Q2 2025 PC Connection Inc Earnings Call Transcript

Jul 30, 2025 / 08:30 PM GMT

Release Date Price: €55

Transcript 10-Q8-K

Key Points

Positve

PC Connection Inc (CNXN) achieved its 5th consecutive quarter of year-over-year revenue growth.
Net sales increased by 3.2% to $759.7 million compared to the previous year.
The enterprise solution segment saw a 9.1% increase in net sales, driven by advanced technologies and endpoint devices.
The company was recognized with several awards, including Lenovo 360 Nationals Partner of the Year and Vams US Value Added Reseller Growth Partner of the Year.
PC Connection Inc (CNXN) has a strong backlog, the highest in nearly two years, indicating robust future demand.

Negative

Gross margins decreased by 40 basis points to 18.1% due to changes in partner subscription licensing programs.
Net income for Q2 was down 5.2% compared to the prior year, amounting to $24.8 million.
Public sector solution business saw a decline in net sales by 11.9% compared to the previous year.
Interest income decreased from $4.7 million to $3.2 million due to lower cash balances and interest rates.
Cash flow used in operations was $26.1 million for the first half of 2025, driven by increased inventory and accounts receivable.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

CNXN.OQ - PC Connection Inc
Q2 2025 PC Connection Inc Earnings Call
Jul 30, 2025 / 08:30PM GMT

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Presentation
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Unidentified_1 [1]
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Good afternoon and welcome to the 2nd quarter 2025 connection earnings conference call. My name is Liz and I will be the coordinator for today. At this time, all participants are in listen-only mode. Following the prepared remarks, there will be a question and answer session.

As a reminder, this conference call is the property of connection and may not be recorded or rebroadcast without specific permission from the company.

On the call today are Tim McGrath, President and Chief Executive Officer, and Tom Baker, senior Vice President and Chief Financial Officer. I will now turn the call over to the company.

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Unidentified_2 [2]

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