Ingram Micro Reports Q3 2025 Financial Results with Net Sales Up 7.2%, Delivering Fourth Consecutive Quarter of Net Sales Growth

IRVINE, Calif.--( BUSINESS WIRE)--Ingram Micro Holding Corporation (NYSE: INGM) (“Ingram Micro” or the “Company”) today reported fiscal third quarter results for the period ended September 27, 2025. The Company reported fiscal third quarter net sales of $12.6 billion, net income on a GAAP basis of $99.5 million, or $0.42 per share, and non-GAAP net income of $168.7 million, or $0.72 per share. (1)

“Ingram Micro had a strong third quarter and we enter the fourth quarter with confidence. We grew across our geographies and are encouraged by the momentum of our Xvantage digital experience platform,” said Paul Bay, Ingram Micro’s Chief Executive Officer. “In the third quarter, the opportunity around AI accelerated. As we have done in past technology transformations, we are empowering customers to capitalize on this massive opportunity by offering a unified platform to buy integrated hardware, software, cloud, and services. We are uniquely positioned to empower our customers in the AI era through our proprietary Xvantage platform and customer-facing AI Enable program.”

“Third quarter performance was strong across all key metrics through solid execution and disciplined expense management,” said Mike Zilis, Ingram Micro’s Chief Financial Officer. “Our ability to navigate an evolving macro environment and cyclical changes in product mix, while continuing to invest in our Xvantage platform and key areas of strategic growth, demonstrates the strength and agility of our operating model. As we look to Q4, we expect to continue our trend of year-over-year net sales growth, as we remain focused on capturing additional market opportunities.”

Consolidated Fiscal Third Quarter 2025 Results (1)

Thirteen Weeks Ended

September 27, 2025

Thirteen Weeks Ended

September 28, 2024

2025 vs. 2024

($ in thousands, except per share data)

Amount

% of Net

Sales

Amount

% of Net

Sales

Net sales

12,603,755

11,762,628

841,127

Gross profit

869,647

6.90

845,492

7.19

24,155

Income from operations

223,513

1.77

218,174

1.85

5,339

Net income

99,457

0.79

76,969

0.65

22,488

Adjusted Income from Operations

257,864

2.05

253,949

2.16

3,915

Adjusted EBITDA

342,218

2.72

331,574

2.82

10,644

Non-GAAP Net Income

168,749

1.34

159,162

1.35

9,587

EPS:

Basic

0.42

0.35

Diluted

0.42

0.35

Non-GAAP EPS:

Basic

0.72

Diluted

0.72

Consolidated Fiscal Third Quarter 2025 Financial Highlights

Regional Fiscal Third Quarter 2025 Financial Highlights

North America

Net sales were $4.4 billion, compared to $4.3 billion in the prior fiscal third quarter. The 3.3% year-over-year increase in North American net sales was primarily driven by an increase in net sales of notebooks/desktops and servers, partially offset by declines in virtualization and certain specialty products such as UCC and digital signage.

Income from operations was $79.1 million, compared to $83.3 million in the prior fiscal third quarter. North American income from operations includes the impact of a loss of $5.5 million related to the sale of two non-core businesses noted above.

Income from operations margin was 1.79%, compared to 1.95% in the prior fiscal third quarter, which includes an impact of 12 basis points from the loss on sale of non-core businesses noted above. These results for the region are also reflective of lower gross margins on sales mix, mostly offset by a decline in compensation and headcount expenses, resulting from restructuring, automation, and optimization initiatives taken in the prior year.

EMEA

Net sales were $3.7 billion, an increase of 5.5% compared to the prior fiscal third quarter. The translation impact of foreign currencies relative to the U.S. dollar had a positive impact of 5% on the year-over-year net sales comparison. The year-over-year U.S. dollar increase in EMEA net sales was primarily a result of growth in client and endpoint solutions, led by strength in notebooks/desktops, in addition to strong growth in Other services and cloud-based solutions. These factors were partially offset by a decline in advanced solutions.

Income from operations was $62.0 million, compared to $66.9 million in the prior fiscal third quarter.

Income from operations margin was 1.69%, compared to 1.93% in the prior fiscal third quarter. The year-over-year decrease in income from operations margin was primarily due to the shift in sales mix more towards lower margin, lower cost-to-serve product sets.

Asia-Pacific

Net sales were $3.5 billion, compared to $3.2 billion in the prior fiscal third quarter. The 12.5% increase in Asia-Pacific net sales was driven by growth in client and endpoint solutions, led by components, tablets, desktops, accessories, and smartphones. The region also saw growth in advanced solutions offerings, led by storage and networking, and Cloud-based solutions. These factors were partially offset by a decline in net sales of Other services. The translation impact of foreign currencies relative to the U.S. dollar had a negative impact of 2% on the year-over-year net sales comparison.

Income from operations was $67.5 million, compared to $58.2 million in the prior fiscal third quarter.

Income from operations margin was 1.90%, compared to 1.84% in the prior fiscal third quarter. The year-over-year increase in income from operations margin was primarily the result of lower expenses as a percentage of net sales, partially offset by the impact on gross margin from sales mix factors described above.

Latin America

Net sales were $1.0 billion, compared to $0.9 billion in the prior fiscal third quarter. The 13.0% increase in Latin American net sales was primarily driven by growth in client and endpoint solutions, led by notebooks, smartphones, and tablets, along with healthy growth in Cloud-based solutions net sales. These results were partially offset by a decline in net sales of Other services. The translation impact of foreign currencies relative to the U.S. dollar had a positive impact of 1% on the year-over-year net sales comparison.

Income from operations was $31.0 million, compared to $27.7 million in the prior fiscal third quarter.

Income from operations margin was 3.21%, compared to 3.25% in the prior fiscal third quarter.

Fiscal Fourth Quarter 2025 Outlook

The following outlook is forward-looking, based on the Company’s current expectations for the fiscal fourth quarter 2025, and actual results may differ materially from what is indicated. We provide EPS guidance on a non-GAAP basis because certain information necessary to reconcile such guidance to GAAP is difficult to estimate and dependent on future events outside of our control. (1)

Thirteen Weeks Ended December 27, 2025

($ in millions, except per share data)

Low

High

Net sales

14,000

14,350

Gross profit

935

990

Non-GAAP Diluted EPS

0.85

0.95

Our fiscal fourth quarter 2025 guidance assumes an effective tax rate of approximately 33% on a non-GAAP basis and 235.9 million diluted shares outstanding.

Dividend Increase and Payment

The Company’s board of directors has declared a cash dividend of $0.08 per share of the Company’s common stock, representing a 2.6% increase from the prior quarterly dividend of $0.078 per share. The dividend is payable on November 24, 2025, to stockholders of record as of November 10, 2025.

Fiscal Third Quarter 2025 Earnings Call Details:

Ingram Micro’s management will host a call to discuss its results on Thursday, October 30, 2025 at 2:00 p.m. Pacific time (5:00 p.m. Eastern time).

A live webcast of the conference call will be accessible from the Ingram Micro investor relations website at https://ir.ingrammicro.com. The call can also be accessed at 877-407-9781 or 201-689-8796.

A telephonic replay will be available through December 31, 2025, at 877-660-6853 or 201-612-7415. A replay of the webcast will also be available at https://ir.ingrammicro.com.

About Ingram Micro

Ingram Micro (NYSE: INGM) is a leading technology company for the global information technology ecosystem. With the ability to reach nearly 90% of the global population, we play a vital role in the worldwide IT sales channel, bringing products and services from technology manufacturers and cloud providers to a highly diversified base of business-to-business technology experts. Through Ingram Micro Xvantage™, our AI-powered digital platform, we offer what we believe to be the industry’s first comprehensive business-to-consumer-like experience, integrating hardware and cloud subscriptions, personalized recommendations, instant pricing, order tracking, and billing automation. We also provide a broad range of technology services, including financing, specialized marketing, and lifecycle management, as well as technical pre- and post-sales professional support. Learn more at www.ingrammicro.com.

(1) Use of Non-GAAP Financial Measures

In addition to presenting financial results that have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”), we have included in this release some or all of the following non-GAAP financial measures—adjusted income from operations, EBITDA, adjusted EBITDA, return on invested capital (“ROIC”), adjusted ROIC, non-GAAP net income, adjusted free cash flow, and non-GAAP EPS—which are financial measures that are not required by, or presented in accordance with GAAP. We believe that these non-GAAP financial measures are useful in evaluating our business and the underlying trends that are affecting our performance. These non-GAAP measures are primary indicators that our management uses internally to conduct and measure its business and evaluate the performance of its consolidated operations, ongoing results, and trends. Our management believes these non-GAAP financial measures are useful as they provide meaningful comparisons to prior periods and an alternate view of the impact of acquired businesses. These non-GAAP financial measures reflect an additional way of viewing aspects of our operations that, when viewed with our GAAP results and the accompanying reconciliations to corresponding GAAP financial measures, provide a more complete understanding of factors and trends affecting our business. A material limitation associated with these non-GAAP measures as compared to the GAAP measures is that they may not be comparable to other companies with similarly titled items that present related measures differently. The non-GAAP measures should be considered as a supplement to, and not as a substitute for or superior to, the corresponding measures calculated in accordance with GAAP. See “Schedule A: Reconciliation of Non-GAAP Financial Measures” in the “Supplemental Information” section further below for reconciliations of non-GAAP financial measures to the most directly comparable financial measure stated in accordance with GAAP.

Safe Harbor Statement

This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. You can identify forward-looking statements because they contain words such as “believes,” “expects,” “may,” “will,” “should,” “seeks,” “intends,” “plans,” “estimates,” or “anticipates,” or similar expressions which concern our strategy, plans, projections or intentions. These forward-looking statements are included throughout this release and relate to matters such as our industry, growth strategy, goals and expectations concerning our market position, future operations, margins, profitability, capital expenditures, liquidity and capital resources, and other financial and operating information. By their nature, forward-looking statements: speak only as of the date they are made; are not statements of historical fact or guarantees of future performance; and are subject to risks, uncertainties, assumptions or changes in circumstances that are difficult to predict or quantify. Our expectations, beliefs, and projections are expressed in good faith, and we believe there is a reasonable basis for them. However, there can be no assurance that management’s expectations, beliefs, and projections will result or be achieved, and actual results may vary materially from what is expressed in or indicated by the forward-looking statements. Certain important factors that involve risks and uncertainties and that could cause actual results to differ, possibly materially, from our expectations, beliefs, and projections reflected in such forward-looking statements can be found in the “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” sections included in the Company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. We undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by any applicable securities laws. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made.

There are a number of risks, uncertainties, and other important factors that could cause our actual results to differ materially from the forward-looking statements contained in this release. Such risks, uncertainties, and other important factors include, among others, the risks, uncertainties, and factors included within the filings we make with the SEC from time to time and the following: general economic conditions; our estimates of the size of the markets for our products and services; our ability to identify and integrate acquisitions and technologies into our platform; our plans to continue to expand; our ability to continue to successfully develop and deploy Ingram Micro Xvantage™; our ability to retain and recruit key personnel; the competition our products and services face and our ability to adapt to industry changes and market conditions, including inflation, market volatility, and supply constraints for many categories of technology; current and potential litigation involving us; the global nature of our business, including the various laws and regulations applicable to us now or in the future; the effect of various political, geopolitical, and macroeconomic issues and developments, including changes in tariffs or global trade policies and the related uncertainties associated with such developments, import/export and licensing restrictions, and our ability to comply with laws and regulations we are subject to, both in the United States and internationally; our financing efforts; our relationships with our customers, original equipment manufacturers, and suppliers; our ability to maintain and protect our intellectual property; the performance and security of our services, including information processing and cybersecurity provided by third parties; our ownership structure; our dependence upon Ingram Micro Inc. and its controlled subsidiaries for our results of operations, cash flows, and distributions; and our status as a “controlled company” and the extent to which the interests of Platinum Equity, LLC together with its affiliated investment vehicles (“Platinum”) conflict with our interests or the interests of our stockholders.

Ingram Micro, Xvantage, and associated logos are trademarks of Ingram Micro Inc. (an indirect subsidiary of Ingram Micro Holding Corporation) or its licensors.

Results of Operations

INGRAM MICRO HOLDING CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts in thousands, except par value and share data)

(Unaudited)

September 27,

2025

December 28,

2024

ASSETS

Current assets:

Cash and cash equivalents

802,630

918,401

Trade accounts receivable (less allowances of $162,424 and $146,999, respectively)

9,194,911

9,448,354

Inventory

5,366,309

4,699,483

Other current assets

856,533

734,939

Total current assets

16,220,383

15,801,177

Property and equipment, net

524,464

482,503

Operating lease right-of-use assets

412,682

412,662

Goodwill

852,312

833,662

Intangible assets, net

729,292

772,571

Other assets

484,780

477,115

Total assets

19,223,913

18,779,690

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Accounts payable

9,611,319

10,005,824

Accrued expenses and other

1,033,845

1,021,958

Short-term debt and current maturities of long-term debt

735,725

184,860

Short-term operating lease liabilities

96,427

93,889

Total current liabilities

11,477,316

11,306,531

Long-term debt, less current maturities

3,059,612

3,168,280

Long-term operating lease liabilities, net of current portion

380,147

369,493

Other liabilities

204,463

201,511

Total liabilities

15,121,538

15,045,815

Commitments and contingencies

Stockholders’ equity:

Common Stock, par value $0.01, 2,000,000,000 shares authorized at September 27, 2025 and December 28, 2024, and 234,843,994 and 234,825,581 shares issued and outstanding at September 27, 2025 and December 28, 2024, respectively

2,348

Additional paid-in capital

2,918,949

2,903,842

Retained earnings

1,484,725

1,337,399

Accumulated other comprehensive loss

(303,647

)

(509,714

)

Total stockholders’ equity

4,102,375

3,733,875

Total liabilities and stockholders’ equity

19,223,913

18,779,690

INGRAM MICRO HOLDING CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Amounts in thousands, except per share data)

(Unaudited)

Thirteen Weeks Ended

Thirty-Nine Weeks Ended

September

27, 2025

September

28, 2024

September

27, 2025

September

28, 2024

Net sales

12,603,755

11,762,628

37,678,554

34,639,001

Cost of sales

11,734,108

10,917,136

35,140,986

32,130,141

Gross profit

869,647

845,492

2,537,568

2,508,860

Operating expenses:

Selling, general and administrative

642,595

627,825

1,964,882

1,917,419

Restructuring costs

3,539

(507

)

5,493

22,018

Total operating expenses

646,134

627,318

1,970,375

1,939,437

Income from operations

223,513

218,174

567,193

569,423

Other (income) expense:

Interest income

(12,910

)

(11,791

)

(36,793

)

(32,156

)

Interest expense

81,720

86,254

229,493

257,790

Net foreign currency exchange (gain) loss

(10,207

)

10,675

34,121

29,938

Other

14,381

13,813

29,555

34,784

Total other (income) expense

72,984

98,951

256,376

290,356

Income before income taxes

150,529

119,223

310,817

279,067

Provision for income taxes

51,072

42,254

104,345

97,961

Net income

99,457

76,969

206,472

181,106

Basic earnings per share

0.42

0.35

0.88

0.81

Diluted earnings per share

0.42

0.35

0.88

0.81

INGRAM MICRO HOLDING CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Amounts in thousands)

(Unaudited)

Thirteen Weeks Ended

Thirty-Nine Weeks Ended

September

27, 2025

September

28, 2024

September

27, 2025

September

28, 2024

Cash flows from operating activities:

Net income

99,457

76,969

206,472

181,106

Adjustments to reconcile net income to cash (used in) provided by operating activities:

Depreciation and amortization

48,032

48,441

146,013

140,902

Stock-based compensation

6,018

—

15,107

—

Noncash charges for interest and bond discount amortization

4,738

6,529

14,090

21,607

Amortization of lease right-of-use asset

30,466

32,213

92,531

96,780

Deferred income taxes

8,872

(16,000

)

(17,982

)

(36,493

)

(Gain) loss on foreign exchange

(4,730

)

(13,269

)

40,763

(5,106

)

Loss on sale of subsidiaries

5,491

—

38,248

—

Other

(6,770

)

(3,721

)

(11,666

)

(10,524

)

Changes in operating assets and liabilities, net of effects of acquisitions:

Trade accounts receivable

(175,338

)

(709,810

)

287,900

(109,758

)

Inventory

110,566

(123,280

)

(513,322

)

(286,770

)

Other assets

57,193

(20,409

)

(130,194

)

(85,682

)

Accounts payable

(387,209

)

502,338

(519,813

)

245,182

Change in book overdrafts

11,507

(55,083

)

(172,553

)

37,110

Operating lease liabilities

14,063

(32,035

)

(73,576

)

(94,555

)

Accrued expenses and other

31,606

30,077

(46,446

)

(69,921

)

Cash (used in) provided by operating activities

(146,038

)

(277,040

)

(644,428

)

23,878

Cash flows from investing activities:

Capital expenditures

(28,968

)

(37,955

)

(93,929

)

(106,643

)

Proceeds from deferred purchase price of factored receivables

65,062

60,362

206,507

188,877

Issuance of notes receivable

—

(5,318

)

(12,501

)

(48,692

)

Proceeds from notes receivable

10,662

7,868

31,172

29,465

Proceeds from the sale of subsidiaries

17,500

—

17,500

—

Proceeds from sale of equity investments

—

4,342

20,805

12,012

Other

1,883

642

13,303

1,989

Cash provided by investing activities

66,139

29,941

182,857

77,008

Cash flows from financing activities:

Dividends paid to stockholders

(18,318

)

—

(59,146

)

(6,174

)

Change in unremitted cash collections from servicing factored receivables

1,118

(6,982

)

(2,469

)

(15,612

)

Repayment of Term Loans

—

(100,000

)

(125,000

)

(250,000

)

Gross proceeds from other debt

36,896

47,306

66,716

89,132

Gross repayments of other debt

(47,123

)

(55,169

)

(79,697

)

(105,002

)

Net proceeds from revolving and other credit facilities

76,336

299,535

528,497

162,617

Purchase of Colsof shares

—

(21,846

)

—

(21,846

)

Other

(6,250

)

(10,605

)

(13,269

)

(11,539

)

Cash provided by (used in) financing activities

42,659

152,239

315,632

(158,424

)

Effect of exchange rate changes on cash and cash equivalents

(16,798

)

15,570

30,168

(41,480

)

Decrease in cash and cash equivalents

(54,038

)

(79,290

)

(115,771

)

(99,018

)

Cash and cash equivalents at beginning of period

856,668

928,762

918,401

948,490

Cash and cash equivalents at end of period

802,630

849,472

802,630

849,472

Supplemental disclosure of non-cash investing information:

Amounts obtained as a beneficial interest in exchange for transferring trade receivables in factoring arrangements

70,682

60,879

199,643

185,688

Supplemental Information

SCHEDULE A: RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (unaudited)

In addition to its reported results calculated in accordance with U.S. GAAP, the Company has included in this release adjusted income from operations, adjusted EBITDA, return on invested capital (“ROIC”), adjusted ROIC, non-GAAP net income, adjusted free cash flow, and non-GAAP EPS, which are defined as follows:

The following is a reconciliation of income from operations to adjusted income from operations:

($ in thousands)

Thirteen Weeks

Ended

September 27,

2025

Thirteen Weeks

Ended

September 28,

2024

Thirty-Nine Weeks

Ended

September 27,

2025

Thirty-Nine Weeks

Ended

September 28,

2024

Income from operations

223,513

218,174

567,193

569,423

Amortization of intangibles

19,734

21,771

63,031

65,265

Restructuring costs

3,539

(507

)

5,493

22,018

Integration and transition costs

11,078

8,261

52,257

18,968

Advisory fee

—

6,250

—

18,750

Adjusted Income from Operations

257,864

253,949

687,974

694,424

The following is a reconciliation of net income to adjusted EBITDA:

($ in thousands)

Thirteen Weeks

Ended

September 27,

2025

Thirteen Weeks

Ended

September 28,

2024

Thirty-Nine Weeks

Ended

September 27,

2025

Thirty-Nine Weeks

Ended

September 28,

2024

Net income

99,457

76,969

206,472

181,106

Interest income

(12,910

)

(11,791

)

(36,793

)

(32,156

)

Interest expense

81,720

86,254

229,493

257,790

Provision for income taxes

51,072

42,254

104,345

97,961

Depreciation and amortization

48,032

48,441

146,013

140,902

EBITDA

267,371

242,127

649,530

645,603

Restructuring costs

3,539

(507

)

5,493

22,018

Net foreign currency exchange (gain) loss

(10,207

)

10,675

34,121

29,938

Integration, transition and operational improvement costs

51,458

45,951

168,340

111,474

Advisory fee

—

6,250

—

18,750

Cash-based compensation expense

3,925

6,087

13,893

18,332

Stock-based compensation expense

6,018

—

15,107

—

Other

20,114

20,991

40,474

54,458

Adjusted EBITDA

342,218

331,574

926,958

900,573

The following is a reconciliation of net income to ROIC:

($ in thousands)

Thirteen Weeks

Ended

September 27,

2025

Thirteen Weeks

Ended

September 28,

2024

Thirty-Nine Weeks

Ended

September 27,

2025

Thirty-Nine Weeks

Ended

September 28,

2024

Net income

99,457

76,969

206,472

181,106

Stockholders' equity

4,102,375

3,613,905

4,102,375

3,613,905

Long-term debt

3,059,612

3,344,033

3,059,612

3,344,033

Short-term debt and current maturities of long-term debt

735,725

494,418

735,725

494,418

Cash and cash equivalents

(802,630

)

(849,472

)

(802,630

)

(849,472

)

Invested capital

7,095,082

6,602,884

7,095,082

6,602,884

Return on Invested Capital

5.6

4.7

3.9

3.7

Period in weeks for non-52 week periods

Number of weeks

The following is a reconciliation of net income to adjusted ROIC:

($ in thousands)

Thirteen Weeks

Ended

September 27,

2025

Thirteen Weeks

Ended

September 28,

2024

Thirty-Nine Weeks

Ended

September 27,

2025

Thirty-Nine Weeks

Ended

September 28,

2024

Net income

99,457

76,969

206,472

181,106

Pre-tax adjustments:

Other (income) expense

72,984

98,951

256,376

290,356

Amortization of intangibles

19,734

21,771

63,031

65,265

Restructuring costs

3,539

(507

)

5,493

22,018

Integration and transition costs

11,078

8,261

52,257

18,968

Advisory fee

—

6,250

—

18,750

Tax adjustments:

Tax impact of pre-tax adjustments (a)

(27,078

)

(27,182

)

(94,139

)

(89,238

)

Other discrete items (b)

(932

)

870

(1,029

)

(296

)

Adjusted net income

178,782

185,383

488,461

506,929

Stockholders' equity

4,102,375

3,613,905

4,102,375

3,613,905

Long-term debt

3,059,612

3,344,033

3,059,612

3,344,033

Short-term debt and current maturities of long-term debt

735,725

494,418

735,725

494,418

Cash and cash equivalents

(802,630

)

(849,472

)

(802,630

)

(849,472

)

Invested Capital

7,095,082

6,602,884

7,095,082

6,602,884

Number of Days

273

Adjusted Return on Invested Capital

10.1

11.2

9.2

10.2

(a)

Tax impact of pre-tax adjustments reflects the current and deferred income taxes associated with the above pre-tax adjustments in arriving at adjusted net income.

(b)

Other discrete items represent non-recurring adjustments of uncertain tax liabilities of ($2,235) in the Thirty-Nine Weeks Ended September 28, 2024 and other minor non-recurring items.

The following is a reconciliation of net income to non-GAAP net income:

($ in thousands)

Thirteen Weeks

Ended

September 27,

2025

Thirteen Weeks

Ended

September 28,

2024

Thirty-Nine Weeks

Ended

September 27,

2025

Thirty-Nine Weeks

Ended

September 28,

2024

Net income

99,457

76,969

206,472

181,106

Pre-tax adjustments:

Amortization of intangibles

19,734

21,771

63,031

65,265

Restructuring costs

3,539

(507

)

5,493

22,018

Net foreign currency exchange (gain) loss

(10,207

)

10,675

34,121

29,938

Integration, transition and operational improvement costs

51,458

45,951

168,340

111,474

Advisory fee

—

6,250

—

18,750

Cash-based compensation expense

3,925

6,087

13,893

18,332

Stock-based compensation expense

6,018

—

15,107

—

Other items

17,997

18,657

34,540

46,487

Tax Adjustments:

Tax impact of pre-tax adjustments (a)

(22,240

)

(27,561

)

(84,709

)

(78,285

)

Other miscellaneous tax adjustments (b)

(932

)

870

(1,029

)

(296

)

Non-GAAP Net Income

168,749

159,162

455,259

414,789

(a)

Tax impact of pre-tax adjustments reflects the current and deferred income taxes associated with the above pre-tax adjustments in arriving at non-GAAP net income.

(b)

Other miscellaneous tax adjustments represent non-recurring adjustments of uncertain tax liabilities of ($2,235) in the Thirty-Nine Weeks Ended September 28, 2024 and other minor non-recurring items.

The following is a reconciliation of net income to adjusted free cash flow:

($ in thousands)

Thirteen Weeks

Ended

September 27,

2025

Thirteen Weeks

Ended

September 28,

2024

Thirty-Nine Weeks

Ended

September 27,

2025

Thirty-Nine Weeks

Ended

September 28,

2024

Net Income

99,457

76,969

206,472

181,106

Depreciation and amortization

48,032

48,441

146,013

140,902

Other non-cash items and changes to non-working capital assets/liabilities

146,947

(16,615

)

(79,125

)

(183,894

)

Changes in working capital

(440,474

)

(385,835

)

(917,788

)

(114,236

)

Cash (used in) provided by operating activities

(146,038

)

(277,040

)

(644,428

)

23,878

Capital expenditures

(28,968

)

(37,955

)

(93,929

)

(106,643

)

Proceeds from deferred purchase price of factored receivables

65,062

60,362

206,507

188,877

Adjusted free cash flow

(109,944

)

(254,633

)

(531,850

)

106,112

The following is a reconciliation of basic and diluted GAAP EPS to basic and diluted non-GAAP EPS:

Thirteen

Weeks Ended

September 27,

2025

Thirteen

Weeks Ended

September 28,

2024

Thirty-Nine

Weeks Ended

September 27,

2025

Thirty-Nine

Weeks Ended

September 28,

2024

Basic and Diluted EPS - GAAP (a)

0.42

0.35

0.88

0.81

Amortization of intangibles

0.08

0.10

0.27

0.29

Restructuring costs

0.02

0.00

0.02

0.10

Net foreign currency exchange loss

(0.04

)

0.05

0.15

0.13

Integration, transition and operational improvement costs

0.22

0.21

0.72

0.51

Advisory fee

—

0.03

—

0.08

Cash-based compensation expense

0.02

0.03

0.06

0.08

Stock-based compensation expense

0.03

—

0.06

—

Other items

0.07

0.08

0.15

0.21

Tax Adjustments:

Tax impact of pre-tax adjustments

(0.10

)

(0.13

)

(0.37

)

(0.34

)

Other miscellaneous tax adjustments

0.00

Non-GAAP Basic and Diluted EPS (a)

0.72

1.94

1.87

(a)

GAAP and non-GAAP diluted EPS for the Thirteen and Thirty-Nine Weeks Ended September 27, 2025 includes 737,062 and 314,173, respectively, of outstanding restricted stock units that are dilutive.

Our release contains forward-looking estimates of non-GAAP diluted EPS for the fiscal fourth quarter 2025. We provide this non-GAAP measure to investors on a prospective basis for the same reasons (set forth above) that we provide it to investors on a historical basis. We are unable to provide a reconciliation of our forward-looking estimate of fiscal fourth quarter 2025 GAAP diluted EPS to a forward-looking estimate of fiscal fourth quarter 2025 non-GAAP diluted EPS because certain information needed to make a reasonable forward-looking estimate of GAAP diluted EPS for fiscal fourth quarter 2025 is unreasonably difficult to predict and estimate and is often dependent on future events that may be uncertain or outside of our control, such as unanticipated non-recurring items not reflective of ongoing operations. In addition, we believe such reconciliations would imply a degree of precision that would be confusing or misleading to investors. The unavailable information could have a significant impact on our future financial results. Our forward-looking estimates of both GAAP and non-GAAP measures of our financial performance may differ materially from our actual results and should not be relied upon as statements of fact.