Financial Performance - Consolidated net sales for 2025 are projected at $8.2 billion, representing less than 1% of the estimated $1.3 trillion addressable market for the company in 2026[27]. - Net sales decreased by 5% to $8.2 billion in 2025, with product sales down 7% and service sales up 2% year-over-year[181]. - Earnings from operations fell to $334.9 million in 2025, a decrease of 14% compared to the previous year, representing 4.1% of net sales[170]. - Net earnings for 2025 were $157.3 million, down from $249.7 million in 2024, with diluted net earnings per share decreasing from $6.55 to $4.86[170]. - Gross profit for 2025 was reported at $1.8 billion with a record gross margin of 21.4%, an increase of approximately 110 basis points compared to 2024[170]. - The effective tax rate increased to 30.3% in 2025 from 25.0% in 2024[170]. - Net cash provided by operating activities in 2025 was $303.827 million, a significant decrease from $632.845 million in 2024[214]. - Adjusted non-GAAP earnings from operations for 2025 were $503.988 million, with North America contributing $418.584 million, EMEA $61.614 million, and APAC $23.790 million[210]. Market and Sales Distribution - North America accounts for 81% of consolidated net sales, while EMEA and APAC contribute 16% and 3%, respectively[22]. - Microsoft products represented approximately 17% of consolidated net sales in 2025, with the top five manufacturers accounting for about 50% of total sales[51]. - North America net sales decreased by 6% to $6.7 billion, with hardware sales increasing by 2% while software sales decreased by 27%[182]. - EMEA net sales decreased by 4% to $1.4 billion, with software and hardware sales down 12% and 8%, respectively, but services sales increased by 20%[183]. - Net sales in APAC increased by 2% to $237.5 million in 2025, with services and hardware sales growing by 5% and 2%, respectively, while software sales decreased by 1%[186]. Strategic Acquisitions and Investments - Recent acquisitions include Amdaris, SADA, Infocenter, NWT, Inspire11, and Sekuro, enhancing capabilities in software development, cloud services, and cybersecurity[22][24]. - The company completed two strategic acquisitions in 2025: Inspire11 and Sekuro, enhancing AI, data expertise, and cybersecurity capabilities[170]. - The company’s acquisition strategy, including recent acquisitions of Inspire11 and Sekuro, has increased total borrowings, leading to higher future interest expenses[132]. - The company is investing in new technologies to maintain a competitive edge, particularly in rapidly evolving areas like cloud and AI[94]. Operational Efficiency and Challenges - The company emphasizes a strategy of putting clients first, empowering teammates, and driving profitable growth through operational excellence[29][34]. - Insight is leveraging AI and machine learning to enhance operational efficiency and client experiences, focusing on predictive analytics and automated compliance monitoring[70]. - The company’s ability to provide high-quality services is critical; failures could lead to reputational damage and financial liabilities[105]. - Disruptions in the supply chain due to manufacturing delays or other adverse occurrences could negatively affect product availability and business operations[112]. - The competitive landscape is changing, with pricing pressures expected to continue, impacting market share and profitability[90]. Financial Position and Debt - As of December 31, 2025, the company had $1,361.3 million in total long-term debt and $225.0 million in obligations under inventory financing agreements[131]. - The company has the ability to borrow an additional $1.1 billion under its senior secured credit facility as of December 31, 2025[131]. - Interest expense net increased by 46% to $85.1 million, primarily due to higher loan balances and lower interest income[205]. Human Resources and Management - As of December 31, 2025, Insight employed 14,505 teammates, with 11,017 in North America, 2,759 in EMEA, and 729 in APAC[59]. - The company has a total of 10,249 sales and client-facing teammates, with 3,561 in sales and 6,688 in skilled consulting and service delivery[61]. - The company is actively recruiting a new Chief Executive Officer, which presents risks related to attracting a qualified candidate and management transition[139]. Regulatory and Compliance Risks - The company is subject to various legal proceedings and audits, which could result in substantial costs and divert management's attention from strategic objectives[126]. - Compliance with numerous U.S. and foreign laws and regulations may be onerous and expensive, increasing the risk of noncompliance[126]. - Changes in government spending policies could impact sales to public sector clients, potentially leading to reduced purchases or contract terminations[99]. - The company faces risks related to cyberattacks and data security incidents, which could adversely impact financial condition and results of operations[117]. Shareholder Returns and Stock Performance - The company announced a share repurchase plan of up to $299 million, with approximately $299 million remaining available for repurchases as of December 31, 2025[158]. - The company's stock price performance has shown significant growth, with a cumulative total return of 233% from December 31, 2020, to December 31, 2023[162]. - The company has never paid cash dividends and does not intend to do so in the foreseeable future due to covenants in its credit facility[156].

Core Insights - The article highlights the investment strategies of Paul Franke, a seasoned investor with 39 years of trading experience, emphasizing his contrarian stock selection style and the development of a system called "Victory Formation" for identifying stocks based on supply/demand imbalances [1] Group 1: Investment Strategies - Paul Franke suggests using 10% or 20% stop-loss levels on individual stock choices to manage risk effectively [1] - A diversified approach is recommended, advocating for ownership of at least 50 well-positioned stocks to achieve consistent outperformance in the stock market [1] - The "Bottom Fishing Club" articles focus on identifying deep value candidates or stocks that are experiencing significant upward momentum reversals [1] Group 2: Analytical Approach - Franke employs daily algorithm analysis of fundamental and technical data as part of his investment strategy [1] - The "Volume Breakout Report" articles discuss positive trend changes that are supported by strong price and volume trading actions [1]

分组1 - The article highlights Paul Franke's extensive experience in stock picking and investment, emphasizing his successful track record over 39 years in trading and investment analysis [1] - Franke's investment strategy, known as "Victory Formation," focuses on identifying supply/demand imbalances through specific stock price and volume movements, which are critical for successful stock selection [1] - The "Bottom Fishing Club" articles target deep value stocks or those showing significant positive technical momentum reversals, while the "Volume Breakout Report" discusses stocks with strong price and volume trends [1] 分组2 - Franke recommends a diversified investment approach, suggesting that investors hold at least 50 well-positioned stocks and utilize stop-loss levels of 10% or 20% on individual investments to enhance market outperformance [1]

分组1 - Insight Enterprises reported quarterly earnings of $2.96 per share, exceeding the Zacks Consensus Estimate of $2.82 per share, and showing an increase from $2.66 per share a year ago, resulting in an earnings surprise of +4.97% [1] - The company posted revenues of $2.05 billion for the quarter ended December 2025, which was 1.73% below the Zacks Consensus Estimate and a decrease from $2.07 billion in the same quarter last year [2] - Over the last four quarters, Insight Enterprises has surpassed consensus EPS estimates two times but has not beaten consensus revenue estimates [2] 分组2 - The stock has gained approximately 0.2% since the beginning of the year, underperforming compared to the S&P 500's gain of 0.5% [3] - The current consensus EPS estimate for the upcoming quarter is $2.06 on revenues of $2.09 billion, and for the current fiscal year, it is $10.52 on revenues of $8.5 billion [7] - The Zacks Industry Rank indicates that the Retail - Mail Order sector is currently in the bottom 12% of over 250 Zacks industries, suggesting potential challenges for stock performance [8]

Financial Data and Key Metrics Changes - Overall revenue for Q4 2025 was $2 billion, a decrease of 1% year-over-year, primarily due to a 4% decline in product revenue, with on-prem software down 18% as clients shifted to cloud solutions [18][21] - Total gross profit increased by 9%, with gross margin expanding to 23.4%, an increase of 220 basis points [19][21] - Adjusted diluted earnings per share were $2.96, up 11% year-over-year, while adjusted earnings from operations grew by 13% [17][21] Business Line Data and Key Metrics Changes - Cloud gross profit was $138 million, an increase of 11%, driven by growth in SaaS and Infrastructure as a Service [19] - Core services gross profit grew by 16%, reaching $90 million, supported by acquisitions and organic growth [19][21] - Hardware gross profit increased by 1%, with hardware revenue growing for the fourth consecutive quarter [18][19] Market Data and Key Metrics Changes - EMEA region saw a gross profit increase of 30%, driven by demand in UAE and Saudi Arabia [19] - The company reported strong growth in core services across EMEA, contributing to overall performance [18][19] Company Strategy and Development Direction - The company is focused on cloud modernization, security, and AI adoption, positioning itself as a leading AI-first solutions integrator [18] - Recent acquisitions, including Inspire11 and Sekuro, have strengthened technical expertise in data, AI, and cybersecurity, enhancing cross-sell opportunities [16][21] - The strategy emphasizes simplifying complexity for clients and delivering measurable outcomes through integrated solutions [18] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for 2026, anticipating subdued spending across the industry, particularly from corporate and large enterprise clients [17][21] - The macro environment remains complex, with ongoing supply chain dynamics and memory pricing impacting client investments [17][21] - The company expects to continue investing in cloud and AI to capture emerging opportunities [18] Other Important Information - The company increased its share repurchase authorization by $150 million, totaling $299 million at year-end [23] - Total debt at the end of Q4 was approximately $1.4 billion, up from $900 million a year ago, primarily due to acquisitions and share repurchases [23][24] - The company has filed over 200 patent applications globally, with more than 70 patents issued to date, covering innovations in AI and machine learning [15] Q&A Session Summary Question: Guidance for 2026 and IT budgets - Management indicated a cautious approach to 2026 guidance, emphasizing potential disruptions and the need to balance internal ambitions with market realities [33][34] - IT budgets for large enterprises are expected to remain subdued, with a focus on preserving funds for AI transition [36][37] Question: Impact of partner program changes - The gross profit impact from partner program changes was approximately $70 million, with a tail effect expected into 2026 [44][46] - Management noted that the pivot to focus on mid-market clients is complete, but some financial impacts will persist [46][48] Question: AI data center investments - Management highlighted the complexity of AI-optimized data center solutions and the potential for broader enterprise adoption as companies consider cost structures [52][53] - The company is well-positioned to support clients in navigating the evolving landscape of AI infrastructure [53][56] Question: Memory cost and supply chain disruptions - Memory price increases are expected to impact PC prices by 10% to 25%, with potential volume declines due to elasticity [57][58] - The company plans to pass along cost increases while managing elasticity to mitigate impacts on demand [58][59]

Financial Data and Key Metrics Changes - Overall revenue for Q4 2025 was $2 billion, a decrease of 1% year-over-year, primarily due to a 4% decline in product revenue, with on-prem software down 18% as clients shifted to cloud solutions [17][21] - Total gross profit increased by 9%, with gross margin expanding to 23.4%, an increase of 220 basis points [19][21] - Adjusted diluted earnings per share were $2.96, up 11%, while adjusted earnings from operations grew by 13% [17][21] Business Line Data and Key Metrics Changes - Cloud gross profit was $138 million, an increase of 11%, driven by growth in SaaS and Infrastructure as a Service [19] - Core services gross profit grew by 16% to $90 million, supported by acquisitions and organic growth [19] - Hardware gross profit increased by 1%, with hardware revenue up 2%, marking the fourth consecutive quarter of growth [19] Market Data and Key Metrics Changes - EMEA region saw a gross profit increase of 30%, driven by demand in UAE and Saudi Arabia [19] - The company reported strong growth in its core services business across all geographies, contributing to overall performance [8][19] Company Strategy and Development Direction - The company aims to simplify complexity for clients and deliver measurable outcomes through integrated solutions, focusing on cloud modernization, security, and AI adoption [18] - Recent acquisitions, including Inspire11 and Sekuro, are expected to enhance technical expertise and cross-sell opportunities [16][21] - The company is positioning itself as a leading AI-first solutions integrator, with a strong emphasis on technology consulting capabilities [9][18] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for 2026, anticipating subdued spending across the industry, particularly from corporate and large enterprise clients [17][18] - The macro environment remains complex, with ongoing supply chain dynamics and memory pricing impacting client investments [17][18] - The company expects to continue investing in cloud and AI areas to capture emerging opportunities [18] Other Important Information - The company increased its share repurchase authorization by $150 million, bringing the total to $299 million at year-end [23] - Total debt at the end of Q4 was approximately $1.4 billion, up from $900 million a year ago, primarily due to acquisitions and share repurchases [23][24] - The company has filed over 200 patent applications globally, with more than 70 patents issued to date, covering innovations in AI and machine learning [15] Q&A Session Summary Question: Guidance for 2026 and IT budgets - Management discussed the cautious approach to 2026 guidance, emphasizing the impact of market uncertainties and past performance on expectations [31][33] - IT budgets for large enterprises are expected to remain subdued, with a focus on preserving funds for AI transition [36][37] Question: Partner program changes impact - The impact of partner program changes was quantified at $70 million for the year, with expectations of a tail effect into 2026 [40][44] Question: AI data center opportunities - Management highlighted the complexity and potential for AI data center investments, indicating a significant growth vector for the business [51][53] Question: Memory cost and supply chain disruptions - Expectations of 10% to 25% increases in PC prices due to memory costs were discussed, along with the potential impact on customer spending [57][58]

Financial Data and Key Metrics Changes - Overall revenue for Q4 2025 was $2 billion, a decrease of 1% compared to the previous year, primarily due to a 4% decline in product revenue, with on-prem software down 18% as clients shifted to cloud solutions [17][19] - Total gross profit increased by 9%, with EMEA gross profit rising by 30%, driven by demand in UAE and Saudi Arabia [18] - Adjusted diluted earnings per share were $2.96, reflecting an 11% increase [19] Business Line Data and Key Metrics Changes - Cloud gross profit was $138 million, an increase of 11%, with growth in both SaaS and Infrastructure as a Service [18] - Core services revenue increased by 7%, primarily due to acquisitions, with gross profit up 16% [17][18] - Hardware revenue grew by 2%, marking the fourth consecutive quarter of growth [17] Market Data and Key Metrics Changes - EMEA showed strong growth, particularly in the UAE and Saudi Arabia, contributing significantly to overall performance [6][18] - The company noted a cautious outlook for corporate and large enterprise client spending in 2026, with expectations of subdued growth [16][23] Company Strategy and Development Direction - The company aims to simplify complexity for clients and deliver measurable outcomes through integrated solutions, focusing on cloud modernization, security, and AI adoption [17][24] - Recent acquisitions, including Inspire11 and Sekuro, are expected to enhance technical expertise and cross-sell opportunities [15][16] - The company is committed to advancing its AI capabilities, with the launch of the Prism AI platform to assist clients in AI adoption [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for 2026, anticipating subdued spending across the industry and monitoring supply chain dynamics [16][23] - The company highlighted the importance of infrastructure investments as clients prepare for AI implementation [16][34] - Management acknowledged the challenges faced in 2025 but emphasized progress in transforming the company into a leading AI-first solutions integrator [14][25] Other Important Information - The company increased its share repurchase authorization by $150 million, bringing the total to $299 million at year-end [21] - Total debt at the end of Q4 was approximately $1.4 billion, up from $900 million a year ago, primarily due to acquisitions and share repurchases [21][22] - The company filed over 200 patent applications globally, with more than 70 patents issued to date, covering innovations in AI and machine learning [13] Q&A Session Summary Question: Guidance for 2026 and IT budgets - Management discussed the cautious approach to guidance for 2026, emphasizing the impact of market uncertainties and past performance [30][31] - IT budgets for large enterprises are expected to remain subdued, with a focus on preserving funds for AI-related investments [33][34] Question: Partner program changes impact - The impact of partner program changes was quantified at $70 million for 2025, with expectations of a tail effect into 2026, particularly in the second half [42][46] Question: AI data center opportunities - Management highlighted the complexity and potential for AI data center investments, indicating a significant growth vector for the business [49][51] Question: Memory cost and supply chain disruptions - Expectations of 10% to 25% increases in PC prices due to memory costs were discussed, along with the potential impact on customer spending [55][56]

Core Viewpoint - Insight Enterprises, Inc. has initiated its adjusted earnings guidance for fiscal year 2025, projecting earnings per share between $10.10 and $10.60, with adjusted earnings excluding stock-based compensation expected to be between $11.00 and $11.50 [1] Group 1: Financial Projections - For fiscal 2025, the company projects adjusted earnings in a range of $10.10 to $10.60 per share [1] - Excluding stock-based compensation expense, adjusted earnings will be in a range of $11.00 to $11.50 per share [1] - Analysts expect the company to report earnings of $10.52 per share for the year, which typically excludes special items [2] Group 2: Market Performance - In pre-market trading, NSIT is trading at $84.00, reflecting an increase of $2.35 or 2.88 percent [3]

Insight Enterprises, Inc. Fourth Quarter and Full Year 2025 Earnings Conference Call and Webcast This presentation will reference certain non-GAAP financial information as 'Adjusted'. A reconciliation of non-GAAP financial measures presented in this document to our actual GAAP results is attached to the back of this presentation and included in the press release issued today, which you may find on the Investor Relations section of our website at investor.insight.com. These non-GAAP measures are used by the ...

Financial 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].