10-Q - INSIGHT ENTERPRISES INC (0000932696) (Filer)

Thu, May 1, 4:28 PM (18 days ago)

**Insight Enterprises, Inc. (NSIT) Q1 2025 Financial Performance Summary** **Financial Health and Performance:** - **Revenue:** $2.1 billion, a 12% decrease year-over-year (YoY), primarily due to declines in software and services net sales, partially offset by an increase in hardware net sales. - **Gross Profit:** $406.5 million, an 8% decrease YoY, with gross margin expanding by 80 basis points to 19.3%. - **Operating Expenses:** Selling and administrative expenses increased by 1% YoY, with severance and restructuring expenses also rising. - **Net Earnings:** $7.5 million, a significant decrease from $67.0 million in Q1 2024, impacted by revaluation losses on warrant settlement liabilities and Infocenter earnout liability. - **Earnings per Share (EPS):** Diluted EPS was $0.22, down from $1.74 in Q1 2024. **Cash Flow and Liquidity:** - **Operating Activities:** Provided $78.1 million in cash, down from $247.2 million in Q1 2024. - **Investing Activities:** Capital expenditures were $7.1 million. - **Financing Activities:** Net borrowings under the ABL facility were $423.8 million, primarily to repay the Convertible Notes. No share repurchases were made in Q1 2025. **Segment Performance:** - **North America:** Net sales decreased by 11% YoY, with gross profit down by 9%. - **EMEA:** Net sales decreased by 17% YoY, with gross profit down by 4%. - **APAC:** Net sales decreased by 3% YoY, with gross profit down by 6%. **Trends and Uncertainties:** - **Supply Chain and Demand:** Inflation and high interest rates continue to impact operations. - **Acquisitions:** The acquisition of Infocenter is expected to enhance service offerings. - **Future Operations:** The company plans to use excess cash to pay down debt, settle warrants, and fund strategic acquisitions. **Forward-Looking Statements:** - The company anticipates higher interest rates throughout most of 2025. - Plans to focus on selling solutions and increasing services net sales to drive future growth. - Expects to manage inflation and interest rate impacts through strategic financial management. **Ticker:** NSIT