Total Revenue

–15.6% (from $884.79M to $747.50M)

Overall revenue declined sharply despite strong performance in one segment because weaknesses in other regions and segments (notably U.S. & Canada) dragged down total sales; this highlights a shift in demand and regional mix compared to Q2 2024. " "

Specialty Technology Solutions Revenue

+39% (from $520.65M to $723.28M)

Revenue in the Specialty Technology Solutions segment surged, indicating a robust recovery or enhanced market acceptance possibly due to new product offerings or stronger technology spending compared to Q2 2024; this contrasts markedly with the overall revenue decline. " " "

U.S. and Canada Revenue

–13.4% (from $797.58M to $689.88M)

Sales in the U.S. and Canada fell substantially, reflecting ongoing soft demand and possibly increased competition in these regions relative to the previous period; this decline is a key factor in the overall revenue contraction. " "

Operating Income

–31% (from $26,827K to $18,444K)

Operating income dropped significantly due to pressured margins from declining sales and potentially rising costs, which offset the gains from improved recurring revenue mix seen in other segments compared to Q2 2024; this indicates operational challenges ahead. " "

Net Income

–48% (from $32,726K to $17,054K)

Net income contracted sharply as the dramatic decline reflects both the reduced operating performance and likely higher expenses or restructuring costs, outweighing the gains in certain areas such as Specialty Technology Solutions; this marks a significant setback relative to Q2 2024. " "

Net Sales

FY 2025

Between $3.1 billion and $3.5 billion "

Expected to range between $3.1 billion and $3.5 billion "

no change

Adjusted EBITDA

FY 2025

Ranging between $140 million and $160 million "

Expected to range between $140 million and $160 million "

no change

Free Cash Flow

FY 2025

At least $70 million "

Expected to be at least $70 million "

no change

Intelisys Business Performance and Transformation

Transformation initiatives were repeatedly emphasized in Q1, Q4, and Q3 through leadership changes, recurring revenue growth, and strategic shifts toward a hybrid model ( " " " " " ).

Q2 2025 described performance as essentially flat year-over-year while introducing a new leadership appointment and the Channel Exchange platform to recruit new suppliers and implement a refined partner segmentation strategy ( " " ).

Consistent focus on transforming the Intelisys business with new initiatives and leadership, though growth remains challenged.

Demand and Forecasting Uncertainty

Previous periods (Q1, Q3, Q4) highlighted a soft demand environment, election-related uncertainty, and difficulties forecasting due to supply chain and backlog issues ( " " " " " ).

Q2 2025 mentions a persistent soft demand environment with challenges in large deals and FX headwinds affecting the Brazil business, continuing the difficulties in forecasting top‐line revenue ( " " " " ).

Persistent uncertainty and soft demand remain, with similar external factors continuing to weigh on forecasting.

Strategic Acquisitions and M&A Initiatives

In Q1, Q3, and Q4, the strategy centered on acquiring high-margin, recurring revenue assets (e.g. Resourcive and Advantix) and building a disciplined, holistic channel model ( " " " " " " ).

Q2 2025 emphasized an active pipeline of acquisition targets with a disciplined approach and balancing share repurchases to support the broader hybrid distribution strategy ( " " ).

A steady, disciplined approach to M&A continues, with acquisitions playing a key role in the long-term hybrid model.

Technology Innovation and Product Diversification

Earlier periods (Q1, Q3, Q4) detailed a hybrid distribution strategy enhanced by investments in AI, cybersecurity, and emerging digital tools, along with acquisitions to broaden the technology stack ( " " " " ).

Q2 2025 continues to stress next-gen technology solutions (including CX, cybersecurity, and AI) and introduces the Channel Exchange platform as part of its product diversification efforts ( " " ).

Consistent focus on innovation and diversification with a notable new digital platform integration to boost recurring revenue.

Cost Management and Operational Efficiency

Across Q1, Q3, and Q4, there was an emphasis on SG&A adjustments, improved working capital efficiency, and strong free cash flow generation to support operational improvements ( " " " ).

In Q2 2025, the company reported strong gross profit margins, effective working capital management, and disciplined capital allocation with share repurchases, even with a challenging demand environment ( " ).

Continued focus on cost efficiency and disciplined capital management, maintaining operational rigor amid external challenges.

Macroeconomic and External Risk Factors

Previous calls (especially Q1, Q3, and Q4) discussed election uncertainty, general soft demand, FX impacts, and broader macroeconomic instability affecting forecasting ( " " " " " ).

Q2 2025 briefly mentioned a soft demand environment and specific FX headwinds in Brazil, with less detailed discussion of external risks ( " " ).

Similar external risk factors persist though less elaborated upon in the current period.

Pricing Pressure in UCaaS/CCaaS Segments

In Q3 2024, there was explicit mention of significant pricing pressure on seat prices in UCaaS/CCaaS; Q1 referenced the competitive environment with minimal focus on pricing ( " " " ).

Q2 2025 did not provide any specific discussion of pricing pressure in UCaaS/CCaaS segments.

Previously noted pricing pressures are no longer mentioned in the current period.

Hardware and Networking Demand Challenges

Previous periods (Q1, Q3, Q4) noted soft hardware demand, significant declines in networking revenues, and challenges in forecasting due to lack of backlog and prolonged soft demand ( " " " " " ).

Q2 2025 continues to cite a soft demand environment with difficulties in large deals and forecasting challenges due to hardware’s daily shipment model, reinforcing ongoing challenges in these segments ( " " " ).

Persistent challenges remain with hardware and networking demand, with a particular emphasis on the impact of large deal declines.

Enhanced Channel and Partner Strategies

Q1, Q3, and Q4 consistently discussed the hybrid distribution strategy, partner segmentation, and efforts (including agency channel expansion and new leadership) to empower channel partners ( " " " " " ).

Q2 2025 reinforces the hybrid distribution strategy through the introduction of the Channel Exchange platform, refined partner segmentation, and continued focus on enabling channel partners to broaden their offerings ( " " " ).

An evolving channel strategy remains on target with digital enhancements, underlining a continuous commitment to partner enablement.