Advanced technologies and integrated solutions revenue increased 3%, driven by server storage and networking solutions.
Business Solutions segment net sales increased 5.4% to $293.2 million; gross profit up 3.8% to $68.8 million; gross margin down 30 basis points to 23.5%.
Cash flow used in operations was $26.1 million in first half of 2025, driven by inventory increase of $38.4 million and accounts receivable increase of $26.7 million.
Cash generated from investing activities was $103.1 million, mainly from sale of investments and maturities.
Cash used in financing activities was $68.5 million, primarily for stock repurchases and dividends.
Diluted EPS was $0.97, down $0.02; adjusted diluted EPS also $0.97, down $0.03.
Effective tax rate increased to 27.3% from 26.4%.
Ended Q2 with $346.1 million in cash, cash equivalents, and short-term investments.
Enterprise Solutions net sales grew 9.1% to $326 million; gross profit increased 3.4% to $47.6 million; gross margin decreased 80 basis points to 14.6%.
Gross profit reached a record $137.8 million, but gross margin declined 40 basis points to 18.1% due to changes in partner subscription licensing programs.
Interest income decreased to $3.2 million from $4.7 million due to lower cash balances and interest rates.
Mobility and desktop categories sales increased 6% year-over-year and 5% sequentially, driven by Windows 11 refresh and AI PC demand.
Net income was $24.8 million, down 5.2% from $26.2 million in Q2 2024.
Net sales were $759.7 million in Q2 2025, up 3.2% year-over-year.
Operating income remained flat at $30.9 million year-over-year.
Paid $0.15 per share quarterly dividend; repurchased 255,000 shares in Q2 at $60.95 average price, totaling $15.5 million.
Public Sector Solutions net sales declined 11.9% to $140.5 million; gross profit decreased 11.9% to $21.3 million; gross margin stable at 15.2%.
SG&A expenses increased 1.6% but decreased as a percentage of sales to 14.1%.
Trailing 12-month adjusted EBITDA was $122.5 million, down 2% from $125.4 million a year ago.
Year-to-date share repurchases totaled 952,000 shares at $63.35 average price for $60.3 million; $49.4 million remains under repurchase program.
Dafinchi