CNXN Achieves Fifth Straight Quarter of Sales Growth Amid Challenging Economy

CNXN reported Q2 2025 revenues of $759.7 million, below estimates, marking its fifth consecutive quarter of net sales growth. The company attributed the growth to investments in data center upgrades and Windows 11 transition, driving demand for advanced technologies and endpoint devices. Despite challenging economic conditions, PC Connection Inc demonstrated strong financial health and sustained performance in the technology sector.

PC Connection Inc. (CNXN) reported its second-quarter (Q2) 2025 earnings, revealing mixed results that saw earnings per share (EPS) meet expectations but revenue fall short of forecasts. The company's stock experienced a slight decline in aftermarket trading, reflecting investor concerns over the revenue performance.

The company reported EPS of $0.97, which met analyst expectations but was down by $0.02 from the previous year. Revenue, however, missed forecasts by 1.93%, coming in at $759.7 million compared to the forecasted $774.66 million. Despite a robust performance in certain segments, such as enterprise solutions and mobility categories, the overall revenue miss and ongoing challenges in the public sector weighed on market sentiment.

Key financial highlights include:
- Net sales increased by 3.2% year-over-year to $759.7 million.
- Gross profit reached a record $137.8 million, but gross margins decreased to 18.1% from 18.5% last year.
- Net income declined by 5.2% to $24.8 million.

The company's stock price fell 0.3% in aftermarket trading, closing at $64.22. Despite the decline, the stock remains within its 52-week range between $56.82 and $77.19.

PC Connection Inc. maintains a strong financial health score of "GOOD" and holds more cash than debt on its balance sheet, with a comfortable current ratio of 3.16. The company remains optimistic about the second half of 2025, forecasting an EPS of $1.02 for Q3 2025 and anticipating revenue of $775.32 million.

CEO Tim McGrath emphasized the company's commitment to simplifying IT for customers and highlighted the strategic focus on long-term growth. However, the company faces challenges such as a revenue shortfall in public sector solutions and potential impacts from tariff changes.

[1] https://www.investing.com/news/transcripts/earnings-call-transcript-pc-connection-q2-2025-sees-steady-earnings-stock-dips-93CH-4161405