What changed in this filing

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Item 1. Financial Statements

2026-04-29 compared with 2025-10-29 · 85 added, 181 removed, 301 unchanged (47% of the section changed)

4 unchanged sentences

(amounts in thousands)

September 30,

Current Assets:

16 unchanged sentences

Non-current operating lease liabilities

Other liabilities

Total Liabilities

Commitments and Contingencies (Note 8)

Stockholders’ Equity:

1 unchanged sentence

Retained earnings

Accumulated other comprehensive income

Accumulated other comprehensive (loss) income

Treasury stock, at cost

7 unchanged sentences

Three Months Ended

Nine Months Ended

September 30,

Cost of sales

13 unchanged sentences

Three Months Ended

Nine Months Ended

September 30,

Other comprehensive income (loss):

Unrealized gains (losses) on available-for-sale investments, net of tax of $( 36 ) and $ 24 for the three and nine months ended September 30, 2025, respectively, and net of tax of $( 154 ) and $( 105 ) for the three and nine months ended September 30, 2024, respectively

Other comprehensive loss:

Unrealized losses on available-for-sale investments, net of tax of $ 44 and $ 30 for the three months ended March 31, 2026 and 2025, respectively

Comprehensive income

4 unchanged sentences

(amounts in thousands)

Three Months Ended September 30, 2025

Accumulated Other

Treasury Shares

Paid-In Capital

Comprehensive Income (Loss)

Balance - June 30, 2025

Stock-based compensation expense

Restricted stock units vested

Shares withheld for taxes paid on stock awards

Repurchase of common stock for treasury

Dividend declaration ($ 0.15 per share)

Other comprehensive income, net of tax

Balance - September 30, 2025

Three Months Ended September 30, 2024

Accumulated Other

Treasury Shares

Paid-In Capital

Comprehensive Income (Loss)

Balance - June 30, 2024

Stock-based compensation expense

Restricted stock units vested

Shares withheld for taxes paid on stock awards

Repurchase of common stock for treasury

Dividend declaration ($ 0.10 per share)

Other comprehensive income, net of tax

Balance - September 30, 2024

See notes to unaudited condensed consolidated financial statements.

Nine Months Ended September 30, 2025

Three Months Ended March 31, 2026

Accumulated Other

1 unchanged sentence

Paid-In Capital

Comprehensive Income (Loss)

Comprehensive (Loss) Income

Balance - December 31, 2025

3 unchanged sentences

Repurchase of common stock for treasury

Issuance of common stock under Employee Stock Purchase Plan

Dividend declaration ($ 0.20 per share)

Other comprehensive loss, net of tax

Balance - September 30, 2025

Nine Months Ended September 30, 2024

Balance - March 31, 2026

Three Months Ended March 31, 2025

Accumulated Other

1 unchanged sentence

Paid-In Capital

Comprehensive Income (Loss)

Comprehensive (Loss) Income

Balance - December 31, 2024

3 unchanged sentences

Repurchase of common stock for treasury

Issuance of common stock under Employee Stock Purchase Plan

Dividend declaration ($ 0.15 per share)

Other comprehensive income, net of tax

Balance - September 30, 2024

Other comprehensive loss, net of tax

Balance - March 31, 2025

See notes to unaudited condensed consolidated financial statements.

3 unchanged sentences

(amounts in thousands)

Nine Months Ended

September 30,

Cash Flows provided by Operating Activities:

Adjustments to reconcile net income to net cash provided by operating activities:

Three Months Ended

Cash Flows provided by (used in) Operating Activities:

Adjustments to reconcile net income to net cash provided by (used in) operating activities:

Depreciation and amortization

11 unchanged sentences

Accrued expenses and other liabilities

Net cash provided by operating activities

Cash Flows provided by (used in) Investing Activities:

Net cash provided by (used in) operating activities

Cash Flows (used in) provided by Investing Activities:

Purchases of short-term investments

2 unchanged sentences

Purchases of property and equipment

Net cash provided by (used in) investing activities

Net cash (used in) provided by investing activities

Cash Flows used in Financing Activities:

2 unchanged sentences

Purchase of common stock for treasury shares

Payments for excise tax on treasury purchases

Dividend payments

Issuance of stock under Employee Stock Purchase Plan

Payment of payroll taxes on stock-based compensation through shares withheld

7 unchanged sentences

Accrued excise tax on treasury purchases

Supplemental Cash Flow Information:

Income taxes paid

Interest paid

See notes to unaudited condensed consolidated financial statements.

11 unchanged sentences

Subsequent events have been evaluated through the date of issuance of these financial statements.

The operating results for the three and nine months ended September 30, 2025 may not be indicative of the results expected for any succeeding quarter or the entire year ending December 31, 2025.

Certain amounts in the prior period’s condensed consolidated financial statements have been reclassified to conform with the current period presentation.

The operating results for the three months ended March 31, 2026 may not be indicative of the results expected for any succeeding quarter or the entire year ending December 31, 2026.

Use of Estimates in the Preparation of Financial Statements

12 unchanged sentences

The Company classifies investments as short-term when their remaining contractual maturities are one year or less from the balance sheet date, and as long-term when the investment has a remaining contractual maturity of more than one year from the balance sheet date.

The Company records investments at fair value with unrealized gains and losses recorded as a component of accumulated other comprehensive income on the condensed consolidated balance sheets.

Included in interest income, net on the condensed consolidated statements of income is interest income on cash equivalents and short-term investments of $ 3,689 and $ 10,706 for the three and nine months ended September 30, 2025, respectively, and $ 4,840 and $ 14,060 for the three and nine months ended September 30, 2024, respectively.

The Company records investments at fair value with unrealized gains and losses recorded as a component of accumulated other comprehensive (loss) income on the condensed consolidated balance sheets.

Included in interest income, net on the condensed consolidated statements of income is interest income on cash equivalents and short-term investments of $ 3,177 and $ 3,801 for the three months ended March 31, 2026 and 2025, respectively.

Treasury Stock, at Cost

The total repurchases for the nine months ended September 30, 2025 and 2024 were recorded as treasury stock of $ 66,028 and $ 7,723 , respectively.

The total repurchases for the three months ended March 31, 2026 and 2025 were recorded as treasury stock of $ 2,423 and $ 45,162 , respectively.

Such costs reflect the applicable one percent excise tax imposed by the Inflation Reduction Act of 2022 on the net value of certain stock repurchases made after December 31, 2022.

Severance Expenses

The severance expenses recorded for the nine months ended September 30, 2025 and 2024 were related to involuntary reductions in the Company’s workforce to lower the Company’s cost structure and included cash severance and other related termination benefits.

The majority of these costs are expected to be paid within a year of the applicable termination.

Included in accrued expenses and other liabilities on the condensed consolidated balance sheets as of September 30, 2025 was $ 1,001 related to unpaid severance expenses.

The severance expenses recorded for the three months ended March 31, 2026 and 2025 were related to voluntary and involuntary reductions in the Company’s workforce to lower the Company’s cost structure.

Both the voluntary and involuntary reductions included cash severance and other related termination benefits.

The majority of each of these costs are expected to be paid within a year of the applicable termination.

Included in accrued payroll on the condensed consolidated balance sheets as of March 31, 2026 was $ 1,800 related to unpaid severance expenses.

Recently Issued Financial Accounting Standards

In December 2023, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update, or ASU, 2023-09, Income Taxes (Topic 740):

Improvements to Income Tax Disclosures.

This guidance is intended to improve the transparency of income tax disclosures through, among other things, enhancement of the disclosure requirements within the rate reconciliation, as well as increased income tax disaggregation disclosures.

This ASU is effective for the Company’s annual reporting periods beginning January 1, 2025, with early adoption permitted.

The Company is currently evaluating the impact of the adoption of this standard on its consolidated financial statement disclosures.

In November 2024, the FASB issued ASU 2024-03, Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40):

13 unchanged sentences

The Company is currently evaluating the impact of the adoption of this standard on its consolidated financial statements.

In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270):

Narrow-Scope Improvements .

This guidance is intended to improve the navigability of required interim disclosures and clarify when the guidance is applicable, as well as provide additional guidance on what disclosures should be provided in interim reporting periods.

This ASU is effective for the Company’s interim reporting periods beginning January 1, 2028, with early adoption permitted.

The Company is currently evaluating the impact of the adoption of this standard on its condensed consolidated financial statement disclosures.

Note 2–Revenue

The Company disaggregates revenue from its arrangements with customers by type of products and services, as it believes this method best depicts how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors.

The following tables represent a disaggregation of revenue from arrangements with customers for the three months ended September 30, 2025 and 2024, along with the segment for each category (in thousands).

Three Months Ended September 30, 2025

Public Sector

Notebooks/Mobility

Servers/Storage

Net/Com Products

Displays and Sound

Other Hardware/Services

Total Net sales

Three Months Ended September 30, 2024

Public Sector

Notebooks/Mobility

Servers/Storage

Net/Com Products

Displays and Sound

Other Hardware/Services

Total Net sales

The following tables represent a disaggregation of revenue from arrangements with customers for the nine months ended September 30, 2025 and 2024, along with the segment for each category (in thousands).

Nine Months Ended September 30, 2025

The following tables represent a disaggregation of revenue from arrangements with customers for the three months ended March 31, 2026 and 2025, along with the segment for each category (in thousands).

Three Months Ended March 31, 2026

Public Sector

5 unchanged sentences

Total net sales

Nine Months Ended September 30, 2024

Three Months Ended March 31, 2025

Public Sector

6 unchanged sentences

Contract Balances

The following table provides information about contract liabilities from arrangements with customers as of September 30, 2025 and December 31, 2024 (in thousands).

September 30, 2025

The following table provides information about contract liabilities from arrangements with customers as of March 31, 2026 and December 31, 2025 (in thousands).

March 31, 2026

December 31, 2025

Contract liabilities, which are included in "Accrued expenses and other liabilities"

Changes in the contract liability balances during the nine months ended September 30, 2025 and 2024 are as follows (in thousands):

Changes in the contract liability balances during the three months ended March 31, 2026 and 2025 are as follows (in thousands):

Balance at December 31, 2025

1 unchanged sentence

Amounts recognized as revenue as performance obligations satisfied

Balance at September 30, 2025

Balance at March 31, 2026

Balance at December 31, 2024

1 unchanged sentence

Amounts recognized as revenue as performance obligations satisfied

Balance at September 30, 2024

Balance at March 31, 2025

Note 3–Fair Value Measurements

Cash equivalents and short-term investments as of September 30, 2025 and December 31, 2024 consist of the following (in thousands):

September 30, 2025

Cash equivalents and short-term investments as of March 31, 2026 and December 31, 2025 consist of the following (in thousands):

March 31, 2026

Amortized Cost

17 unchanged sentences

All short-term investments had stated maturity dates of less than one year.

The Company has recorded the securities at fair value on its condensed consolidated balance sheets and unrealized gains and losses are reported as a component of accumulated other comprehensive income.

The amount of realized gains and losses reclassified into earnings and the related adjustments to deferred taxes are based on the specific identification of the securities sold or securities that reached maturity date.

8 unchanged sentences

Unobservable inputs that are supported by little or no market activities and are based on significant assumptions and estimates.

As of September 30, 2025 and December 31, 2024, the fair values of the Company’s investments were all measured using level 1 inputs.

As of March 31, 2026 and December 31, 2025, the fair values of the Company’s investments were all measured using level 1 inputs.

Note 4–Earnings Per Share

1 unchanged sentence

Diluted earnings per share is computed using the weighted average number of shares outstanding adjusted for the incremental shares attributable to non-vested stock units and stock options outstanding, if dilutive.

The following table sets forth the computation of basic and diluted earnings per share for the three and nine months ended September 30, 2025 and 2024 (in thousands, except per share data):

Three Months Ended September 30,

Nine Months Ended September 30,

The following table sets forth the computation of basic and diluted earnings per share for the three months ended March 31, 2026 and 2025 (in thousands, except per share data):

Three Months Ended March 31,

Denominator for basic earnings per share

2 unchanged sentences

Earnings per share:

For the three and nine months ended September 30, 2025 and 2024, the Company had no outstanding non-vested stock units that were excluded from the computation of diluted earnings per share because including them would have had an anti-dilutive effect.

For the three months ended March 31, 2026 and 2025, the Company had no outstanding non-vested stock units that were excluded from the computation of diluted earnings per share because including them would have had an anti-dilutive effect.

Note 5 – Leases

1 unchanged sentence

The costs for these leases are presented within short-term lease cost in the below table.

As of September 30, 2025, there were no additional significant operating leases that have not yet commenced.

Refer to the following table for quantitative information related to the Company’s leases for the three and nine months ended September 30, 2025 and 2024 (dollars in thousands):

Three Months Ended September 30, 2025

Nine Months Ended September 30, 2025

Related Parties

Capitalized operating lease cost

Short-term lease cost

Total lease cost

Other Information

Cash paid for amounts included in the measurement of lease liabilities and capitalized operating leases:

Operating cash flows

Weighted-average remaining lease term (in years):

Capitalized operating leases

Weighted-average discount rate:

Capitalized operating leases

Three Months Ended September 30, 2024

Nine Months Ended September 30, 2024

During the three months ended March 31, 2026, the Company entered into a lease amendment extending the term of a lease, which increased the right-of-use, or ROU, asset by $ 6,056 .

As of March 31, 2026, there were no additional significant operating leases that have not yet commenced.

Refer to the following table for quantitative information related to the Company’s leases for the three months ended March 31, 2026 and 2025 (dollars in thousands):

Three Months Ended March 31, 2026

Three Months Ended March 31, 2025

Related Parties

6 unchanged sentences

Operating cash flows

Right-of-use assets obtained in exchange for lease obligations

Operating leases

Weighted-average remaining lease term (in years):

2 unchanged sentences

Capitalized operating leases

As of September 30, 2025, future lease payments over the remaining term of capitalized operating leases were as follows (in thousands):

As of March 31, 2026, future lease payments over the remaining term of capitalized operating leases were as follows (in thousands):

For the Years Ended December 31,

2025, excluding the nine months ended September 30, 2025

2026, excluding the three months ended March 31, 2026

Imputed interest

Lease liability balance at September 30, 2025

As of September 30, 2025, the right-of-use, or ROU, asset had a balance of $ 1,781 .

Lease liability balance at March 31, 2026

As of March 31, 2026, the ROU asset had a balance of $ 7,173 .

The long-term lease liability was $ 6,426 and the short-term lease liability, which is included in accrued expenses and other liabilities on the condensed consolidated balance sheets, was $ 954 .

1 unchanged sentence

The long-term lease liability was $ 498 and the short-term lease liability, which is included in accrued expenses and other liabilities on the condensed consolidated balance sheets, was $ 1,290 .

Note 6–Accumulated Other Comprehensive Income

Accumulated other comprehensive income, which is included as a component of stockholders’ equity, is comprised of unrealized gains and losses on short-term investments, net of tax.

The changes in accumulated other comprehensive income were as follows (in thousands):

Nine Months Ended

September 30, 2025

Note 6–Accumulated Other Comprehensive (Loss) Income

Accumulated other comprehensive (loss) income, which is included as a component of stockholders’ equity, is comprised of unrealized gains and losses on short-term investments, net of tax.

The changes in accumulated other comprehensive (loss) income were as follows (in thousands):

Three Months Ended

March 31, 2026

Balance - December 31, 2025

Other comprehensive income before reclassifications, net of tax

Less amounts reclassified from accumulated other comprehensive income, net of tax

Other comprehensive loss before reclassifications, net of tax

Less amounts reclassified from accumulated other comprehensive (loss) income, net of tax

Net other comprehensive loss

Balance - September 30, 2025

Nine Months Ended

September 30, 2024

Balance - March 31, 2026

Three Months Ended

March 31, 2025

Balance - December 31, 2024

Other comprehensive income before reclassifications, net of tax

Less amounts reclassified from accumulated other comprehensive income, net of tax

Net other comprehensive income

Balance - September 30, 2024

Included in amounts reclassified from accumulated other comprehensive income, net of tax for the nine months ended September 30, 2025 is $ 76 of realized gain, which is included in “Other income” on the unaudited condensed consolidated statements of income.

Less amounts reclassified from accumulated other comprehensive (loss) income, net of tax

Net other comprehensive loss

Balance - March 31, 2025

Included in amounts reclassified from accumulated other comprehensive (loss) income, net of tax for the three months ended March 31, 2025 is $ 76 of realized gain, which is included in “Other income” on the unaudited condensed consolidated statements of income.

Note 7–Segment Information

2 unchanged sentences

the Business Solutions segment, which serves primarily small- to medium-sized businesses;

and the Public Sector Solutions segment, which serves primarily federal, state, and local government and educational institutions.

and the Public Sector Solutions segment, which serves primarily federal, state, and local government and

educational institutions.

In addition, the Headquarters/Other provides services in areas such as finance, human resources, IT, marketing, and product management.

Most of the operating costs associated with the Headquarters/Other functions are charged to the operating segments based on their estimated usage of the underlying functions.

The Company reports

these charges to the operating segments as “Allocations”.

The Company reports these charges to the operating segments as “Allocations”.

Headquarters/Other amounts that are not allocated to the operating segments are shown as reconciling items in the tables below.

2 unchanged sentences

The CODM uses operating income for each segment in the annual budget, periodic forecasting, and quarterly results processes.

Segment information applicable to the Company’s operating segments and the related reconciliations to consolidated amounts for the three and nine months ended September 30, 2025 and 2024 are shown below (in thousands):

Three Months Ended September 30, 2025

Public Sector

Cost of sales

Personnel costs

Allocated corporate overhead

Depreciation and amortization

Other segment expenses 1

Operating income (loss)

Unallocated Headquarters/Other expenses

Interest income, net

Income before taxes

Three Months Ended September 30, 2024

Public Sector

Cost of sales

Personnel costs

Allocated corporate overhead

Depreciation and amortization

Other segment expenses 1

Operating income

Unallocated Headquarters/Other expenses

Interest income, net

Income before taxes

1) Other segment expenses for each of the reportable segments include service contracts/subscriptions, professional fees, facilities operations, credit card fees, and other miscellaneous expenses.

Nine Months Ended September 30, 2025

Segment information applicable to the Company’s operating segments and the related reconciliations to consolidated amounts for the three months ended March 31, 2026 and 2025 are shown below (in thousands):

Three Months Ended March 31, 2026

Public Sector

11 unchanged sentences

Consolidated assets

Nine Months Ended September 30, 2024

Three Months Ended March 31, 2025

Public Sector

4 unchanged sentences

Other segment expenses 1

Operating income

Operating income (loss)

Unallocated Headquarters/Other expenses

7 unchanged sentences

Assets reported under the Headquarters/Other are managed by corporate headquarters, including cash and cash equivalents, short-term investments, inventories, property and equipment, ROU assets, and intercompany balance, net.

As of September 30, 2025 and 2024, total assets for the Headquarters/Other were presented net of intercompany balance eliminations of $ 51,204 and $64,994 , respectively.

As of March 31, 2026 and 2025, total assets for the Headquarters/Other were presented net of intercompany balance eliminations of $ 39,487 and $ 61,063 , respectively.

The Company’s capital expenditures consist largely of IT hardware and software purchased to maintain or upgrade its management information systems.

9 unchanged sentences

Cash receipts were automatically applied against any outstanding borrowings.

During the nine months ended September 30, 2025 and 2024, the Company borrowed incremental amounts that were each repaid in full.

These borrowings for the nine months ended September 30, 2025 and 2024 totaled $ 732 and $ 25,204 , respectively;

During the three months ended March 31, 2025, the Company borrowed incremental amounts that were each repaid in full.

These borrowings for the three months ended March 31, 2025 totaled $ 732 ;

however, at no time were the outstanding borrowings greater than the $ 50,000 limit under the credit facility.

The Company had no outstanding borrowings under the credit facility immediately prior to the expiration of the credit facility, or as of September 30, 2024.

The Company had no outstanding borrowings under the credit facility immediately prior to the expiration of the credit facility.

Note 10–Supplier Finance Programs

5 unchanged sentences

The agreements with the financial institutions are collateralized by the inventory purchased through the financing agreements.

The Company’s outstanding payment obligations under the supplier finance programs, which are included in accounts payable on the condensed consolidated balance sheets, were $ 59,981 and $ 47,763 at September 30, 2025 and December 31, 2024, respectively.

The rollforward of the Company’s outstanding obligations confirmed as valid under the supplier finance programs for the nine months ended September 30, 2025 is as follows (in thousands):

Confirmed obligations outstanding at December 31, 2024

Invoices confirmed

Confirmed invoices paid

Confirmed obligations outstanding at September 30, 2025

The Company’s outstanding payment obligations under the supplier finance programs, which are included in accounts payable on the condensed consolidated balance sheets, were $ 95,995 and $ 58,563 at March 31, 2026 and December 31, 2025, respectively.

Note 11–Supplemental Cash Flow Information

Income tax paid, net of refunds received for the three months ended March 31, 2026 was $ 738 .

Income taxes paid for the three months ended March 31, 2025 was $ 3,059 .

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements