On this page of StockholderLetter.com we present the latest annual shareholder letter from PC CONNECTION INC — ticker symbol CNXN. Reading current and past CNXN letters to shareholders can bring important insights into the investment thesis.
2025 ANNUAL REPORT
Dear Shareholders, Customers, Industry Partners, and Co-workers, Technology is surging forward in complexity, scale, and interconnectedness. In today s environment, Connection s expertise and focus on technology is leading us to become an even more essential advisor to our clients. With each new wave of innovation, our trusted team is there to help organizations identify and understand the technologies and strategies they need to be successful to be agile, resilient, and secure. This focus on exceptional customer service has guided our Company since 1982, and that passion continues to drive our efforts as we invest in the talent, resources, and capabilities to help our customers prepare for tomorrow s challenges. Together with our best-in-class partners, Connection is dedicated to helping organizations of every size and industry design, deploy, and manage the advanced technology solutions and services they need to be bold in the pursuit of opportunities and con dent in the face of change. This focus on deep, loyal partnerships and industry-leading advanced technologies helped Connection achieve strong performance in 2025. The Company generated annual gross billings of $4.1 billion resulting in annual net sales of $2.9 billion, an increase of 2.5% year over year. Connection Business Solutions, our SMB focused subsidiary, achieved net sales of $1.1 billion, Connection Enterprise Solutions recognized net sales of $1.3 billion, and Connection Public Sector Solutions generated net sales of $0.5 billion. Our diluted earnings per share were $3.27. This performance enabled Connection to return a total of $15.3 million to shareholders in the form of four quarterly dividends. We generated positive operating cash ow of approximately $65.4 million and ended the year with no debt and a healthy cash, cash equivalent, and short-term investment balance of $406.7 million. 2025 was a year of meaningful internal transformation and strategic innovation. We continued modernizing our core nancial, operational, and sales platforms bringing greater integration, visibility, and alignment across the organization. By creating a more uni ed and intelligent operating environment, we are enabling advanced selling capabilities, real-time insights, and a more seamless experience for our customers. As IT purchasing models evolve and digital expectations rise, these investments position Connection to operate with greater agility, scale, and precision. At the same time, we strengthened our ability to support customers across the full technology lifecycle from procurement and deployment through optimization and renewal. By advancing our digital capabilities and deepening integration within the Cisco and Microsoft ecosystems, we now provide customers with a single, uni ed view to manage and optimize their asset inventories, subscription portfolios, and service contracts. The response has been overwhelmingly positive, af rming our strategy to deliver value well beyond the point of sale. This is how we continue to evolve expanding our role from product provider to indispensable strategic advisor. Our CNXN Helix Center for Applied AI and Robotics continues to serve as an innovation engine for both our customers and our organization. CNXN Helix helps simplify the rapidly evolving AI landscape accelerating adoption and focusing on measurable business outcomes. In 2025, we further strengthened this capability by aligning CNXN Helix with our Technology Solutions and Services team. This integration enhances ef ciency, deepens technical collaboration, and ampli es our ability to deliver scalable, secure AI-driven solutions. We are not only guiding customers through AI transformation we are applying these insights internally to sharpen our own operations and accelerate innovation. Our team reached several key milestones in 2025, furthering our ability to deliver greater convenience, security, and performance to customers. Connection achieved the full suite of Microsoft Security Specializations and earned Cisco Gold Provider status. These accomplishments highlight the depth of our expertise in protecting customer data and enable Connection to deliver unparalleled support and value. Our team s dedication and commitment to excellence was recognized with several awards in 2025, including being named Lenovo 360 Nationals Partner of the Year, Intel Partner of the Year for AI PC, and Samsung National Partner of the Year. We again earned a place on the Fortune 1000 and on Forbes America s Best Midsize Employer lists, and were named to the CRN Solution Provider 500 and CRN Managed Service Provider 500 in the Elite 150 category for the eighth consecutive year. 2025 was a year of investment and improvement and we are excited to build on the foundation we have put in place to deliver even higher levels of service and support for our customers. We are con dent Connection has the resources, strategies, and capabilities to lead the industry and create long-term value for our investors. To our shareholders, customers, partners, and co-workers, thank you for your continued support as we bring people and technology together. Timothy McGrath Patricia Gallup Board Chair President and Chief Executive Of cer
 • shareholder letter icon 3/27/2026 Letter Continued (Full PDF)
 • stockholder letter icon 4/7/2023 CNXN Stockholder Letter
 • stockholder letter icon 3/29/2024 CNXN Stockholder Letter
 • stockholder letter icon 3/28/2025 CNXN Stockholder Letter
 • stockholder letter icon More "Information Technology Services" Category Stockholder Letters
 • Benford's Law Stocks icon CNXN Benford's Law Stock Score = 84


CNXN Shareholder/Stockholder Letter Transcript:

2025
ANNUAL
REPORT

Dear Shareholders, Customers, Industry Partners, and Co-workers,
Technology is surging forward in complexity, scale, and
interconnectedness. In today   s environment, Connection   s
expertise and focus on technology is leading us to become
an even more essential advisor to our clients. With each
new wave of innovation, our trusted team is there to help
organizations identify and understand the technologies and
strategies they need to be successful   to be agile, resilient,
and secure. This focus on exceptional customer service has
guided our Company since 1982, and that passion continues
to drive our efforts as we invest in the talent, resources, and
capabilities to help our customers prepare for tomorrow   s
challenges. Together with our best-in-class partners,
Connection is dedicated to helping organizations of every
size and industry design, deploy, and manage the advanced
technology solutions and services they need to be bold in the
pursuit of opportunities and con   dent in the face of change.
This focus on deep, loyal partnerships and industry-leading
advanced technologies helped Connection achieve strong
performance in 2025. The Company generated annual
gross billings of $4.1 billion resulting in annual net sales of
$2.9 billion, an increase of 2.5% year over year. Connection
Business Solutions, our SMB focused subsidiary, achieved
net sales of $1.1 billion, Connection Enterprise Solutions
recognized net sales of $1.3 billion, and Connection Public
Sector Solutions generated net sales of $0.5 billion. Our
diluted earnings per share were $3.27. This performance
enabled Connection to return a total of $15.3 million to
shareholders in the form of four quarterly dividends. We
generated positive operating cash    ow of approximately
$65.4 million and ended the year with no debt and a healthy
cash, cash equivalent, and short-term investment balance
of $406.7 million.
2025 was a year of meaningful internal transformation and
strategic innovation. We continued modernizing our core
   nancial, operational, and sales platforms   bringing greater
integration, visibility, and alignment across the organization.
By creating a more uni   ed and intelligent operating
environment, we are enabling advanced selling capabilities,
real-time insights, and a more seamless experience for
our customers. As IT purchasing models evolve and digital
expectations rise, these investments position Connection to
operate with greater agility, scale, and precision.
At the same time, we strengthened our ability to support
customers across the full technology lifecycle   from
procurement and deployment through optimization and
renewal. By advancing our digital capabilities and deepening
integration within the Cisco and Microsoft ecosystems,
we now provide customers with a single, uni   ed view to
manage and optimize their asset inventories, subscription
portfolios, and service contracts. The response has been
overwhelmingly positive, af   rming our strategy to deliver
value well beyond the point of sale. This is how we continue
to evolve   expanding our role from product provider to
indispensable strategic advisor.
Our CNXN Helix Center for Applied AI and Robotics
continues to serve as an innovation engine for both our
customers and our organization. CNXN Helix helps simplify
the rapidly evolving AI landscape   accelerating adoption
and focusing on measurable business outcomes. In 2025,
we further strengthened this capability by aligning CNXN
Helix with our Technology Solutions and Services team.
This integration enhances ef   ciency, deepens technical
collaboration, and ampli   es our ability to deliver scalable,
secure AI-driven solutions. We are not only guiding
customers through AI transformation   we are applying
these insights internally to sharpen our own operations
and accelerate innovation.
Our team reached several key milestones in 2025, furthering
our ability to deliver greater convenience, security, and
performance to customers. Connection achieved the full
suite of Microsoft Security Specializations and earned
Cisco Gold Provider status. These accomplishments
highlight the depth of our expertise in protecting customer
data and enable Connection to deliver unparalleled support
and value.
Our team   s dedication and commitment to excellence was
recognized with several awards in 2025, including being
named Lenovo 360 Nationals Partner of the Year, Intel
Partner of the Year for AI PC, and Samsung National Partner
of the Year. We again earned a place on the Fortune 1000
and on Forbes America   s Best Midsize Employer lists, and
were named to the CRN Solution Provider 500 and CRN
Managed Service Provider 500 in the Elite 150 category for
the eighth consecutive year.
2025 was a year of investment and improvement   and
we are excited to build on the foundation we have put in
place to deliver even higher levels of service and support
for our customers. We are con   dent Connection has the
resources, strategies, and capabilities to lead the industry
and create long-term value for our investors. To our
shareholders, customers, partners, and co-workers, thank
you for your continued support as we bring people and
technology together.
Timothy McGrath
Patricia Gallup
Board Chair
President and
Chief Executive Of   cer


shareholder letter icon 3/27/2026 Letter Continued (Full PDF)
 

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