PC Connection

CNXN · Nasdaq · Information Technology · Financials, fiscal 2016 to 2025

CNXN · Last close · November 6, 2026

$79.15

PC Connection's revenue rose 2.5% to $2.9 billion in fiscal 2025. Its operating margin was 3.5%, about the same as 3.5% a year earlier. Free cash flow was $58 million, down 65.1%. It paid out $92 million in dividends and buybacks, 158% of free cash flow. The diluted share count fell 3.3%.

PC CONNECTION, INC. Latest fiscal year ended December 31, 2025 10-K filed February 24, 2026 · 0001104659-26-019108 Updated November 5, 2026

Revenue

$2.9B

2.5%

Operating margin

3.5%

0.0 pts

Net income

$84M

3.9%

Free cash flow

$58M

65.1%

Return on equity

9.2%

0.8 pts

Market cap

$2.0B

Nov 6 close

P/E

19.5x

On $4.05 EPS, 4 qtrs

Operating margin is operating income as a share of revenue. Free cash flow is cash from operations minus capital spending. Return on equity is net income as a share of shareholders' equity. Market cap is the last closing share price times the latest diluted share count, so it is approximate. P/E is the last close divided by diluted earnings per share over the last four quarters, or the latest fiscal year where the quarters aren't available; there is none when the company made a loss.

About these figures. PC Connection's 2025 filing doesn't report interest expense, so interest coverage is left blank for that year.

Charts show fiscal years, from the 10-K filings.

What PC Connection does

PC Connection, which sells under the name Connection, is an IT solutions provider. It sells computer systems, data center equipment, security products, software, networking gear and accessories, and it provides services for designing, configuring and installing IT systems. Its customers range from large companies to small businesses, governments and schools.

It earns money by reselling products from manufacturers and distributors and by selling managed and professional services. It offers over 460,000 products and works with more than 1,600 suppliers, including Apple, Cisco, Dell, HP, Lenovo and Microsoft. It reports three segments: Connection Enterprise Solutions for large enterprises, Connection Business Solutions for small and medium-sized businesses, and Connection Public Sector Solutions for federal, state and local government and educational institutions.

Sales come from account managers and sales representatives, its websites, and customers who respond to its outreach. Its sales representatives each manage enterprise, commercial or public sector accounts. It also runs a technology integration and distribution center that configures products before shipping them, and a service called GlobalServe that supplies multinational customers through suppliers in over 150 countries.

Its biggest risks, as it describes them

Weak economic conditions that lead customers to cut or delay IT spending.
Government budget cuts or shutdowns that reduce public sector customers' purchases.
Competition from other IT resellers and from online sellers such as Amazon.
Depending on vendor partners to keep releasing competitive hardware, software and services.
Heavy dependence on its IT networks and systems.

From PC Connection's annual report on Form 10-K, filed February 24, 2026, in our words; the 10-K has the full description and every risk factor. Updated with each new annual report.

Income statement

Revenue and net income

US$ billions, fiscal years; net losses in red. Revenue on the left axis, net income on the right; zero is the same line on both.

Revenue (left axis)Net income (right axis)

Gross profit, R&D and operating income

US$ billions, fiscal years. Gross profit is revenue minus the cost of what was sold; research and development is one of the costs paid from it; what remains after all operating costs is operating income. Losses in red.

Gross profitResearch and developmentOperating income

Margins

Percent of revenue

GrossOperatingNetFree cash flow

From fiscal 2016 to 2025, earnings per share grew 6.9% a year and net income 6.3% a year, as buybacks cut the share count by 4%.

Diluted earnings per share

US$ per share, fiscal years, restated for any stock splits; loss years in red.

Returns on capital

Return on capital and on equity

Percent. Return on capital is after-tax operating income over the money invested in the business (debt plus equity, minus cash); return on equity is net income over shareholders' equity. Both use the average of opening and closing balances.

Return on capitalReturn on equity

Balance sheet

Cash and debt

US$ billions, at each fiscal year end. Debt includes finance leases.

Cash and short-term investmentsDebt

Assets, liabilities and equity

US$ billions, at each fiscal year end. Assets equal liabilities plus equity; negative equity in red.

Total assetsTotal liabilitiesShareholders' equity

Debt and liquidity ratios

Times. Debt to equity, current assets over current liabilities, and net debt over EBITDA (a full year's).

Debt to equityCurrent ratioNet debt to EBITDA

Five years at a glance

Fiscal year end	FY21	FY22	FY23	FY24	FY25
Cash and short-term investments	108	123	297	443	407
Debt incl. finance leases	—	—	—	—	—
Net debt (negative means net cash)	—	—	—	—	—
Net debt to EBITDA	—	—	—	—	—
Debt to equity	—	—	—	—	—
Interest coverage	—	30,138.0x	4,298.0x	16,177.0x	—
Current ratio	2.5x	3.1x	3.2x	3.1x	2.9x
Quick ratio	1.9x	2.4x	2.8x	2.9x	2.6x

US$ millions unless stated, at each fiscal year end. Net debt to EBITDA is debt minus cash, divided by operating income before depreciation and amortization: roughly how many years of those earnings the net debt equals. Debt to equity is debt as a multiple of shareholders' equity. Interest coverage is operating income divided by interest expense. The current ratio is current assets over current liabilities; the quick ratio leaves out inventory.

Cash flow

Cash from operations, capital spending and free cash flow

US$ billions, fiscal years. Free cash flow is cash from operations minus capital spending; negative years in red.

Cash from operationsCapital spendingFree cash flow

Stock-based compensation and buybacks

US$ billions, fiscal years. Shares paid to employees (stock-based compensation, a cost that uses no cash) against cash spent buying shares back. Buybacks that only match it leave the share count roughly where it was.

Stock-based compensationShare buybacks

Dividends and buybacks

US$ billions, cash paid in each fiscal year

DividendsShare buybacks

Diluted share count

Weighted-average diluted shares, millions

Projections

Project PC Connection's revenue, net income and earnings per share five years ahead in a bull, a base and a bear case with your own figures, and see the share prices your P/E estimates give them, or value it with a discounted cash flow model. Every projected figure is yours: it is not a forecast of ours.

Open PC Connection's projections

Insider trades

Over the 12 months between November 7, 2025 and November 6, 2026, no insider bought PC Connection shares on the open market, and 6 insiders sold $16.3 million, $10.2 million of it under trading plans set up in advance.

Buys and sells by month

US$ millions, open-market purchases (up) and sales (down) by officers, directors and 10% owners in each month.

BoughtSold

Date	Insider	Trade	Shares	Price	Value	Filing
Nov 4, 2026	Patricia GallupChairman & Chief Admin Officer, Director, 10% owner	Sold plan	7,142	$88.61	$632,818	Form 4
Nov 3, 2026	Patricia GallupChairman & Chief Admin Officer, Director, 10% owner	Sold plan	7,142	$87.48	$624,751	Form 4
Sep 15, 2026	David Hall Trust 200310% owner	Sold plan	7,142	$85.18	$608,352	Form 4
Sep 14, 2026	David Hall Trust 200310% owner	Sold plan	7,142	$85.42	$610,092	Form 4
Sep 2, 2026	David Hall Trust 200310% owner	Sold plan	7,142	$80.58	$575,505	Form 4
Sep 1, 2026	David Hall Trust 200310% owner	Sold plan	7,142	$78.96	$563,934	Form 4
Aug 18, 2026	David Hall Trust 200310% owner	Sold plan	7,142	$78.57	$561,161	Form 4
Aug 17, 2026	David Hall Trust 200310% owner	Sold plan	7,142	$78.64	$561,660	Form 4
Aug 5, 2026	Pc Connection Inc10% owner	Sold plan	7,142	$84.48	$603,337	Form 4
Aug 4, 2026	Timothy J McGrathPresident & CEO	Sold	14,321	$86.30	$1.2 million	Form 4
Aug 4, 2026	Pc Connection Inc10% owner	Sold plan	7,142	$86.34	$616,646	Form 4
Aug 3, 2026	Timothy J McGrathPresident & CEO	Sold	35,679	$85.72	$3.1 million	Form 4

The latest 12 of 22 trades. Open-market purchases and sales by officers, directors and 10% owners, from their Form 4 filings with the SEC: one row per person, day and filing, at the day's average price. Grants, option exercises and shares withheld for tax aren't counted. Insiders buy and sell for many reasons, such as taxes, spreading their savings or a plan set up months earlier, so a trade on its own says little about where a company is heading. For information only, not investment advice. Insider trades at all companies

Indicators

Four widely used measures, worked out from the company's filings. The cutoffs are the ones their authors or users go by, not a verdict of ours.

Indicator	FY23	FY24	FY25
Piotroski F-score	—	—	—
Rule of 40	−2.2%	4.2%	4.5%
Altman Z''	9.19	9.08	8.73
Accruals ratio	−10.0%	−7.0%	1.4%

Piotroski F-score: how many of nine simple tests of profitability, funding and efficiency the company passed in the year (Piotroski, 2000); 8 or 9 is strong, 0 to 2 weak. Rule of 40: revenue growth plus free cash flow margin; software investors treat 40% or more as the bar. Altman Z'': working capital, retained earnings, operating income and equity weighed against assets and liabilities (Altman, 1995); Altman puts above 2.6 in the safe zone and below 1.1 in the distress zone. Accruals ratio: net income minus cash from operations, over average total assets; lower means profit is backed by cash.

The nine F-score tests

Test	FY23	FY24	FY25
Net income is positive	Pass	Pass	Pass
Cash from operations is positive	Pass	Pass	Pass
Return on assets rose	Fail	Fail	Fail
Cash from operations exceeds net income	Pass	Pass	Fail
Debt fell relative to assets	—	—	—
Current ratio rose	Pass	Fail	Fail
Share count didn't rise	Pass	Fail	Pass
Gross margin rose	Pass	Pass	Pass
Revenue rose relative to assets	Fail	Fail	Fail
F-score	—	—	—

Companies that report no gross profit are scored on the other eight.

Compare

Put PC Connection side by side with any other company we cover: revenue, growth, margins, cash flow and returns, with ten years of charts.

Similar companies

Company	Year	Revenue growth	Operating margin	Free cash flow margin	Return on capital	Net debt to EBITDA	F-score	Compare
PC Connection	FY25	2.5%	3.5%	2.0%	—	—	—
ScanSource	FY26	6.1%	3.1%	3.5%	8.2%	0.1x	8	Compare
ePlus	FY26	22.1%	6.8%	−4.9%	—	—	—	Compare
Insight Enterprises	FY25	−5.2%	4.1%	3.4%	9.3%	2.3x	6	Compare
Climb Global Solutions	FY25	40.1%	4.5%	—	31.6%	−1.0x	5	Compare

Each company's latest fiscal year. Fiscal years end in different months, so the periods don't line up exactly. Free cash flow margin is free cash flow as a share of revenue. Net debt to EBITDA is explained under the balance sheet, and the F-score under Indicators.

10 years of figures

Fiscal year	FY16	FY17	FY18	FY19	FY20	FY21	FY22	FY23	FY24	FY25
Income statement
Revenue	2,693	2,912	2,700	2,820	2,590	2,893	3,125	2,851	2,802	2,873
Revenue growth	4.6%	8.1%	−7.3%	4.5%	−8.2%	11.7%	8.0%	−8.8%	−1.7%	2.5%
Gross profit	371	382	411	451	419	465	526	512	520	539
Research and development	—	—	—	—	—	—	—	—	—	—
Operating income	80	78	86	112	72	96	121	103	97	99
Net income	48	55	65	82	56	70	89	83	87	84
Diluted EPS (US$)	1.80	2.04	2.41	3.10	2.12	2.65	3.37	3.15	3.29	3.27
Diluted shares (millions)	27	27	27	26	26	26	26	26	26	26
Cash flow
Cash from operations	34	19	87	37	36	58	35	198	174	65
Capital expenditure	12	12	—	—	—	—	—	10	8	7
Free cash flow	22	8	—	—	—	—	—	188	166	58
Dividends paid	9	9	8	8	8	26	9	8	10	15
Share buybacks	0	0	15	4	10	0	0	5	12	76
Acquisitions	43	0	0	0	0	0	0	0	0	0
Stock-based compensation	1	1	1	2	3	4	6	7	8	9
Balance sheet at fiscal year end
Cash and short-term investments	49	50	92	90	96	108	123	297	443	407
Debt incl. finance leases	—	—	—	—	—	—	—	—	—	—
Total assets	686	748	805	937	1,015	1,083	1,100	1,188	1,299	1,351
Total liabilities	253	266	280	340	379	401	334	348	388	441
Shareholders' equity	433	482	526	597	636	682	766	841	911	910
Margins and ratios
Gross margin	13.8%	13.1%	15.2%	16.0%	16.2%	16.1%	16.8%	17.9%	18.6%	18.8%
Operating margin	3.0%	2.7%	3.2%	4.0%	2.8%	3.3%	3.9%	3.6%	3.5%	3.5%
Net margin	1.8%	1.9%	2.4%	2.9%	2.1%	2.4%	2.9%	2.9%	3.1%	2.9%
Free cash flow margin	0.8%	0.3%	—	—	—	—	—	6.6%	5.9%	2.0%
Rule of 40 (growth + FCF margin)	5.4%	8.4%	—	—	—	—	—	−2.2%	4.2%	4.5%
Return on capital	—	—	—	—	—	—	—	—	—	—
Return on equity	11.7%	12.0%	12.8%	14.6%	9.0%	10.6%	12.3%	10.4%	9.9%	9.2%
Return on assets	7.3%	7.7%	8.3%	9.4%	5.7%	6.7%	8.2%	7.3%	7.0%	6.3%
Net debt to EBITDA	—	—	—	—	—	—	—	—	—	—

US$ millions unless stated. Where a later 10-K restated a year, the latest filed figure is shown. Download all figures (CSV, US$ millions)

Source: PC Connection's Form 10-K filings, from SEC EDGAR. For information only, not investment advice. The Filing Desk is not affiliated with PC Connection.