Insight Enterprises(US:NSIT)2026-02-05 13:03Financial Performance - In Q4 2025, net sales decreased 1% year over year to $2.0 billion, while gross profit increased 9% to $478.4 million, resulting in a gross margin expansion of 220 basis points to 23.4%[1][4]. - For the full year 2025, net sales decreased 5% year over year to $8.2 billion, with gross profit remaining flat at $1.8 billion and gross margin expanding 110 basis points to 21.4%[2][12]. - Consolidated net earnings for Q4 2025 were $52.0 million, up 40% year over year, while full year consolidated net earnings were $157.3 million, down 37% compared to 2024[1][2]. - Adjusted earnings from operations for Q4 2025 increased 13% year over year to $146.2 million, representing 7.1% of net sales[1][4]. - Diluted earnings per share for Q4 2025 was $1.67, up 69% year over year, while for the full year it was $4.86, down 26% year over year[1][2]. - Total net sales for Q4 2025 were $2,048,297, a decrease of 1% compared to Q4 2024's $2,072,665[25]. - Net earnings for the full year 2025 were $157,347, down 37% from $249,691 in 2024[25]. - Diluted earnings per share for Q4 2025 increased by 69% to $1.67, compared to $0.99 in Q4 2024[25]. - Gross profit for Q4 2025 was $478,428, representing a 9% increase from $439,638 in Q4 2024[25]. - Gross profit for the twelve months ended December 31, 2025, was $1,761,427, slightly down from $1,766,016 in 2024, reflecting a stable performance[35]. - Net earnings for the twelve months ended December 31, 2025, were $157,347, down from $249,691 in 2024, indicating a decline of 37%[35]. - Adjusted non-GAAP consolidated net earnings for 2025 were $315,104 thousand, slightly down from $338,181 thousand in 2024, reflecting a decrease of 6.8%[41]. - GAAP consolidated earnings from operations (EFO) for 2025 were $334,923 thousand, down from $388,584 thousand in 2024, a decline of 13.8%[41]. - Adjusted non-GAAP consolidated EFO for the twelve months ended December 31, 2025, was $503,988 million, compared to $502,372 million in 2024, showing a slight increase[50]. Cash Flow and Expenses - Cash flows from operating activities were $153.8 million for Q4 2025 and $303.8 million for the full year[4]. - Cash flows from operating activities provided $303,827 thousand in 2025, a significant decrease of 52.1% from $632,845 thousand in 2024[39]. - Selling and administrative expenses for the three months ended December 31, 2025, were $361,412, a slight increase from $358,487 in 2024[35]. - Severance and restructuring expenses for Q4 2025 increased by 33% to $21,310 compared to $15,967 in Q4 2024[25]. - Severance and restructuring expenses increased to $37,131 million in 2025 from $31,605 million in 2024[50]. - Transformation costs decreased to $13,083 million in 2025 from $18,355 million in 2024[50]. Market Segments and Regional Performance - In Q4 2025, services net sales increased 11% year over year, while product net sales decreased 4%[8]. - North America net sales decreased 3% year over year to $1.6 billion in Q4 2025, while EMEA and APAC saw increases of 8% and 15%, respectively[8]. - The company is focusing on expanding its services segment, which has shown growth potential, particularly in the APAC region[35]. - GAAP EFO from North America segment for Q4 2025 was $79.129 million, up from $52.396 million in Q4 2024, representing a growth of 50.9%[43]. - GAAP EFO from APAC segment for Q4 2025 was $5.776 million, an increase from $4.922 million in Q4 2024, reflecting a growth of 17.4%[45]. - Adjusted non-GAAP EFO from EMEA segment for Q4 2025 was $20.720 million, compared to $14.626 million in Q4 2024, an increase of 41.7%[45]. Future Outlook - For 2026, the company expects Adjusted diluted earnings per share to be between $10.10 and $10.60, representing a 5% growth at the midpoint compared to 2025[14]. - The company anticipates gross profit growth in the low single digits and expects gross margin to be approximately 21% for 2026[14]. - The company experienced a net cash used in investing activities of $309,803 thousand in 2025, slightly higher than $303,278 thousand in 2024[39]. - The company anticipates continued challenges due to inflation and higher interest rates affecting future financial performance[29]. Balance Sheet and Capital Structure - Total current assets increased to $6,362,387 thousand in 2025 from $4,844,622 thousand in 2024, representing a growth of 31.3%[37]. - The company reported an increase in accounts payable to $4,263,796 thousand in 2025, up from $3,059,667 thousand in 2024, indicating a rise of 39.3%[37]. - Long-term debt rose to $1,361,327 thousand in 2025, compared to $531,233 thousand in 2024, marking an increase of 156.0%[37]. - The cash, cash equivalents, and restricted cash at the end of the period increased to $360,776 thousand in 2025 from $261,467 thousand in 2024, a growth of 37.9%[39]. - Average stockholders' equity decreased to $1,639,329 million in 2025 from $1,775,136 million in 2024[50]. - Average debt increased significantly to $1,180,854 million in 2025 from $953,619 million in 2024[50]. - Average cash position worsened, with a negative average cash of $(359,051) million in 2025 compared to $(296,166) million in 2024[50]. - Total invested capital increased to $2,461,132 million in 2025 from $2,432,589 million in 2024[50]. - Income tax expense for the twelve months ended December 31, 2025, was $131,037 million, slightly up from $130,617 million in 2024[50].