Slide 1: CDW Corporation Webcast Conference Call
CDW Corporation Webcast Conference Call November 4, 2025
Slide 2: Today's Agenda
Third Quarter 2025 Results Performance Drivers Today's Agenda Outlook Q&A 2
Slide 3: Forward-Looking Statements
Forward-Looking Statements Statements in this presentation that are not statements of historical fact are forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including, without limitation, statements regarding the futur
Slide 4: Non-GAAP Financial Measures
Non-GAAP Financial Measures Generally, a non-GAAP financial measure is a numerical measure of a company’s performance or financial condition that either excludes or includes amounts that are not normally included or excluded in the most directly comparable measure calculated and presented in accorda
Slide 5: Financial Performance
Financial Performance • Net sales of $5.7 billion • Up 4.0% on a reported basis • Up 3.8% on a constant currency* basis • Gross profit of $1.3 billion, up 4.6% • Gross profit margin of 21.9%, up 10 basis points • Operating income of $443 million, down 8.0% • Non-GAAP operating income* of $531 millio
Slide 6: Net Sales By Channel
Net Sales By Channel ($ in millions) Three Months Ended September 30, 2025 2024 % Change(1) Corporate $ 2,255.4 $ 2,161.2 4.4 % Small Business 433.8 379.7 14.2 Public Government 744.7 691.0 7.8 Education 911.2 995.7 (8.5) Healthcare 693.9 649.0 6.9 Total Public 2,349.8 2,335.7 0.6 Other 698.4 640.0
Slide 7: Financial Results
Financial Results ($ in millions, except percentages) Three Months Ended September 30, 2025 2024 % Change Net sales $ 5,737.4 $ 5,516.6 4.0 % Average daily net sales(1) $ 89.6 $ 86.2 4.0 Gross profit $ 1,255.5 $ 1,200.7 4.6 Gross profit margin 21.9 % 21.8 % Selling and administrative expenses $ 812.
Slide 8: Earnings Per Diluted Share
Earnings Per Diluted Share ($ in millions, except per share amounts) Three Months Ended September 30, 2025 2024 % Change US GAAP Net income $ 291.0 $ 316.4 (8.0)% Weighted-average common shares outstanding - Diluted 131.8 134.9 Net income per diluted share $ 2.21 $ 2.34 (5.8) Non-GAAP net income* $
Slide 9: Debt and Revolver Availability
Debt and Revolver Availability ($ in millions) September 30, 2025 December 31, 2024 September 30, 2024 Cash and cash equivalents $ 452.9 $ 503.5 $ 946.7 Short-term investments — 214.2 211.7 Total debt 5,628.8 5,842.8 6,030.7 Net debt* 5,175.9 5,125.1 4,872.3 Revolver availability 1,304.4 1,244.1 1,2
Slide 10: Cash Conversion Cycle
Cash Conversion Cycle (Based on a rolling three-month average) September 30, 2025 December 31, 2024 September 30, 2024 Days of sales outstanding 92 84 79 Days of supply in inventory 12 13 14 Days purchases outstanding (93) (79) (76) Cash conversion cycle 11 18 17 10
Slide 11: Free Cash Flow and Adjusted Free Cash Flow
Free Cash Flow and Adjusted Free Cash Flow ($ in millions) Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Net cash provided by operating activities $ 328.3 $ 342.1 $ 771.4 $ 932.0 Capital expenditures (29.8) (33.6) (79.2) (94.0) Free Cash Flow* 298.5 308.5 692.2
Slide 12: 2025 Capital Allocation Priorities
2025 Capital Allocation Priorities PRIORITIES OBJECTIVES ACTIONS Target ~25% payout of Non-GAAP net ~1% increase in November 2025 Increase Dividend annually income; grow in-line with earnings to $2.52/share annually Target ~2.0 to 3.0 times Net Leverage Ratio; Maintain Net Leverage Ratio (1) consist
Slide 13: Outlook
CUSTOMER SPEND U.S. IT growth plus a premium target of ~200 to 300 bps 2025 (1),(2) GROSS PROFIT Low-to-mid single digit growth Outlook NON-GAAP NET INCOME PER DILUTED SHARE Low-single digit growth 1. Certain annual outlooks are provided on a non-GAAP basis because certain reconciling items are depe
Slide 14: Modeling Thoughts
Modeling Thoughts Metric Expectations • Low-to-mid single digit sequential declines in Q4 leads to low-to-mid single digit year-over-year growth Gross profit • 1H lower than 2H, but weighted more to 1H than historical split of 48% / 52% • Currency expected to be a slight tailwind for the year • Appr
Slide 15: Questions and Answers
Questions and Answers ———————