100 % 12% EMEA Net sales: Products $ 241,373 $ 237,748 2% $ 797,764 $ 765,238 4% Services $ 96,640 $ 82,010 18% $ 288,294 $ 245,962 17% Total net sales $ 338,013 $ 319,758 6% $ 1,086,058 $ 1,011,200 7% Gross profit $ 90,527 $ 74,234 22% $ 270,756 $ 228,595 18% Gross margin 26.8 % 23.2 % 360 bps 24.9 % 22.6 % 230 bps Selling and administrative expenses $ 76,533 $ 67,601 13% $ 235,534 $ 201,139 17% Severance and restructuring expenses, net $ 7,124 $ 2,146 > 100% $ 12,274 $ 6,802 80% Acquisition and integration related expenses $ — $ — * $ (16 ) $ — * Earnings from operations $ 6,870 $ 4,487 53% $ 22,964 $ 20,654 11% Sales Mix ** ** Hardware 37 % 35 % 12% 37 % 35 % 14% Software 34 % 39 % (8%) 37 % 41 % (4%) Services 29 % 26 % 18% 26 % 24 % 17% 100 % 100 % 6% 100 % 100 % 7% APAC Net sales: Products $ 69,453 $ 31,979 117% $ 145,749 $ 99,940 46% Services $ 50,583 $ 26,806 89% $ 132,257 $ 77,494 71% Total net sales $ 120,036 $ 58,785 104% $ 278,006 $ 177,434 57% Gross profit $ 39,033 $ 17,698 121% $ 91,524 $ 50,997 79% Gross margin 32.5 % 30.1 % 240 bps 32.9 % 28.7 % 420 bps Selling and administrative expenses $ 60,806 $ 11,641 > 100% $ 104,989 $ 33,869 > 100% Severance and restructuring expenses, net $ 317 $ 175 81% $ 758 $ 285 > 100% Acquisition and integration related expenses $ 212 $ 933 (77%) $ 305 $ 938 (67%) Earnings from operations $ (22,302 ) $ 4,949 < (100%) $ (14,528 ) $ 15,905 < (100%) Sales Mix ** ** Hardware 42 % 19 % 354% 28 % 15 % 204% Software 16 % 35 % (8%) 24 % 41 % (10%) Services 42 % 46 % 89% 48 % 44 % 71% 100 % 100 % 104% 100 % 100 % 57% * 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 in 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; and future sales of the Company’s common stock or equity-linked securities in the public market could lower the market price for our common stock. Additionally, there may be other risks that are otherwise described from time to time in the reports that the Company files with the SEC. Any forward-looking statements in this release, the related conference call, webcast and presentation speak only as of the date on which they are made and should be considered in light of various important factors, including the risks and uncertainties listed above, as well as others. The Company assumes no obligation to update, and, except as may be required by law, does not intend to update, any forward-looking statements. The Company does not endorse any projections regarding future performance that may be made by third parties. INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (IN THOUSANDS, EXCEPT PER SHARE DATA) (UNAUDITED) Three Months Ended September 30, Nine Months Ended September 30, 2026 2025 2026 2025 Net sales: Products $ 1,929,575 $ 1,577,772 $ 5,481,730 $ 4,950,862 Services 511,935 426,073 1,487,263 1,248,021 Total net sales 2,441,510 2,003,845 6,968,993 6,198,883 Costs of goods sold: Products 1,728,548 1,405,321 4,908,432 4,417,924 Services 189,759 164,329 553,605 497,960 Total costs of goods sold 1,918,307 1,569,650 5,462,037 4,915,884 Gross profit: Products 201,027 172,451 573,298 532,938 Services 322,176 261,744 933,658 750,061 Gross profit 523,203 434,195 1,506,956 1,282,999 Operating expenses: Selling and administrative expenses 428,619 332,907 1,197,177 1,024,394 Severance and restructuring expenses, net 25,660 5,390 37,940 15,821 Acquisition and integration related expenses 233 2,831 499 3,082 Earnings from operations 68,691 93,067 271,340 239,702 Non-operating expense (income): Interest expense, net 25,123 23,297 73,165 61,274 Other (income) expense, net (674 ) (888 ) (1,878 ) 24,594 Earnings before income taxes 44,242 70,658 200,053 153,834 Income tax expense 22,081 19,711 70,314 48,441 Net earnings $ 22,161 $ 50,947 $ 129,739 $ 105,393 Net earnings per share: Basic $ 0.76 $ 1.62 $ 4.32 $ 3.33 Diluted $ 0.74 $ 1.62 $ 4.28 $ 3.22 Shares used in per share calculations: Basic 29,286 31,369 30,035 31,663 Diluted 29,844 31,536 30,291 32,780 INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In THOUSANDS) (UNAUDITED) September 30, 2026 December 31, 2025 ASSETS Current assets: Cash and cash equivalents $ 397,711 $ 358,020 Accounts receivable, net 7,383,646 5,516,984 Inventories 267,240 160,648 Contract assets, net 65,939 65,745 Other current assets 256,446 260,990 Total current assets 8,370,982 6,362,387 Long-term contract assets, net 35,115 53,176 Property and equipment, net 187,910 188,449 Goodwill 1,168,875 1,169,734 Intangible assets, net 363,300 426,237 Long-term accounts receivable, net 778,967 763,923 Other assets 124,045 123,466 $ 11,029,194 $ 9,087,372 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable – trade $ 5,890,942 $ 4,263,796 Accounts payable – inventory financing facilities 243,270 225,035 Accrued expenses and other current liabilities 871,467 615,464 Current portion of long-term debt — 8 Total current liabilities 7,005,679 5,104,303 Long-term debt 1,498,886 1,361,327 Deferred income taxes 69,488 70,715 Long-term accounts payable 692,980 715,494 Other liabilities 194,135 186,659 9,461,168 7,438,498 Stockholders’ equity: Preferred stock — — Common stock 290 310 Additional paid-in capital 180,419 164,560 Retained earnings 1,436,846 1,520,404 Accumulated other comprehensive loss – foreign currency translation adjustments (49,529 ) (36,400 ) Total stockholders’ equity 1,568,026 1,648,874 $ 11,029,194 $ 9,087,372 INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (IN THOUSANDS) (UNAUDITED) Nine Months Ended September 30, 2026 2025 Cash flows from operating activities: Net earnings $ 129,739 $ 105,393 Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation and amortization 85,888 77,971 Provision for losses on accounts receivable 14,866 6,743 Provision for losses on contract assets 3,516 3,917 Non-cash stock-based compensation 31,079 26,765 Net change on revaluation of earnout liabilities 64,164 19,184 Deferred income taxes 3,270 5,081 Net loss on revaluation of warrant settlement liabilities — 25,069 Earnout payments in excess of acquisition date fair value (27,835 ) (25,451 ) Impairment loss on long lived real estate asset 1,753 12,588 Amortization of debt issuance costs 3,362 3,422 Other adjustments 5 (1,123 ) Changes in assets and liabilities: Increase in accounts receivable (1,944,293 ) (1,181,587 ) Increase in inventories (110,501 ) (25,379 ) Decrease in contract assets 14,448 42,549 (Increase) decrease in long-term accounts receivable (17,523 ) 93,903 Decrease (increase) in other assets 2,472 (20,845 ) Increase in accounts payable 1,680,390 1,100,776 Decrease in long-term accounts payable (20,261 ) (99,222 ) Increase (decrease) in accrued expenses and other liabilities 234,010 (19,697 ) Net cash provided by operating activities: 148,549 150,057 Cash flows from investing activities: Proceeds from sale of assets 8,265 — Purchases of property and equipment (21,012 ) (17,551 ) Net cash used in investing activities: (12,747 ) (17,551 ) Cash flows from financing activities: Borrowings on ABL revolving credit facility 5,355,820 4,823,236 Repayments on ABL revolving credit facility (5,216,713 ) (3,971,067 ) Warrants settlement — (221,968 ) Repayment of principal on the Convertible Notes — (333,091 ) Net borrowings under inventory financing facilities 18,829 21,859 Payment of debt issuance costs (446 ) — Repurchases of common stock (225,032 ) (151,118 ) Earnout and acquisition related payments (17,161 ) (20,204 ) Other payments (2,600 ) (11,126 ) Net cash (used in) provided by financing activities: (87,303 ) 136,521 Foreign currency exchange effect on cash, cash equivalents and restricted cash balances (8,398 ) 18,953 Increase in cash, cash equivalents and restricted cash 40,101 287,980 Cash, cash equivalents and restricted cash at beginning of period 360,777 261,467 Cash, cash equivalents and restricted cash at end of period $ 400,878 $ 549,447 INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (IN THOUSANDS, EXCEPT PER SHARE DATA) (UNAUDITED) Three Months Ended September 30, Nine Months Ended September 30, 2026 2025 2026 2025 Adjusted Consolidated Earnings from Operations: GAAP consolidated EFO $ 68,691 $ 93,067 $ 271,340 $ 239,702 Amortization of intangible assets 20,931 18,678 63,035 55,894 Change in fair value of earnout liabilities 38,595 3,800 64,174 19,164 Transformation costs 952 2,929 17,286 11,204 Impairment loss, net on a long lived real estate asset held for sale (280 ) — 1,753 12,588 Severance and restructuring expenses, net 25,660 5,390 37,940 15,821 Acquisition and integration related expenses 233 2,831 499 3,082 Stock-based compensation expense 11,768 8,856 31,079 26,765 Other* 391 (247 ) 1,614 308 Adjusted non-GAAP consolidated EFO $ 166,941 $ 135,304 $ 488,720 $ 384,528 GAAP EFO as a percentage of net sales 2.8 % 4.6 % 3.9 % 3.9 % Adjusted non-GAAP EFO as a percentage of net sales 6.8 % 6.8 % 7.0 % 6.2 % Adjusted Consolidated Net Earnings: GAAP consolidated net earnings $ 22,161 $ 50,947 $ 129,739 $ 105,393 Amortization of intangible assets 20,931 18,678 63,035 55,894 Change in fair value of earnout liabilities 38,595 3,800 64,174 19,164 Net loss on revaluation of warrant settlement liabilities — — — 25,069 Transformation costs 952 2,929 17,286 11,204 Impairment loss, net on a long lived real estate asset held for sale (280 ) — 1,753 12,588 Severance and restructuring expenses, net 25,660 5,390 37,940 15,821 Acquisition and integration related expenses 233 2,831 499 3,082 Stock-based compensation expense 11,768 8,856 31,079 26,765 Other* 391 (247 ) 1,614 308 Income taxes on non-GAAP adjustments (13,128 ) (9,123 ) (34,512 ) (30,059 ) Adjusted non-GAAP consolidated net earnings $ 107,283 $ 84,061 $ 312,607 $ 245,229 GAAP net earnings as a percentage of net sales 0.9 % 2.5 % 1.9 % 1.7 % Adjusted non-GAAP net earnings as a percentage of net sales 4.4 % 4.2 % 4.5 % 4.0 % Adjusted Diluted Earnings Per Share: GAAP diluted EPS $ 0.74 $ 1.62 $ 4.28 $ 3.22 Amortization of intangible assets 0.70 0.59 2.08 1.71 Change in fair value of earnout liabilities 1.29 0.12 2.12 0.58 Net loss on revaluation of warrant settlement liabilities — — — 0.76 Transformation costs 0.03 0.09 0.57 0.34 Impairment loss, net on a long lived real estate asset held for sale (0.01 ) — 0.06 0.38 Severance and restructuring expenses, net 0.86 0.17 1.25 0.48 Acquisition and integration related expenses 0.01 0.09 0.02 0.09 Stock-based compensation expense 0.39 0.28 1.03 0.82 Other* 0.02 — 0.05 0.01 Income taxes on non-GAAP adjustments (0.44 ) (0.29 ) (1.14 ) (0.92 ) Impact of benefit from note hedge — — — 0.15 Adjusted non-GAAP diluted EPS $ 3.59 $ 2.67 $ 10.32 $ 7.62 Shares used in diluted EPS calculation 29,844 31,536 30,291 32,780 Impact of benefit from note hedge — — — (577 ) Shares used in Adjusted non-GAAP diluted EPS calculation 29,844 31,536 30,291 32,203 Adjusted North America Earnings from Operations: GAAP EFO from North America segment $ 84,123 $ 83,631 $ 262,904 $ 203,143 Amortization of intangible assets 18,635 16,806 55,933 50,427 Change in fair value of earnout liabilities 1,720 3,800 22,800 15,701 Transformation costs (640 ) 908 9,028 6,696 Impairment loss, net on a long lived real estate asset held for sale (280 ) — 1,753 12,588 Severance and restructuring expenses, net 18,219 3,069 24,908 8,734 Acquisition and integration related expenses 21 1,898 210 2,144 Stock-based compensation expense 9,820 6,847 24,312 20,788 Other* 391 (247 ) 1,614 308 Adjusted non-GAAP EFO from North America segment $ 132,009 $ 116,712 $ 403,462 $ 320,529 GAAP EFO as a percentage of net sales 4.2 % 5.1 % 4.7 % 4.1 % Adjusted non-GAAP EFO as a percentage of net sales 6.7 % 7.2 % 7.2 % 6.4 % Adjusted EMEA Earnings from Operations: GAAP EFO from EMEA segment $ 6,870 $ 4,487 $ 22,964 $ 20,654 Amortization of intangible assets 1,711 1,872 5,327 5,467 Change in fair value of earnout liabilities — — — 3,463 Transformation costs 1,428 2,021 8,062 4,508 Severance and restructuring expenses, net 7,124 2,146 12,274 6,802 Acquisition and integration related expenses — — (16 ) — Stock-based compensation expense 1,304 1,627 5,170 4,849 Adjusted non-GAAP EFO from EMEA segment $ 18,437 $ 12,153 $ 53,781 $ 45,743 GAAP EFO as a percentage of net sales 2.0 % 1.4 % 2.1 % 2.0 % Adjusted non-GAAP EFO as a percentage of net sales 5.5 % 3.8 % 5.0 % 4.5 % Adjusted APAC Earnings from Operations: GAAP EFO from APAC segment $ (22,302 ) $ 4,949 $ (14,528 ) $ 15,905 Amortization of intangible assets 585 — 1,775 — Change in fair value of earnout liabilities 36,875 — 41,374 — Transformation costs 164 — 196 — Severance and restructuring expenses, net 317 175 758 285 Acquisition and integration related expenses 212 933 305 938 Stock-based compensation expense 644 382 1,597 1,128 Adjusted non-GAAP EFO from APAC segment $ 16,495 $ 6,439 $ 31,477 $ 18,256 GAAP EFO as a percentage of net sales (18.6 %) 8.4 % (5.2 %) 9.0 % Adjusted non-GAAP EFO as a percentage of net sales 13.7 % 11.0 % 11.3 % 10.3 % INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (CONTINUED) (IN THOUSANDS, EXCEPT PER SHARE DATA) (UNAUDITED) Three Months Ended September 30, Nine Months Ended September 30, 2026 2025 2026 2025 Adjusted EBITDA: GAAP consolidated net earnings $ 22,161 $ 50,947 $ 129,739 $ 105,393 Interest expense 27,264 25,387 79,461 67,419 Income tax expense 22,081 19,711 70,314 48,441 Depreciation and amortization of property and equipment 7,624 7,582 22,853 22,077 Amortization of intangible assets 20,931 18,678 63,035 55,894 Change in fair value of earnout liabilities 38,595 3,800 64,174 19,164 Net loss on revaluation of warrant settlement liability — — — 25,069 Transformation costs 952 2,929 17,286 11,204 Impairment loss, net on a long lived real estate asset held for sale (280 ) — 1,753 12,588 Severance and restructuring expenses, net 25,660 5,390 37,940 15,821 Acquisition and integration related expenses 233 2,831 499 3,082 Stock-based compensation expense 11,768 8,856 31,079 26,765 Other* 391 (247 ) 1,614 308 Adjusted non-GAAP EBITDA $ 177,380 $ 145,864 $ 519,747 $ 413,225 GAAP consolidated net earnings as a percentage of net sales 0.9 % 2.5 % 1.9 % 1.7 % Adjusted non-GAAP EBITDA as a percentage of net sales 7.3 % 7.3 % 7.5 % 6.7 % Three Months Ended September 30, Nine Months Ended September 30, 2026 2025 2026 2025 Adjusted Consolidated Selling and Administrative Expenses:​ GAAP selling and administrative expenses​ $ 428,619 $ 332,907 $ 1,197,177 $ 1,024,394 Less: Change in fair value of earnout liabilities 38,595 3,800 64,174 19,164 Amortization of intangible assets 20,931 18,678 63,035 55,894 Transformation costs 952 2,929 17,286 11,204 Impairment loss, net on a long lived real estate asset held for sale (280 ) — 1,753 12,588 Stock-based compensation expense 11,768 8,856 31,079 26,765 Other* 391 (247 ) 1,614 308 Adjusted non-GAAP selling and administrative expenses​ $ 356,262 $ 298,891 $ 1,018,236 $ 898,471 GAAP selling and administrative expenses as a percentage of net sales 17.6 % 16.7 % 17.2 % 16.5 % Adjusted non-GAAP selling and administrative expenses as a percentage of net sales 14.6 % 14.9 % 14.6 % 14.5 % * Other includes certain executive recruitment and hiring related expenses and certain third-party data center service outage related expenses and recoveries, net. Certain executive recruitment and hiring related expenses were $0.4 million and $1.6 million for the three and nine months ended September 30, 2026, respectively, compared to $0.4 million and $0.5 million for the three and nine months ended September 30, 2025. Certain third-party data center service outage related recoveries were $0.6 million and $0.2 million for the three and nine months ended September 30, 2025 with no comparable activity for either the three or nine months ended September 30, 2026. INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (CONTINUED) (IN THOUSANDS, EXCEPT PER SHARE DATA) (UNAUDITED) Twelve Months Ended September 30, 2026 2025 Adjusted return on invested capital: GAAP consolidated EFO $ 366,561 $ 304,376 Amortization of intangible assets 83,909 74,491 Change in fair value of earnout liabilities 70,313 41,964 Transformation costs 19,165 16,592 Impairment loss on a long lived real estate asset held for sale 1,753 12,588 Severance and restructuring expenses, net 59,250 31,788 Acquisition and integration related expenses 984 3,592 Stock-based compensation expense 38,052 34,520 Other 5 1,931 1,785 Adjusted non-GAAP consolidated EFO 641,918 521,696 Income tax expense 1 166,899 135,641 Adjusted non-GAAP consolidated EFO, net of tax $ 475,019 $ 386,055 Average stockholders’ equity 2 $ 1,601,051 $ 1,662,814 Average debt 2 1,439,397 1,125,950 Average cash 2 (421,371 ) (350,937 ) Invested Capital $ 2,619,077 $ 2,437,827 Adjusted non-GAAP ROIC (from GAAP consolidated EFO) 3 10.36 % 9.24 % Adjusted non-GAAP ROIC (from non-GAAP consolidated EFO) 4 18.14 % 15.84 % 1 Assumed tax rate of 26.0%. 2 Average of previous five quarters. 3 Computed as GAAP consolidated EFO, net of tax of $95,306 and $79,138 for the twelve months ended September 30, 2026 and 2025, respectively, divided by invested capital. 4 Computed as Adjusted non-GAAP consolidated EFO, net of tax, divided by invested capital. 5 Other includes certain executive recruitment and hiring related expenses and certain third-party data center service outage related expenses and recoveries, net, as applicable. Certain executive recruitment and hiring related expenses were $1.9 million and $0.6 million for the twelve months ended September 30, 2026 and 2025, respectively. Net expenses related to third-party data center service outages were $1.2 million for the twelve months ended September 30, 2025 with no comparable activity in the twelve months ended September 30, 2026. JAMES MORGADO CHIEF FINANCIAL OFFICER TEL. 480.333.3251 EMAIL james.morgado@insight.com Source: Insight Enterprises Inc.