CNXN PC CONNECTION INC

Overview and Growth

In fiscal 2025, PC CONNECTION INC recorded $2.87B of revenue, net income of $83.72M, and an operating cash inflow of $65.44M. Revenue of $2.87B sets the scale for evaluating how effectively sales translated into profit and cash during the year. Revenue was 2.5% above fiscal 2024 revenue of $2.80B, marking a year-over-year increase. The company reported diluted EPS of $3.27, adding a shareholder-level measure to the absolute income figures considered below. The per-share result recorded a 0.6% decrease from fiscal 2024 diluted EPS of $3.29. The revenue-to-assets relationship was 2.13x, showing the sales generated relative to the resources carried on the balance sheet.

Profitability

Gross profit was $539.33M, representing the portion of revenue remaining after the reported cost of revenue and before operating expenses. The gross-profit relationship equaled 18.8% of revenue, quantifying the portion retained before operating expenses were recognized. Operations produced $99.28M of income after the reported operating expense base, before the remaining non-operating and tax effects. Relative to revenue, operating income represented 3.5%, showing how efficiently sales converted into operating profit. After all reported below-operating-line items, the company recorded net income of $83.72M for the fiscal year. Net margin was 2.9%, meaning that this portion of revenue remained as net income after all recognized expenses. Pretax income was $113.73M, isolating the reported earnings outcome before the income-tax provision recognized for the fiscal year. Pretax income represented 4.0% of revenue, placing earnings before tax in the context of the company’s operating scale. The company recognized $30.01M of income tax for the period, completing the transition from pretax income to net income. Relative to pretax income, the tax provision measured 26.4%, quantifying the portion of pre-tax earnings paid in income tax. Return on period-end equity was 9.2%, relating annual net income to the equity capital on the balance sheet. Net income represented 6.2% of period-end assets, placing the company’s bottom-line result against the total resource base employed.

Liquidity and Capital Structure

Total assets were $1.35B, supported by $440.80M of liabilities and $910.13M of shareholder equity. Current assets were $1.22B against $420.39M of current liabilities, framing the resources and obligations classified within the near-term balance-sheet horizon. Current assets covered current liabilities by 2.9x, leaving a positive buffer for near-term obligations. Reported cash and equivalents were $193.22M, separating immediately recognizable cash resources from the rest of the current-asset base. The cash balance equaled 46.0% of current liabilities, showing how much near-term coverage came from cash alone. The liabilities-to-assets relationship was 32.6%, placing reported obligations against the full positive asset balance. The cash-to-assets relationship was 14.3%, comparing reported cash and equivalents with the full positive asset balance. Compared with $1.30B in fiscal 2024, the current asset base moved 4.0% and finished higher. Book equity was 0.1% lower than fiscal 2024 equity of $910.99M, showing how shareholder capital changed year over year.

Cash Flow and Earnings Quality

The company reported $65.44M of operating cash flow, a cash inflow that shows the cash generated by operations. Operating cash flow equaled 0.78x of net income, showing how strongly accounting earnings converted into cash from operations. Capital expenditures used $7.39M, identifying the reported investment outflow deducted from operating cash flow in the free-cash-flow calculation. Relative to operating cash flow, capital expenditures measured 11.3%, connecting investment intensity with the company’s cash-generation base. After capital spending, free cash flow was $58.05M, leaving cash available for debt reduction, shareholder returns, or further investment. The free-cash-flow margin was 2.0%, measuring cash remaining after capital spending against revenue. Free cash flow equaled 4.3% of total assets, relating post-investment cash generation to the company’s resource base.

Based on the annual report for the fiscal year ending Dec 31, 2025. Analysis generated Oct 21, 2026.