Insight Enterprises, Inc.

Ladies and gentlemen, the Insight Enterprises Third Course 2025 operating results call will begin shortly with your host, Ryan Miasato. We appreciate your patience as we prepare your session today. During the call, we encourage participants to raise any questions they may have. You can raise a question by pressing star followed by one on your telephone keypad and to leave yourself up on the questioning, you star followed by two. As a reminder to raise a question, you'll be star followed by one. We will begin shortly. Good morning, all, and thank you for joining us for the Insight Enterprises Third Call to 2025 Operating Results Call. My name is Carly, and I'll be coordinating your call today. If you'd like to register a question during the call, you can do so by pressing star-folded by 1 on your telephone keypad. To move yourself online and questioning, it will be star-folded by 2. I'd now like to hand over to our host, Ryan Miyazato. Please go ahead.

Welcome, everyone, and thank you for joining the Insight Enterprises Earnings Conference Call. Today, we will be discussing the company's operating results for the quarter ended September 30, 2025. I'm Ryan Miyasato, Investor Relations Director of Insight, and joining me is Joyce Mullen, President and Chief Executive Officer, and James Morgado, Chief Financial Officer. If you do not have a copy of the earnings release or the accompanying slide presentation that was posted this morning and filed with the Securities and Exchange Commission on Form 8-K, you'll find it on our website at insight.com under the Investor Relations section. Today's call, including the question and answer period, is being webcast live and can also be accessed via the investor relations page of our website at insight.com. An archived copy of the conference call will be available approximately two hours after completion of the call and will remain on our website for a limited time. This conference call and the associated webcast contain time-sensitive information that is accurate only as of today, October 30, 2025. This call is the property of Insight Enterprises. Any redistribution, retransmission, or rebroadcast of this call in any form without the express written consent of Insight Enterprises is strictly prohibited. In today's conference call, we will be referring to non-GAAP financial measures as we discuss the third quarter 2025 financial results. When discussing non-GAAP measures, we will refer to them as adjusted. You will find a reconciliation of these adjusted measures to our actual GAAP results included in both the press release and the accompanying slide presentation issued earlier today. Please note that all growth comparisons we make on the call today relate to the corresponding period of last year, unless otherwise noted. Also, unless highlighted as constant currency, all amounts and growth rates discuss our newest dollar terms. As a reminder, all forward-looking statements that are made during this conference call are subject to risks and uncertainties that could cause our actual results to differ materially. These risks are discussed in today's press release and in greater detail in our most recently filed periodic reports and subsequent filings with the SEC. All forward-looking statements are made as of the date of this call and, except as required by law, we undertake no obligation to update any forward-looking statement made on this call, whether as a result of new information, future events, or otherwise. With that, I will now turn the call over to Joyce, and if you are following along with our slide presentation, we will begin on slide four. Joyce?

Thank you very much, Ryan. Good morning, everyone, and thank you for joining us today. In Q3, we grew adjusted earnings from operations in every geography and delivered 11% growth in adjusted diluted earnings per share, in line with our expectations. Commercial revenue was up for the sixth consecutive quarter and we delivered record gross margin. Additionally, cloud gross profit was above our expectations and we continued to manage our adjusted expenses well. These results were offset by lower than expected gross profit performance in core services and hardware. Specifically, in the quarter, Overall revenue was down 4%, driven by the netting impact of on-prem software migrating to cloud. Our influence with partners and clients continues to expand, which you can see on our balance sheet. Revenue from our commercial clients grew 5%, offset by a decline in corporate and large enterprise clients. The subdued demand from our large clients also impacted Insight core services revenue, which was down 3%. Macro and technology uncertainty continue to delay decision making and spending in this client group. However, we are encouraged by the strength of our services bookings in Q3. Hardware revenue grew 1% with growth in both infrastructure and devices. Cloud gross profit increased 7% and was ahead of our expectations, driven by double digit growth in SaaS and infrastructure as a service. This performance was partially offset by the partner program changes we've previously discussed. As we exit 2025, we believe this impact will be largely behind us. We expanded total growth margin again this quarter to a record 21.7%. And by prudently managing our adjusted expenses, we delivered adjusted earnings from operations growth and adjusted earnings per share growth of 11%. We are pleased with the structural improvements we are making to our services business and the performance of the services practices we have acquired over the past two years. Incorporating best practices from these acquisitions is the foundation of our services growth strategy that we've been working on for the past few quarters. First, over the past two quarters, we have added new leaders to our services business. Second, we have implemented a more disciplined and repeatable methodology. This framework simplifies our offers, increases delivery consistency and speed to outcome, and has already resulted in increased partner leads and bookings. Third, We are expanding our pipeline of cross-sell opportunities across our various practice areas. This reinforces our solutions integrator strategy and unlocks the potential from both new and existing customers. Most importantly, AI is top of mind for our clients. There is widespread interest in our solutions as our clients move out of experimentation mode and into projects to go after new use cases and value creation. Our strength in the hyperscaler platforms, security, data, and business consulting positions us well for this emerging market. We are investing in an aggressive approach to seize this market opportunity with dedicated selling resources and unique IP to accelerate time to value for our clients. We have made progress on our own internal AI transformation as well and plan on leveraging this to have Insight become our best reference case to utilize with our clients. We will introduce our Insight AI offerings in the next few weeks and will highlight specific AI capabilities, governance, training, and IP to help determine client ROI and prioritization, among other assets. Clients need help figuring this out, and we are the partner to do it. Services are critical to our strategy. We continue to invest in expanding our advisory, business transformation, data, and cybersecurity capabilities to deliver solutions our clients need. Earlier this month, we announced the acquisition of Inspire 11, a North America data and AI services consultancy recognized for its outcome-driven approach. An example of the capabilities Inspire 11 brings us is their work with Thompson Machinery, which delivers heavy equipment solutions to keep industries like construction, mining, and agriculture moving forward. Thompson Machinery partnered with Inspire 11 to transform how they manage their extensive rental fleet and make data a competitive asset. Together, they created Rentel, a predictive AI-powered platform that converts raw operational data into actionable intelligence. The platform optimizes fleet decisions by helping leaders quickly decide which equipment to buy, sell, or transfer, and provides real-time insight into utilization and financial performance. The platform also provides a financial value tied to each decision. What once required manual analysis now happens instantly, empowering better and faster decisions across the organization. As a result, Thompson Machinery is operating with greater agility, higher utilization, and stronger return on assets, turning a historically operational process into a driver of growth. The ability to offer AI enabled solutions across our portfolio is essential to delivering the outcomes our clients require. Importantly, Outcomes like these require modern infrastructure, an area where we have significant expertise and deep relationships with partners. As an example, GTT is a leading player in the global telecommunications and networking space and has one of the world's largest internet backbones. This client is in the middle of a paradigm shift with AI. We've been chosen as their partner in a strategic collaboration with NVIDIA to implement a comprehensive AI-powered architecture built on three core pillars. transforming the customer experience, accelerating new product innovation with AI-driven insights, and scaling employee productivity through generative and agentic AI. With our support in integrating a complex ecosystem of hardware, software, and services, GTT is rapidly moving from AI-enabled vision to production-ready value, creating a powerful competitive advantage. And since security is top of mind for all clients, we have expanded our security portfolio. Last week, we signed a definitive agreement to acquire Securo, a global provider of cybersecurity services for enterprise and government clients across the APAC region, with a strong presence in Australia. Securo was named CrowdStrike's APJ Partner of the Year and earned numerous prestigious cybersecurity accolades. Security remains a top priority for our clients, and we are excited to expand our capabilities, especially as clients adopt AI. Inspire 11 and Securo support our ambition to become the leading AI-first solutions integrator as they bolster our capabilities in designing, building, deploying, and managing solutions to support our clients' transformations, increase our pool of technical resources focused on security, data, and AI, and drive cross-sell opportunities in our broad global client base. Our partner ecosystem is fundamental to our success and a key enabler of our strategy. These collaborations not only enhance our capabilities across technology platforms and services, but also ensure we remain agile and responsive to evolving market demands. We've recently received a variety of industry and partner recognitions, including Gartner's 2025 Magic Quadrant for public cloud IT transformation services, as well as their emerging market quadrant for generative AI consulting and implementation services. Additionally, we were recognized as a major player in IDC's MarketScape's Worldwide Devices of Service 2025 vendor assessment and a premium business partner by Apple. Our teammates deliver the value we create for our clients. We foster a collaborative environment, and Insight continues to be recognized as a best employer by Forbes, Fortune, and Great Place to Work. This year has been marked by a mix of macro uncertainty and persistent delays in large enterprise spending across the industry. And as we have discussed, the hyperscaler program changes created substantial headwinds we've been mitigating this year. Our updated 2025 guidance reflects continued caution among our large clients. Corporate and enterprise customers continue to grapple with the investment decisions as they explore AI alternatives and deal with ongoing macro uncertainty. However, For 2026, while macroeconomic challenges persist, we believe we are positioned for growth. The hyperscaler program changes will be largely behind us. We anticipate the PC refresh cycle will continue into 2026. The improvements in our services businesses are expected to take hold and AI projects will begin to scale. We're well positioned to drive AI adoption through our broad partner base and technical capabilities. This begins with strong fundamentals policy, governance, security, training, use case prioritization, built through our client zero approach. Microsoft calls this being a frontier firm, and we're proud to be one. As we move to deliver faster time to value with ADI solutions that feature built-in automation, we expect to transform traditional time and material models into agile, outcome-driven approaches. I am proud of the capabilities we have built, and we are excited to change the game with our clients. With that, I'll turn the call over to James. James?