Revenue rebounded strongly in 2026Q2 with 12.4% YoY growth to $854.0M, while operating leverage drove a 44.3% increase in operating income to $44.6M, though gross margin contracted to 18.4% from 19.6% a year earlier.
PC Connection, Inc. (CNXN) annual income statement — 29-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 |
|---|
| Sales/Revenue | 2.99B | 2.87B | 2.8B | 2.85B | 3.12B | 2.89B | 2.59B | 2.82B | 2.7B | 2.91B | 2.69B | 2.57B | 2.46B | 2.22B | 2.16B | 2.1B | 1.97B | 1.57B | 1.75B | 1.79B | 1.64B | 1.44B | 1.35B | 1.31B | 1.19B | 1.19B | 1.45B | 1.06B | 732.4M | 550.6M |
| Revenue Growth % | 3.23% | 2.52% | -1.7% | -8.78% | 8.03% | 11.67% | -8.15% | 4.47% | -7.29% | 8.14% | 4.61% | 4.49% | 10.88% | 2.91% | 2.64% | 6.54% | 25.77% | -10.49% | -1.78% | 9.15% | 13.25% | 6.68% | 3.12% | 10.19% | 0.45% | -18.19% | 37.21% | 44.28% | 33.02% | - |
| Cost of Goods Sold | 2.42B | 2.33B | 2.28B | 2.34B | 2.6B | 2.43B | 2.17B | 2.37B | 2.29B | 2.53B | 2.32B | 2.23B | 2.14B | 1.93B | 1.88B | 1.84B | 1.74B | 1.38B | 1.54B | 1.57B | 1.44B | 1.28B | 1.2B | 1.18B | 1.06B | 1.05B | 1.27B | 922.1M | 636.2M | 470.9M |
| COGS % of Revenue | - | 81.23% | 81.45% | 82.05% | 83.16% | 83.94% | 83.83% | 84% | 84.77% | 86.88% | 86.22% | 86.75% | 86.87% | 86.81% | 86.93% | 87.41% | 88.35% | 88.23% | 87.75% | 87.74% | 87.76% | 88.67% | 88.77% | 89.51% | 89.16% | 88.91% | 87.39% | 87.26% | 86.87% | 85.52% |
| Gross Profit | 564.46M | 539.33M | 519.79M | 511.74M | 526.18M | 464.58M | 418.81M | 451.31M | 411.09M | 382.08M | 371.16M | 341.02M | 323.39M | 293M | 282.09M | 264.88M | 229.9M | 184.8M | 214.84M | 218.97M | 200.25M | 163.6M | 152.05M | 137.68M | 129.19M | 131.59M | 182.79M | 134.6M | 96.2M | 79.7M |
| Gross Margin % | 18.89% | 18.77% | 18.55% | 17.95% | 16.84% | 16.06% | 16.17% | 16% | 15.23% | 13.12% | 13.78% | 13.25% | 13.13% | 13.19% | 13.07% | 12.59% | 11.65% | 11.77% | 12.25% | 12.26% | 12.24% | 11.33% | 11.23% | 10.49% | 10.84% | 11.09% | 12.61% | 12.74% | 13.13% | 14.48% |
| Gross Profit Growth % | - | 3.76% | 1.57% | -2.74% | 13.26% | 10.93% | -7.2% | 9.78% | 7.59% | 2.94% | 8.84% | 5.45% | 10.37% | 3.87% | 6.5% | 15.22% | 24.41% | -13.99% | -1.88% | 9.35% | 22.41% | 7.59% | 10.44% | 6.57% | -1.82% | -28.01% | 35.8% | 39.92% | 20.7% | - |
| Operating Expenses | 438.31M | 436.96M | 422.73M | 408.58M | 405.63M | 368.06M | 346.73M | 339.34M | 324.43M | 300.91M | 287.23M | 262.46M | 251.94M | 233.6M | 226.32M | 217.27M | 191.23M | 172.65M | 196.97M | 182.18M | 176.32M | 154.11M | 137.96M | 124.82M | 121.96M | 117.61M | 130.54M | 96.7M | 73.8M | 72.4M |
| OpEx % of Revenue | - | 15.21% | 15.09% | 14.33% | 12.98% | 12.72% | 13.39% | 12.03% | 12.02% | 10.33% | 10.67% | 10.2% | 10.23% | 10.51% | 10.48% | 10.33% | 9.69% | 11% | 11.23% | 10.2% | 10.78% | 10.67% | 10.19% | 9.51% | 10.24% | 9.91% | 9% | 9.15% | 10.08% | 13.15% |
| Selling, General & Admin | 424.13M | 419.63M | 38M | 35.3M | 385M | 347.6M | 345.74M | 338.63M | 324.43M | 300.91M | 262.7M | 240.8M | 231.8M | 214.8M | 208M | 217.27M | 191.23M | 172.65M | 186.73M | 181.64M | 173.93M | 151.98M | 132.73M | 124.82M | 121.96M | 117.61M | 123.97M | 91.4M | 70.9M | 68.7M |
| SG&A % of Revenue | - | 14.61% | 1.36% | 1.24% | 12.32% | 12.02% | 13.35% | 12.01% | 12.02% | 10.33% | 9.76% | 9.36% | 9.41% | 9.67% | 9.63% | 10.33% | 9.69% | 11% | 10.65% | 10.17% | 10.63% | 10.52% | 9.8% | 9.51% | 10.24% | 9.91% | 8.55% | 8.65% | 9.68% | 12.48% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 3M | 17.34M | 384.73M | 373.28M | 20.63M | 20.46M | 992K | 703K | 2.98M | 0 | 10.5M | 9M | 8.1M | 7.1M | 41K | 0 | 0 | 0 | 10.24M | 541K | 2.39M | 2.13M | 5.23M | 0 | 0 | 0 | 6.57M | 5.3M | 2.9M | 3.7M |
| Operating Income | 126.16M | 102.36M | 97.06M | 103.15M | 120.55M | 96.52M | 72.07M | 111.97M | 85.69M | 77.53M | 80.52M | 78.55M | 71.45M | 59.4M | 54.63M | 47.61M | 38.67M | -684K | 17.88M | 36.79M | 23.93M | 9.49M | 14.09M | 10.93M | 5.59M | 11.77M | 52.25M | 37.9M | 22.4M | 7.3M |
| Operating Margin % | 4.22% | 3.56% | 3.46% | 3.62% | 3.86% | 3.34% | 2.78% | 3.97% | 3.17% | 2.66% | 2.99% | 3.05% | 2.9% | 2.67% | 2.53% | 2.26% | 1.96% | -0.04% | 1.02% | 2.06% | 1.46% | 0.66% | 1.04% | 0.83% | 0.47% | 0.99% | 3.6% | 3.59% | 3.06% | 1.33% |
| Operating Income Growth % | - | 5.46% | -5.9% | -14.43% | 24.9% | 33.91% | -35.63% | 30.68% | 10.52% | -3.72% | 2.5% | 9.94% | 20.3% | 8.72% | 14.75% | 23.13% | 5753.07% | -103.83% | -51.4% | 53.72% | 152.24% | -32.68% | 28.99% | 95.6% | -52.55% | -77.47% | 37.86% | 69.2% | 206.85% | - |
| EBITDA | 140.3M | 116.97M | 110.05M | 115.81M | 132.55M | 108.72M | 85.68M | 125.29M | 99.75M | 89.37M | 90.97M | 87.52M | 79.55M | 66.48M | 61.53M | 53.56M | 44.1M | 6.11M | 24.84M | 43.57M | 30.98M | 16.68M | 21.22M | 19.29M | 13.73M | 19.59M | 58.81M | 43.2M | 25.3M | 11M |
| EBITDA Margin % | 4.7% | 4.07% | 3.93% | 4.06% | 4.24% | 3.76% | 3.31% | 4.44% | 3.7% | 3.07% | 3.38% | 3.4% | 3.23% | 2.99% | 2.85% | 2.55% | 2.23% | 0.39% | 1.42% | 2.44% | 1.89% | 1.16% | 1.57% | 1.47% | 1.15% | 1.65% | 4.06% | 4.09% | 3.45% | 2% |
| EBITDA Growth % | 26.85% | 6.29% | -4.97% | -12.63% | 21.92% | 26.89% | -31.61% | 25.6% | 11.62% | -1.77% | 3.95% | 10.02% | 19.65% | 8.06% | 14.87% | 21.46% | 621.48% | -75.4% | -42.98% | 40.63% | 85.69% | -21.37% | 10.01% | 40.48% | -29.9% | -66.7% | 36.15% | 70.75% | 130% | - |
| D&A (Non-Cash Add-back) | 14.14M | 14.6M | 12.98M | 12.65M | 12M | 12.2M | 13.6M | 13.31M | 14.06M | 11.84M | 10.45M | 8.96M | 8.09M | 7.09M | 6.89M | 5.95M | 5.43M | 6.8M | 6.96M | 6.78M | 7.05M | 7.2M | 7.13M | 8.36M | 8.14M | 7.82M | 6.57M | 5.3M | 2.9M | 3.7M |
| EBIT | 129.28M | 113.73M | 97.48M | 105.57M | 120.58M | 96.48M | 73.07M | 112.67M | 88.81M | 77.63M | 83.96M | 78.55M | 71.45M | 59.4M | 54.67M | 47.8M | 38.88M | -160K | 18.69M | 36.79M | 23.93M | 9.49M | 14.09M | 12.86M | 7.22M | 11.77M | 51.82M | 37.94M | 22.4M | 7.3M |
| Net Interest Income | 13.14M | 14.37M | 18.73M | 0 | 0 | 0 | 61K | 707K | 2.98M | 98K | -67K | -87K | -86K | -149K | -166K | -369K | -490K | -517K | -681K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 13.14M | 14.37M | 18.73M | 0 | 0 | 0 | 168K | 810K | 3.12M | 98K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 0 | 107K | 103K | 145K | 0 | 67K | 87K | 86K | 149K | 166K | 369K | 490K | 517K | 681K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 4.09M | 11.36M | 20.43M | 9.96M | 1.08M | 5K | 1.12M | 707K | 2.98M | 98K | -67K | -87K | -86K | -149K | -125K | -180K | -277K | 7K | 130K | -168K | -1.71M | -1.36M | -1.23M | -1.19M | -639K | 128K | -1.07M | -1.33M | 100K | -1.5M |
| Pretax Income | 130.24M | 113.73M | 117.49M | 113.11M | 121.64M | 96.52M | 73.2M | 112.68M | 88.66M | 77.63M | 80.45M | 78.47M | 71.37M | 59.25M | 54.51M | 47.43M | 38.39M | -677K | 18.01M | 36.62M | 22.23M | 8.13M | 12.86M | 9.74M | 4.95M | 11.9M | 50.75M | 36.6M | 22.5M | 5.8M |
| Pretax Margin % | 4.36% | 3.96% | 4.19% | 3.97% | 3.89% | 3.34% | 2.83% | 4% | 3.28% | 2.67% | 2.99% | 3.05% | 2.9% | 2.67% | 2.52% | 2.26% | 1.94% | -0.04% | 1.03% | 2.05% | 1.36% | 0.56% | 0.95% | 0.74% | 0.42% | 1% | 3.5% | 3.46% | 3.07% | 1.05% |
| Income Tax | 34.4M | 30.01M | 30.39M | 29.84M | 32.42M | 26.62M | 17.43M | 30.57M | 24.07M | 22.77M | 32.34M | 31.64M | 28.69M | 23.57M | 21.44M | 18.64M | 15.43M | 545K | 7.64M | 13.63M | 8.45M | 3.68M | 4.56M | 3.85M | 1.7M | 4.52M | 19.29M | 13.9M | 3.9M | 600K |
| Effective Tax Rate % | 26.41% | 26.38% | 25.87% | 26.38% | 26.65% | 27.58% | 23.81% | 27.13% | 27.15% | 29.33% | 40.2% | 40.32% | 40.2% | 39.77% | 39.33% | 39.31% | 40.19% | -80.5% | 42.44% | 37.21% | 38.02% | 45.3% | 35.43% | 39.54% | 34.36% | 37.99% | 38.01% | 37.98% | 17.33% | 10.34% |
| Net Income | 95.84M | 83.72M | 87.09M | 83.27M | 89.22M | 69.91M | 55.77M | 82.11M | 64.59M | 54.86M | 48.11M | 46.83M | 42.68M | 35.68M | 33.07M | 28.79M | 22.96M | -1.22M | 10.37M | 23M | 13.78M | 4.45M | 8.3M | 5.89M | 3.25M | 7.38M | 31.46M | 22.7M | 18.6M | 5.2M |
| Net Margin % | 3.21% | 2.91% | 3.11% | 2.92% | 2.85% | 2.42% | 2.15% | 2.91% | 2.39% | 1.88% | 1.79% | 1.82% | 1.73% | 1.61% | 1.53% | 1.37% | 1.16% | -0.08% | 0.59% | 1.29% | 0.84% | 0.31% | 0.61% | 0.45% | 0.27% | 0.62% | 2.17% | 2.15% | 2.54% | 0.94% |
| Net Income Growth % | 11.38% | -3.87% | 4.59% | -6.67% | 27.63% | 25.36% | -32.09% | 27.12% | 17.75% | 14.02% | 2.74% | 9.71% | 19.61% | 7.9% | 14.88% | 25.37% | 1978.97% | -111.79% | -54.92% | 66.92% | 209.78% | -46.45% | 41.03% | 81.34% | -56% | -76.55% | 38.6% | 22.04% | 257.69% | - |
| Net Income (Continuing) | 95.84M | 83.72M | 87.09M | 83.27M | 89.22M | 69.91M | 55.77M | 82.11M | 64.59M | 54.86M | 48.11M | 46.83M | 42.68M | 35.68M | 33.07M | 28.79M | 22.96M | -1.22M | 10.37M | 23M | 13.78M | 4.45M | 8.3M | 5.89M | 3.25M | 7.38M | 31.2M | 22.7M | 18.6M | 5.2M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 3.78 | 3.27 | 3.29 | 3.15 | 3.37 | 2.65 | 2.12 | 3.10 | 2.41 | 2.04 | 1.80 | 1.76 | 1.61 | 1.35 | 1.24 | 1.07 | 0.85 | -0.05 | 0.39 | 0.85 | 0.54 | 0.18 | 0.33 | 0.23 | 0.13 | 0.30 | 1.22 | 0.63 | 0.45 | 0.34 |
| EPS Growth % | 15.24% | -0.61% | 4.44% | -6.53% | 27.17% | 25% | -31.61% | 28.63% | 18.14% | 13.33% | 2.27% | 9.32% | 19.26% | 8.87% | 15.89% | 25.88% | 1968.13% | -111.67% | -54.12% | 57.41% | 200% | -45.45% | 43.48% | 76.92% | -56.67% | -75.41% | 93.65% | 40% | 32.35% | - |
| EPS (Basic) | - | 3.28 | 3.31 | 3.17 | 3.40 | 2.67 | 2.13 | 3.12 | 2.42 | 2.05 | 1.81 | 1.77 | 1.63 | 1.37 | 1.25 | 1.08 | 0.85 | -0.05 | 0.39 | 0.86 | 0.54 | 0.18 | 0.33 | 0.24 | 0.13 | 0.30 | 1.30 | 0.65 | 0.47 | 0.35 |
| Diluted Shares Outstanding | 25.34M | 25.63M | 26.51M | 26.43M | 26.44M | 26.36M | 26.34M | 26.5M | 26.85M | 26.89M | 26.72M | 26.62M | 26.51M | 26.39M | 26.59M | 26.8M | 27.05M | 26.83M | 26.9M | 27.02M | 25.73M | 25.28M | 25.27M | 25.11M | 24.86M | 24.95M | 25.57M | 36.14M | 23.4M | 22.37M |
| Basic Shares Outstanding | 25.23M | 25.51M | 26.32M | 26.29M | 26.28M | 26.2M | 26.16M | 26.34M | 26.72M | 26.77M | 26.53M | 26.4M | 26.25M | 26.12M | 26.43M | 26.7M | 27.01M | 26.83M | 26.83M | 26.79M | 25.52M | 25.18M | 25.03M | 24.71M | 24.55M | 24.45M | 24M | 35.16M | 23.4M | 22.37M |
| Dividend Payout Ratio | - | 18.27% | 12.09% | 10.1% | - | 49.49% | 15.11% | 10.29% | 14.12% | 16.48% | 22.01% | 22.62% | 24.66% | 29.36% | 30.46% | 36.78% | - | - | - | - | - | - | - | - | - | - | - | - | 177.42% | - |
Quick answers to the most common questions about buying CNXN stock.
For fiscal year 2025, PC Connection, Inc. (CNXN) reported total revenue of $2.87B. This represents a 421.7% increase compared to $550.6M in 1997.
PC Connection, Inc. (CNXN) is profitable, generating $83.7M in net income for the fiscal year ending 2025 with a net profit margin of 2.9%.
PC Connection, Inc. (CNXN) reported an operating income of $102.4M, resulting in an operating profit margin of 3.6%. This margin reflects the operational efficiency of the business before interest and taxes.
PC Connection, Inc. (CNXN) generated $539.3M in gross profit for the year, representing a gross profit margin of 18.8%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Revenue concentration in hardware
Metrics are mathematically derived from official filings.
Revenue Rebound Led by Q2 Surge
According to the latest quarterly data, CNXN's revenue jumped 12.4% year-over-year in 2026Q2 to $854.0M, marking the strongest growth in the ten-quarter period and reversing a prior deceleration.
The 12.4% growth in 2026Q2 is a notable acceleration from the 3.0% in 2026Q1 and the negative prints in 2025Q3 and Q4. This suggests a demand inflection, possibly driven by refresh cycles or new product launches, but the sustainability is uncertain given the lumpy nature of IT spending. Investors should monitor whether this pace can be maintained, as prior quarters showed volatility with growth ranging from -13.1% to +10.9%.
Gross Margin Stability Amid Mix Shifts
As reported in the income statement, gross margin has held in a tight 18.1%-19.6% band over the last ten quarters, with 2026Q2 at 18.4%, indicating pricing discipline despite revenue fluctuations.
The stability of gross margin around 18-19% suggests that CNXN has maintained its value-added services mix, which helps offset hardware commoditization. However, the slight dip from 19.6% in 2025Q3 to 18.4% in 2026Q2 may indicate a shift toward lower-margin product sales during the high-growth quarter. Compared to peers like CDW (21.7%) and NSIT (21.4%), CNXN's gross margin is lower, reflecting its distribution-heavy model, but it has been consistent.
Operating Leverage Emerges in Q2
Based on the quarterly data, operating income in 2026Q2 grew 44.3% year-over-year to $44.6M, far outpacing the 12.4% revenue growth, as SG&A rose only 6.1% from the prior year.
The operating margin expanded to 5.2% in 2026Q2 from 4.1% in the year-ago quarter, demonstrating that SG&A costs are not scaling proportionally with revenue. This suggests that CNXN is leveraging its existing infrastructure to drive incremental profitability. However, the prior quarter (2026Q1) saw operating margin at just 3.4%, indicating that the leverage is not consistent and may be tied to seasonal or one-off factors.
EPS Growth Boosted by Tax and SBC
In 2026Q2, diluted EPS rose 35.1% year-over-year to $1.31, while net income grew 33.9%, but stock-based compensation of $2.7M and a lower effective tax rate may have contributed to the outperformance.
The EPS growth of 35.1% in 2026Q2 is higher than the net income growth of 33.9%, suggesting a slight benefit from share buybacks or a lower share count. SBC of $2.7M is modest relative to net income of $33.2M, but it still reduces reported earnings quality. The effective tax rate appears to have been lower in 2026Q2 (net income margin of 3.9% vs. pre-tax income margin of 5.2% implies a tax rate of ~25.5%), which may not be sustainable. Investors should adjust for these items to assess underlying profitability.
SG&A Discipline Drives Profitability
SG&A expenses have remained relatively flat around $100-108M over the past ten quarters, even as revenue fluctuated, indicating tight cost control that has helped protect operating margins.
In 2026Q2, SG&A was $108.3M, up only 6.1% from $102.1M in the year-ago quarter, while revenue grew 12.4%. This suggests that CNXN is managing its overhead effectively, with SG&A as a percentage of revenue declining to 12.7% from 13.4% a year ago. The company has no R&D expenses, which is typical for a distributor, but it must continue to invest in digital capabilities to remain competitive. The flat SG&A trend indicates a focus on cost discipline, but it may also limit investment in growth initiatives.
Sustainability of Q2 Growth Questioned
The 12.4% revenue surge in 2026Q2 could be a one-off, as prior quarters showed negative growth, and gross margin dipped to 18.4%, suggesting possible discounting to drive volume.
Short-sellers might argue that the Q2 revenue spike is not indicative of a durable trend, given the volatile growth history and the fact that 2025Q3 and Q4 saw declines. The slight gross margin compression in Q2 could indicate that CNXN sacrificed pricing to win deals, which may not be repeatable. Additionally, the operating margin of 5.2% is still below peers like CDW (7.4%), and the company's reliance on hardware sales exposes it to cyclical IT spending. If demand normalizes, the operating leverage seen in Q2 could reverse, leading to margin pressure.