Insight Enterprises Reports 3% Decline in Net Sales for Q2 2025

Insight Enterprises, Inc. reported a decline in financial performance for the second quarter of 2025, with net sales of $2.1 billion, a decrease of 3% compared to the same period in 2024. The decline was attributed to reduced sales in software and services, partially offset by a rise in hardware sales. Gross profit also fell by 2% to $442.3 million, while gross margin slightly improved to 21.1%. Earnings from operations decreased significantly by 34% to $86.5 million, primarily due to lower gross profit and increased selling and administrative expenses, which included a $12.6 million impairment loss on a real estate asset.

In terms of profitability, net earnings for the quarter were $46.9 million, translating to diluted earnings per share of $1.46, down from $87.4 million and $2.27 per share in the prior year. The decrease in net earnings was largely driven by the drop in earnings from operations and a rise in interest expenses, which increased by 58% year-over-year. The company’s effective tax rate for the quarter was 26.9%, higher than the previous year’s 25.5%, primarily due to changes in tax benefits and adjustments related to earnout liabilities.

Operationally, Insight Enterprises experienced a mixed performance across its geographic segments. North America saw a 3% decline in net sales, while EMEA and APAC reported decreases of 5% and 3%, respectively. The company noted that software and services sales were particularly affected by shifts in vendor relationships and the ongoing transition from on-premise software to cloud solutions. Despite these challenges, hardware sales in North America increased by 4%, reflecting higher demand from commercial clients.

Strategically, Insight Enterprises completed the acquisition of Infocenter on May 1, 2024, for $265 million, which is expected to enhance its service offerings. The company has also been actively managing its debt, with total long-term debt rising to $1.3 billion as of June 30, 2025. This includes borrowings under its asset-based lending facility, which amounted to $832.4 million. The company anticipates using cash generated in the remainder of 2025 to pay down debt and pursue further strategic acquisitions.

Looking ahead, Insight Enterprises expects to navigate ongoing market challenges, including inflation and supply chain constraints, while focusing on expanding its cloud business and enhancing service offerings. The company remains committed to maintaining adequate liquidity and capital resources to support its operational and strategic initiatives in the coming months.