INSIGHT ENTERPRISES INC 10-K

Item 8. Financial Statements and Supplementary Data Page Reports of Independent Registered Public Accounting Firm 43 Consolidated Balance Sheets – December 31, 2025 and 2024 46 Consolidated Statements of Operations – For each of the years in the three-year period ended December 31, 2025 47 Consolidated Statements of Comprehensive Income – For each of the years in the three-year period ended December 31, 2025 48 Consolidated Statements of Stockholders’ Equity – For each of the years in the three-year period ended December 31, 2025 49 Consolidated Statements of Cash Flows – For each of the years in the three-year period ended December 31, 2025 51 Notes to Consolidated Financial Statements 52 42 Report of Independent Registered Public Accounting Firm To the Stockholders and the Board of Directors Insight Enterprises, Inc.: Opinion on the Consolidated Financial Statements We have audited the accompanying consolidated balance sheets of Insight Enterprises, Inc. and subsidiaries (the Company) as of December 31, 2025 and 2024, the related consolidated statements of operations, comprehensive income, stockholders’ equity, and cash flows for each of the years in the three-year period ended December 31, 2025, and the related notes (collectively, the consolidated financial statements). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the years in the three-year period ended December 31, 2025, in conformity with U.S. generally accepted accounting principles. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission, and our report dated February 12, 2026 expressed an unqualified opinion on the effectiveness of the Company’s internal control over financial reporting. Basis for Opinion These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion. Critical Audit Matter The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of a critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates. 43 Evaluation of revenue recognition As discussed in Note 1 to the consolidated financial statements, the Company recognizes revenue when it satisfies a performance obligation by transferring control of a product or service or by arranging for the sales of a vendor’s product or service to a client. The Company measures revenue based on the consideration received in a contract with a client, and excludes any sales incentives and amounts collected on behalf of third parties. The Company offers hardware and software products, as well as services. Given the number of product and service offerings, significant judgment is exercised by the Company in recognizing revenue, including the following decisions: • Determining the point in time when a customer takes control of hardware. • Determining the point in time when the customer acquires or renews the right to use or copy software under license and control transfers to the customer. • Evaluating the Company as either a principal or an agent for hardware and software products and services, and the related recognition of revenue from the customer on a gross or a net basis. • Determining an appropriate pattern of revenue recognition for service performance obligations. We identified the evaluation of revenue recognition as a critical audit matter because the audit effort to evaluate the Company’s revenue recognition judgments, including those noted above, was extensive and required a high degree of auditor judgment. The following are the primary procedures we performed to address this critical audit matter. We evaluated the design and tested the operating effectiveness of certain internal controls over the revenue recognition process, including controls related to the timing and pattern of revenue recognition and gross versus net revenue recognition. As part of testing the Company’s internal controls, we also involved information technology (IT) professionals with specialized skills and knowledge, who assisted in testing of general IT controls over significant systems and the evaluation of system interface controls and automated controls designed to determine the existence, accuracy, and completeness of revenue. We evaluated the Company’s significant accounting policies related to its product and service offerings by reviewing the terms of certain vendor and customer contracts and comparing the policies to the revenue recognition standard. We selected a sample of revenue transactions and performed the following for each selection: • Obtained evidence of a contract with the customer. • Compared the amounts recognized and timing of revenue recognition to underlying documentation, including purchase orders, shipping documentation, and evidence of payment, if applicable. • Evaluated the Company’s application of their accounting policies to determine the timing and amount of revenue to be recognized. • Tested the presentation of revenue as gross or net by comparing the Company’s gross or net presentation to the attributes of the underlying vendor support and the Company’s accounting policy. /s/ KPMG LLP We have served as the Company’s auditor since 1990. Phoenix, Arizona February 12, 2026 44 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Stockholders and the Board of Directors Insight Enterprises, Inc.: Opinion on Internal Control Over Financial Reporting We have audited Insight Enterprises, Inc. and subsidiaries' (the Company) internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of December 31, 2025 and 2024, the related consolidated statements of operations, comprehensive income, stockholders’ equity, and cash flows for each of the years in the three-year period ended December 31, 2025, and the related notes (collectively, the consolidated financial statements), and our report dated February 12, 2026 expressed an unqualified opinion on those consolidated financial statements. Basis for Opinion The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Annual Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audit also included performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Definition and Limitations of Internal Control Over Financial Reporting A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. /s/ KPMG LLP Phoenix, Arizona February 12, 2026 45 INSIGHT ENTERPRISES, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except per share data) December 31, 2025 2024 ASSETS Current assets: Cash and cash equivalents $ 358,020 $ 259,234 Accounts receivable, net 5,516,984 4,172,104 Inventories 160,648 122,581 Contract assets, net 65,745 81,980 Other current assets 260,990 208,723 Total current assets 6,362,387 4,844,622 Long-term contract assets, net 53,176 86,953 Property and equipment, net 188,449 215,678 Goodwill 1,169,734 893,516 Intangible assets, net 426,237 426,493 Long-term accounts receivable 763,923 845,943 Other assets 123,466 135,373 $ 9,087,372 $ 7,448,578 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable—trade $ 4,263,796 $ 3,059,667 Accounts payable—inventory financing facilities 225,035 217,604 Accrued expenses and other current liabilities 615,464 512,052 Current portion of long-term debt 8 332,879 Total current liabilities 5,104,303 4,122,202 Long-term debt 1,361,327 531,233 Deferred income taxes 70,715 64,459 Long-term accounts payable 715,494 799,546 Other liabilities 186,659 160,527 7,438,498 5,677,967 Commitments and contingencies Stockholders’ equity: Preferred stock, $ 0.01 par value, 3,000 shares authorized; no shares issued — — Common stock, $ 0.01 par value, 100,000 shares authorized; 30,996 and 31,778 shares issued and outstanding in 2025 and 2024, respectively 310 318 Additional paid-in capital 164,560 342,893 Retained earnings 1,520,404 1,508,558 Accumulated other comprehensive loss – foreign currency translation adjustments ( 36,400 ) ( 81,158 ) Total stockholders’ equity 1,648,874 1,770,611 $ 9,087,372 $ 7,448,578 See accompanying notes to consolidated financial statements. 46 INSIGHT ENTERPRISES, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) Years Ended December 31, 2025 2024 2023 Net sales: Products $ 6,531,008 $ 7,015,640 $ 7,631,388 Services 1,716,172 1,686,058 1,544,452 Total net sales 8,247,180 8,701,698 9,175,840 Costs of goods sold: Products 5,816,323 6,259,815 6,859,178 Services 669,430 675,867 647,137 Total costs of goods sold 6,485,753 6,935,682 7,506,315 Gross profit: Products 714,685 755,825 772,210 Services 1,046,742 1,010,191 897,315 Gross profit 1,761,427 1,766,016 1,669,525 Operating expenses: Selling and administrative expenses 1,385,806 1,343,151 1,236,243 Severance and restructuring expenses, net 37,131 31,605 6,091 Acquisition and integration related expenses 3,567 2,676 7,396 Earnings from operations 334,923 388,584 419,795 Non-operating expense (income): Interest expense, net 84,846 58,036 41,124 Other (income) expense, net 24,258 ( 2,365 ) 817 Earnings before income taxes 225,819 332,913 377,854 Income tax expense 68,472 83,222 96,545 Net earnings $ 157,347 $ 249,691 $ 281,309 Net earnings per share: Basic $ 5.00 $ 7.73 $ 8.53 Diluted $ 4.86 $ 6.55 $ 7.55 Shares used in per share calculations: Basic 31,494 32,286 32,991 Diluted 32,347 38,136 37,241 See accompanying notes to consolidated financial statements. 47 INSIGHT ENTERPRISES, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in thousands) Years Ended December 31, 2025 2024 2023 Net earnings $ 157,347 $ 249,691 $ 281,309 Other comprehensive (loss) income, net of tax: Foreign currency translation adjustments 44,758 ( 39,546 ) 17,190 Total comprehensive income $ 202,105 $ 210,145 $ 298,499 See accompanying notes to consolidated financial statements. 48 INSIGHT ENTERPRISES, INC. CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (in thousands) Common Stock Treasury Stock Additional Paid-in Capital Accumulated Other Comprehensive Loss Retained Earnings Total Stockholders' Equity Shares Par Value Shares Amount Balances at December 31, 2024 31,778 $ 318 — $ — $ 342,893 $ ( 81,158 ) $ 1,508,558 $ 1,770,611 Issuance of common stock under employee stock plans, net of shares withheld for payroll taxes 167 2 — — ( 12,798 ) ( 12,796 ) Stock-based compensation expense — — — — 33,738 — — 33,738 Employee stock purchase plan issuances 37 — — — 4,490 — — 4,490 Shares issued upon conversion of Convertible Notes 2,833 28 — — ( 28 ) — — — Shares received from convertible note hedge upon conversion of Convertible Notes ( 2,833 ) ( 28 ) — — 28 — — — Settlement upon exercise of Warrants 215 2 — — ( 196,912 ) ( 196,910 ) Excise tax on stock repurchases — — — — ( 1,246 ) — — ( 1,246 ) Repurchase of treasury stock — — ( 1,201 ) ( 151,118 ) — — — ( 151,118 ) Retirement of treasury stock ( 1,201 ) ( 12 ) 1,201 151,118 ( 5,605 ) — ( 145,501 ) — Foreign currency translation adjustments, net of tax — — — — — 44,758 — 44,758 Net earnings — $ — — $ — $ — $ — $ 157,347 $ 157,347 Balances at December 31, 2025 30,996 $ 310 — $ — $ 164,560 $ ( 36,400 ) $ 1,520,404 $ 1,648,874 Balances at December 31, 2023 32,590 326 — — 328,607 ( 41,612 ) 1,448,412 1,735,733 Issuance of common stock under employee stock plans, net of shares withheld for payroll taxes 184 2 — — ( 12,040 ) ( 12,038 ) Stock-based compensation expense — — — — 33,971 — — 33,971 Employee stock purchase plan issuances 27 — — — 4,477 — — 4,477 Shares issued upon conversion of Notes 141 1 — — ( 1 ) — — — Shares received from convertible note hedge upon conversion of convertible notes ( 141 ) ( 1 ) — — 1 — — — Settlement upon early exercise of Warrants — — — — — — — — Excise tax on stock repurchases — — — — ( 1,657 ) — — ( 1,657 ) Balances at Repurchase of treasury stock — $ — ( 1,023 ) ( 200,020 ) — — — ( 200,020 ) Balances at Retirement of treasury stock ( 1,023 ) $ ( 10 ) 1,023 $ 200,020 $ ( 10,465 ) $ — $ ( 189,545 ) $ — Foreign currency translation adjustments, net of tax — — — — — ( 39,546 ) — ( 39,546 ) Net earnings — — — — — — 249,691 249,691 Balances at December 31, 2024 31,778 $ 318 — $ — $ 342,893 $ ( 81,158 ) $ 1,508,558 $ 1,770,611 49 INSIGHT ENTERPRISES, INC. CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (in thousands) Common Stock Treasury Stock Additional Paid-in Capital Accumulated Other Comprehensive Loss Retained Earnings Total Stockholders' Equity Shares Par Value Shares Amount Balances at December 31, 2022 34,009 $ 340 — $ — $ 327,872 $ ( 58,802 ) $ 1,368,658 $ 1,638,068 Cumulative effect of accounting change — — — — — — — — Issuance of common stock under employee stock plans, net of shares withheld for payroll taxes 215 2 — — ( 10,797 ) — — ( 10,795 ) Stock-based compensation expense — — — — 28,951 — — 28,951 Excise tax on stock repurchases — — — — ( 1,882 ) — — ( 1,882 ) Repurchase of treasury stock — — ( 1,634 ) ( 217,108 ) — — — ( 217,108 ) Retirement of treasury stock ( 1,634 ) ( 16 ) 1,634 217,108 ( 15,537 ) — ( 201,555 ) — Foreign currency translation adjustments, net of tax — — — — — 17,190 — 17,190 Net earnings — — — — — — 281,309 281,309 Balances at December 31, 2023 32,590 $ 326 — $ — $ 328,607 $ ( 41,612 ) $ 1,448,412 $ 1,735,733 See accompanying notes to consolidated financial statements. 50 INSIGHT ENTERPRISES, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) Years Ended December 31, 2025 2024 2023 Cash flows from operating activities: Net earnings $ 157,347 $ 249,691 $ 281,309 Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation and amortization 106,320 98,137 62,476 Provision for losses on accounts receivable 12,927 10,038 5,062 Non-cash stock-based compensation 33,738 33,971 28,951 Deferred income taxes 1,890 8,296 ( 13,080 ) Amortization of debt issuance costs 4,423 5,591 4,870 Net loss on revaluation of warrant settlement liabilities 25,069 — — Net change on revaluation of earnout liabilities 25,329 ( 7,848 ) — Earnout payments in excess of acquisition date fair value ( 25,451 ) — — Impairment loss on long lived real estate assets 12,588 — — Other adjustments 2,038 1,054 234 Changes in assets and liabilities: Increase in accounts receivable ( 1,159,735 ) ( 656,092 ) ( 11,892 ) (Increase) decrease in inventories ( 37,396 ) 54,439 75,729 Decrease (increase) in contract assets 48,884 58,433 ( 13,840 ) Decrease (increase) in long-term accounts receivable 108,956 ( 454,887 ) ( 126,850 ) Decrease in other assets 3,412 16,199 34,061 Increase in accounts payable 1,047,396 825,555 216,229 (Decrease) increase in long-term accounts payable ( 107,533 ) 441,881 111,790 Increase (decrease) in accrued expenses and other liabilities 43,625 ( 51,613 ) ( 35,518 ) Net cash provided by operating activities: 303,827 632,845 619,531 Cash flows from investing activities: Proceeds from sale of assets — 13,751 15,515 Purchases of property and equipment ( 24,520 ) ( 46,782 ) ( 39,252 ) Acquisitions, net of cash and cash equivalents acquired ( 285,283 ) ( 270,247 ) ( 481,464 ) Net cash used in investing activities: ( 309,803 ) ( 303,278 ) ( 505,201 ) Cash flows from financing activities: Borrowings on ABL revolving credit facility 6,021,615 4,622,416 4,587,596 Repayments on ABL revolving credit facility ( 5,202,845 ) ( 5,176,546 ) ( 4,288,036 ) Warrants settlement ( 221,978 ) — — Repayment of principal on the Convertible Notes ( 333,091 ) ( 16,895 ) — Net borrowings (repayments) under inventory financing facilities 6,374 ( 13,577 ) ( 70,408 ) Proceeds from issuance of senior unsecured notes — 500,000 — Payment of debt issuance costs ( 6,487 ) ( 8,652 ) — Repurchases of common stock ( 151,118 ) ( 200,020 ) ( 217,108 ) Earnout and acquisition related payments ( 20,204 ) ( 20,286 ) ( 15,615 ) Other payments ( 9,974 ) ( 7,711 ) ( 13,141 ) Net cash provided by (used in) financing activities: 82,292 ( 321,271 ) ( 16,712 ) Foreign currency exchange effect on cash, cash equivalents and restricted cash balances 22,993 ( 17,614 ) 7,449 Increase (decrease) in cash, cash equivalents and restricted cash 99,309 ( 9,318 ) 105,067 Cash, cash equivalents and restricted cash at beginning of period 261,467 270,785 165,718 Cash, cash equivalents and restricted cash at end of period $ 360,776 $ 261,467 $ 270,785 See accompanying notes to consolidated financial statements. 51 INSIGHT ENTERPRISES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (1) Operations and Summary of Significant Accounting Policies Description of Business At Insight we accelerate transformation by unlocking the power of people and technology. We turn complexity into clarity helping our clients achieve meaningful business outcomes and drive real results at scale. We serve these clients in North America; Europe, the Middle East and Africa (“EMEA”); and Asia-Pacific (“APAC”). As a Fortune 500-ranked Solutions Integrator, we deliver secure, end-to-end digital transformation and meet the needs of our clients through a comprehensive portfolio of solutions, far-reaching partnerships and 37 years of broad IT expertise. We amplify our solutions and services with global scale, local expertise and our e-commerce experience, enabling our clients to realize their digital ambitions in multiple ways. Our company is organized in the following three operating segments, which are primarily defined by their related geographies: Operating Segment Geography North America United States ("U.S.") and Canada EMEA Europe, Middle East and Africa APAC Asia-Pacific Our offerings in North America and certain countries in EMEA and APAC include 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. Acquisitions Effective October 31, 2025, we acquired 100 percent of the issued and outstanding shares of Sekuro Limited (“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 and excluding the estimated fair value of earn outs, reported in other liabilities, of up to AUD 122,500,000 . Effective October 1, 2025, we acquired 100 percent of the issued and outstanding equity of Inspire11 LLC (“Inspire11”) for a preliminary cash purchase price of approximately $ 209,689,000 , net of cash and cash equivalents acquired of $ 1,413,000 and excluding the estimated fair value of earn outs, reported in other liabilities, of up to $ 66,000,000 . Effective May 1, 2024, we acquired 100 percent of the issued and outstanding shares of Infocenter.io Corporation ("Infocenter") for a cash purchase price of $ 265,000,000 , net of cash and cash equivalents acquired of $ 5,103,000 , and excluding the estimated fair value of earn outs, reported in other liabilities, of up to $ 106,250,000 . Our results of operations include the results of Inspire11, Sekuro and Infocenter from their respective acquisition dates. (See Note 21 for a discussion of our acquisitions). Principles of Consolidation and Presentation The consolidated financial statements include the accounts of Insight Enterprises, Inc. and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. Included in our accounts receivable, net balance at December 31, 2025 and 2024 is $ 28,201,000 and $ 18,010,000 , respectively, of accounts receivable from an unconsolidated affiliate. References to “the Company,” “Insight,” “we,” “us,” “our” and other similar words refer to Insight Enterprises, Inc. and its consolidated subsidiaries, unless the context suggests otherwise. Acquisition Accounting The Company accounts for all business combinations using the acquisition method of accounting, which allocates the fair value of the purchase consideration to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values. The excess of the purchase consideration over the fair values of 52 INSIGHT ENTERPRISES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) these identifiable assets and liabilities is recorded as goodwill. When determining the fair values of assets acquired and liabilities assumed, management makes estimates and assumptions. Initial purchase price allocations are subject to revision within the measurement period, not to exceed one year from the date of acquisition. Acquisition-related expenses and transaction costs associated with business combinations are expensed as incurred. Use of Estimates The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements. Additionally, these estimates and assumptions affect the reported amounts of net sales and expenses during the reporting period. Actual results could differ from those estimates. On an ongoing basis, we evaluate our estimates, including those related to sales recognition, anticipated achievement levels under partner funding programs, assumptions related to stock-based compensation valuation, allowances for doubtful accounts and contract assets, valuation of inventories, valuation of acquired intangible assets, litigation-related obligations, valuation allowances for deferred tax assets and impairment of long-lived assets, including purchased intangibles and goodwill, if indicators of potential impairment exist. Cash, Cash Equivalents and Restricted Cash We consider all highly liquid investments with maturities at the date of purchase of three months or less to be cash equivalents. Book overdrafts represent the amount by which outstanding checks issued, but not yet presented to our banks for disbursement, exceed balances on deposit in applicable bank accounts and a legal right of offset with our positive cash balances in other financial institution accounts does not exist. Our book overdrafts, which are not directly linked to a credit facility or other bank overdraft arrangement, do not result in an actual bank financing, but rather constitute normal unpaid trade payables at the end of a reporting period. These amounts are included within our accounts payable balance in our consolidated balance sheets. The changes in these book overdrafts are included within the changes in accounts payable line item as a component of cash flows from operating activities in our consolidated statements of cash flows. Restricted cash generally includes any cash that is restricted as to withdrawal or usage. These amounts are included with cash and cash equivalents on the consolidated statement of cash flows. All cash receipts/payments with third parties directly to/from restricted cash accounts are reported as an operating, investing or financing cash flow, based on the nature of the transaction. Allowance for Doubtful Accounts Receivable We establish an allowance for doubtful accounts to reflect our best estimate of probable losses inherent in our accounts receivable balance. The allowance is based on our evaluation of the aging of the receivables, historical write-offs and the current economic environment. We write off individual accounts against the reserve when we no longer believe that it is probable that we will collect the receivable because we become aware of a client’s or partner’s inability to meet its financial obligations. Such awareness may be as a result of bankruptcy filings, or deterioration in the client’s or partner’s operating results or financial position. Allowance for Contract Assets We estimate our allowances for credit losses on contract assets using relevant available information from internal and external sources, related to past events, current conditions and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. Probability of default rates are published quarterly by third-party credit agencies. Adjustments to our initial credit risk ratings may take into account various customer specific factors, including estimated loss given default, the 53 INSIGHT ENTERPRISES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) locations in which the customer is operating and macroeconomic conditions. These adjustments result in our internal risk rating categorization as low, moderate or high, as disclosed in Note 2. Inventories We state inventories, principally purchased IT hardware, at the lower of weighted average cost (which approximates cost under the first-in, first-out method) or net realizable value. We evaluate inventories for excess, obsolescence or other factors that may render inventories unmarketable at normal margins. Write-downs are recorded so that inventories reflect the approximate net realizable value and take into account contractual provisions with our partners governing price protection, stock rotation and return privileges relating to obsolescence. Because of the large number of transactions and the complexity of managing the price protection and stock rotation process, estimates are made regarding write-downs of the carrying amount of inventories. Additionally, assumptions about future demand, market conditions and decisions by manufacturers/publishers to discontinue certain products or product lines can affect our decision to write down inventories. Property and Equipment We record property and equipment at cost. We capitalize major improvements and betterments, while maintenance, repairs and minor replacements are expensed as incurred. Depreciation or amortization is provided using the straight-line method over the following estimated economic lives of the assets: Estimated Economic Life Leasehold improvements Shorter of underlying lease term or asset life Furniture and fixtures 2 – 7 years Equipment 3 – 5 years Software 3 – 10 years Buildings 29 years External direct costs of materials and services consumed in developing or obtaining internal-use computer software and payroll and payroll-related costs for teammates who are directly associated with and who devote time to internal-use computer software development projects, to the extent of the time spent directly on the project and specific to application development, are capitalized. Reviews are regularly performed to determine whether facts and circumstances exist which indicate that the economic life is shorter than originally estimated or the carrying amount of assets may not be recoverable. When an indication exists that the carrying amount of long-lived assets may not be recoverable, we assess the recoverability of our assets by comparing the projected undiscounted net cash flows associated with the related asset or group of assets over their remaining lives against their respective carrying amounts. Such impairment test is based on the lowest level for which identifiable cash flows are largely independent of the cash flows of other groups of assets and liabilities. Impairment, if any, is based on the excess of the carrying amount over the estimated fair value of those assets. Goodwill Goodwill is recorded when the purchase price paid for an acquisition exceeds the estimated fair value of net identified tangible and intangible assets acquired. Goodwill is tested for impairment at the reporting unit level on an annual basis in the fourth quarter and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying value. We may first perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. If it is concluded that this is the case, it is necessary to perform a quantitative goodwill impairment test. Otherwise, the goodwill impairment test is not required. The quantitative goodwill impairment review process compares the fair value of the reporting unit in which goodwill resides to its carrying value. The Company has three reporting units, which are the same as our operating segments. Multiple valuation techniques would likely be used to assess the fair value of the reporting unit. These techniques include the use of estimates and assumptions that are inherently uncertain. Changes in these estimates and assumptions could materially affect the determination of fair value or goodwill impairment, or both. 54 INSIGHT ENTERPRISES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) Intangible Assets We amortize finite lived intangible assets acquired in business combinations using the straight-line method over the estimated economic lives of the intangible assets from the date of acquisition. We regularly perform reviews to determine if facts and circumstances exist which indicate that the economic lives of our intangible assets are shorter than originally estimated or the carrying amount of these assets may not be recoverable. When an indication exists that the carrying amount of intangible assets may not be recoverable, we assess the recoverability of our assets by comparing the projected undiscounted net cash flows associated with the related asset or group of assets over their remaining lives against their respective carrying amounts. Such impairment test is based on the lowest level for which identifiable cash flows are largely independent of the cash flows of other groups of assets and liabilities. Impairment, if any, is based on the excess of the carrying amount over the estimated fair value of those assets. Long-term Accounts Receivable and Contract Assets We recognize long-term accounts receivable, including unbilled receivables, related to multi-year contracts when we have completed our performance obligations under the contract and where our right to receive consideration from the client is unconditional and based on the passage of time only. We recognize long-term contract assets related to multi-year contracts when we have completed our performance obligations under the contract but do not have an unconditional right to receive consideration. When our right to consideration is contingent upon other factors, such as a client consuming future services under the contract we recognize a contract asset until our right to receive consideration becomes unconditional. Leases We determine if a contract or arrangement is, or contains, a lease at inception. Balances related to operating leases are included in other assets, other current liabilities, and other liabilities in our consolidated balance sheet. Balances related to financing leases are included in property and equipment, current portion of long-term debt, and long-term debt in our consolidated balance sheet. Right of use (“ROU”) assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. We use the implicit rate when readily determinable. The operating lease ROU asset includes any prepaid lease payments and additional direct costs and excludes lease incentives. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Self-Insurance We are self-insured in the U.S. for medical insurance up to certain annual stop-loss limits and workers’ compensation claims up to certain deductible limits. We establish reserves for claims, both reported and incurred but not reported, using currently available information as well as our historical claims experience. Treasury Stock We record repurchases of our common stock as treasury stock at cost. We also record the subsequent retirement of these treasury shares at cost. The excess of the cost of the shares retired over their par value is allocated between additional paid-in capital and retained earnings. The amount recorded as a reduction of paid-in capital is based on the excess of the average original issue price of the shares over par value. The remaining amount is recorded as a reduction of retained earnings. Sales Recognition Revenue is measured based on the consideration specified in a contract with a client, and excludes any sales incentives and amounts collected on behalf of third parties. The Company recognizes revenue when it 55 INSIGHT ENTERPRISES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) satisfies a performance obligation by transferring control of a product or service or by arranging for the sale of a vendor’s products or service to a client. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a client, are excluded from revenue. We record the freight we bill to our clients as product net sales and the related freight costs we pay as product costs of goods sold. Nature of Goods and Services We sell hardware and software products on both a stand-alone basis without any services and as solutions bundled with services. When we provide a combination of hardware and software products with the provision of services, we separately identify our performance obligations under our contract with the client as the distinct goods (hardware and/or software products) or services that will be provided. The total transaction price for an arrangement with multiple performance obligations is allocated at contract inception to each distinct performance obligation in proportion to its stand-alone selling price. The stand-alone selling price is the price at which we would sell a promised good or service separately to a client. We estimate the price based on observable inputs, including direct labor hours and allocable costs, or use observable stand-alone prices when they are available. Product Offerings Hardware We recognize hardware product revenue on a gross basis at the point in time when a client takes control of the hardware, which typically occurs when title and risk of loss have passed to the client at its destination. Our selling terms and conditions typically specify Free On Board (“F.O.B.”) destination contractual terms such that control is transferred from the Company at the point in time when the product is received by the client. The transaction price for hardware sales is adjusted for estimated product returns that we expect to occur under our return policy based upon historical return rates. We leverage drop-shipment arrangements with many of our partners and suppliers to deliver products to our clients without having to physically hold the inventory at our warehouses, thereby increasing efficiency and reducing costs. We recognize revenue for drop-shipment arrangements on a gross basis as the principal in the transaction when the product is received by the client because we control the product prior to transfer to the client. In addition to other factors considered, we assume primary responsibility for fulfillment in the arrangement, we assume inventory risk if the product is returned by the client, we set the price of the product charged to the client and we work closely with our clients to determine their hardware specifications. Warehousing services We offer a service to our customers whereby clients may purchase product that we procure on their behalf and, at our clients’ direction, store the product in our warehouse for a designated period of time, with the intention of deploying the product to the clients’ designated locations at a later date. These warehousing services are designed to help our clients with inventory management challenges associated with technology roll-outs, product that is moving to end of life, or clients needing integrated stock available for immediate deployment. The client is invoiced, title transfers to the client, and revenue is recognized upon receipt of the product at our warehouse. These product contracts are non-cancelable with customary credit terms beginning the date the product is received in our warehouse and the warranty periods begin on the date of invoice. Software We recognize revenue from software sales on a gross basis at the point in time when the client acquires the right to use or copy software under license and control transfers to the client. For renewals, revenue is recognized upon the commencement of the software license agreement or when the renewal term begins, as applicable. 56 INSIGHT ENTERPRISES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) A portion of the software licenses we sell are perpetual software licenses and do not require renewal or extension after their initial purchase by the client. Such perpetual licenses are periodically subject to true-up, whereby additional perpetual licenses are sold under the client’s pre-existing master agreement. Such true-ups are generally sold in arrears, and clients are invoiced for the additional licenses they had already been utilizing. Since the client already possessed copies of the licensed software prior to the true-up, software revenue related to the underlying additional licenses is recognized when we agree to the true-up with our client and the partner. Security Software For sales transactions for certain security software products that are sold with integral third-party delivered software maintenance, we record the software license on a net basis, as the agent in the arrangement. We report all fees earned from these activities net within our services net sales category in our consolidated statements of operations. Services Offerings Software Maintenance Software maintenance agreements provide our clients with the right to obtain any software upgrades, bug fixes and help desk and other support services directly from the software publisher at no additional charge during the term of the software maintenance agreements. We act as the software publisher’s agent in selling these software maintenance agreements and do not assume any performance obligation to the client under the agreements. As a result, we are the agent in these transactions and these sales are recorded on a net sales recognition basis. Under net sales recognition, the cost of the software maintenance agreement is recorded as a reduction to sales, resulting in net sales equal to the gross profit on the transaction, and there are no costs of goods sold. Because we are acting as the software publisher’s agent, revenue is recognized when the parties agree to the initial purchase, renewal or extension as our agency services are then complete. We report all fees earned from these activities net within our services net sales category in our consolidated statements of operations. Vendor Direct Support Services Contracts Clients may purchase a vendor direct support services contract through us. Under these contracts, our clients call the manufacturer/publisher or its designated service organization directly for both the initial technical triage and any follow-up assistance. We act as the manufacturer/publisher’s agent in selling these support service contracts and do not assume any performance obligation to the client under the arrangements. As a result, these sales are recorded on a net sales recognition basis similar to software maintenance agreements, as discussed above. Because we are acting as the agent, revenue is recognized when the parties agree to the purchase of the support services contract as our agency services are then complete. We report all fees earned from these activities net within our services net sales category in our consolidated statements of operations. Cloud / Software-as-a-Service Offerings Cloud or software-as-a-service (“SaaS”) subscription products provide our clients with access to software products hosted in the public cloud without the client taking possession of the software. We act as the agent in selling these software-as-a service subscription products. We do not take control of the software products or assume any performance obligations to the clients related to the provisioning of the offerings in the cloud. As a result, these sales are recorded on a net sales recognition basis. We report all fees earned from activities recognized net within our services net sales category in our consolidated statements of operations. Because we are acting as the agent in the transaction, revenue is recognized when the parties agree to the purchase of the cloud or SaaS offerings as our agency services are then complete. Often, these agency fees are based on end-client usage and therefore are variable throughout the term of the service contract. Where this variable consideration is uncertain, we recognize our agency revenue to the extent that a significant reversal will not occur. We report all fees earned from these activities net within our services net sales category in our consolidated statements of operations. 57 INSIGHT ENTERPRISES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) Insight Delivered Services We design, procure, deploy, implement and manage solutions that combine hardware, software and services to help businesses run smarter. Such services are provided by us or third-party sub-contract vendors as part of bundled arrangements, or are provided separately on a stand-alone basis as technical, consulting or managed services engagements. If the services are provided as part of a bundled arrangement with hardware and software, the hardware, software and services are generally distinct performance obligations. In general, we recognize revenue from services engagements as we perform the underlying services and satisfy our performance obligations. We recognize revenue from sales of services by measuring progress toward complete satisfaction of the related service performance obligation. Billings for such services that are made in advance of the related revenue recognized are recorded as a contract liability. Specific revenue recognition practices for certain of our services offerings are described in further detail below. Time and Materials Services Contracts We recognize revenue for professional services engagements that are on a time and materials basis based upon hours incurred for the performance completed to date for which we have the right to consideration, even if such amounts have not yet been invoiced as of period end. Fixed Fee Services Contracts We recognize revenue on fixed fee professional services contracts using a proportional performance method of revenue recognition based on the ratio of direct labor and other allocated costs incurred to total estimated direct labor and other allocated costs. OneCall Support Services Contracts When we sell certain hardware and/or software products to our clients, we also enter into service contracts with them. These contracts are support service agreements for the hardware and/or software products that were purchased from us. Under certain support services contracts, although we purchase third-party support contracts for maintenance on the specific hardware or software products we have sold, our internal support desk assists the client first by performing an initial technical triage to determine the source of the problem and whether we can direct the client on how to fix the problem. We refer to these services as “OneCall.” We act as the principal in the transaction because we perform the OneCall services over the term of the support service contract and we set the price of the service charged to the client. As a result, we recognize revenue from OneCall extended service contracts on a gross sales recognition basis. We recognize the revenue ratably over the contract term of the stand ready obligation, generally one to three years . On our consolidated balance sheet, a portion of our contract liabilities balance relates to OneCall support services agreements for which clients have paid or have been invoiced but for which we have not yet recognized the applicable services revenue. We also defer incremental direct costs to fulfill our service contracts that we prepay to third parties for direct support of our fulfillment of the service contract to our clients under our contract terms and amortize them into operations over the term of the contracts. Third-party Sub-Contractor Services A majority of our third-party sub-contractor services contracts are entered into in conjunction with other services contracts under which the services are performed by Insight teammates. We have concluded that we control all services under the contract and can direct the third-party sub-contractor to provide the requested services. As such, we act as the principal in the transaction and record the services under a gross sales recognition basis, with the selling price being recorded in sales and our cost to the third-party service provider being recorded in costs of goods sold. We recognize revenue for these contracts as the underlying services are performed and we satisfy our performance obligations. 58 INSIGHT ENTERPRISES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) Third-party Services For certain third-party service contracts in which we do not control the services prior to transferring to our clients because we are not responsible for fulfillment of the services, we have concluded that we are an agent in the transaction and record revenue on a net sales recognition basis. We report all fees earned from these activities net within our services net sales category in our consolidated statements of operations. Costs of Goods Sold Costs of goods sold include product costs, direct costs incurred associated with delivering services, outbound and inbound freight costs and provisions for inventory reserves. These costs are reduced by provisions for supplier discounts and certain payments and credits received from partners, as described under “Partner Funding” below. Selling and Administrative Expenses Selling and administrative expenses include salaries and wages for teammates who are not directly associated with delivering services, bonuses and incentives, stock-based compensation expense, employee-related expenses, facility-related expenses, marketing and advertising expense, reduced by certain payments and credits received from partners related to shared marketing expense programs, as described under “Partner Funding” below, depreciation of property and equipment, professional fees, amortization of intangible assets, provisions for losses on accounts receivable and contract assets, and other operating expenses. Partner Funding We receive payments and credits from partners, including consideration pursuant to volume sales incentive programs, volume purchase incentive programs and shared marketing expense programs. Partner funding received pursuant to volume sales incentive programs is recognized as it is earned as a reduction to costs of goods sold. Partner funding received pursuant to volume purchase incentive programs is allocated as a reduction to inventories based on the applicable incentives earned from each partner and is recorded in cost of goods sold as the related inventory is sold. Partner funding received pursuant to shared marketing expense programs is recorded as it is earned as a reduction of the related selling and administrative expenses in the period the program takes place if the consideration represents a reimbursement of specific, incremental, identifiable costs. Consideration that exceeds the specific, incremental, identifiable costs is classified as a reduction of costs of goods sold. Partner funding received pursuant to certain services delivered is recorded as services net sales. The amount of partner funding recorded as a reduction of selling and administrative expenses in our statements of operations totaled $ 113,371,000 , $ 127,059,000 and $ 122,638,000 in 2025, 2024 and 2023, respectively. Concentrations of Risk Credit Risk Although we are affected by the international economic climate, management does not believe material credit risk concentration existed at December 31, 2025. We monitor our clients’ financial condition and do not require collateral. No single client accounted for more than 10% of our consolidated net sales in 2025. Partner Risk Purchases from Microsoft and TD Synnex accounted for approximately 32 % and 12 %, respectively, of our aggregate purchases in 2025. No other partner accounted for more than 10% of purchases in 2025. Our top five partners as a group for 2025 were Microsoft, TD Synnex (a distributor), Google, Cisco Systems, and Ingram Micro (a distributor), and approximately 63 % of our total purchases during 2025 came from this group of partners. Although brand names and individual products are important to our business, we believe that competitive sources of supply are available in substantially all of our product categories such that, with the exception of Microsoft, we are not dependent on any single partner for sourcing products. 59 INSIGHT ENTERPRISES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) Advertising Costs Advertising costs are expensed as they are incurred. Advertising expense of approximately $ 71,409,000 , $ 76,167,000 and $ 81,959,000 was recorded in 2025, 2024 and 2023, respectively. These amounts were predominantly offset by partner funding earned pursuant to shared marketing expense programs recorded as a reduction of selling and administrative expenses, as discussed in “Partner Funding” above. Stock-Based Compensation Stock-based compensation is measured based on the fair value of the award on the date of grant and the corresponding expense is recognized over the period during which an employee is required to provide service in exchange for the reward. Stock-based compensation expense is included within selling and administrative expenses in our consolidated statements of operations as other payroll-related expenses specific to the employee. Compensation expense related to service-based restricted stock units (“RSUs”) is recognized on a straight-line basis over the requisite service period for the entire award. Compensation expense related to performance-based RSUs is recognized on a straight-line basis over the requisite service period for each separately vesting portion of the award as if the award was, in-substance, multiple awards (i.e., a graded vesting basis). Forfeitures are recognized as they occur. Foreign Currencies We use the U.S. dollar as our reporting currency. The functional currencies of our foreign subsidiaries are typically the local currencies. Accordingly, assets and liabilities of the subsidiaries are translated into U.S. dollars at the exchange rate in effect at the balance sheet dates. Income and expense items are translated at the average exchange rate for each month within the year. The resulting translation adjustments are recorded directly in accumulated other comprehensive income, net of tax – foreign currency translation adjustments as a separate component of stockholders’ equity. Net foreign currency transaction gains/losses, including transaction gains/losses on intercompany balances that are not of a long-term investment nature and non-functional currency cash balances, are reported in other expense (income), net within non-operating (income) expense in our consolidated statements of operations. Derivative Financial Instruments We enter into forward foreign exchange contracts to mitigate the risk of non-functional currency monetary assets and liabilities on our consolidated financial statements. These forward contracts are not designated as hedge instruments. The fair value of the related derivative assets and liabilities are recorded gross in other current assets and accrued expenses and other current liabilities in our consolidated balance sheets. Gains/losses are recorded net in non-operating (income) expense in our consolidated statements of operations. We also enter into forward contracts to hedge a portion of the Company's net investment in foreign currency denominated operations. These forward contracts are designated as net investment hedges. The fair value of the related derivative assets and liabilities are recorded gross in other current assets and accrued expenses and other current liabilities in our consolidated balance sheets. Gains/losses are recorded net in foreign currency translation adjustments in our consolidated statements of comprehensive income. The Company classifies cash flows related to the settlement of its net investment hedges as investing activities in our consolidated statements of cash flows. Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable earnings in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in earnings in the period that includes the enactment date. We recognize net deferred tax assets to the extent that we believe these assets are more likely than not to be realized. In making such a determination, we consider all available positive and negative evidence, 60 INSIGHT ENTERPRISES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies and results of recent operations. If we determine that we would be able to realize our deferred tax assets in the future in excess of their net recorded amount, we would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. We record uncertain tax positions on the basis of a two-step process whereby (1) we determine whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, we recognize the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. Interest and penalties related to unrecognized tax benefits are recognized within the income tax expense line in our consolidated statements of operations. Accrued interest and penalties are included within the related tax liability line in our consolidated balance sheets. Contingencies From time to time, we are subject to potential claims and assessments from third parties. We are also subject to various government agency, client and partner audits. We continually assess whether or not such claims have merit and warrant accrual. An accrual is made if it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Such estimates are subject to change and may affect our results of operations and our cash flows. Net Earnings Per Share (“EPS”) Basic EPS is computed by dividing net earnings available to common stockholders by the weighted average number of common shares outstanding during each year. Diluted EPS is computed on the basis of the weighted average number of shares of common stock plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method. Dilutive potential common shares include outstanding RSUs and certain shares underlying our previously outstanding 0.75 % Convertible Senior Notes due 2025 (the "Convertible Notes") and the warrants (the "Warrants") relating to the Call Spread Transactions (as defined in Note 8), as applicable. A reconciliation of the denominators of the basic and diluted EPS calculations follows (in thousands, except per share data): Years Ended December 31, 2025 2024 2023 Numerator: Net earnings $ 157,347 $ 249,691 $ 281,309 Denominator: Weighted-average shares used to compute basic EPS 31,494 32,286 32,991 Dilutive potential common shares due to: Dilutive RSUs, net of tax effect 85 297 288 Convertible Senior Notes 433 3,205 2,619 Warrants 335 2,348 1,343 Weighted-average shares used to compute diluted EPS 32,347 38,136 37,241 Net earnings per share: Basic $ 5.00 $ 7.73 $ 8.53 Diluted $ 4.86 $ 6.55 $ 7.55 For the years ended December 31, 2025, 2024 and 2023, approximately 183,000 , 9,000 and 54,000 , respectively, of our RSUs were excluded from the diluted EPS calculations because their inclusion would have been anti-dilutive. These share-based awards could be dilutive in the future. For the year ended December 31, 61 INSIGHT ENTERPRISES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) 2023, certain potential outstanding shares underlying the Warrants were excluded from the diluted EPS calculations because their inclusion would have been anti-dilutive. 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 standard for the year ended December 31, 2025. The adoption of this standard did not have a material effect on the Company's consolidated financial statements or disclosures. In November 2023, the FASB issued ASU No. 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures", which requires public entities to disclose information about their reportable segments' significant expenses on an interim and annual basis. The amendments aim to improve interim disclosure requirements, clarify situations where an entity can reveal multiple segment measures of profit or loss, provide new segment disclosure requirements for entities with a single reportable segment, and include other disclosure requirements. The main objective of the amendments is to assist investors in understanding the entity's overall performance and evaluate potential future cash flows. The standard is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024 with early adoption being permitted. We adopted the annual requirements of this standard effective January 1, 2024 and adopted the interim period requirements of this standard effective January 1, 2025. The adoption of this standard did not have a material impact on the Company's consolidated financial statements or disclosures. (2) Receivables, Contract Assets, Contract Liabilities and Performance Obligations Contract Balances The following table provides information about receivables, contract assets and contract liabilities balances as of December 31, 2025 and 2024 (in thousands): December 31, 2025 2024 Current receivables, which are included in “Accounts receivable, net” $ 5,516,984 $ 4,172,104 Contract assets, net $ 65,745 $ 81,980 Long-term accounts receivable, net $ 763,923 $ 845,943 Long-term contract assets, net $ 53,176 $ 86,953 Contract liabilities, which are included in “Accrued expenses and other current liabilities” and “Other liabilities” $ 152,910 $ 109,615 62 INSIGHT ENTERPRISES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) Significant changes in the gross contract assets balances during the years ended December 31, 2025 and 2024 are as follows (in thousands): Contract Assets Balances at December 31, 2023 $ 272,287 Reclassification of beginning contract assets to receivables, as a result of rights to consideration becoming unconditional ( 85,619 ) Contract assets recognized, net of reclassification to receivables 18,182 Measurement period adjustments to acquired contract assets ( 26,412 ) Balances at December 31, 2024 $ 178,438 Reclassification of beginning contract assets to receivables, as a result of rights to consideration becoming unconditional ( 75,292 ) Contract assets recognized, net of reclassification to receivables 23,082 Balances at December 31, 2025 $ 126,228 Contract assets consist of amounts the Company is entitled to for the resale of third-party consumption-based services, prior to payment becoming unconditional. In these transactions, the Company invoices clients for the gross amount of consideration it is responsible to collect, including amounts ultimately passed on to the third-party service providers. As of December 31, 2025, contract assets, net of allowances, were $ 118,921,000 . Gross contract assets by our internal risk ratings as of December 31, 2025 are summarized as follows (in thousands): Contract Assets Low risk $ 39,439 Moderate risk 54,790 High risk 31,999 Total contract assets $ 126,228 Significant changes in the liabilities balances during the years ended December 31, 2025 and 2024 are as follows (in thousands): Contract Liabilities Balances at December 31, 2023 $ 107,217 Reclassification of the beginning contract liabilities to revenue, as the result of performance obligations satisfied ( 75,857 ) Cash received in advance and not recognized as revenue 78,255 Balances at December 31, 2024 $ 109,615 Reclassification of the beginning contract liabilities to revenue, as the result of performance obligations satisfied ( 80,189 ) Cash received in advance and not recognized as revenue 123,352 Contract liabilities acquired through business combination 132 Balances at December 31, 2025 $ 152,910 63 INSIGHT ENTERPRISES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) Remaining performance obligations The following table includes estimated net sales related to performance obligations that are unsatisfied (or partially unsatisfied) as of December 31, 2025 that are expected to be recognized in the future (in thousands): Services 2026 $ 165,381 2027 76,621 2028 34,239 2029 and thereafter 22,165 Total remaining performance obligations $ 298,406 With the exception of remaining performance obligations associated with our OneCall Support Services contracts which are included in the table above regardless of original duration, the remaining performance obligations that have original expected durations of one year or less are not included in the table above. Certain contracts are cancellable for convenience and are effectively month-to-month. These contracts are excluded from the remaining performance obligation disclosure under the practical expedient for contracts with an original expected duration of one year or less. Additionally, for our time and material services contracts, including disposal service arrangements, whereby we have the right to consideration from a client in an amount that corresponds directly with the value to the client of our performance completed to date, we recognized revenue in the amount to which we have a right to invoice as of December 31, 2025 and do not disclose information about related remaining performance obligations in the table above. Assets recognized for costs of obtaining a contract with a customer Sales commissions are the only significant incremental costs incurred to obtain contracts with our clients. The majority of our contracts are completed within a one-year performance period, and for contracts with a specified term of one year or less, we recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that we otherwise would have recognized is one year or less. We record sales commissions on contracts with performance periods that exceed one year as an asset and amortize the asset to expense over the related contract performance period. As of December 31, 2025 and 2024, the related asset balance was approximately $ 8,991,000 and $ 11,912,000 , respectively. The expense is expected to be recognized over the next 58 months. (3) Assets Held for Sale During 2025, our property in Santa Monica, California met the criteria to be classified as held for sale, within other current assets, and the carrying value of the property was determined to be greater than its estimated fair value less costs to sell. Accordingly, the Company recorded a loss on impairment of a long lived real estate asset of $ 12,588,000 , within selling and administrative expenses. We acquired the Santa Monica property as part of an acquisition in 2019. During 2024, we did not have any assets held for sale. 64 INSIGHT ENTERPRISES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) (4) Property and Equipment Property and equipment consist of the following (in thousands): December 31, 2025 2024 Software $ 102,632 $ 153,380 Buildings 93,508 93,415 Equipment 54,133 55,777 Furniture and fixtures 42,356 42,851 Leasehold improvements 66,250 53,660 Land 14,300 36,906 373,179 435,989 Accumulated depreciation and amortization ( 184,730 ) ( 220,311 ) Property and equipment, net $ 188,449 $ 215,678 Depreciation and amortization expense related to property and equipment was $ 29,552,000 , $ 28,556,000 and $ 26,245,000 in 2025, 2024 and 2023, respectively. (5) Goodwill The changes in the carrying amount of goodwill for the year ended December 31, 2025 are as follows (in thousands): North America EMEA APAC Consolidated Balance at December 31, 2023 $ 588,883 $ 88,848 $ 6,614 $ 684,345 Goodwill acquired during 2024 191,728 5,547 — 197,275 Measurement period adjustments 17,807 — — 17,807 Foreign currency translation adjustment ( 3,936 ) ( 1,380 ) ( 595 ) ( 5,911 ) Balance at December 31, 2024 $ 794,482 $ 93,015 $ 6,019 $ 893,516 Goodwill acquired during 2025 188,339 — 75,740 264,079 Measurement period adjustments 391 — — 391 Foreign currency translation adjustment 2,382 7,245 2,121 11,748 Balance at December 31, 2025 $ 985,594 $ 100,260 $ 83,880 $ 1,169,734 On October 1, 2025, we acquired Inspire11, which is reported in our North America business. Under the acquisition method of accounting, the preliminary purchase price for the acquisition was allocated to the tangible and identifiable intangible assets acquired and liabilities assumed based on their estimated fair values. The excess purchase price over fair value of net assets acquired of approximately $ 188,339,000 was recorded as goodwill in the North America reporting unit. The primary driver for this acquisition was to enhance our capabilities as a leading solutions integrator through the integration of proven AI delivery accelerators, deep data and analytics expertise, and a results-driven methodology to convert AI initiatives into tangible business value and transformative growth. The goodwill recognized primarily reflects the value of the acquired assembled workforce, expected synergies with our digital consulting and solutions integration capabilities, anticipated opportunities to expand our advisory and professional services offerings. Effective October 31, 2025, we acquired Sekuro, which is reported in our APAC business. Under the acquisition method of accounting, the preliminary purchase price for the acquisition was allocated to the tangible and identifiable intangible assets acquired and liabilities assumed based on their estimated fair values. The excess purchase price over fair value of net assets acquired of approximately $ 75,740,000 was recorded as 65 INSIGHT ENTERPRISES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) goodwill in the APAC reporting unit. The primary driver for this acquisition was to expand our 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 goodwill recognized primarily reflects the value of the acquired technical workforce, expected synergies with our existing cybersecurity portfolio, and anticipated growth opportunities in the APAC region. On May 1, 2024, we acquired Infocenter, which is reported in our North America business. Under the acquisition method of accounting, the preliminary purchase price for the acquisition was allocated to the tangible and identifiable intangible assets acquired and liabilities assumed based on their estimated fair values. The excess purchase price over fair value of net assets acquired of approximately $ 191,116,000 was recorded as goodwill in the North America reporting unit. The primary driver for this acquisition was to enhance our Solutions Integrator offering framework to drive better business outcomes for our clients by enabling them to scale their multicloud environments with modern infrastructure, applications, and unified data and AI platforms. The goodwill recognized primarily reflects the acquired workforce, expected synergies, and other benefits associated with expanding our Solutions Integrator capabilities. We performed our annual test of goodwill for impairment during the fourth quarter of 2025. The results of the qualitative goodwill impairment test indicated that the fair values of our North America, EMEA and APAC reporting units were in excess of their respective carrying values. (6) Intangible Assets Intangible assets consist of the following (in thousands): December 31, 2025 2024 Customer relationships $ 663,349 $ 610,527 Other 83,441 59,153 746,790 669,680 Accumulated amortization ( 320,553 ) ( 243,187 ) Intangible assets, net $ 426,237 $ 426,493 During 2025, we periodically assessed whether any indicators of impairment existed related to our intangible assets. As of each interim period end during the year, we concluded that a triggering event had not occurred that would more likely than not reduce the fair value of our intangible assets below their carrying values. Amortization expense recognized in 2025, 2024 and 2023 was $ 76,768,000 , $ 69,581,000 and $ 36,231,000 , respectively. Future amortization expense for the remaining unamortized balance as of December 31, 2025 is estimated as follows (in thousands): Years Ending December 31, Amortization Expense 2026 $ 83,434 2027 62,418 2028 59,035 2029 53,890 2030 50,981 Thereafter 116,479 Total amortization expense $ 426,237 66 INSIGHT ENTERPRISES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) (7) Accounts Payable - Inventory Financing Facilities We have entered into agreements with financial intermediaries to facilitate the purchase of inventory from various suppliers under certain terms and conditions, as described below. The amounts outstanding under these facilities are classified separately as accounts payable - inventory financing facilities in the accompanying consolidated balance sheets. Inventory Financing Facilities We have maximum availability under our unsecured inventory financing facility with MUFG Bank Ltd (“MUFG”) of $ 280,000,000 . We have maximum availability under our unsecured inventory financing facility with PNC Bank, N.A. (“PNC”) of $ 375,000,000 , including a $ 25,000,000 facility in Canada (the "Canada facility"). We also have maximum availability under our unsecured inventory financing facility with Wells Fargo in EMEA (the "EMEA facility") of $ 50,000,000 . As of December 31, 2025, our combined inventory financing facilities had a total maximum capacity of $ 705,000,000 , of which $ 225,035,000 was outstanding. The inventory financing facilities will remain in effect until they are terminated by any of the parties. If balances are not paid within stated vendor terms (typically 60 days), they will accrue interest at prime plus 2.00 % on the MUFG facility, Canadian Overnight Repo Rate Average plus 4.50 % on the Canada facility and Term SOFR, EURIBOR, or SONIA, as applicable, plus 4.50 % and 0.25 % on the PNC (other than the Canada facility) and EMEA facilities, respectively. Amounts outstanding under these facilities are classified separately as accounts payable – inventory financing facilities in the accompanying consolidated balance sheets and within cash flows from financing activities in the accompanying consolidated statements of cash flows. We impute interest on the average daily balance outstanding during these stated vendor terms based on our incremental borrowing rate during the period. Imputed interest of $ 9,800,000 , $ 9,647,000 and $ 13,276,000 was recorded in 2025, 2024 and 2023, respectively. A roll forward of the inventory financing facilities balances during the year ended December 31, 2025 is as follows (in thousands): Inventory financing facilities Balances at December 31, 2024 $ 217,604 Purchases made through the inventory financing facilities 1,288,158 Cash payments made to settle balances due on the inventory financing facilities ( 1,281,784 ) Foreign exchange adjustments 1,057 Balances at December 31, 2025 $ 225,035 67 INSIGHT ENTERPRISES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) (8) 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 borrower’s and each guarantor’s assets. The ABL facility provides for an uncommitted first-in, last-out revolving facility in an aggregate amount of up to $ 100,000,000 . As of December 31, 2025, eligible accounts receivable and inventory permitted availability to the full $ 2,000,000,000 facility amount, of which $ 868,209,000 was outstanding. The interest rates applicable to borrowings under the ABL facility are based on the average aggregate excess availability under the ABL facility as set forth on a pricing grid in the credit agreement. Amounts outstanding under the ABL facility bear interest, payable monthly or quarterly, at a floating rate equal to SOFR, EURIBOR, AUD Rate, or SONIA, as applicable, plus a pre-determined spread of 1.25 % to 1.50 %. The weighted average floating interest rate applicable on borrowings at December 31, 2025 was 5.34 % per annum for the ABL facility. In addition, we pay a quarterly commitment fee on the unused portion of the facility of 0.25 %, and our letter of credit participation fee ranges from 1.25 % to 1.50 %. During 2025, weighted average borrowings under our ABL facility were $ 754,706,000 . Interest expense associated with the ABL facility was $ 48,317,000 , $ 32,576,000 and $ 30,116,000 in 2025, 2024 and 2023,respectively, including the commitment fee and amortization of deferred financing fees. The ABL facility contains customary affirmative and negative covenants and events of default. If a default occurs (subject to customary grace periods and materiality thresholds) under the credit agreement, certain actions may be taken, including, but not limited to, possible termination of commitments and required payment of all outstanding principal amounts plus accrued interest and fees payable under the credit agreement. As of December 31, 2025, no such events have occurred. Senior Unsecured Notes due 2032 On May 20, 2024, we issued $ 500,000,000 aggregate principal amount of 6.625 % Senior Notes due 2032 (the "Senior Notes") that mature on May 15, 2032. The Senior Notes are senior unsecured obligations of the Company and guaranteed by each of the Company's existing and future direct and indirect U.S. subsidiaries that is or becomes a guarantor or borrower under the ABL facility, subject to certain exceptions. The net proceeds from the offering were used to repay a portion of the outstanding borrowings under the ABL facility. The Senior Notes were issued pursuant to an indenture (the "Senior Notes Indenture") containing certain covenants that limit the Company's ability to, subject to certain exceptions, create, incur, or assume liens to 68 INSIGHT ENTERPRISES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) secure debt, among other things. The Senior Notes bear interest at an annual rate of 6.625 % payable semiannually, in arrears, on May 15 th and November 15 th of each year beginning on November 15, 2024. The Company may redeem the Senior Notes prior to May 15, 2027, with an amount equal to the net cash proceeds received by the Company from certain equity offerings at a redemption price equal to 106.625 % of the principal amount of such notes, plus accrued and unpaid interest, if any, to, but excluding, the redemption date, in an aggregate principal amount for all such redemptions not to exceed 40 % of the aggregate principal amount of the Senior Notes. The Senior Notes are subject to redemption at specified prices on or after May 15, 2027 plus accrued and unpaid interest, if any, on such notes redeemed, to, but excluding, the applicable redemption date. In addition, at any time prior to May 15, 2027, the Company may, on one or more occasions, redeem the Senior Notes in whole or in part, at its option, upon notice, at a redemption price equal to 100 % of the principal amount of such notes plus a “make-whole” premium as specified in the Senior Notes Indenture and accrued and unpaid interest, if any, to, but excluding, the redemption date. If the Company experiences certain change of control events, together with a ratings decline, as described in the Senior Notes Indenture, the Company will be required to make an offer to repurchase some or all of the Senior Notes at a price equal to 101 % of the principal amount thereof, plus accrued and unpaid interest, if any, to, but excluding, the repurchase date. The Senior Notes are subject to certain customary events of default and acceleration clauses. As of December 31, 2025, no such events have occurred. The Senior Notes consist of the following balances reported within the consolidated balance sheets as of December 31, 2025 and 2024 (in thousands): December 31, 2025 2024 Liability: Principal $ 500,000 $ 500,000 Less: debt issuance costs, net of accumulated accretion ( 6,915 ) ( 7,778 ) Net carrying amount $ 493,085 $ 492,222 Convertible Senior Notes due 2025 In August 2019, we issued $ 350,000,000 aggregate principal amount of the Convertible Notes that matured on February 15, 2025. The Convertible Notes bore interest at an annual rate of 0.75 % payable semiannually, in arrears, on February 15 th and August 15 th of each year. The Convertible Notes were general unsecured obligations of Insight and were guaranteed on a senior unsecured basis by Insight Direct USA, Inc., a wholly owned subsidiary of Insight. Upon maturity, the significant majority of Convertible Note holders elected to convert their notes. As a result, the aggregate principal amount of $ 333,091,000 was settled in cash with the additional amounts due as a result of conversion being settled in shares of our common stock. The conversion rate was 14.6376 shares of common stock per $ 1,000 principal amount of the Convertible Notes (equivalent to the initial conversion price of approximately $ 68.32 per share of common stock). We issued 2,832,627 shares upon conversion. 69 INSIGHT ENTERPRISES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) The Convertible Notes consist of the following balances reported within the consolidated balance sheets as of December 31, 2025 and 2024 (in thousands): December 31, 2025 2024 Liability: Principal $ — $ 333,091 Less: debt issuance costs, net of accumulated amortization — ( 224 ) Net carrying amount $ — $ 332,867 The effective interest rate on the principal of the Convertible Notes was 0.75 %. Interest expense resulting from the Convertible Notes reported within the consolidated statement of operations for the years ended December 31, 2025, 2024, and 2023, as applicable, is made up of contractual coupon interest and amortization of debt issuance costs. Convertible Note Hedge and Warrant Transaction In connection and concurrent with the issuance of the Convertible Notes, we entered into certain convertible note hedge and warrant transactions (the "Call Spread Transactions") with respect to the Company’s common stock. The convertible note hedge consisted of an option to purchase up to 5,123,160 common stock shares at a price of $ 68.32 per share. On February 15, 2025, we executed the convertible note hedge upon the conversion of the Convertible Notes discussed above. Upon execution, we received 2,833,276 shares of common stock, which we used to meet our obligation under the Convertible Notes to issue shares of common stock upon conversion. Additionally, we sold Warrants to purchase 5,123,160 shares of common stock at a price of $ 103.12 per share as part of the Call Spread Transactions. The Warrants expired on May 15, 2025 and could not be exercised prior to maturity. The Company received aggregate proceeds of approximately $ 34,440,000 in 2019 for the sale of the Warrants. On January 6, 2025, we entered into an agreement to settle 2,049,264 of the total 5,123,160 Warrants. These Warrants were settled entirely in cash for $ 138,892,000 on February 27, 2025. We recorded a liability of approximately $ 112,590,000 to accrued expenses and other current liabilities upon execution of the agreement. The change in the fair value of the settlement liability through the settlement date of $ 26,301,000 was recognized in net income. On February 25, 2025, we entered into an agreement to settle an additional 1,536,948 of the remaining Warrants. These Warrants were settled entirely in cash for $ 83,072,000 on April 2, 2025. We recorded a liability of approximately $ 84,304,000 to accrued expenses and other current liabilities upon execution of the agreement. The change in the fair value of the settlement liability through the settlement date of $ 1,233,000 was recognized in net income. During 2025, the remaining 1,536,948 Warrants were either settled or expired with no value. We issued an aggregate of 215,324 shares of our common stock to settle the remaining Warrants. As a result, there were no outstanding Warrants as of December 31, 2025. The Call Spread Transactions had no effect on the terms of the Convertible Notes and reduced potential dilution by effectively increasing the initial conversion price of the Convertible Notes to $ 103.12 per share of the Company’s common stock. Other Financing Obligations From time to time, we enter into finance leases and other financing agreements with financial intermediaries to facilitate the purchase of products from certain vendors. 70 INSIGHT ENTERPRISES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) The current and long-term portions of our other financing obligations are included in the current and long-term portions of long-term debt in the table above and in our consolidated balance sheets as of December 31, 2025 and 2024. (9) 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 provides information about the financial statement classification of our lease expenses reported within the consolidated statement of operations for the years ended December 31, 2025 and 2024 (in thousands): December 31, Lease cost Classification 2025 2024 Operating lease cost (a) Selling and administrative expenses $ 21,416 $ 24,008 (a) Excludes short-term and variable lease costs, which are immaterial. 71 INSIGHT ENTERPRISES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) Future minimum lease payments under non-cancelable leases as of December 31, 2025 are as follows (in thousands): Operating leases 2026 $ 22,981 2027 20,188 2028 15,476 2029 12,065 2030 8,241 After 2030 12,045 Total lease payments 90,996 Less: Interest ( 10,947 ) Present value of lease liabilities $ 80,049 The following table provides information about the remaining lease terms and discount rates applied as of December 31, 2025 and 2024: December 31, 2025 2024 Weighted average remaining lease term (years): Operating leases 5.26 5.82 Weighted average discount rate (%): Operating leases 4.89 4.64 The following table provides other information related to leases for the years ended December 31, 2025 and 2024 (in thousands): December 31, 2025 2024 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 22,609 $ 28,734 Leased assets obtained in exchange for new operating lease liabilities (a) 11,814 19,906 (a) Includes operating lease assets acquired as part of the Inspire11 and Sekuro acquisitions of $ 3,505,000 and $ 2,130,000 in 2025, respectively. Includes operating lease assets acquired as part of the Infocenter acquisition of $ 3,706,000 in 2024. 72 INSIGHT ENTERPRISES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) (10) 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 Company’s 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 achievement of pre-established annual financial and/or strategic performance goals. In 2023, we granted performance-based RSUs to our officers and certain employees (the "INA Ambition" grant). The number of RSUs granted was based on an INA Adjusted EFO margin financial metric, some of which also have an Absolute TSR ("aTSR") multiplier applied to the number of shares granted. These performance-based RSUs were to be received at vesting, and their amount was to range from 0 % to 100 % of the target, with a multiplier of up to 300 % applied to certain grants. The performance period for these grants was from January 1, 2023, to December 31, 2024. Additionally, the performance-based RSUs based on the aTSR multiplier were to vest 50 % on the two-year anniversary of the grant, and the remaining 50 % were to vest on the three-year anniversary of the grant date. The INA Ambition grant performance measure was not attained and as a result none of the related awards vested. In 2025, we granted performance-based RSUs to certain officers (the “Officer aTSR Retention” grant). The number of RSUs granted are subject to pre-established goals over a 3-year performance period beginning on December 15, 2025. RSUs earned during the 3-year performance period vest following completion of the performance period. The Plan is administered by the Compensation Committee of Insight’s Board of Directors, and, except as provided below, the Compensation Committee has the exclusive authority to administer the Plan, including the power to determine eligibility, the types of awards to be granted, the price and the timing of awards. Under the Plan, the Compensation Committee may delegate some of its authority to our Chief Executive Officer to grant awards to individuals other than individuals who are subject to the reporting requirements of Section 16(a) of the Securities Exchange Act of 1934, as amended. As of December 31, 2025, there are 1,629,546 shares of common stock available for grant under the Plan out of the 2,931,075 shares of common stock that were reserved and made available for grant under the Plan. Accounting for Restricted Stock Units We issue RSUs as incentives to certain officers and teammates and as compensation to members of our Board of Directors. We recognize compensation expense associated with the issuance of such RSUs over the vesting period for each respective RSU. The total compensation expense associated with service-based 73 INSIGHT ENTERPRISES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) RSUs and performance based RSUs subject to financial metrics represent the value based upon the number of RSUs awarded multiplied by the closing price of our common stock on the date of grant. The total compensation expense associated with RSUs subject to market based metrics, the grant date fair value was computed on the probable outcome of the performance conditions based on the Monte Carlo simulation and the grant date estimate of compensation cost to be recognized over the performance period. The number of RSUs to be awarded under our service-based RSUs is fixed at the grant date. The number of RSUs ultimately awarded under our performance-based RSUs varies based on whether the Company achieves certain financial or market based results. We record compensation expense each period based on our estimate of the most probable number of RSUs that will be issued under the grants of performance-based RSUs subject to financial metrics. Recipients of RSUs do not have voting or dividend rights until the vesting conditions are satisfied and shares are released. As of December 31, 2025, total compensation cost related to nonvested RSUs not yet recognized is $ 53,807,000 , which is expected to be recognized over the next 1.07 years on a weighted-average basis. The following table summarizes our RSU activity during 2025: Number Weighted Average Grant Date Fair Value Fair Value Nonvested at the beginning of year 481,762 $ 154.90 Service-based RSUs granted 383,216 $ 118.19 Performance-based RSUs granted (ROIC and other financial metrics) 18,845 $ 165.52 Performance-based RSUs (rTSR) granted 36,139 $ 191.13 Performance-based RSUs (Officer aTSR Retention) granted 53,504 $ 45.05 Adjustment for Final Performance - EMEA Ambition ( 7,400 ) $ 185.94 Adjustment for Final Performance - 2023 rTSR ( 31,846 ) $ 206.08 Vested, including shares withheld to cover taxes ( 247,750 ) $ 131.63 $ 39,099,830 (a) Forfeited ( 38,080 ) $ 167.48 Nonvested at the end of year 648,390 $ 131.80 $ 52,824,333 (b) (a) The aggregate fair value of vested RSUs represents the total pre-tax fair value, based on the closing stock price on the day of vesting, which would have been received by holders of RSUs had all such holders sold their underlying shares on that date. The aggregate intrinsic value for RSUs which vested during 2024 and 2023 was $ 46,290,045 and $ 39,239,334 , respectively. (b) The aggregate fair value of the nonvested RSUs and the RSUs expected to vest represents the total pre-tax fair value, based on our closing stock price of $ 81.47 as of December 31, 2025, which would have been received by holders of RSUs had all such holders sold their underlying shares on that date. During each of the years in the three-year period ended December 31, 2025, the RSUs that vested for teammates in the United States and other countries as allowable by law, were net-share settled such that we withheld shares with value equivalent up to the teammates’ maximum tax obligation for the applicable income and other employment taxes and remitted the equivalent cash amount to the appropriate taxing authorities. The total shares withheld during 2025, 2024 and 2023 of 80,474 , 65,972 and 79,636 , respectively, were based on the value of the RSUs on their vesting dates as determined by our closing stock price on such dates. For 2025, 2024 and 2023, total payments for our teammates’ tax obligations to the taxing authorities were $ 12,796,830 , $ 12,173,309 and $ 10,659,000 , respectively, and are reflected as a financing activity within the accompanying consolidated statements of cash flows. These net-share settlements had the effect of repurchases of our common stock as they reduced the number of shares that would have otherwise been issued as a result of the vesting and did not represent an expense to us. 74 INSIGHT ENTERPRISES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) Employee Stock Purchase Plan The Employee Stock Purchase Plan (the “ESPP”) is a broadly-based stock purchase plan in which any eligible employee may elect to participate by authorizing the Company to make payroll deductions in a designated percentage to pay the price of an option. In no event will the ESPP permit an employee to purchase common stock with a fair market value in excess of $ 25,000 in any calendar year. The first purchase under the ESPP was made on February 16, 2024, in accordance with the ESPP. There are four , three-month offering periods in each calendar year beginning on February 18, May 18, August 18, and November 18, respectively. Purchases under the ESPP are made on the last trading day of each offering period. Unless otherwise determined by the Compensation Committee, the purchase price of shares offered under the ESPP is an amount equal to 95 % of the fair market value of the common stock on the date of purchase. The ESPP is designed to comply with Section 423 of the Internal Revenue Code (the "IRC"), and thus is eligible for the favorable tax treatment afforded by Section 423. As of December 31, 2025, there are 1,686,369 shares of common stock available for grant under the ESPP out of the 1,750,000 shares of common stock that were reserved and made available for grant under the ESPP. (11) 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 75 INSIGHT ENTERPRISES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) 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 ) Enactment of new tax laws 644 0.3 — — — — Change in valuation allowances ( 2,460 ) ( 1.1 ) ( 163 ) — ( 316 ) ( 0.1 ) Foreign tax effects Canada Statutory income tax rate differential 2,857 1.3 2,891 0.9 2,906 0.8 Other ( 105 ) — 24 — 53 — Other foreign jurisdictions 6,404 2.8 3,512 1.1 4,395 1.2 Worldwide changes in unrecognized tax benefits 2,213 1.0 ( 2,871 ) ( 0.9 ) ( 925 ) ( 0.2 ) Total $ 68,472 30.3 % $ 83,222 25.0 % $ 96,545 25.6 % The majority of the domestic state and local income tax expense (net of federal effect) for 2025 was driven by California, Illinois, New York, Minnesota, and New York City. For 2024, California, Illinois, Arizona, Minnesota, and New York comprised the majority, and in 2023, the majority was comprised of Illinois, California, New Jersey, Florida, and New York. As of December 31, 2025, we have accumulated undistributed earnings generated by our foreign subsidiaries, most of which have been taxed in the U.S. as a result of the Tax Cuts and Jobs Act of 2017. For foreign subsidiary earnings not yet taxed under these provisions, we continue to assert permanent reinvestment of earnings earned in foreign jurisdictions which impose a withholding tax on dividends and, accordingly, have not accrued any additional income or withholding taxes on the potential repatriation of these earnings. At the present time, given the various complexities involved in repatriating earnings, it is not practicable to estimate the amount of tax that may be payable if these earnings were not reinvested indefinitely. 76 INSIGHT ENTERPRISES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) The significant components of deferred tax assets and liabilities are as follows (in thousands): December 31, 2025 2024 Deferred tax assets: Capitalized research expenses $ 29,683 $ 42,827 Loss carryforwards 27,943 26,244 Foreign tax credits 8,915 8,880 Other 30,957 33,930 Gross deferred tax assets 97,498 111,881 Valuation allowances ( 34,654 ) ( 32,978 ) Total deferred tax assets 62,844 78,903 Deferred tax liabilities: Goodwill and other intangibles ( 82,869 ) ( 86,737 ) Property and equipment ( 28,757 ) ( 33,223 ) Contract assets (net) ( 18,337 ) ( 18,026 ) Other ( 1,682 ) ( 1,940 ) Total deferred tax liabilities ( 131,645 ) ( 139,926 ) Net deferred tax liabilities $ ( 68,801 ) $ ( 61,023 ) The net non-current deferred tax assets and liabilities are as follows (in thousands): December 31, 2025 2024 Net non-current deferred tax assets, which are included in "Other assets" $ 1,914 $ 3,436 Net non-current deferred tax liabilities ( 70,715 ) ( 64,459 ) Net deferred tax liabilities $ ( 68,801 ) $ ( 61,023 ) As of December 31, 2025, we have U.S. state and foreign net operating loss carryforwards (“NOLs”) that will expire between 2026 and 2044, while the majority have no expiration date. Due to the uncertainty around future utilization, we have recorded a valuation allowance against the majority of these NOLs. We have provided valuation allowances for certain of our deferred tax assets where we believe it is more likely than not that the related tax benefits will not be realized. At December 31, 2025 and 2024, our valuation allowances totaled $ 34,654,000 and $ 32,978,000 , respectively, relating primarily to foreign tax credits and NOLs. This increase was primarily the result of current year losses in certain jurisdictions. As of December 31, 2025 and 2024, we had approximately $ 13,272,000 and $ 11,060,000 , respectively, of unrecognized tax benefits. Of these amounts, approximately $ 1,667,000 and $ 1,449,000 , respectively, related to accrued interest. The changes in the unrecognized tax benefits balance during the year reflect additions for tax positions taken in prior and current periods, net of reductions related to audit settlements and statute expirations. We are currently under audit in various jurisdictions for tax years 2017 through 2022. Although the timing of the resolutions and/or closures of audits is highly uncertain, it is reasonably possible that the examination phase of these audits may be concluded within the next 12 months which could increase or decrease the balance of our gross unrecognized tax benefits. However, based on the status of the various examinations in multiple jurisdictions, an estimate of the range of reasonably possible outcomes cannot be made at this time, but the estimated effect on our income tax expense and net earnings is not expected to be significant. 77 INSIGHT ENTERPRISES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) In the U.S., federal income tax returns for years subsequent to 2021 remain open to examination. For state and foreign jurisdictions, the statute of limitations generally varies between three and ten years. However, to the extent allowable by law, the tax authorities may have a right to examine and make adjustment to prior periods when amended returns have been filed, or when net operating losses or tax credits were generated and carried forward for subsequent utilization. (12) Market Risk Management Interest Rate Risk We have interest rate exposure arising from certain of our financing facilities, which have variable interest rates. These variable interest rates are affected by changes in short-term interest rates. We currently do not hedge our interest rate exposure. We do not believe that the effect of reasonably possible near-term changes in interest rates will be material to our financial position, results of operations and cash flows. Our financing facilities expose our net earnings to changes in short-term interest rates since interest rates on the underlying obligations are variable. We had $ 868,209,000 outstanding under our ABL facility and the interest rate attributable to the borrowings under our ABL facility was 5.37 % per annum at December 31, 2025. The change in annual pre-tax earnings from operations resulting from a hypothetical 10% increase or decrease in the interest rate would have been immaterial. We had $ 493,085,000 outstanding under the Senior Notes at December 31, 2025. The interest rate attributable to the borrowings under the Senior Notes was 6.625 % per annum at December 31, 2025. The Senior Notes are based on a fixed rate and are currently not considered to have interest rate risk exposure. Although the Senior Notes are based on a fixed rate, changes in market interest rates could impact the fair market value of such notes. As of December 31, 2025, the fair market value of the Senior Notes was $ 513,900,000 . Foreign Currency Exchange Risk We have foreign currency exchange risk related to the translation of our foreign subsidiaries’ operating results, assets and liabilities (see Note 1 for a description of our Foreign Currencies policy). We also maintain cash accounts denominated in currencies other than the functional currency, which expose us to fluctuations in foreign exchange rates. Remeasurement of these cash balances results in gains/losses that are also reported in other (income) expense, net within non-operating expense (income), net. We monitor our foreign currency exposure and selectively enter into forward exchange contracts to mitigate risk associated with certain non-functional currency monetary assets and liabilities related to foreign denominated payables, receivables and cash balances (see Note 13 for additional information). Transaction gains and losses resulting from non-functional currency assets and liabilities are offset by gains and losses on forward contracts in non-operating expense (income), net in our consolidated statements of operations. The counterparties associated with our foreign exchange forward contracts are large creditworthy commercial banks. The Company does not have a significant concentration of risk with any single counterparty, and therefore, we do not consider counterparty concentration and non-performance to be material risks. (13) Derivative Financial Instruments We use derivatives to partially offset our exposure to fluctuations in certain foreign currencies. We do not enter into derivative contracts for speculative or trading purposes. Derivatives are recorded at fair value on the balance sheet based on observable market based inputs or unobservable inputs that are corroborated by market data (Level 2) where available. Gains or losses resulting from changes in fair value of our non hedge designated derivatives are recorded currently in income. Gains or losses resulting from changes in fair value of our hedge designated derivatives are recorded in other comprehensive income. Our foreign currency derivative instruments are not subject to any master netting arrangements with our counterparties. We use foreign exchange forward contracts to mitigate risk associated with our net investment in foreign currency denominated operations. These forward contracts are designated as net investment hedges. In December 2025, we entered into two foreign exchange forward contracts to mitigate risk associated with our foreign operations denominated in Euros. These forward contracts, one for three years and another for five 78 INSIGHT ENTERPRISES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) years , each have a notional value of $ 50,000,000 . These foreign currency forward contracts are carried at fair value. We use foreign exchange forward contracts to mitigate risk associated with certain non-functional currency assets and liabilities from fluctuations in foreign currency exchange rates. Our non-functional currency assets and liabilities are primarily related to foreign currency denominated payables, receivables, and cash balances. The foreign currency forward contracts, carried at fair value, typically have a maturity of one month or less. (14) 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 February 2025 and, accordingly, were no longer outstanding as of December 31, 2025 and are not included in our year‑end fair value disclosures. The fair market value of the Senior Notes as of December 31, 2025 is disclosed in Note 12. The estimated fair values of our earnout liabilities, that are based on revenue and/or EBITDA, are classified within Level 3 of the hierarchy as the fair values are derived using a Monte Carlo simulation analysis in a risk neutral framework, which uses a combination of observable (Level 2) and unobservable (Level 3) inputs. The following table provides a reconciliation of the ending balances of the earnout liabilities at fair value (in thousands): Earnout liabilities Estimated fair value at December 31 2023 $ 44,206 Change in estimated fair value ( 7,849 ) Earnout liabilities for newly acquired entities 28,480 Settlement of liability ( 16,338 ) Foreign currency translation adjustment ( 125 ) Estimated fair value at December 31, 2024 48,374 Change in estimated fair value 25,303 Earnout liabilities for newly acquired entities 49,336 Settlement of liability ( 42,834 ) Foreign currency translation adjustment 537 Estimated fair value at December 31, 2025 $ 80,716 The fair values of the other financial assets and liabilities are based on the values that would be received or paid in an orderly transaction between market participants and approximate their carrying values due to their nature and/or short duration. 79 INSIGHT ENTERPRISES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) (15) 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 participant’s 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. (16) Share Repurchase Program On December 19, 2025, we announced that our Board of Directors authorized the repurchase of up to $ 299,000,000 of our common stock, including any amount that remained from prior authorizations. As of December 31, 2025, approximately $ 299,000,000 remained available for repurchases under our share repurchase program. Our share repurchases may be made on the open market, subject to Rule 10b-18 or in privately negotiated transactions, through block trades, through 10b5-1 plans or otherwise, at management’s discretion. The number of shares purchased and the timing of the purchases will be based on market conditions, working capital requirements, general business conditions and other factors. We intend to retire the repurchased shares. The following table summarizes the shares of our common stock that we repurchased on the open market under our share repurchase program during the years ended December 31, 2025, 2024 and 2022, respectively, in thousands, except per share amounts: Year Total Number of Shares Purchased Average Price Paid per Share Approximate Dollar Value of Shares Purchased 2025 1,201 $ 125.86 $ 151,118 2024 1,023 195.61 200,000 2023 1,634 132.90 217,000 3,858 $ 568,118 All shares repurchased were retired. (17) 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. 80 INSIGHT ENTERPRISES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) 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 4 -year period, starting November 30, 2022 through November 29, 2026. If total purchases do not meet the required commitment by November 29, 2026, the Company can extend the term of the commitment through November 29, 2027. During this extended period, any credit balance will remain available for payment against the usage of the subscribed products. At December 31, 2025 we had a remaining purchase commitment of $ 13,071,000 that was paid in January 2026. The Company has recorded a contingent liability of approximately $ 28,714,000 , payable to a partner to settle various contractual commitments to resell a minimum amount of cloud services to clients. Employment Contracts and Severance Plans We have employment contracts with, and severance plans covering, certain officers and management teammates under which severance payments would become payable in the event of specified terminations without cause or terminations under certain circumstances after a change in control. In addition, vesting of outstanding nonvested RSUs would accelerate following a change in control. If severance payments under the current employment agreements or plan payments were to become payable, the severance payments would generally range from three to twenty-four months of salary. Indemnifications From time to time, in the ordinary course of business, we enter into contractual arrangements under which we agree to indemnify either our clients or third-party service providers from certain losses incurred relating to services performed on our behalf or for losses arising from defined events, which may include litigation or claims relating to past performance. These arrangements include, but are not limited to, the indemnification of our clients for certain claims arising out of our performance under our sales contracts, the indemnification of our landlords for certain claims arising from our use of leased facilities and the indemnification of the lenders that provide our credit facilities for certain claims arising from their extension of credit to us. Such indemnification obligations may not be subject to maximum loss clauses. Management believes that payments, if any, related to these indemnifications are not probable at December 31, 2025. Accordingly, we have not accrued any liabilities related to such indemnifications in our consolidated financial statements. We have entered into separate indemnification agreements with certain of our executive officers and with each of our directors. These agreements require us, among other requirements, to indemnify such officers and directors against expenses (including attorneys’ fees), judgments and settlements incurred by such individual in connection with any action arising out of such individual’s status or service as our executive officer or director (subject to exceptions such as where the individual failed to act in good faith or in a manner the individual reasonably believed to be in, or not opposed to, the best interests of the Company) and to advance expenses incurred by such individual with respect to which such individual may be entitled to indemnification by us. There are no pending legal proceedings that involve the indemnification of any of the Company’s directors or officers. Contingencies Related to Third-Party Review From time to time, we are subject to potential claims and assessments from third parties. We are also subject to various governmental, client and partner audits. We continually assess whether or not such claims have merit and warrant accrual. Where appropriate, we accrue estimates of anticipated liabilities in our consolidated financial statements. Such estimates are subject to change and may affect our results of operations and our cash flows. Legal Proceedings From time to time, we are party to various legal proceedings incidental to the business, including preference payment claims asserted in client bankruptcy proceedings, indemnification claims, claims of alleged infringement of patents, trademarks, copyrights and other intellectual property rights, employment claims, claims related to services provided, interruptions, or outages, claims of alleged non-compliance with contract provisions and claims related to alleged violations of laws and regulations. We regularly evaluate the status of the legal 81 INSIGHT ENTERPRISES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) proceedings in which we are involved to assess whether a loss is probable or there is a reasonable possibility that a loss, or an additional loss, may have been incurred and determine if accruals are required. If accruals are not required, we further evaluate each legal proceeding to assess whether an estimate of possible loss or range of possible loss can be made. Although litigation is inherently unpredictable, we believe that we have adequate provisions for any probable and estimable losses. It is possible, nevertheless, that our consolidated financial position, results of operations or liquidity could be materially and adversely affected in any particular period by the work required pursuant to any legal proceedings or the resolution of any legal proceedings during such period. Legal expenses related to defense of any legal proceeding or the negotiations, settlements, rulings and advice of outside legal counsel in connection with any legal proceedings are expensed as incurred. (18) Supplemental Financial Information Additions and deductions related to the allowance for doubtful accounts receivable for 2025, 2024 and 2023 were as follows (in thousands): Balance at Beginning of Year Additions Deductions Balance at End of Year Allowance for doubtful accounts receivable: Year ended December 31, 2025 $ 35,687 $ 12,927 $ ( 550 ) $ 48,064 Year ended December 31, 2024 $ 12,623 $ 25,504 $ ( 2,440 ) $ 35,687 Year ended December 31, 2023 $ 15,161 $ 6,879 $ ( 9,417 ) $ 12,623 (19) Cash Flows Cash payments for interest on indebtedness were as follows (in thousands): Years Ended December 31, 2025 2024 2023 Supplemental disclosures of cash flow information: Cash paid during the year for interest $ 70,036 $ 35,232 $ 28,292 82 INSIGHT ENTERPRISES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) Cash payments for taxes on income, including the impact of transferable tax credits purchased from third parties during the year, were as follows (in thousands): Years Ended December 31, 2025 2024 2023 US Federal Cash paid for transferable tax credits $ 23,138 $ 25,301 $ — Corporate income tax payments (refunds) ( 4,569 ) 42,168 53,211 Total US Federal 18,569 67,469 53,211 US state and local 10,311 12,461 19,170 Foreign Australia 5,604 5,339 * Canada 17,037 16,719 14,789 Other 22,549 16,152 17,325 Total Foreign 45,190 38,210 32,114 Total cash paid for taxes, net of refunds $ 74,070 $ 118,140 $ 104,495 * The amount of income taxes paid during the year does not meet the 5% disaggregation threshold. Beginning in 2025, the Company classifies cash payments made to third parties for the purchase of transferable tax credits as a component of total income taxes paid. Cash payments for income taxes in 2024 and 2023 have been updated to include cash payments made to third parties for the purchase of tax credits, as applicable. 83 INSIGHT ENTERPRISES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) (20) 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 recognition (Agent) 560,630 170,688 38,712 770,030 $ 6,654,537 $ 1,355,148 $ 237,495 $ 8,247,180 84 INSIGHT ENTERPRISES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) 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 $ 90,520 $ 6,044,666 Commercial 1,433,458 30,562 66,340 1,530,360 Public Sector 757,292 293,219 76,161 1,126,672 $ 7,054,580 $ 1,414,097 $ 233,021 $ 8,701,698 Revenue Recognition based on acting as Principal or Agent in the Transaction Gross revenue recognition (Principal) $ 6,480,667 $ 1,283,792 $ 191,727 $ 7,956,186 Net revenue recognition (Agent) 573,913 130,305 41,294 745,512 $ 7,054,580 $ 1,414,097 $ 233,021 $ 8,701,698 Year Ended December 31, 2023 North America EMEA APAC Consolidated Major Offerings Hardware $ 4,498,466 $ 546,621 $ 43,850 $ 5,088,937 Software 1,669,046 784,717 88,688 2,542,451 Services 1,214,842 232,316 97,294 1,544,452 $ 7,382,354 $ 1,563,654 $ 229,832 $ 9,175,840 Major Client Groups Large Enterprise / Corporate $ 5,210,365 $ 1,176,415 $ 94,982 $ 6,481,762 Commercial 1,418,680 22,103 70,879 1,511,662 Public Sector 753,309 365,136 63,971 1,182,416 $ 7,382,354 $ 1,563,654 $ 229,832 $ 9,175,840 Revenue Recognition based on acting as Principal or Agent in the Transaction Gross revenue recognition (Principal) $ 6,869,025 $ 1,447,082 $ 194,769 $ 8,510,876 Net revenue recognition (Agent) 513,329 116,572 35,063 664,964 $ 7,382,354 $ 1,563,654 $ 229,832 $ 9,175,840 The method for determining what information regarding operating segments, products and services, geographic areas of operation and major clients to report is based upon the “management approach,” or the way that management organizes the operating segments within a company, for which separate financial information is 85 INSIGHT ENTERPRISES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) evaluated regularly by the Chief Operating Decision Maker (“CODM”) in deciding how to allocate resources. Our CODM is our Chief Executive Officer, Joyce Mullen. All significant intercompany transactions are eliminated upon consolidation, and there are no differences between the accounting policies used to measure profit and loss for our segments or on a consolidated basis. Net sales are defined as net sales to external clients. None of our clients exceeded ten percent of consolidated net sales in 2025, 2024 or 2023. A portion of our operating segments’ selling and administrative expenses arise from shared services and infrastructure that we have historically provided to them in order to realize economies of scale and to use resources efficiently. These expenses, collectively identified as corporate charges, include senior management expenses, internal audit, legal, tax, insurance services, treasury and other corporate infrastructure expenses. Charges are allocated to our operating segments, and the allocations have been determined on a basis that we considered to be a reasonable reflection of the utilization of services provided to or benefits received by the operating segments. The following tables present our results of operations by reportable operating segment for the periods indicated (in thousands): Year Ended December 31, 2025 North America EMEA APAC Consolidated Net sales: 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 Total net sales 6,654,537 1,355,148 237,495 8,247,180 Costs of goods sold: Hardware 3,602,110 395,037 31,511 4,028,658 Software 1,183,165 520,575 83,925 1,787,665 Services 502,919 116,266 50,245 669,430 Total costs of goods sold 5,288,194 1,031,878 165,681 6,485,753 Gross profit 1,366,343 323,270 71,814 1,761,427 Operating expenses: Significant selling and administrative expenses 920,772 256,409 46,520 1,223,701 Stock-based compensation 26,987 5,247 1,504 33,738 Adjusted earnings from operations $ 418,584 $ 61,614 $ 23,790 $ 503,988 86 INSIGHT ENTERPRISES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) Year Ended December 31, 2024 North America EMEA APAC Consolidated Net sales: 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 Total net sales 7,054,580 1,414,097 233,021 8,701,698 Costs of goods sold: Hardware 3,514,630 423,475 30,648 3,968,753 Software 1,616,648 588,466 85,948 2,291,062 Services 521,308 108,968 45,591 675,867 Total costs of goods sold 5,652,586 1,120,909 162,187 6,935,682 Gross profit 1,401,994 293,188 70,834 1,766,016 Operating expenses: Significant selling and administrative expenses 953,601 231,026 45,046 1,229,673 Stock-based compensation 26,416 6,226 1,329 33,971 Adjusted earnings from operations $ 421,977 $ 55,936 $ 24,459 $ 502,372 Year Ended December 31, 2023 North America EMEA APAC Consolidated Net sales: Hardware $ 4,498,466 $ 546,621 $ 43,850 $ 5,088,937 Software 1,669,046 784,717 88,688 2,542,451 Services 1,214,842 232,316 97,294 1,544,452 Total net sales 7,382,354 1,563,654 229,832 9,175,840 Costs of goods sold: Hardware 3,950,853 477,245 38,613 4,466,711 Software 1,569,848 740,340 82,279 2,392,467 Services 515,698 86,082 45,357 647,137 Total costs of goods sold 6,036,399 1,303,667 166,249 7,506,315 Gross profit 1,345,955 259,987 63,583 1,669,525 Operating expenses: Significant selling and administrative expenses 899,527 206,860 42,060 1,148,447 Stock based compensation 22,069 5,557 1,325 28,951 Adjusted earnings from operations $ 424,359 $ 47,570 $ 20,198 $ 492,127 Our CODM uses Adjusted earnings from operations when assessing the performance of and deciding how to allocate resources to the operating segments. For example, Adjusted earnings from operations is a basis for executive variable compensation. Significant selling and administrative expenses primarily reflect personnel costs, including teammate benefits. Our CODM uses an Adjusted measure of earnings from operations which excludes amortization of intangible assets, severance and restructuring expenses, acquisition and integration related expenses and certain other expenses. These other expenses include transformation costs, costs 87 INSIGHT ENTERPRISES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) associated with third-party data center outages, net of recoveries, revaluation of earnout liabilities and other non-significant expenses. Our CODM uses comparisons of actual Adjusted earnings from operations against budgets, forecasts and prior periods as a basis for assessing current period segment performance as well as for determining necessary resources to assign, including for determining necessary investments or reductions in resources. The following table is a summary of our total assets by reportable operating segment (in thousands): December 31, 2025 2024 North America $ 7,018,025 $ 6,704,511 EMEA 2,528,292 1,484,341 APAC 412,016 190,678 Corporate assets and intercompany eliminations, net ( 870,961 ) ( 930,952 ) Total assets $ 9,087,372 $ 7,448,578 The following is a summary of our geographic net sales and long-lived assets, consisting of property and equipment, net (in thousands): United States United Kingdom Other Foreign Total 2025 Net sales $ 6,213,872 $ 683,028 $ 1,350,280 $ 8,247,180 Total long-lived assets $ 157,719 $ 16,556 $ 14,174 $ 188,449 2024 Net sales $ 6,607,418 $ 726,261 $ 1,368,019 $ 8,701,698 Total long-lived assets $ 188,819 $ 11,675 $ 15,184 $ 215,678 2023 Net sales $ 6,923,030 $ 709,078 $ 1,543,732 $ 9,175,840 Total long-lived assets $ 187,625 $ 4,748 $ 17,688 $ 210,061 Net sales by geographic area are presented by attributing net sales to external customers based on the domicile of the selling location. 88 INSIGHT ENTERPRISES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) We recorded the following pre-tax amounts, by reportable operating segment, for depreciation and amortization in the accompanying consolidated financial statements (in thousands): Years Ended December 31, 2025 2024 2023 Depreciation and amortization of property and equipment: North America $ 24,807 $ 24,587 $ 22,964 EMEA 4,207 3,461 2,838 APAC 538 508 443 29,552 28,556 26,245 Amortization of intangible assets: North America 69,124 62,377 32,514 EMEA 7,255 6,912 3,277 APAC 389 292 440 76,768 69,581 36,231 Total $ 106,320 $ 98,137 $ 62,476 (21) 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 AUD 122,500,000 , contingent upon Sekuro achieving certain EBITDA and net revenue performance targets through October 2027. The AUD 122,500,000 includes up to AUD 42,500,000 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 Insight’s 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 that will be amortized using the straight-line method over the estimated economic life of ten years . As these intangible assets are not tax deductible, we recognized a related deferred tax liability of approximately $ 6,429,000 . The preliminary purchase price was allocated using the information currently available. Further information obtained upon the finalization of the fair value assumptions for identifiable intangible assets acquired, and final assessments of various other assets and liabilities could lead to an adjustment of the purchase price allocation. Goodwill acquired approximated $ 75,740,000 , which was recorded in our APAC operating segment. None of the goodwill recognized is expected to be deductible for income tax purposes. We consolidated the results of operations for Sekuro within our APAC operating segment since its acquisition on October 31, 2025. Our historical results would not have been materially affected by the acquisition of Sekuro and, accordingly, we have not presented pro forma information as if the acquisition had been completed at the beginning of each period presented in our consolidated statement of operations. Inspire11 Effective October 1, 2025, we acquired 100 percent of the issued and outstanding equity of Inspire11 for a preliminary cash purchase price of approximately $ 209,689,000 , net of cash and cash equivalents acquired of $ 1,413,000 , which is comprised of the initial purchase price of $ 205,171,000 paid in cash upon the 89 INSIGHT ENTERPRISES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) acquisition, and a seller retention fund of $ 6,300,000 and other costs of $ 160,000 payable post-closing, partially offset by the contractual adjustments to the purchase price of $ 484,000 and settlement of pre-existing relationship of $ 45,000 . The total purchase price also includes the estimated fair value of earn out payments of approximately $ 37,790,000 , which provide an incentive opportunity for the sellers to earn up to $ 66,000,000 , contingent upon Inspire11 achieving certain EBITDA performance targets through September 2027. Inspire11 is an award-winning technology delivery firm with deep advisory, data, and Artificial Intelligence ("AI") expertise. We believe this acquisition strengthens our capabilities as a leading solutions integrator through the integration of proven AI delivery accelerators, deep data and analytics expertise, and a results-driven methodology to convert AI initiatives into tangible business value and transformative growth. The preliminary fair value of net assets acquired was approximately $ 59,140,000 , including approximately $ 50,800,000 of identifiable intangible assets, consisting primarily of customer relationships of $ 28,000,000 and non-compete agreements of $ 21,300,000 . The preliminary purchase price was allocated using the information currently available. Further information obtained upon the finalization of the fair value assumptions for identifiable intangible assets acquired and various accrued expense balance assessments, including tax related liabilities, could lead to an adjustment of the purchase price allocation. Goodwill acquired approximated $ 188,339,000 , which was recorded in our North America operating segment. Approximately 98 % of goodwill is deductible for income tax purposes. We consolidated the results of operations for Inspire11 within our North America operating segment since its acquisition on October 1, 2025. Our historical results would not have been materially affected by the acquisition of Inspire11 and, accordingly, we have not presented pro forma information as if the acquisition had been completed at the beginning of each period presented in our consolidated statement of operations. Infocenter Effective May 1, 2024, we acquired 100 percent of the issued and outstanding shares of Infocenter for a cash purchase price of $ 265,000,000 , net of cash and cash equivalents acquired of $ 5,103,000 , which is comprised of the initial purchase price of $ 269,477,000 paid in cash upon the acquisition and contractual adjustments to the purchase price of $ 626,000 paid in July 2024. The total purchase price of $ 289,200,000 also includes the estimated fair value of earn out payments of approximately $ 24,200,000 , which provide an incentive opportunity for the sellers of up to $ 106,250,000 , based on Infocenter achieving certain EBITDA performance through April 2026. Infocenter is a pure-play ServiceNow Elite Partner dedicated to automating business processes on the Now Platform®. We believe this acquisition enhances our Solutions Integrator offering framework to drive better business outcomes for our clients by enabling them to scale their multicloud environments with modern infrastructure, applications, and unified data and AI platforms. The fair value of net assets acquired was approximately $ 98,084,000 , including approximately $ 123,900,000 of identifiable intangible assets, consisting primarily of customer relationships that will be amortized using the straight-line method over the estimated economic life of ten years . As these intangible assets are not tax deductible, we recognized a related deferred tax liability of approximately $ 31,832,000 . We finalized the purchase price allocation in relation to this acquisition in the second quarter of 2025, with no material changes to our preliminary estimates. Goodwill acquired approximated $ 191,116,000 , which was recorded in our North America operating segment. None of the goodwill recognized is expected to be deductible for income tax purposes. We consolidated the results of operations for Infocenter within our North America operating segment since its acquisition on May 1, 2024. Our historical results would not have been materially affected by the acquisition of Infocenter and, accordingly, we have not presented pro forma information as if the acquisition had been completed at the beginning of each period presented in our consolidated statement of operations. We recognized net losses of $ 19,902,000 and $ 18,800,000 within selling and administrative expenses due to the net changes in the estimated fair value of the earnout payments for the years ended December 31, 2025 and 2024, respectively. On July 1, 2025, we paid approximately $ 39,602,000 for Infocenter's first earnout period. 90 INSIGHT ENTERPRISES, INC. Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure Not applicable.