PC Connection Reports 2.5% Net Sales Increase to $2.87 Billion for Fiscal Year 2025

PC Connection, Inc. reported a net sales increase of 2.5% for the fiscal year ending December 31, 2025, reaching $2.87 billion, compared to $2.80 billion in 2024. The growth was primarily driven by strong performance in the Enterprise Solutions and Business Solutions segments, which saw increases of 8.6% and 3.1%, respectively. Notably, net sales of desktops rose by $53.5 million, while advanced technology categories, including software and servers/storage, contributed an additional $35.7 million and $15.3 million, respectively. However, the Public Sector Solutions segment experienced a decline of 11.1%, attributed to reduced sales to state and local governments and educational institutions.

The company's gross profit also increased by 3.8% to $539.3 million, with a gross margin improvement of 20 basis points to 18.8%. This increase was largely due to enhanced invoice margins in servers/storage and notebooks/mobility, as well as a higher proportion of software sales recognized at full margin. Selling, general, and administrative (SG&A) expenses remained stable at 15.1% of net sales, despite an increase in total SG&A dollars, reflecting the company's efforts to manage costs effectively while investing in growth.

In terms of operational metrics, PC Connection employed 2,525 individuals as of December 31, 2025, with 679 dedicated sales representatives. The company continues to focus on enhancing its sales force productivity and expanding its IT solutions offerings, particularly in areas such as cloud computing and artificial intelligence. The firm has also emphasized the importance of maintaining strong vendor relationships, with significant purchases from TD Synnex Corporation, Ingram Micro, and Microsoft Corporation, which accounted for 25%, 21%, and 13% of total product purchases, respectively.

Looking ahead, PC Connection anticipates continued growth driven by strategic investments in IT solutions and services, particularly in response to evolving customer demands for integrated technology solutions. However, the company acknowledges potential challenges, including inflationary pressures, supply chain disruptions, and increased competition in the IT market. The management remains committed to leveraging its operational efficiencies and expanding its product offerings to capture a larger share of the IT expenditure from its customer base.