Insight Enterprises, Inc. has reported its financial results for the first quarter of 2025, revealing several key changes compared to the same period in 2024. The company's gross profit decreased by 8% year over year to $406.5 million, despite a gross margin expansion of 80 basis points to 19.3%. Cloud gross profit decreased by 3% year over year, while Insight Core Services gross profit decreased by 4% year over year.
Consolidated net earnings decreased significantly by 89% year over year to $7.5 million. Adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) also decreased by 16% to $111.3 million year over year. Diluted earnings per share saw a decline of 87% year over year to $0.22, while adjusted diluted earnings per share decreased by 13% year over year to $2.06.
The company's net sales for the first quarter of 2025 totaled $2.1 billion, marking a 12% decrease compared to the first quarter of 2024. Product net sales decreased by 13% year over year, with software product net sales down by 32% year over year, and hardware product net sales increasing by 1% year over year. Services net sales also decreased by 5% year over year.
In North America, net sales decreased by 11% year over year to $1.7 billion, with product net sales down by 12% year over year and services net sales down by 7% year over year. Net sales in EMEA decreased by 17% year over year, and net sales in APAC decreased by 3% year over year.
The company's gross profit decreased by 8% compared to the first quarter of 2024 to $406.5 million, with consolidated gross margin expanding by 80 basis points to 19.3% of net sales. By segment, gross profit decreased by 9% in North America, 4% in EMEA, and 6% in APAC year over year.
Earnings from operations saw a significant decrease of 40% compared to the first quarter of 2024 to $60.1 million, or 2.9% of net sales. Adjusted earnings from operations also decreased by 16% year over year to $102.4 million, or 4.9% of net sales.
Looking ahead, Insight Enterprises, Inc. expects adjusted diluted earnings per share for the full year 2025 to be between $9.70 and $10.10. The company anticipates gross profit growth in the low single-digits and expects its gross margin to remain approximately at 20%.
The company will host a conference call and live webcast to discuss these results and its outlook for the future.
Following these announcements, the company's shares moved -2.8%, and are now trading at a price of $134.46. For more information, read the company's full 8-K submission here.
