CNXNNasdaqWholesale-Computers & Peripheral Equipment & SoftwareUS GAAP · USD

PC Connection, Inc

PC Connection Inc. is a U.S.-based IT solutions provider that sells computer hardware, software, peripherals, networking, data center, security, cloud, and related services. The company operates through three customer-facing segments—Enterprise Solutions, Business Solutions, and Public Sector Solutions—and also supports multinational customers through its GlobalServe procurement offering.

Revenue2,873m USD
+2.5 %y/y
Operating profit (EBIT)99.3m USD
+2.3 %y/y
EBIT margin3.5%
−0.0 ppy/y
Net income83.7m USD
−3.9 %y/y
Free cash flow58.0m USD
−65.1 %y/y

Fiscal year 2025 · change from previous year

Development 2020–2025

01,0002,0003,0004,000m USD2020: 2,590 m USD2020: EBIT 72 m USD20202021: 2,893 m USD2021: EBIT 97 m USD20212022: 3,125 m USD2022: EBIT 121 m USD20222023: 2,851 m USD2023: EBIT 103 m USD20232024: 2,802 m USD2024: EBIT 97 m USD20242025: 2,873 m USD2025: EBIT 99 m USD20252,87399
RevenueOperating profit (EBIT)

Business

Share of revenue
Hardware and peripherals45 %

Desktop, notebook, server, peripheral, and accessory products sold to business and public-sector customers.

Software and cloud20 %

On-premise software, cloud subscriptions, maintenance, and related licensing transactions.

Networking and data center15 %

Networking communications, storage, and data center infrastructure products and solutions.

Services and integration15 %

Design, configuration, implementation, managed services, and professional services.

GlobalServe and agency transactions5 %

Worldwide procurement and referral/agency-based software and service transactions.

Products

Reported · share of revenue
34.6%12.2%11.2%11.1%8.7%22.2%FY2025100 %
  • Notebooks and Mobility34.6 %
  • Desktops12.2 %
  • Software11.2 %
  • Accessories11.1 %
  • Displays and Sounds8.7 %
  • Other22.2 %

Source: 10-K FY2025, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.

Customers

PC Connection sells to small and medium-sized businesses, large enterprises, and public-sector institutions, including federal, state, local, and educational customers. It also serves vertical end markets such as healthcare, retail, manufacturing, and government, using account managers, field sales, websites, and targeted marketing to win repeat business and larger solution deals.

Connection Business Solutions

Small and medium-sized businesses buying PCs, software, peripherals, and support through direct sales and web channels.

Connection Enterprise Solutions

Large organizations purchasing broader IT environments, including infrastructure, software, and services.

Connection Public Sector Solutions

Government and education customers buying compliant IT products, services, and procurement support.

GlobalServe multinational customers

Multinational buyers using in-country suppliers across more than 150 countries for global procurement.

Strategy

The company’s strategy centers on being a full-service IT solutions supplier rather than a pure product reseller, combining hardware, software, services, and integration capabilities. It is also investing in sales productivity, technical talent, and IT infrastructure to support larger solution deals, faster fulfillment, and broader customer coverage.

Increase solution and service mixMedium term

Broader service content can deepen customer relationships and differentiate the company from commodity resellers.

Improve sales force effectivenessShort term

Account managers and field sellers are central to winning repeat business and larger enterprise/public-sector accounts.

Strengthen logistics and IT infrastructureMedium term

Efficient fulfillment and digital capability support customer service, speed, and operating leverage.

Broaden multinational procurement reachLong term

GlobalServe allows the company to serve customers with cross-border purchasing needs through local suppliers.

Geography

PC Connection is headquartered in the United States and generates most of its business there through direct sales, web channels, and account-managed relationships. Its GlobalServe offering extends procurement coverage internationally through a network of in-country suppliers in more than 150 countries, but the core operating footprint remains U.S.-centric.

Risks

PC Connection faces intense competition from larger resellers, e-tailers, and manufacturers’ direct channels, which can pressure pricing, product allocation, and customer retention. Its business also depends on reliable IT systems, cybersecurity defenses, vendor relationships, and the ability to recruit and retain sales and technical personnel, while revenue can fluctuate with customer demand, government spending, and supply conditions.

Sorted by severity
LowMediumHighLowMediumHighImpact →Likelihood →Competition from larger resellers and e-tailers1Cybersecurity and IT system disruption2Demand variability and macro sensitivity3Vendor dependence and channel policy changes4Personnel recruitment and retention5
Impact is the risk’s severity and likelihood how probable it is over the next few years, both assessed from the company’s reports. Numbers match the list.
  1. Competition from larger resellers and e-tailersImpact: HighLikelihood: Medium

    The company competes on price, selection, availability, and service against firms with greater scale and resources.

    ExposureEnterpriseSMBPublic-sector channels
  2. Cybersecurity and IT system disruptionImpact: HighLikelihood: Medium

    Order processing, customer data, and fulfillment depend on internal and third-party systems that can be attacked or fail.

    ExposureCore salesLogisticsCustomer data
  3. Demand variability and macro sensitivityImpact: MediumLikelihood: High

    IT spending can shift with economic conditions, interest rates, inflation, and government budgets.

    Exposure: All customer segments

  4. Vendor dependence and channel policy changesImpact: MediumLikelihood: Medium

    Manufacturer pricing, allocations, advertising support, and referral structures can change and affect profitability.

    ExposureHardwareSoftwareCloud suppliers
  5. Personnel recruitment and retentionImpact: MediumLikelihood: Medium

    The model depends on knowledgeable account managers and technical staff to sell and deliver solutions.

    Exposure: Sales and services organization

Accounting

Judgemental items
Revenue recognition for mixed product/service contracts

Contracts may include hardware, software, cloud, and services with different timing and principal-agent conclusions.

Impact: Affects net sales timing and gross margin presentation

Agency versus principal accounting

The company often records only referral or agency fees when vendors bill customers directly or when it lacks control of the service.

Impact: Can materially reduce reported revenue versus gross billings

Vendor allowances and incentives

Manufacturer support may be recorded as offsets to SG&A, cost of sales, or inventory depending on the program.

Impact: Affects operating expenses, inventory valuation, and gross profit

Goodwill impairment

Goodwill is concentrated in reporting units that must be tested for impairment using qualitative and, if needed, quantitative assumptions.

Impact: Could create non-cash charges if performance or market conditions weaken

Publicly listed companies with a comparable business focus.

Last updated: 24/09/2026

PC Connection, Inc (CNXN) Revenue, Earnings & Financials 2025 – Clarifo