What changed in this filing

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Item 1. Financial Statements

2026-07-29 compared with 2026-04-29 · 145 added, 57 removed, 329 unchanged (38% of the section changed)

37 unchanged sentences

Three Months Ended

Six Months Ended

Cost of sales

13 unchanged sentences

Three Months Ended

Six Months Ended

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

Unrealized losses on available-for-sale investments, net of tax of $ 32 and $ 76 for the three and six months ended June 30, 2026, respectively, and net of tax of $ 30 and $ 60 for the three and six months ended June 30, 2025, respectively

Comprehensive income

4 unchanged sentences

(amounts in thousands)

Three Months Ended March 31, 2026

Three Months Ended June 30, 2026

Accumulated Other

2 unchanged sentences

Comprehensive (Loss) Income

Balance - March 31, 2026

Stock-based compensation expense

Restricted stock units vested

Shares withheld for taxes paid on stock awards

Issuance of common stock under Employee Stock Purchase Plan

Dividend declaration ($ 0.20 per share)

Other comprehensive loss, net of tax

Balance - June 30, 2026

Three Months Ended June 30, 2025

Accumulated Other

Treasury Shares

Paid-In Capital

Comprehensive (Loss) Income

Balance - March 31, 2025

Stock-based compensation expense

Restricted stock units vested

Shares withheld for taxes paid on stock awards

Repurchase of common stock for treasury

Issuance of common stock under Employee Stock Purchase Plan

Dividend declaration ($ 0.15 per share)

Other comprehensive loss, net of tax

Balance - June 30, 2025

See notes to unaudited condensed consolidated financial statements.

Six Months Ended June 30, 2026

Accumulated Other

Treasury Shares

Paid-In Capital

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 - March 31, 2026

Three Months Ended March 31, 2025

Balance - June 30, 2026

Six Months Ended June 30, 2025

Accumulated Other

7 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 loss, net of tax

Balance - March 31, 2025

Balance - June 30, 2025

See notes to unaudited condensed consolidated financial statements.

3 unchanged sentences

(amounts in thousands)

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:

Six Months Ended

Cash Flows used in Operating Activities:

Adjustments to reconcile net income to net cash used in operating activities:

Depreciation and amortization

11 unchanged sentences

Accrued expenses and other liabilities

Net cash provided by (used in) operating activities

Net cash used in operating activities

Cash Flows (used in) provided by Investing Activities:

8 unchanged sentences

Purchase of common stock for treasury shares

Payments for excise tax on purchase of common stock for treasury shares

Dividend payments

Issuance of common stock under Employee Stock Purchase Plan

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

Net cash used in financing activities

Increase in cash and cash equivalents

(Decrease) increase in cash and cash equivalents

Cash and cash equivalents, beginning of period

17 unchanged sentences

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

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.

The operating results for the three and six months ended June 30, 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

13 unchanged sentences

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.

Included in interest income, net on the condensed consolidated statements of income is interest income on cash equivalents and short-term investments of $ 2,487 and $ 5,664 for the three and six months ended June 30, 2026, respectively, and $ 3,217 and $ 7,018 for the three and six months ended June 30, 2025, respectively.

Treasury Stock, at Cost

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.

The total repurchases for the six months ended June 30, 2026 and 2025 were recorded as treasury stock of $ 2,423 and $ 60,863 , 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 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.

The severance expenses recorded for the six months ended June 30, 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.

Included in accrued payroll on the condensed consolidated balance sheets as of June 30, 2026 was $ 606 related to unpaid severance expenses.

Recently Issued Financial Accounting Standards

21 unchanged sentences

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 March 31, 2026 and 2025, along with the segment for each category (in thousands).

Three Months Ended March 31, 2026

The following tables represent a disaggregation of revenue from arrangements with customers for the three months ended June 30, 2026 and 2025, along with the segment for each category (in thousands).

Three Months Ended June 30, 2026

Public Sector

5 unchanged sentences

Total net sales

Three Months Ended March 31, 2025

Three Months Ended June 30, 2025

Public Sector

5 unchanged sentences

Total net sales

The following tables represent a disaggregation of revenue from arrangements with customers for the six months ended June 30, 2026 and 2025, along with the segment for each category (in thousands).

Six Months Ended June 30, 2026

Public Sector

Notebooks/Mobility

Servers/Storage

Net/Com Products

Displays and Sound

Other Hardware/Services

Total net sales

Six Months Ended June 30, 2025

Public Sector

Notebooks/Mobility

Servers/Storage

Net/Com Products

Displays and Sound

Other Hardware/Services

Total net sales

Contract Balances

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

The following table provides information about contract liabilities from arrangements with customers as of June 30, 2026 and December 31, 2025 (in thousands).

June 30, 2026

December 31, 2025

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

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

Changes in the contract liability balances during the six months ended June 30, 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 March 31, 2026

Balance at June 30, 2026

Balance at December 31, 2024

1 unchanged sentence

Amounts recognized as revenue as performance obligations satisfied

Balance at March 31, 2025

Balance at June 30, 2025

Note 3–Fair Value Measurements

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

March 31, 2026

Cash equivalents and short-term investments as of June 30, 2026 and December 31, 2025 consist of the following (in thousands):

June 30, 2026

Amortized Cost

28 unchanged sentences

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

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

As of June 30, 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 months ended March 31, 2026 and 2025 (in thousands, except per share data):

Three Months Ended March 31,

The following table sets forth the computation of basic and diluted earnings per share for the three and six months ended June 30, 2026 and 2025 (in thousands, except per share data):

Three Months Ended June 30,

Six Months Ended June 30,

Denominator for basic earnings per share

2 unchanged sentences

Earnings per share:

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.

For the three and six months ended June 30, 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.

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

As of June 30, 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 and six months ended June 30, 2026 and 2025 (dollars in thousands):

Three Months Ended June 30, 2026

Six Months Ended June 30, 2026

Related Parties

12 unchanged sentences

Capitalized operating leases

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

Three Months Ended June 30, 2025

Six Months Ended June 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

As of June 30, 2026, future lease payments over the remaining term of capitalized operating leases were as follows (in thousands):

For the Years Ended December 31,

2026, excluding the three months ended March 31, 2026

2026, excluding the six months ended June 30, 2026

Imputed interest

Lease liability balance at March 31, 2026

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

Lease liability balance at June 30, 2026

As of June 30, 2026, the right-of-use, or ROU, asset had a balance of $ 7,315 .

The long-term lease liability was $ 6,677 and the short-term lease liability, which is included in accrued expenses and other liabilities on the condensed consolidated balance sheets, was $ 869 .

4 unchanged sentences

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

Three Months Ended

March 31, 2026

Six Months Ended

June 30, 2026

Balance - December 31, 2025

2 unchanged sentences

Net other comprehensive loss

Balance - March 31, 2026

Three Months Ended

March 31, 2025

Balance - June 30, 2026

Six Months Ended

June 30, 2025

Balance - December 31, 2024

Other comprehensive income before reclassifications, 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 - 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.

Balance - June 30, 2025

Included in amounts reclassified from accumulated other comprehensive (loss) income, net of tax for the six months ended June 30, 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.

The Company’s CODM is its Chief Executive Officer, and he assesses the segments’ performance by using each segments’ operating income (which includes certain corporate overhead allocations attributable to each of the segments).

The Company’s CODM is its Chief Executive Officer, and he assesses the segments’ performance by using each segment’s operating income (which includes certain corporate overhead allocations attributable to each of the segments).

Net sales presented below exclude inter-segment product revenues.

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 months ended March 31, 2026 and 2025 are shown below (in thousands):

Three Months Ended March 31, 2026

Segment information applicable to the Company’s operating segments and the related reconciliations to consolidated amounts for the three and six months ended June 30, 2026 and 2025 are shown below (in thousands):

Three Months Ended June 30, 2026

Public Sector

8 unchanged sentences

Income before taxes

Three Months Ended June 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

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.

Six Months Ended June 30, 2026

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

Segment assets

1 unchanged sentence

Consolidated assets

Three Months Ended March 31, 2025

Six Months Ended June 30, 2025

Public Sector

14 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 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.

As of June 30, 2026 and 2025, total assets for the Headquarters/Other were presented net of intercompany balance eliminations of $ 64,232 and $ 46,339 , respectively.

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

20 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 $ 95,995 and $ 58,563 at March 31, 2026 and December 31, 2025, respectively.

The Company’s outstanding payment obligations under the supplier finance programs, which are included in accounts payable on the condensed consolidated balance sheets, were $ 65,657 and $ 58,563 at June 30, 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 .

Income taxes paid, net of refunds received for the six months ended June 30, 2026 was $ 13,781 .

Income taxes paid for the six months ended June 30, 2025 was $ 18,171 .

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