Gross Profit

FY 2025

Expected to be in the low single digits "

Expected to be approximately flat compared to 2024 "

lowered

Gross Margin

FY 2025

Approximately 20% "

Approximately 20% "

no change

Adjusted Diluted EPS

FY 2025

Expected to be between $9.70 to $10.10 "

Expected to be between $9.7 to $10.1 "

no change

Interest Expense

FY 2025

Estimated to be between $70 million to $75 million "

Estimated to be between $75,000,000 to $80,000,000 "

raised

Effective Tax Rate

FY 2025

Expected to be 25% to 26% "

Projected to be 25% to 26% "

no change

Capital Expenditures

FY 2025

Projected to be $35 million to $40 million "

Expected to be $30,000,000 to $35,000,000 "

lowered

Average Share Count

FY 2025

Anticipated to be 32.9 million shares "

Anticipated to be 32,400,000 shares "

lowered

Hardware Growth and Performance

Previous periods discussed modest growth with Q1 2025 reporting 1% revenue growth driven by servers, storage, and devices " " " " , Q4 2024 noting a revenue decline despite improved gross profit and anticipation of a device refresh " " " " , and Q3 2024 highlighting a delayed hardware recovery and significant declines in enterprise segments. " " " "

In Q2 2025, hardware revenue grew 2% (second consecutive quarter), with improvements in gross profit and expectations for mid‐single digit growth driven by both devices and infrastructure, alongside an emphasis on installed base aging and Windows 10 end‐of‐life as catalysts. " " " "

Positive shift: From cautious and delayed recovery to consistent, modest growth with renewed optimism despite earlier challenges. " " " "

Cloud Performance and Partner Program Challenges

Earlier periods saw a mix: Q1 2025’s cloud performance had underlying SaaS/IaaS growth offset by a 3% decline in gross profit with challenges from partner program changes " " " ; Q4 2024 demonstrated strong cloud growth with a 21% increase in gross profit but noted significant headwinds from partner program adjustments " " " " ; Q3 2024 reported robust cloud performance with 33% gross profit growth but flagged anticipated moderation in Q4. " " " "

In Q2 2025, cloud gross profit declined 5% year-over-year primarily due to partner program changes, although underlying SaaS/IaaS growth remains strong and normalization is expected by Q4 2025. " " "

Mixed sentiment: While underlying growth persists, the recent quarter is more impacted by partner program headwinds, signaling a temporary slowdown amid expected normalization. " " " "

AI Adoption and Digital Transformation

Previous calls showed a strong focus: Q1 2025 stressed AI’s role in business process transformation with reallocation of budgets toward AI " " " " ; Q4 2024 emphasized generative AI readiness and infrastructure investments with notable client case studies " " " ; Q3 2024 focused on scalable AI solutions and digital transformation projects across industries. " "

Q2 2025 underscored an aggressive, companywide AI-first strategy with extensive internal AI adoption (hundreds of AI agents), over 200 client AI assessments, and full lifecycle AI services, supported by key partnerships with NVIDIA, Google, and Microsoft, driving both client and internal transformation. " " " "

Strengthening focus: An increased acceleration of AI initiatives and digital transformation internally and externally, building on earlier emphasis with greater scale and client impact. " " "

Margin and Expense Management

Prior periods reflected steady improvement and cost discipline: Q1 2025 noted an 80 basis point gross margin improvement and SG&A reductions " " " ; Q4 2024 recorded significant gross margin expansion and cost-saving integration actions despite higher SG&A due to acquisitions " " " " " ; Q3 2024 highlighted margin expansion driven by a better mix and planned cost reductions. " " " "

Q2 2025 reported a record gross margin of 21.1% (up 10 basis points YoY) and expanded adjusted EBITDA margin to 6.6%, with disciplined SG&A expense management (declined 3% YoY) despite a $70 million headwind from partner changes, with normalization expected by Q4 2025. " " " "

Continued improvement: Strong margin expansion and expense control persist, building on structural cost savings even while managing new external challenges. " " " "

Enterprise Demand and Large Enterprise Project Delays

Previous discussions depicted challenges: Q1 2025 highlighted weakened demand among large enterprise clients with project delays impacting core services " " " " " ; Q4 2024 detailed subdued demand from large enterprise and corporate clients with delayed device refresh cycles " " " " ; Q3 2024 reported delayed hardware recovery and extended project delays in enterprise segments. " " " " "

In Q2 2025, enterprise demand remains subdued with large enterprise clients showing cautious spending and delays in initiating new service projects, partly due to macroeconomic uncertainties and a shift toward preserving budgets for AI investments. " " " "

Continuing challenges: Enterprise demand challenges and project delays persist, with only modest expected improvements as clients remain cautious and reallocate budgets. " " " "

Tariff Uncertainty

Earlier periods had quantified minimal impacts: Q1 2025 reported minimal pull-in demand from tariffs with detailed scenario evaluations " " ; Q4 2024 involved comprehensive modeling and minimal anticipated elasticity impacts with current tariff levels " " ; Q3 2024 had no mention.

Q2 2025 mentioned tariff uncertainty as one of several macroeconomic factors affecting client spending, though without detailed quantitative impact, focusing on legislative policies and supply chain influences. " "

Steady outlook: Tariff uncertainty remains a consistent concern with similar minimal immediate impact, but continues to be monitored for any potential escalation. " " " "

Interest Expense and Debt Management

Previous periods indicated active debt management: Q1 2025 had manageable interest expense expectations and moderate debt increases with effective ABL facility usage " " ; Q4 2024 discussed settling convertible notes and reducing financing costs through ABL with modest headwinds " " ; Q3 2024 reported increased interest expense due to higher debt from acquisitions with ample liquidity available. " " "

In Q2 2025, the company expects full-year interest expense between $75M and $80M, has settled $333M of convertible notes in Q1, and maintains strong liquidity with access to nearly $1B from its $1.8B ABL facility, showing continued emphasis on debt management. " "

Managed risk: Despite slightly higher interest expense levels, active settlements and ample liquidity reflect continued sound debt management practices. " " " "

Public Sector Funding Risk

No discussion was present in Q1 2025, Q4 2024, or Q3 2024.

Q2 2025 introduced discussion on public sector funding risk, noting that while SLED (state/local and higher education) clients are less affected by federal funding issues, there is an overall funding slowdown impacting the segment. "

New topic: Public sector funding risk emerges as a new qualitative concern in Q2 2025, highlighting ongoing changes in government spending environments. "

Acquisition and Services Cross-Selling Opportunities

Earlier periods consistently highlighted acquisitions as drivers: Q1 2025 presented positive performance from past acquisitions and a focus on consulting methodologies and M&A to bolster cross-selling " " ; Q4 2024 emphasized acquisitions boosting Insight Core Services and revenue synergies driven by integration efforts " " " ; Q3 2024 noted successful cross-selling, with acquisitions like Amdaris and InfoCenter expanding services capabilities despite mixed performance from SADA. " " " "

In Q2 2025, recent acquisitions (over the last 18 months) are reported as performing extraordinarily well, with significant cross-selling opportunities evident as clients increasingly require multi-cloud solutions across platforms such as Microsoft, Google, AWS, and ServiceNow. "

Strengthening synergy: Acquisitions and cross-selling opportunities continue to be a strong growth driver, with integration efforts showing positive momentum and expanded multi-cloud service offerings. " " " "