Financial Analysis

"Acquisitions Sekuro Effective October 31, 2025, we acquired 100 percent of the issued and outstanding shares of Sekuro for a preliminary cash purchase price of approximately $79,522,000, net of cash, cash equivalents, and restricted cash acquired of $3,822,000, which is comprised of the initial purchase price of $85,347,000 paid in cash upon the acquisition, partially offset by the contractual adjustments to the purchase price of $2,003,000. The total purchase price also includes the estimated fair value of earn out payments of approximately $11,439,000, which provide an incentive opportunity for the sellers to earn up to AUD122,500,000, contingent upon Sekuro achieving certain EBITDA and net revenue performance targets through October 2027. The AUD122,500,000 includes up to AUD42,500,000 available to the sellers for over achievement against EBITDA and net revenue performance targets. Sekuro is a global cybersecurity and digital resilience provider that offers end-to-end security services for enterprises and governments. The acquisition is expected to significantly expand Insights cybersecurity capabilities in APAC, which we believe will position us to better meet the growing demand for comprehensive security solutions in an increasingly complex threat landscape. The preliminary fair value of net assets acquired was approximately $15,513,000, including approximately $21,431,000 of identifiable intangible assets, consisting primarily of customer relationships of $20,379,000 t …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

Commitments and Contingencies Contractual In the ordinary course of business, we issue performance bonds to secure our performance under certain contracts or state tax requirements. As of December 31, 2025, we had approximately $38,381,000 of performance bonds outstanding. These bonds are issued on our behalf by a surety company on an unsecured basis; however, if the surety company is ever required to pay out under the bonds, we have contractually agreed to reimburse the surety company. Management believes that payments, if any, related to these performance bonds are not probable at December 31, 2025. Accordingly, we have not accrued any liabilities related to such performance bonds in our consolidated financial statements. The Company has a minimum required purchase commitment of approximately $100,467,000 pursuant to an agreement primarily related to cloud services. The total purchase commitment is required to be met or exceeded during a 5-year period, starting October 1, 2023 through September 30, 2028. At December 31, 2025 we had a remaining purchase commitment of $59,029,000. If total purchases do not meet the required commitment by September 30, 2028, the shortfall must be prepaid by the Company and can be used for further purchases through September 30, 2029. The Company has a minimum required purchase commitment of approximately $40,000,000 pursuant to an agreement primarily related to software as a service. The total purchase commitment is required to be met during a …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

"Debt, Finance Leases and Other Financing Obligations Debt Our long-term debt consists of the following (in thousands): December 31, 2025 2024 ABL revolving credit facility $ 868,209 $ 39,000 Senior unsecured notes due 2032 493,085 492,222 Convertible senior notes due 2025 332,867 Other financing obligations 41 23 1,361,335 864,112 Less: current portion of long-term debt (8) (332,879) Long-term debt $ 1,361,327 $ 531,233 On December 19, 2025, we entered into the Sixth Amendment to the Credit Agreement (as amended, the ""credit agreement"") to modify our senior secured revolving credit facility (the ABL facility). The amendment, among other things, increased the maximum borrowing amount under the ABL facility from $1,800,000,000 to $2,000,000,000, including a maximum borrowing capacity that could be used for borrowing by certain foreign subsidiaries of $350,000,000. The amendment also extended the maturity date of the ABL facility from July 22, 2027 to December 19, 2030 and increased our flexibility with respect to the sale of receivables. From time to time and at our option, we may request to increase the aggregate amount available for borrowing under the ABL facility by up to an aggregate of the U.S. dollar equivalent of $750,000,000, subject to customary conditions, including receipt of commitments from lenders. The ABL facility is guaranteed by certain of our material subsidiaries and is secured by a lien on certain of our assets and certain of each other borrowers and eac …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

In the following table, revenue is disaggregated by our reportable operating segments, which are primarily defined by their related geographies, as well as by major product offering, by major client group and by recognition on either a gross basis as a principal in the arrangement, or on a net basis as an agent, for the years ended December 31, 2025, 2024 and 2023 (in thousands): Year Ended December 31, 2025 North America EMEA APAC Consolidated Major Offerings Hardware $ 4,135,116 $ 458,802 $ 36,199 $ 4,630,117 Software 1,256,691 552,421 91,779 1,900,891 Services 1,262,730 343,925 109,517 1,716,172 $ 6,654,537 $ 1,355,148 $ 237,495 $ 8,247,180 Major Client Groups Large Enterprise / Corporate $ 4,483,546 $ 1,043,344 $ 86,933 $ 5,613,823 Commercial 1,538,960 30,873 81,618 1,651,451 Public Sector 632,031 280,931 68,944 981,906 $ 6,654,537 $ 1,355,148 $ 237,495 $ 8,247,180 Revenue Recognition based on acting as Principal or Agent in the Transaction Gross revenue recognition (Principal) $ 6,093,907 $ 1,184,460 $ 198,783 $ 7,477,150 Net revenue recognition (Agent) 560,630 170,688 38,712 770,030 $ 6,654,537 $ 1,355,148 $ 237,495 $ 8,247,180 Year Ended December 31, 2024 North America EMEA APAC Consolidated Major Offerings Hardware $ 4,038,341 $ 501,111 $ 35,448 $ 4,574,900 Software 1,721,403 626,372 92,965 2,440,740 Services 1,294,836 286,614 104,608 1,686,058 $ 7,054,580 $ 1,414,097 $ 233,021 $ 8,701,698 Major Client Groups Large Enterprise / Corporate $ 4,863,830 $ 1,090,316 $ 90,5 …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

"Stock-Based Compensation We recorded the following pre-tax amounts in selling and administrative expenses for stock-based compensation, by operating segment, in the accompanying consolidated financial statements (in thousands): Years Ended December 31, 2025 2024 2023 North America $ 26,987 $ 26,416 $ 22,069 EMEA 5,247 6,226 5,557 APAC 1,504 1,329 1,325 Total Consolidated $ 33,738 $ 33,971 $ 28,951 Company Plan On April 3, 2020, our Board of Directors adopted and approved the Insight Enterprises, Inc. 2020 Omnibus Plan (the Plan), subject to stockholder approval. The Plan was approved by our stockholders at our 2020 annual meeting on May 20, 2020 and unless sooner terminated, will remain in place until May 20, 2030. The Plan allows the Company to grant options, stock appreciation rights, stock awards, restricted stock, stock units (which may also be referred to as restricted stock units or ""RSUs""), performance shares, performance units, cash-based awards and other awards payable in cash or shares of common stock to eligible non-employee directors, employees and consultants. Consultants and independent contractors are eligible if they provide bona fide services that are not related to capital raising or promoting or maintaining a market for the Companys stock. We grant service-based RSUs and performance-based RSUs to officers and certain employees under the Plan. RSUs generally vest over a two to three year vesting period, while performance-based RSUs are also subject to the …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

Fair Value Measurements Fair value measurements are determined based on the following three categories: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs that are not corroborated by market data. As of December 31, 2025, we have no non-financial assets or liabilities that are measured and recorded at fair value on a recurring basis, and our other financial assets or liabilities generally consist of cash and cash equivalents, accounts receivable, contract assets, long-term contract assets, accounts payable, accrued expenses and other current liabilities and long-term debt. We have earnout liabilities measured and recorded within our accrued expenses and other current liabilities and other liabilities The estimated fair values of our cash and cash equivalents approximate their carrying values and are determined based on quoted prices in active markets for identical assets. The estimated fair values of our long-term debt balances, excluding the Senior Notes, approximate their carrying values based on their variable interest rate terms that are based on current market interest rates for similar debt instruments. The Convertible Notes matured in February2025 and, accordingly, were no longer outstanding as of December31,2025 and are not included in our year-end fair value disclosures. The fair market value of the Senior …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

"Income Taxes The following table presents the U.S. and foreign components of earnings before income taxes and the related income tax expense (in thousands): Years Ended December 31, 2025 2024 2023 Earnings before income taxes: United States $ 119,210 $ 207,715 $ 263,421 Foreign 106,609 125,198 114,433 $ 225,819 $ 332,913 $ 377,854 Income tax expense: Current: U.S. Federal $ 28,195 $ 32,195 $ 62,575 U.S. State and local 7,194 8,205 16,764 Foreign 31,193 34,526 30,286 66,582 74,926 109,625 Deferred: U.S. Federal 773 7,701 (10,923) U.S. State and local (239) 2,369 (3,324) Foreign 1,356 (1,774) 1,167 1,890 8,296 (13,080) $ 68,472 $ 83,222 $ 96,545 The following schedule reconciles the differences between the U.S. federal income taxes at the U.S. statutory rate and our income tax expense (dollars in thousands): 2025 2024 2023 Amount Percent Amount Percent Amount Percent Income (loss) before income taxes $ 225,819 $ 332,913 $ 377,854 US federal statutory tax rate 47,422 21.0 % 69,912 21.0 % 79,349 21.0 % Tax credits Research credits (3,065) (1.4) (3,862) (1.2) (2,466) (0.7) Other (1,338) (0.6) (1,833) (0.6) (89) Nontaxable and nondeductible items Limitation on executive compensation 2,592 1.1 2,448 0.7 2,511 0.7 Change in fair value of earnout liabilities 4,179 1.9 3,948 1.2 Stock warrants 5,264 2.3 Other (1,759) (0.8) 1,803 0.6 3,012 0.8 State and local income tax, net of federal effect 6,742 3.0 11,362 3.4 12,113 3.2 Cross-border tax laws (1,118) (0.5) (3,949) (1.2) (3,998) (1.1 …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Leases We lease office space, distribution centers, land, vehicles and equipment. Lease agreements with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term. Certain lease agreements include one or more options to renew, with renewal terms that can extend the lease term from one to five years or more. The exercise of lease renewal options is at our sole discretion. Some agreements also include options to purchase the leased property. The estimated life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. Certain of our lease agreements include rental payments adjusted periodically for inflation. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. The following table provides information about the financial statement classification of our lease balances reported within the consolidated balance sheets as of December 31, 2025 and 2024 (in thousands): December 31, Leases Classification 2025 2024 Assets Operating lease assets Other assets $ 73,180 $ 76,530 Liabilities Current Operating lease liabilities Accrued expenses and other current liabilities $ 19,633 $ 18,452 Non-current Operating lease liabilities Other liabilities 60,416 65,898 Total lease liabilities $ 80,049 $ 84,350 The following table provid …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

"Recently Issued Accounting Standards In November 2024, the Financial Accounting Standards Board (""FASB"") issued Accounting Standard Update (""ASU"") No. 2024-03, ""Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40)"". The standard requires public business entities to disclose detailed information about specific types of expenses that are relevant to certain line items on the income statement. The guidance is effective for annual periods beginning after December 15, 2026 and interim reporting periods within annual reporting periods beginning after December 15, 2027. The requirements can be applied prospectively with the option for retrospective application, and early adoption is permitted. The Company is currently evaluating the impact the adoption of this standard will have on its consolidated financial statements. Recently Adopted Accounting Standards In December 2023, the FASB issued Accounting Standard Update ASU No. 2023-09, ""Income Taxes (Topic 740)"". The standard requires reporting entities to provide disaggregated information on their effective tax rate reconciliation and income taxes paid. The standard is intended to aid business leaders and investors to make more informed investment decisions. The guidance is effective for annual periods beginning after December 15, 2024 and can be applied prospectively, with an option for retrospective application, and early adoption is allowed. The Company adopted this stan …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Benefit Plans We adopted a defined contribution benefit plan (the Defined Contribution Plan) for our U.S. teammates which complies with section 401(k) of the IRC. The Company provides a discretionary match to all participants who make 401(k) contributions pursuant to the Defined Contribution Plan. The discretionary match provided to participants is equivalent to 50% of a participants pre-tax contributions up to a maximum of 6% of eligible compensation per pay period. Additionally, we offer several defined contribution benefit plans to our teammates outside of the United States. These plans and their related terms vary by country. Total consolidated contribution expense under these plans was $31,120,000, $30,288,000 and $28,341,000 for 2025, 2024 and 2023, respectively. …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

Segment and Geographic Information We operate in three reportable geographic operating segments: North America; EMEA; and APAC. Our offerings in North America and certain countries in EMEA and APAC include IT hardware, software and services, including cloud solutions. Our offerings in the remainder of our EMEA and APAC segments consist largely of software and certain software-related services and cloud solutions. Disaggregation of Revenue In the following table, revenue is disaggregated by our reportable operating segments, which are primarily defined by their related geographies, as well as by major product offering, by major client group and by recognition on either a gross basis as a principal in the arrangement, or on a net basis as an agent, for the years ended December 31, 2025, 2024 and 2023 (in thousands): Year Ended December 31, 2025 North America EMEA APAC Consolidated Major Offerings Hardware $ 4,135,116 $ 458,802 $ 36,199 $ 4,630,117 Software 1,256,691 552,421 91,779 1,900,891 Services 1,262,730 343,925 109,517 1,716,172 $ 6,654,537 $ 1,355,148 $ 237,495 $ 8,247,180 Major Client Groups Large Enterprise / Corporate $ 4,483,546 $ 1,043,344 $ 86,933 $ 5,613,823 Commercial 1,538,960 30,873 81,618 1,651,451 Public Sector 632,031 280,931 68,944 981,906 $ 6,654,537 $ 1,355,148 $ 237,495 $ 8,247,180 Revenue Recognition based on acting as Principal or Agent in the Transaction Gross revenue recognition (Principal) $ 6,093,907 $ 1,184,460 $ 198,783 $ 7,477,150 Net revenue re …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing