Westcon-Comstor, a global technology provider and specialist distributor, has announced record-breaking annual gross sales of US$5.24 billion for the fiscal year ending 28 February 2025 (FY25), marking a 3.3% year-on-year increase from FY24’s $5.08 billion. The growth was underpinned by robust performance in the cybersecurity segment and a strategic pivot toward software and services.
Gross profit rose 9.4% to $441 million, up from $403 million in FY24. The distributor saw consistent profitability growth across all three of its operating regions—Europe, the Middle East and Africa (MEA), and Asia-Pacific (APAC). Gross margin climbed to 22.4%, a notable increase from the prior year’s adjusted 18.2%, based on revenue of $1.97 billion.
Adjusted EBITDA surged nearly 25% to $149.9 million, compared to $120.2 million in FY24, with the adjusted EBITDA margin improving to 7.6% from a previous 5.4%. This performance underscores the company’s operational efficiency and strategic execution in a rapidly evolving technology distribution landscape.
Cybersecurity proved to be the strongest growth driver, with gross sales in the category rising by 19.3% year-on-year. Cybersecurity now represents over half (51%) of Westcon-Comstor’s gross sales. This growth was bolstered by expanded partnerships with top-tier cybersecurity vendors and the ongoing success of the distributor’s value-added services, which include data-driven insights, partner enablement, and education initiatives.
The company’s transformation from hardware-centric offerings to recurring revenue models gained momentum during FY25. Hardware now accounts for only 32% of gross sales, while software sales increased by 22.2% to $2.33 billion, making up 44% of the total—up from 38% in FY24. Recurring revenue from software and services now constitutes 66% of gross sales, up from 60% in the previous fiscal year. This shift aligns with the broader industry movement toward Software as a Service (SaaS) and lifecycle-based solution selling.
FY25 also marked deepened collaboration with a core group of nine strategic vendors across cybersecurity, networking, and cloud sectors. These vendors accounted for $4.20 billion—or 80%—of total gross sales, and their 4.9% year-on-year growth surpassed the overall sales growth rate, reflecting the success of Westcon-Comstor’s distribution-led sales approach.
David Grant, CEO of Westcon-Comstor, expressed pride in the company’s performance:
“I’m thrilled to mark another year of exceptional financial and operational performance, with strong progress against our core strategic objectives and a continued relentless focus on delivering partner success. Distribution is evolving and we’re proud to be at the forefront of this change, enabling partners and vendors to grow through our suite of value-added services and market-leading programmes. In a changing world, we are proud to be a future-ready business that combines best-in-class data and digital platforms with deep relationships, leading market shifts and anticipating change to empower our partners and vendors to stay ahead of the curve. I’d like to pay tribute to our 3,700-plus employees around the world for their dedication and creativity. Without our people and the ambitious culture they embody, results like this wouldn’t be possible.”
Rakesh Parbhoo, Executive Vice President for the Middle East and Africa (MEA) region, highlighted regional success:
“FY25 was a year of strong progress for Westcon-Comstor in the Middle East and Africa (MEA) region. Locally we saw an increase in profitability as our data-driven strategy and unique range of value-added services continued to bear fruit. With talented people across the region, a strong vendor portfolio and expertise in high-growth technology domains, we can look ahead with confidence to FY26 and the longer-term future.”
Westcon-Comstor’s FY25 performance reflects a company successfully navigating the global shift in technology consumption. Its focus on cybersecurity, recurring revenue, and vendor-centric value creation positions it well for continued success in FY26 and beyond.
