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CNXN

PC Connection, Inc.

CNXN

PC Connection, Inc. • NASDAQ
$58.04 ▼ -0.46% (-0.27)
Market Cap $1.47 B
52w High $75.84
52w Low $54.97
Dividend Yield 0.60%
P/E 17.91
Volume 33.79K
Outstanding Shares 25.25M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $709.068M ▼ $108.379M ▲ $24.74M ▼ 3.489% ▲ $0.98 $39.709M ▲
Q2-2025 $759.693M ▲ $106.869M ▼ $24.789M ▲ 3.263% ▲ $0.98 ▲ $33.766M ▲
Q1-2025 $701.046M ▼ $112.789M ▲ $13.481M ▼ 1.923% ▼ $0.52 ▼ $20.511M ▼
Q4-2024 $708.897M ▼ $107.136M ▲ $20.721M ▼ 2.923% ▼ $0.79 ▼ $25.874M ▼
Q3-2024 $724.717M $105.365M $27.059M 3.734% $1.03 $33.306M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $399.199M ▲ $1.306B ▲ $402.778M ▲ $902.742M ▲
Q2-2025 $346.094M ▲ $1.269B ▲ $384.457M ▲ $884.82M ▲
Q1-2025 $340.325M ▼ $1.248B ▼ $370.528M ▼ $876.975M ▼
Q4-2024 $442.613M ▲ $1.299B ▲ $388.364M ▼ $910.99M ▲
Q3-2024 $429.114M $1.286B $388.383M $897.362M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $24.74M ▼ $64.149M ▲ $-53.758M ▼ $-9.29M ▲ $1.101M ▼ $62.279M ▲
Q2-2025 $24.789M ▲ $26.258M ▲ $-1.62M ▼ $-20.351M ▲ $4.287M ▲ $24.638M ▲
Q1-2025 $13.481M ▼ $-52.387M ▼ $104.694M ▲ $-48.168M ▼ $4.139M ▼ $-54.098M ▼
Q4-2024 $20.721M ▼ $25.248M ▼ $-5.603M ▲ $-8.838M ▼ $10.807M ▼ $22.888M ▼
Q3-2024 $27.059M $52.944M $-6.258M $-7.388M $39.298M $51.156M

Revenue by Products

Product Q4-2024Q1-2025Q2-2025Q3-2025
Large Account Segment
Large Account Segment
 $300.00M ▲$300.00M ▲$330.00M ▲$320.00M ▼
Public Sector
Public Sector
 $140.00M ▲$140.00M ▲$140.00M ▲$130.00M ▼
Small and Medium Sized Businesses segment
Small and Medium Sized Businesses segment
 $260.00M ▲$260.00M ▲$290.00M ▲$260.00M ▼

Five-Year Company Overview

Income Statement

Income Statement Over the past several years, Connection’s sales have been fairly steady, with a small rise coming out of the pandemic and then a modest pullback more recently. What stands out is that profitability has held up better than revenue trends might suggest. Gross margins have ticked higher as the company leans more into higher‑value solutions, and operating profits have stayed consistently positive. Net income and earnings per share have moved upward over the full five‑year span, even if there were some ups and downs year to year. Overall, the income statement points to a business that is not a fast grower, but is disciplined, reasonably efficient, and able to protect its margins in a competitive industry.

Balance Sheet

Balance Sheet The balance sheet looks conservative and solid. Total assets have grown gradually, with cash building over time rather than being drawn down. Debt is essentially negligible, meaning the company is not heavily reliant on borrowing to fund its operations or growth. Shareholders’ equity has increased steadily, reflecting the accumulation of retained earnings. In plain terms, Connection appears to be financially sturdy, with a cushion of cash and very little financial leverage, which can provide resilience during industry slowdowns or investment cycles.

Cash Flow

Cash Flow Cash flow is a clear strength. While day‑to‑day cash generation has been somewhat uneven year to year, the most recent periods show strong operating cash flow relative to the size of the business. Capital spending needs are modest, so most of the cash generated from operations flows through to free cash flow. This gives the company flexibility: it can invest in new capabilities, consider acquisitions, or return capital to shareholders without stretching its balance sheet. The main watch point is the variability in cash flow from working capital swings, which is common in distribution‑heavy models but still worth monitoring.

Competitive Edge

Competitive Edge Connection sits in a crowded technology distribution and solutions market, but it has carved out a defensible position. Its long history, deep vendor network, and broad product catalog make it a one‑stop shop for many customers. More importantly, it is not just reselling boxes; it is segmenting the market into business, enterprise, and public sector customers and tailoring solutions to each. Long‑standing customer relationships, a large base of technical certifications, and the ability to configure and deliver systems quickly all help reduce switching and keep the business sticky. The flip side is that it still operates in a highly competitive, price‑sensitive space where large global distributors and specialized service providers are constant rivals.

Innovation and R&D

Innovation and R&D Innovation at Connection is focused less on pure research spending and more on building platforms and services that deepen customer ties. The Helix Center for Applied AI and Robotics is a good example: it positions the company as a partner for organizations trying to adopt AI and automation, rather than just a hardware supplier. Its MarkITplace platforms, both for physical products and cloud services, streamline procurement and management for customers and help embed Connection in their day‑to‑day operations. The company is also pushing into managed services, cybersecurity, and multi‑cloud solutions, which tend to carry higher margins and greater stickiness than simple product resale. Future progress will depend on how effectively these initiatives scale and how well Connection executes on potential acquisitions in these growth areas.

Summary

Connection comes across as a financially conservative, consistently profitable IT solutions provider that is gradually shifting from traditional product distribution toward higher‑value services and platforms. Revenues have been stable rather than fast‑growing, but margins and earnings have improved over time, supported by disciplined operations and a very clean balance sheet with virtually no debt. Strong free cash flow and a growing cash balance give the company room to invest and adapt. Strategically, the firm’s strengths lie in its customer relationships, segmented go‑to‑market approach, and growing capabilities in AI, cloud, and cybersecurity. Key risks center on the intensely competitive nature of technology distribution, the need to keep up with rapid technological change, and execution risk in scaling newer, more advanced services. Overall, the profile is one of steadiness and resilience, with upside tied to how well Connection can convert its innovation efforts into sustained, higher‑margin growth.

NEWS

November 20, 2025 · 10:00 AM UTC

Connection Named a Forbes America's Dream Employer 2026

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October 29, 2025 · 4:05 PM UTC

Connection (CNXN) Reports Third Quarter 2025 Results

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October 21, 2025 · 10:00 AM UTC

Connection Announces Winners of the 5th Annual IT Superhero Awards

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October 15, 2025 · 4:05 PM UTC

PC Connection, Inc. (CNXN) to Release Third Quarter Results for 2025

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