Insight Enterprises (NSIT) Q3 2025 earnings summary

Executive summary

• Net sales declined 4% year-over-year to $2.0 billion, mainly due to lower software sales, partially offset by higher hardware and services sales; gross profit was flat at $434.2 million, with gross margin expanding 100 basis points to 21.7%.

• Adjusted diluted EPS increased 11% year-over-year to $2.43, while net earnings decreased 12% to $50.9 million due to higher interest expense; diluted EPS rose 7% to $1.62.

• Adjusted EBITDA rose 6% to $137 million, with adjusted earnings from operations up 5% to $126 million.

• Strategic acquisitions of Inspire11 and Sekuro (Securo) to strengthen AI, analytics, and cybersecurity capabilities; Infocenter acquired for $265 million to enhance ServiceNow and cloud offerings.

• CEO retirement announced, with a public search for a successor underway.

Financial highlights

• Q3 2025 net sales: $2.0 billion (down 4% year-over-year); nine months: $6.2 billion (down 6%).

• Gross profit for Q3: $434.2 million (flat year-over-year); gross margin up to 21.7%.

• Adjusted EBITDA increased 6% to $137 million, with margin expanding to 6.8%.

• Operating cash flow for Q3 was $249 million; YTD operating cash flow was $150 million.

• Cash and cash equivalents at quarter-end: $547 million.

Outlook and guidance

• Full-year 2025 adjusted diluted EPS expected between $9.60 and $9.90; gross profit projected to be slightly down from 2024, with gross margin around 21%.

• Assumptions include $85 million in interest and other expenses, 25–26% effective tax rate, $25 million in capital expenditures, and average share count of 32 million.

• Guidance excludes acquisition-related amortization and assumes no major macroeconomic changes.

• Cash flows from operations and available financing expected to support working capital, acquisitions, and share repurchases over the next 12 months.

• Gross margin expansion anticipated as the mix of services and solutions increases.