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Fortune 1000 technology company
PC Connection, Inc., doing business as Connection, is headquartered in Merrimack, New Hampshire. It has more than 2,600 employees and sells more than 460,000 products. Founded in 1982, Connection has grown to include IT services to SMB, enterprise, and public sector markets.3 Its shares trade on Nasdaq under the symbol CNXN.1Wikipedia text CC BY-SA 4.0
PC Connection, Inc., doing business as Connection, is headquartered in Merrimack, New Hampshire. It has more than 2,600 employees and sells more than 460,000 products.3
Financials
From the company’s reports to the SEC. Every number links to the filing it came from.
Where each dollar of operating cash went, fiscal 2025
Dividends paidShare buybacks
Capital spending7¢$7.4M
Dividends paid15¢$15.3M
Share buybacks77¢$76.3M
Out of $65.4M of cash from operations. Spending exceeded cash from operations; the rest came from savings or borrowing.8
Financial statements
Revenue91011128$2.9B in 2025+2% since 2019Gross profit91011128$539.3M in 2025+20% since 2019Operating income91011128$99.3M in 2025−11% since 2019Net income91011128$83.7M in 2025+2% since 2019
Revenue1314$854.0M in Q2 FY2026+18% since Q1 FY2026Gross profit1314$157.5M in Q2 FY2026+19% since Q1 FY2026Operating income1314$43.0M in Q2 FY2026+113% since Q1 FY2026Net income1314$33.2M in Q2 FY2026+93% since Q1 FY2026
Every line of the income statement as filed: the last 3 fiscal years, latest first.8
Period ending
2025-12-31
2024-12-31
2023-12-31
Net sales
$2.9B
$2.8B
$2.9B
Cost of sales
$2.3B
$2.3B
$2.3B
Gross profit
$539.3M
$519.8M
$511.7M
Selling, general and administrative expenses
$434.0M
$422.3M
$405.9M
Severance expenses and other charges
$6.0M
$415.0K
$2.7M
Income from operations
$99.3M
$97.1M
$103.2M
Interest income, net
$14.4M
$18.7M
$10.0M
Other income
$76.0K
$1.7M
Income before taxes
$113.7M
$117.5M
$113.1M
Income tax provision
-$30.0M
-$30.4M
-$29.8M
Net income
$83.7M
$87.1M
$83.3M
Basic
$3.28
$3.31
$3.17
Diluted
$3.27
$3.29
$3.15
Basic
25.5M shares
26.3M shares
26.3M shares
Diluted
25.6M shares
26.5M shares
26.4M shares
No quarter-by-quarter statement was filed.
Total assets1591011128$1.4B in 2025+44% since 2019Total liabilities1591011128$440.8M in 2025+30% since 2019Shareholders’ equity1011128$910.1M in 2025+52% since 2019Cash1591011128$193.2M in 2025+115% since 2019
Total assets1314$1.4B in Q2 FY2026+6% since Q1 FY2025Total liabilities1314$475.0M in Q2 FY2026+8% since Q1 FY2025Shareholders’ equity1314$952.6M in Q2 FY2026+5% since Q1 FY2025Cash1314$123.7M in Q2 FY2026−36% since Q1 FY2025
Every line of the balance sheet as filed: the last 4 fiscal years (annual) or 4 quarters (quarterly), latest first.8
Period ending
2025-12-31
2024-12-31
2023-12-31
2022-12-31
Cash and cash equivalents
$193.2M
$178.3M
Short-term investments
$213.5M
$264.3M
Accounts receivable, net
$648.0M
$611.4M
Inventories, net
$143.6M
$95.1M
Prepaid expenses and other current assets
$22.6M
$17.8M
Total current assets
$1.2B
$1.2B
Property and equipment, net
$46.9M
$52.5M
Right-of-use assets
$1.6M
$3.1M
Goodwill
$73.6M
$73.6M
Intangibles, net
$989.0K
$2.2M
Other assets
$7.0M
$1.1M
Total Assets
$1.4B
$1.3B
Accounts payable
$338.2M
$300.2M
Accrued payroll
$30.9M
$23.3M
Accrued expenses and other liabilities
$51.3M
$47.6M
Total current liabilities
$420.4M
$371.2M
Deferred income taxes
$19.9M
$15.1M
Non-current operating lease liabilities
$498.0K
$1.6M
Other liabilities
$516.0K
Total Liabilities
$440.8M
$388.4M
Common stock, $0.01 par value, 100,000 shares authorized at December 31, 2025 and 2024; 29,525 issued and 25,221 outstanding at December 31, 2025 and 29,390 issued and 26,300 outstanding at December 31, 2024
$295.0K
$294.0K
Additional paid-in capital
$144.6M
$137.0M
Retained earnings
$905.9M
$837.5M
Accumulated other comprehensive income
$78.0K
$174.0K
$81.0K
Treasury stock at cost, 4,304 and 3,090 shares at December 31, 2025 and 2024, respectively
-$140.7M
-$64.0M
Total Stockholders' Equity
$910.1M
$911.0M
$840.8M
$766.2M
Total Liabilities and Stockholders' Equity
$1.4B
$1.3B
Common Stock, par value
$0.01
$0.01
Common Stock, shares authorized
100.0M shares
100.0M shares
Common Stock, shares issued
29.5M shares
29.4M shares
Common Stock, shares outstanding
25.2M shares
26.3M shares
Treasury stock, shares
4.3M shares
3.1M shares
Period ending
2025-12-31
2024-12-31
2023-12-31
2022-12-31
Cash and cash equivalents
$193.2M
$178.3M
Short-term investments
$213.5M
$264.3M
Accounts receivable, net
$648.0M
$611.4M
Inventories, net
$143.6M
$95.1M
Prepaid expenses and other current assets
$22.6M
$17.8M
Total current assets
$1.2B
$1.2B
Property and equipment, net
$46.9M
$52.5M
Right-of-use assets
$1.6M
$3.1M
Goodwill
$73.6M
$73.6M
Intangibles, net
$989.0K
$2.2M
Other assets
$7.0M
$1.1M
Total Assets
$1.4B
$1.3B
Accounts payable
$338.2M
$300.2M
Accrued payroll
$30.9M
$23.3M
Accrued expenses and other liabilities
$51.3M
$47.6M
Total current liabilities
$420.4M
$371.2M
Deferred income taxes
$19.9M
$15.1M
Non-current operating lease liabilities
$498.0K
$1.6M
Other liabilities
$516.0K
Total Liabilities
$440.8M
$388.4M
Common stock, $0.01 par value, 100,000 shares authorized at December 31, 2025 and 2024; 29,525 issued and 25,221 outstanding at December 31, 2025 and 29,390 issued and 26,300 outstanding at December 31, 2024
$295.0K
$294.0K
Additional paid-in capital
$144.6M
$137.0M
Retained earnings
$905.9M
$837.5M
Accumulated other comprehensive income
$78.0K
$174.0K
$81.0K
Treasury stock at cost, 4,304 and 3,090 shares at December 31, 2025 and 2024, respectively
-$140.7M
-$64.0M
Total Stockholders' Equity
$910.1M
$911.0M
$840.8M
$766.2M
Total Liabilities and Stockholders' Equity
$1.4B
$1.3B
Common Stock, par value
$0.01
$0.01
Common Stock, shares authorized
100.0M shares
100.0M shares
Common Stock, shares issued
29.5M shares
29.4M shares
Common Stock, shares outstanding
25.2M shares
26.3M shares
Treasury stock, shares
4.3M shares
3.1M shares
Cash from operations91011128$65.4M in 2025+79% since 2019Capital spending8$7.4M in 2025−23% since 2023Free cash flow8$58.0M in 2025−69% since 2023Dividends paid91011128$15.3M in 2025+81% since 2019Share buybacks9108$76.3M in 2025+1603% since 2019
Cash flow is reported year to date, not quarter by quarter, so there are no separate quarterly figures.
Every line of the cash flow as filed: the last 3 fiscal years, latest first.8
Period ending
2025-12-31
2024-12-31
2023-12-31
Net income
$83.7M
$87.1M
$83.3M
Depreciation and amortization
$11.7M
$13.0M
$12.7M
Adjustments to credit losses reserve
$1.9M
$1.9M
$1.8M
Stock-based compensation expense
$9.3M
$8.5M
$7.0M
Deferred income taxes
$4.8M
-$777.0K
-$2.1M
Amortization of discount on short-term investments, net
-$4.2M
-$1.5M
Amortization of discount on short-term investments, net
$569.0K
Gain on sale of short-term investments
-$76.0K
Loss on disposal of fixed assets
$44.0K
$58.0K
$572.0K
Accounts receivable
-$38.4M
-$6.5M
$1.6M
Inventories
-$48.5M
$29.1M
$84.5M
Prepaid expenses and other current assets
-$4.3M
$2.7M
-$8.5M
Other non-current assets
-$4.1M
$618.0K
-$659.0K
Accounts payable
$38.1M
$36.5M
$31.1M
Accrued expenses and other liabilities
$10.7M
$6.0M
-$11.8M
Net cash provided by operating activities
$65.4M
$173.9M
$198.0M
Purchases of short-term investments
-$264.1M
-$358.3M
-$150.6M
Proceeds from sale of short-term investments
$108.8M
Maturities of short-term investments
$205.6M
$250.6M
Purchases of property and equipment
-$7.4M
-$7.6M
-$9.6M
Net cash provided by (used in) investing activities
$42.8M
-$115.3M
-$160.2M
Proceeds from short-term borrowings
$732.0K
$26.1M
$88.2M
Repayment of short-term borrowings
-$732.0K
-$26.1M
-$88.2M
Purchase of treasury shares
-$76.3M
-$12.4M
-$5.4M
Payments for excise tax on treasury purchases
-$36.0K
Dividend payments
-$15.3M
-$10.5M
-$8.4M
Issuance of stock under Employee Stock Purchase Plan
$1.2M
$1.1M
$1.1M
Payment of payroll taxes on stock-based compensation through shares withheld
PC Connection sits at the top of its group. 1 entity, 1 country on record. Switch between the flow chart and the network, and select any entity to see its details.
Major holders of PC Connection
Patricia GallupFiled SCHEDULE 13D/A on PC Connection, latest Sep 17, 2025 (8 filings since Dec 22, 2021)
DIMENSIONAL FUND ADVISORS LPFiled SCHEDULE 13G/A on PC Connection, latest Jul 15, 2025 (4 filings since Feb 8, 2022)
BlackRockFiled SCHEDULE 13G/A on PC Connection, latest Apr 23, 2025 (4 filings since Feb 1, 2022)
PC ConnectionMerrimack, New Hampshire, United States
Built from parent and subsidiary links from GLEIF, the Global Legal Entity Identifier Foundation (CC0); major holders from Schedules 13D and 13G. Each entity in the chart links to its source.
What it owns
What PC Connection reports owning in its annual reports to the SEC: buildings, land and equipment, real estate and locations, investments, intangible assets and inventory, at the end of its latest fiscal year and a year before.
In December 1997, we entered into a lease agreement for our corporate headquarters located at 730 Milford Road, Merrimack, New Hampshire 03054-4631, with an affiliated company, G&H Post, which is related to us through common ownership, or the Merrimack lease. The Merrimack lease was most recently amended in May 2014 to, among other things, extend the expiration date of the lease to November 2023. We have continued to occupy our corporate headquarters following the expiration of the lease and make rent payments to G&H Post in the amount provided for in the amended Merrimack lease. We have also continued to pay the real estate taxes, insurance, and common area maintenance charges which were required under the Merrimack lease. It is our intention to enter into a written, long-term lease for this facility.
We also entered into a lease for an office facility adjacent to our corporate headquarters in August 2008 from the same affiliated company, G&H Post, or the Second Merrimack lease, which is used by our Public Sector Solutions Segment. The Second Merrimack lease included an initial term of ten years and provided us two options to extend the term of the Second Merrimack lease each for an additional two years. We exercised both options to extend the Second Merrimack lease, extending the lease until July 2022. Following the expiration of the Second Merrimack lease, we have continued to occupy the office facility adjacent to our corporate headquarters and make rent payments to G&H Post in the amount provided for in the Second Merrimack lease. We also have continued to pay the real estate taxes, common area maintenance charges, and insurance premiums which were required under the Second Merrimack lease. It is our intention to enter into a written, long-term lease for this facility.
The rest of Item 2
We lease a facility in Wilmington, Ohio, which houses our distribution and order fulfillment operations and services all three of our operating segments. We also operate sales and support offices throughout the United States and lease facilities at these locations. These leased facilities are utilized by all three of our operating segments. Leasehold improvements associated with these properties are amortized over the terms of the leases or their useful lives, whichever is shorter. We believe that our physical properties will be sufficient to support our anticipated needs through the next twelve months and beyond.
PC Connection, Inc. was founded in 1982 by Patricia Gallup and David Hall. The co-founders met while serving as a support crew to hikers on the Appalachian Trail.
The company's first headquarters occupied a former woodworking mill in Marlow, NH population 542 at the time. To launch their business, Gallup and Hall used Gallup's savings of $8,000 to purchase inventory and take out a 1/9th-page ad in Byte magazine. In 1984, they started selling Macintosh products under the MacConnection brand.
In 1987, PC Connection was named to the Inc. 500 as the second fastest growing company in the United States.
In March 1998, the company completed its initial public offering on the NASDAQ exchange under the symbol PCCC.
In September 2016, the company announced that it would rebrand as simply Connection, in an effort to unify its divisions. The company stated that the new name "better reflects the promise of our future and the successes of our past".
In addition to its corporate headquarters in Merrimack, PC Connection, Inc. has sales and support offices in Keene, New Hampshire; Rockville, Maryland; Dakota Dunes, South Dakota; Boca Raton, Florida; Schaumburg, IL; and Exton, Pennsylvania. The company operates a 268,000-square-foot distribution and fulfillment complex, equipped with a technical configuration lab in Wilmington, Ohio.
Marketing
PC Connection was known for magazine ads featuring illustrations of anthropomorphic raccoons (and occasionally, other animals) living in a fictionalized version of Marlow. The ads were developed by the New Hampshire-based advertising agency Church and Main, intending to symbolize a goal to make computing less "scary", and play up the rural location of PC Connection's headquarters.
The agency's copywriter David Blistein was influenced by an edition of the children's novel The Wind in the Willows illustrated by E. H. Shepard, and hired local illustrator Erick Ingraham to develop the concept further. Ingraham explained that the choice of raccoons as a mascot was likely because of their dexterity, as it allowed them to be portrayed operating PCs and other peripherals. Ingraham's illustrations and the raccoons would be a regular fixture of PC Connection's marketing through the 1980s, with the company's catalogs featuring more fantastical artwork. The raccoon imagery began to be downplayed by the company in the mid-1990s, due to changes in marketing practices amid the commodification of the PC industry, growing focus on business customers, and its shift away from magazine advertising to focus on ecommerce.
In 1999, Connection purchased ComTeq Federal, a Maryland-based company serving the computing needs of federal government agencies, including the Navy, Federal Deposit Insurance Corp, the National Security Agency, and Internal Revenue Service. Renamed GovConnection, Inc., the subsidiary serves all government and education customers.
In January 2000, Connection announced the agreement to acquire Merisel Inc.
In 2002, Connection acquired MoreDirect, a Florida-based company specializing in Web-based eProcurement.
In 2005, Connection purchased the business and selected assets of Amherst Technologies, Inc., a New Hampshire-based IT provider.
Read the full text
In 2011, Connection acquired ValCom Technologies, a technology services company in the Chicago metropolitan area.
In 2016, Connection acquired Softmart, a supplier of hardware and software.
In 2016, Connection acquired GlobalServe, a global reseller.
Oct 30, 2024Reported quarterly or annual results49
Upcoming dates from Nasdaq's calendar; past results from the company's 8-K filings (Item 2.02). The full markets calendar
Filings
349 filings to the SEC since October 2021: 5 annual reports, 15 quarterly reports, 32 major events, 239 insider forms, 19 large holders, 39 other. The latest 20:
154 open-market trades by officers, directors and large owners since October 2021: 0 buys and 154 sales. Grants, option exercises and gifts are left out.
The largest holders among investment managers' 13F reports for the quarter ending Jun 30, 2026, the top 25 of 100. Change is in shares since the quarter before.
From the cover page of the 10-K filed Feb 24, 2026 (Section 12(b) of the Exchange Act).16
Risk factors and legal proceedings
The risks PC Connection names in Item 1A of its 10-K filed Feb 24, 2026: 28 risks under these headings, as written.16
Risks Related to our Business, Operations and Industry
We have experienced variability in sales and may not be able to maintain profitable operations.
Our sales are dependent on continued innovations in hardware, software and services by our vendor partners and the competitiveness of their offerings, and our ability to partner with new and emerging technology providers.
Substantial competition could reduce our market share and may negatively affect our business.
We face and will continue to face significant price competition, which could result in a reduction of our profit margins.
Inflation may adversely impact our business, financial condition and results of operations.
The interruption of the flow of products from suppliers could disrupt our supply chain.
Failure to provide high quality services to our clients could adversely affect our reputation, brand, business, results of operations or cash flows.
General economic and political conditions, including unfavorable conditions in a business or industry sector, may lead our clients to delay or forgo investments in IT hardware, software and services.
We acquire a majority of our products for resale from a limited number of vendors. The loss of any one of these vendors could have a material adverse effect on our business.
Virtualization of IT resources and applications, including networks, servers, applications, and data storage may disrupt or alter our traditional distribution models.
The methods of distributing IT products are changing, and such changes may negatively impact us and our business.
The other 17 risks
We depend heavily on third-party shippers to deliver our products to customers and would be adversely affected by a service interruption by these shippers.
We may experience increases in shipping and postage costs, which may adversely affect our business if we are not able to pass such increases on to our customers.
We may experience a reduction in the incentive programs offered to us by our vendors.
Should our financial performance not meet expectations, we may be required to record a significant charge to earnings for impairment of goodwill and other intangibles.
We are exposed to inventory obsolescence due to the rapid technological changes occurring in the IT industry.
We are exposed to accounts receivable risk and if customers fail to timely pay amounts due to us, our results of operations and/or cash flows could be adversely affected.
We are dependent on key personnel and, more generally, skilled personnel in all areas of our business and the loss of key persons or the inability to attract, train and retain qualified personnel could adversely impact our business.
Risks Related to Our Technology, Data and Intellectual Property
Cyberattacks or the failure to safeguard personal information and our IT systems could result in liability and harm our reputation, which could adversely affect our business.
Our business could be materially adversely affected by system failures, interruption, integration issues, or security lapses of our IT systems or those of our third-party providers.
We use AI in our business, as do certain of our business partners, and challenges with properly managing its use could result in reputational harm, competitive harm, significant unexpected expenses and legal liability, which may adversely affect our results of operations.
We are reliant on the continued development of electronic commerce and Internet infrastructure development to grow our overall sales.
We could experience Internet and other system failures which would interfere with our ability to process orders.
Privacy concerns with respect to list development and maintenance may materially adversely affect our business.
Risks Related to Regulatory and Legal Matters
We are exposed to risks from legal proceedings and audits, which may result in substantial costs and expenses or interruption of our normal business operations.
The failure to comply with our public sector contracts could result in, among other things, fines or liabilities.
We face uncertainties relating to the collection of state sales and use tax.
Risks Related to Our Common Stock
We are controlled by one principal stockholder.
Legal proceedings
From time to time and in the ordinary course of business, we are subject to various legal proceedings and claims. While we are unable to predict the outcome of these matters, we do not believe, based upon currently available facts, that the ultimate resolution of any such pending matters will have a material adverse effect on our overall financial condition, results of operations, or cash flows.
