Anthony Lebiedzinski

Adam Tindle

- Connection reported **Q3 2025 net sales of $709.1 million**, a **2.2% decrease** year-over-year, while **gross profit increased 2.4% to a record $138.6 million** and gross margin expanded **90 basis points to 19.6%**.  **[0001050377_2212805_1]**  **Diluted earnings per share (EPS) was $0.97**, down $0.05 from the prior year, though **adjusted diluted EPS remained flat at $0.97**.  **[0001050377_2212805_1]** **[0001050377_2212805_3]** 
- Segment performance showed a **24.3% decrease in Public Sector Solutions net sales to $132.5 million**, attributed to federal project timing and funding issues, while **Business Solutions net sales grew 1.7% to $256.8 million** and **Enterprise Solutions net sales grew 7.7% to $319.8 million**.  **[0001050377_2212805_1]** 
- The company returned capital to shareholders by paying a quarterly dividend of **$0.15 per share** and repurchasing approximately **84,000 shares for $5.1 million** during Q3 2025.  **[0001050377_2212805_3]** 
- Management anticipates **mid-single digit sales growth** year-over-year for Q4 2025 and expects **mid-single digit growth for 2026**, noting that the Q3 backlog reached its **highest level in nearly two years**.  **[0001050377_2212805_6]** **[0001050377_2212805_7]**

Connection (CNXN) Announces Q3 2025 Results

- Connection (CNXN) reported **net sales of $709.1 million** for the third quarter of 2025, a **2.2% decrease** year-over-year.  **[1050377_4681f14c24c044e9a661ef5368acf504_0]** 
- **Gross profit increased by 2.4%** to a record **$138.6 million**, with the gross margin expanding by **90 basis points to 19.6%** in Q3 2025.  **[1050377_4681f14c24c044e9a661ef5368acf504_0]** 
- **Net income decreased by 8.6%** to **$24.7 million**, resulting in **diluted earnings per share of $0.97** for the third quarter of 2025, compared to $1.02 in the prior year quarter.  **[1050377_4681f14c24c044e9a661ef5368acf504_0]** 
- For the nine months ended September 30, 2025, net sales increased by **3.7%**, while net income decreased by **5.1%** to **$63.0 million**, or **$2.45 per diluted share**.  **[1050377_4681f14c24c044e9a661ef5368acf504_1]** 
- The Board of Directors declared a quarterly dividend of **$0.15 per share**, and the company repurchased **83,693 shares** for an aggregate of **$5.1 million** during the third quarter of 2025.  **[1050377_4681f14c24c044e9a661ef5368acf504_0]** **[1050377_4681f14c24c044e9a661ef5368acf504_1]**

Connection Reports Third Quarter 2025 Results

- For the third quarter ended September 30, 2025, **Connection (CNXN)** reported **net sales of $709.1 million**, a **2.2% decrease** year-over-year.  **[1050377_0001104659-25-103717_cnxn-20251029xex99d1.htm:0]** 
- **Gross profit increased 2.4%** to **$138.6 million**, with the **gross margin rising 90 basis points to 19.6%**.  **[1050377_0001104659-25-103717_cnxn-20251029xex99d1.htm:0]** 
- **Net income decreased 8.6%** to **$24.7 million**, resulting in **diluted earnings per share of $0.97**.  **[1050377_0001104659-25-103717_cnxn-20251029xex99d1.htm:0]** 
- The company's Board of Directors declared a **quarterly dividend of $0.15 per share**.  **[1050377_0001104659-25-103717_cnxn-20251029xex99d1.htm:0]** 
- Segment performance was mixed, with **Business Solutions net sales up 1.7%** and **Enterprise Solutions net sales up 7.7%**, while **Public Sector Solutions net sales decreased 24.3%**.  **[1050377_0001104659-25-103717_cnxn-20251029xex99d1.htm:0]**

PC CONNECTION (CNXN)