PC Connection Inc. Reports Q2 2025 Financial Results: 3.2% Net Sales Growth Amidst Economic Challenges

PC Connection Inc reported Q2 2025 financial results with a 3.2% increase in net sales YoY. Despite a challenging environment, growth was driven by data center refresh initiatives and the transition to Windows 11. The company declared a quarterly dividend of $0.15 per share. Net income decreased by 5.2%, and gross margin decreased by 40 basis points. The Public Sector Solutions segment experienced an 11.9% decline in net sales.

PC Connection Inc. (PC Connection, Inc.; NASDAQ: CNXN) released its second-quarter 2025 financial results, reflecting a challenging yet resilient performance in the dynamic economic environment. The company reported a 3.2% increase in net sales year-over-year (YoY), driven by data center refresh initiatives and the transition to Windows 11. Despite this growth, net income decreased by 5.2%, and gross margin declined by 40 basis points compared to the same period in 2024.

Key highlights from the Q2 2025 results include:
- Net Sales: Increased by 3.2% YoY to $759.7 million.
- Gross Profit: Up by 0.9% to $137.8 million.
- Gross Margin: Decreased by 40 basis points to 18.1%.
- Net Income: Decreased by 5.2% to $24.8 million.
- Diluted EPS: Remained at $0.97.

The company also declared a quarterly dividend of $0.15 per share, payable on August 29, 2025, to shareholders of record on August 12, 2025.

Segment performance varied:
- Business Solutions: Net sales increased by 5.4% to $293.2 million, with a gross profit increase of 3.8% to $68.8 million.
- Public Sector Solutions: Net sales decreased by 11.9% to $140.5 million, with a gross profit decrease of 11.9% to $21.3 million.
- Enterprise Solutions: Net sales increased by 9.1% to $326.0 million, with a gross profit increase of 3.4% to $47.6 million.

Selling, general, and administrative (SG&A) expenses increased to $106.9 million, while interest income declined to $3.2 million. The company’s cash and cash equivalents and short-term investments stood at $346.1 million as of June 30, 2025, compared to $442.6 million as of December 31, 2024.

The company repurchased 254,695 shares of stock at an aggregate purchase price of $15.5 million during the second quarter of 2025.

A conference call and webcast discussing these results will be held on July 30, 2025, at 4:30 p.m. EDT. For more information, visit Connection’s investor relations website at [ir.connection.com](http://ir.connection.com).

References:
[1] https://www.businesswire.com/news/home/20250730500485/en/Connection-CNXN-Reports-Second-Quarter-2025-Results