01—Abstract
Summary
Summary of the 10-Q filed August 6, 2025. Cited figures are marked; the original filing is the authoritative source.
CDW Corporation's second-quarter 2025 Form 10-Q shows net sales rising 10.2% to $5.98 billiona for the three months ended June 30, 2025, from $5.42 billion a year earlier, with higher sales across all operating segments, driven mainly by notebooks/mobile devices, software, netcomm products and data storage and servers.
Gross profit grew 4.9% to $1.24 billionb, but gross profit margin fell to 20.8% from 21.8%, and operating income declined 3.0% to $420.2 million. Net income was $271.2 million, down from $281.1 million, and diluted EPS was $2.05 versus $2.07. For the six months, net sales rose 8.5% to $11.18 billion and net income was $496.1 million, roughly flat versus $497.2 million.
Non-GAAP diluted EPS was $2.60c for the quarter, up from $2.50. Cash flow from operations weakened to $443.1 million for the first six months from $589.9 million, mainly due to higher accounts receivable and inventory build, partly offset by accounts payable growth. The company repaid $211 million of 4.125% senior notes at maturity in May 2025, funded in part by a matured certificate of deposit.
Total unsecured indebtedness was $5.6 billiond, with $1.2 billion of revolving loan availability. Shareholder returns continued: the company repurchased 2.0 million shares for $350 million in the first half and paid $165.1 million in dividends. Net debt stood at $5,151.7 million, and cash conversion cycle improved slightly to 16 days from 17.
The filing also discloses that the company received a Civil Investigative Demand from the Department of Justice on June 11, 2024, relating to a False Claims Act investigation over bids on E-Rate Program contracts. The company is cooperating and states it cannot assess the probability or range of any outcome at this stage. The company also declared a quarterly dividend of $0.625 per share on August 6, 2025.
02—Key points
Key Highlights
- Net sales increased 10.2% to $5.98 billion in Q2 2025 and 8.5% to $11.18 billion for the six months, with growth in all operating segments.
- Gross profit margin declined to 20.8% from 21.8% in the quarter, reflecting lower rates in certain hardware categories and a lower contribution from netted-down revenue.
- Operating income fell 3.0% to $420.2 million in Q2, as selling and administrative expenses rose 9.5% to $821.0 million.
- Diluted EPS was $2.05 for Q2 versus $2.07 a year earlier; non-GAAP diluted EPS rose to $2.60 from $2.50.
- Operating cash flow was $443.1 million for the first six months, down from $589.9 million, primarily due to higher receivables and inventory.
- The company repaid $211 million of 2025 senior notes at maturity and repurchased $350 million of common stock in the first half of 2025.
- A Department of Justice False Claims Act investigation related to E-Rate Program bids is ongoing, and the company cannot currently assess the potential outcome or loss range.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2025, CDW kept $0.05.
- Revenue$5.98B100.0%
- Cost of revenue−$4.74B79.2%
- Gross profit$1.24B20.8%
- Operating costs−$821.0M13.7%
- Operating income$420.2M7.0%
- Interest, other & tax−$149.0M2.5%
- Net income$271.2M4.5%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2025filed August 6, 2025Financial Statements
Q2 FY2025 against Q2 FY2024
| Line item | Q2 FY2025Q2 FY2024 | Change |
|---|---|---|
| Revenue | $5.98B$5.42B | +10.2% |
| Cost of Revenue | $4.74B$4.24B | +11.7% |
| Gross Profit | $1.24B$1.18B | +4.9% |
| SG&A Expenses | $821.00M$750.00M | +9.5% |
| Operating Income | $420.20M$433.10M | −3.0% |
| Net Income | $271.20M$281.10M | −3.5% |
| EPS (Basic) | $2.06$2.10 | −1.9% |
| EPS (Diluted) | $2.05$2.07 | −1.0% |
| Shares Outstanding (Basic) | 131.60M134.10M | −1.9% |
| Shares Outstanding (Diluted) | 132.40M135.60M | −2.4% |
05—Questions
Frequently Asked Questions
How did CDW's revenue and profitability perform in the second quarter of 2025?
Net sales rose 10.2% to $5,976.6 million, and gross profit rose 4.9% to $1,241.2 million. However, gross profit margin decreased to 20.8% from 21.8%, operating income fell 3.0% to $420.2 million, and net income declined to $271.2 million from $281.1 million.
What drove the increase in net sales?
The filing attributes the increase primarily to customer demand for notebooks/mobile devices, software, netcomm products and data storage and servers, with higher net sales across all operating segments.
How is the company's cash position and debt structure?
Cash and cash equivalents were $481.0 million at June 30, 2025. Total unsecured indebtedness was $5.6 billion, net debt was $5,151.7 million, and $1.2 billion was available under the Revolving Loan Facility. The company was in compliance with its debt covenants.
What legal matter does the company disclose?
CDW received a Civil Investigative Demand from the Department of Justice on June 11, 2024, related to a False Claims Act investigation concerning bids on contracts funded by the E-Rate Program. The company is cooperating and states it cannot currently assess the probability or range of any loss.
What did the company return to shareholders?
In the first six months of 2025, CDW repurchased 2.0 million shares for $350.1 million and paid $165.1 million in dividends. The Board declared a quarterly dividend of $0.625 per share on August 6, 2025, payable September 10, 2025.
06—Continue