CNXN
PC Connection, Inc.60.98
+1.49+2.5%
Dec 16, 4:00:00 PM EST
Earnings Call Transcripts
This Quarter (Q1 '26)
No earnings call transcript available yet
Last Quarter (Q4 '25)
FY Q4 '25
Q1 flattish rev, GP up modestly
Q&A sharpened Q1 outlook: flattish revenue from $40M public sector headwind, low-to-mid single-digit gross profit growth, sub-3% G&A expansion. Management targets outgrowing ~4% US IT market by 200 bps in 2026, with 61% endpoints AI-enabled and edge demand building. Headcount cuts drive efficiencies via systems and AI—no more planned. Memory constraints nibbled Q4 but spike Q1 orders. $7M-$8M annual savings eye 3.8% op margins by year-end. Answers reaffirmed prepared remarks. Investors track Q1 gross profit leverage.
Key Stats
Market Cap
1.55BP/E (TTM)
18.82Basic EPS (TTM)
3.24Dividend Yield
0.01%Recent Filings
10-K
FY2025 results
PC Connection's FY2025 net sales climbed 2.5% to $2.9B, with Enterprise Solutions up 8.6% to $1.3B on stronger desktops and servers/storage, while Business Solutions grew 3.1% to $1.1B but Public Sector dropped 11.1% to $509M amid softer government demand. Gross margin edged up 20bps to 18.8% from higher-margin software deals, yet operating margins held flat at 3.5% as SG&A ticked higher on personnel costs; net income dipped to $84M. Q4 saw aggressive buybacks of 179K shares at ~$60 and a dividend hike to $0.20/share. Cash conversion stretched to 45 days on inventory builds for rollouts. Supply constraints loom from global memory shortages.
8-K
Q4 sales dip, margins expand
PC Connection reported Q4 net sales of $702.9M, down 0.8% y/y, yet gross profit hit $135.6M, up 4.5% with margins at 19.3%. Full-year sales rose 2.5% to $2.9B, but net income dipped 3.9% to $83.7M amid $3.1M Q4 severance. Board declared $0.20/share dividend and boosted buyback by $50M to $81.2M available. Enterprise thrives; Public Sector lags.
8-K
Q3 sales dip, margins rise
PC Connection reported Q3 net sales of $709.1M, down 2.2% y/y, yet gross profit hit a record $138.6M, up 2.4% with margins expanding 90bps to 19.6%. Net income fell 8.6% to $24.7M ($0.97/share) as SG&A rose; Board declared $0.15/share dividend, payable November 28. Public sector sales plunged 24%. Gross margins expanded sharply.
10-Q
Q3 FY2025 results
PC Connection posted Q3 net sales of $709.1M, down 2.2% y/y yet lifting gross margin to 19.6% from 18.7% on more net-basis software sales; operating income held steady at $30.3M while YTD sales climbed 3.7% to $2.2B with flat 18.6% margins. Enterprise Solutions gained 7.7% y/y to $319.8M, Business Solutions edged up 1.7%, but Public Sector dropped 24.3% on federal timing. Cash swelled to $187.8M plus $211.4M short-term investments; no debt after credit facility expired, offset by $66M stock repurchases and $11.5M dividends. Operating cash flow slowed to $38M YTD on inventory builds. Solid balance sheet endures pricing pressures.
8-K
Q2 sales rise 3.2%
PC Connection reported Q2 2025 net sales of $759.7 million, up 3.2% year-over-year, fueled by data center refreshes and Windows 11 migrations boosting servers/storage and endpoint devices. Gross margin slipped 40 basis points to 18.1%, while net income dipped 5.2% to $24.8 million, or $0.97 diluted EPS. The board declared a $0.15 quarterly dividend, payable August 29. Enterprise and business segments grew, but public sector sales fell 11.9%. Cash reserves stand strong at $346.1 million.
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