CNXN 10-K & 10-Q changes, risk factors and insider trading
Pc Connection Inc. · Nasdaq · Wholesale-Computers & Peripheral Equipment & Software · CIK 1050377 · All filings on SEC.gov
At a glance
What changed in the latest 10-K
Risk Factors
New heading “We use AI in our business, as do certain of our business partners, and challenges with properly managing its use could result in reputational harm, competitive harm, significant unexpected expenses and legal liability, which may adversely affect our results of operations.”
Removed heading “We use artificial intelligence in our business, as do certain of our business partners, and challenges with properly managing its use could result in reputational harm, competitive harm, significant unexpected expenses and legal liability, which may adversely affect our results of operations.”
Removed heading “We face various risks related to health epidemics, pandemics and similar outbreaks, which may have material adverse effects on our business, financial position, results of operations and/or cash flows.”
Largest changes
“As with many technological innovations, artificial intelligence presents risks and challenges that could affect its adoption, and therefore our business. Uncertainty in the legal regulatory regime relating to AI may require significant resources to modify and maintain business practices to comply with U.S. and non-U.S. laws, the nature of which cannot be determined at this time. Several jurisdictions around the globe, including Europe and certain U.S. states, have already proposed or enacted laws governing AI. …”see in full comparison
“As with many technological innovations, AI presents risks and challenges that could affect its adoption, and therefore our business. Uncertainty in the legal regulatory regime relating to AI may require significant resources to modify and maintain business practices to comply with U.S. and non-U.S. laws, the nature of which cannot be determined at this time. Several jurisdictions around the globe, including Europe and certain U.S. states, have already proposed or enacted laws governing AI. …”see in full comparison
“We face a wide variety of risks related to health epidemics, pandemics and similar outbreaks, especially of infectious diseases. For example, the COVID-19 pandemic dramatically impacted the global health and economic environment, including millions of confirmed cases and deaths, business slowdowns or shutdowns, labor shortages, supply chain challenges, changes in government spending and requirements, regulatory challenges, inflationary pressures and market volatility. …”see in full comparison
“We use artificial intelligence in our business, as do certain of our business partners, and challenges with properly managing its use could result in reputational harm, competitive harm, significant unexpected expenses and legal liability, which may adversely affect our results of operations.”see in full comparison
“We use AI in our business, as do certain of our business partners, and challenges with properly managing its use could result in reputational harm, competitive harm, significant unexpected expenses and legal liability, which may adversely affect our results of operations.”see in full comparison
“We face various risks related to health epidemics, pandemics and similar outbreaks, which may have material adverse effects on our business, financial position, results of operations and/or cash flows.”see in full comparison
Full comparison: every changed paragraph (17)
We use artificial intelligence in our business, as do certain of our business partners, and challenges with properly managing its use could result in reputational harm, competitive harm, significant unexpected expenses and legal liability, which may adversely affect our results of operations.
Our business utilizes artificial intelligence and machine learning technologies, which are offered by third parties, to add AI-based applications to our offerings. Our offerings utilize machine learning algorithms, predictive analytics, and other artificial intelligence technologies. If these artificial intelligence or machine learning models are incorrectly designed, the performance of our products, services, and business, as well as our reputation, could suffer or we could incur liability through the violation of laws or contracts to which we are a party. If we fail to deploy AI as intended, our competitors may incorporate AI technology into their products or services more successfully than we do, which may impair our ability to effectively compete in the market. In addition, market acceptance of artificial intelligence and machine learning technologies is uncertain.
Additionally, we are making, and plan to make in the future, investments in adopting artificial intelligence and machine learning technologies across our business. As a result, the integration of AI into our operations may not be successful despite expending significant time and monetary resources to attempt to do so. Our investments in deploying such technologies may be substantial and may be more expensive than anticipated.
As with many technological innovations, artificial intelligence presents risks and challenges that could affect its adoption, and therefore our business. Uncertainty in the legal regulatory regime relating to AI may require significant resources to modify and maintain business practices to comply with U.S. and non-U.S. laws, the nature of which cannot be determined at this time. Several jurisdictions around the globe, including Europe and certain U.S. states, have already proposed or enacted laws governing AI. For example, on October 30, 2023, the Biden administration issued an Executive Order to, among other things, establish extensive new standards for AI safety and security. Other jurisdictions may decide to adopt similar or more restrictive legislation that may render the use of such technologies challenging. These obligations may make it harder for us to conduct our business using AI, lead to regulatory fines or penalties, require us to change our product offerings or business practices, or prevent or limit our use of AI. If we cannot use AI, or that use is restricted, our business may be less efficient, or we may be at a competitive disadvantage. Any of these factors could adversely affect our business, financial condition, and results of operations.
Our business depends on the timely supply of products in order to meet the demands of our customers. Manufacturing interruptions or delays, including as a result of the financial instability or bankruptcy of manufacturers, significant labor disputes such as strikes, armed conflicts, natural disasters, political or social unrest, pandemics or other public health crises, or other adverse occurrences affecting any of our suppliers’ facilities, could disrupt our supply chain. We could experience product constraints due to the failure of suppliers to accurately forecast customer demand, or to manufacture sufficient quantities of product to meet customer demand (including as a result of shortages of product components), among other reasons. For example, a global memory (DRAM and NAND) shortage is expected in 2026. Additionally, the relocation of key distributors utilized in our purchasing model could increase our need for, and the cost of, working capital and have an adverse effect on our business, results of operations or cash flows.
Worldwide economic conditions and market volatility as a result of political leadership in certain countries and other disruptions to global and regional economies and markets, including continuing increases in inflation and interest rates, the possibility of recession, or financial market instability, may impact future business activities. External factors, such as potential terrorist attacks, acts of war, geopolitical and social turmoil or epidemics and other similar outbreaks in many parts of the world, could prevent or hinder our ability to do business, increase our costs and negatively affect our stock price. For example, as discussed in our prior Form 10-K and Form 10-Q filings, our operations were impacted by the COVID-19 pandemic and its related economic challenges. If, for example, a new health epidemic or outbreak were to occur, we likely would experience broad and varied impacts, including potentially to our workforce and supply chain, with inflationary pressures and increased costs, schedule or production delays, market volatility and other financial impacts. More generally, these geopolitical, social and economic conditions could result in increased volatility in the United States and worldwide in financial markets and in the economy, as well as other adverse impacts. For example, on February 24, 2022, Russian forces launched significant military actions against Ukraine, and sustained conflict and disruption in the region remains ongoing. Potential impacts related to the conflict include further market disruptions, including significant volatility in commodity prices, credit and capital markets, supply chain and logistics disruptions, adverse global economic conditions resulting from escalating domestic and geopolitical tensions, volatility and fluctuations in foreign currency exchange rates and interest rates, inflationary pressures on raw materials and heightened cybersecurity threats, all of which could adversely impact our business.
We acquire a majority of our products for resale from a limited number of vendors. The loss of any one of these vendors could have a material adverse effect on our business. We acquire products for resale both directly from manufacturers and increasingly indirectly through distributors and other sources. Although we purchase from a diverse vendor base, product purchases from TD Synnex Corporation, Ingram Micro, Inc., TD Synnex Corporation, and DellMicrosoft Inc.Corporation accounted for approximately 25%, 23%,21%, and 11%,13%, respectively, of our total product purchases in 2024.2025. No other singular vendor supplied more than 10% of our total product purchases in the year 2024.2025. If we are unable to acquire products, or if we experienced a change in business relationship with any of these vendors, we could experience a short-term disruption in the availability of products, and such disruption could have a material adverse effect on our results of operations and cash flows.
We face various risks related to health epidemics, pandemics and similar outbreaks, which may have material adverse effects on our business, financial position, results of operations and/or cash flows.
We face a wide variety of risks related to health epidemics, pandemics and similar outbreaks, especially of infectious diseases. For example, the COVID-19 pandemic dramatically impacted the global health and economic environment, including millions of confirmed cases and deaths, business slowdowns or shutdowns, labor shortages, supply chain challenges, changes in government spending and requirements, regulatory challenges, inflationary pressures and market volatility. As discussed in our prior Form 10-K and Form 10-Q filings, our operations were impacted by the COVID-19 pandemic and its related economic challenges. However, we have worked hard to address and mitigate adverse impacts attributable to COVID-19, and we do not currently anticipate significant additional direct impacts from the pandemic itself on our operations. Nonetheless, we cannot predict the future course of events.
If, for example, a new health epidemic or outbreak were to occur, we likely would experience broad and varied impacts, including potentially to our workforce and supply chain, with inflationary pressures and increased costs (which may or may not be fully recoverable), schedule or production delays, market volatility and other financial impacts. If any or all of these items were to occur, we could experience adverse impacts on our overall performance, operations and financial results. Given the tremendous uncertainties and variables, we cannot at this time predict the impact of any future health epidemics, pandemics or similar outbreaks, but any one could have a material adverse effect on our business, financial position, results of operations and/or cash flows.
We use AI in our business, as do certain of our business partners, and challenges with properly managing its use could result in reputational harm, competitive harm, significant unexpected expenses and legal liability, which may adversely affect our results of operations.
Our business utilizes AI and machine learning technologies, which are offered by third parties, to add AI-based applications to our offerings. Our offerings utilize machine learning algorithms, predictive analytics, and other AI technologies. If these AI or machine learning models are incorrectly designed, the performance of our products, services, and business, as well as our reputation, could suffer or we could incur liability through the violation of laws or contracts to which we are a party. If we fail to deploy AI as intended, our competitors may incorporate AI technology into their products or services more successfully than we do, which may impair our ability to effectively compete in the market. In addition, market acceptance of AI and machine learning technologies is uncertain.
Additionally, we are making, and plan to make in the future, investments in adopting AI and machine learning technologies across our business. As a result, the integration of AI into our operations may not be successful despite expending significant time and monetary resources to attempt to do so. Our investments in deploying such technologies may be substantial and may be more expensive than anticipated.
As with many technological innovations, AI presents risks and challenges that could affect its adoption, and therefore our business. Uncertainty in the legal regulatory regime relating to AI may require significant resources to modify and maintain business practices to comply with U.S. and non-U.S. laws, the nature of which cannot be determined at this time. Several jurisdictions around the globe, including Europe and certain U.S. states, have already proposed or enacted laws governing AI. For example, on October 30, 2023, the Biden administration issued an Executive Order to, among other things, establish extensive new standards for AI safety and security. Other jurisdictions may decide to adopt similar or more restrictive legislation that may render the use of such technologies challenging. These obligations may make it harder for us to conduct our business using AI, lead to regulatory fines or penalties, require us to change our product offerings or business practices, or prevent or limit our use of AI. If we cannot use AI, or that use is restricted, our business may be less efficient, or we may be at a competitive disadvantage. Any of these factors could adversely affect our business, financial condition, and results of operations.
We continue to have increasing levels of sales made through our e-commerce sites. The on-lineonline experience for our clients continues to improve, but the competitive nature of the e-commerce channel also continues to increase. Growth of our overall sales is dependent on customers continuing to expand their on-lineonline purchases in addition to traditional channels to purchase products and services. We cannot accurately predict the rate at which on-lineonline purchases will expand.
Our success in growing our Internet business will depend in large part upon our development of an increasingly sophisticated e-commerce experience and infrastructure. Increasing customer sophistication requires that we provide additional website features and functionality in order to be competitive in the marketplace and maintain market share. We will continue to iterate our website features, but we cannot predict future trends and required functionality or our adoption rate for customer preferences. As the number of on-lineonline users continues to grow, such growth may impact the performance of our existing Internet infrastructure, which would adversely impact our business.
We depend on the accuracy and proper use of our management information systems, including our telephone system. Many of our key functions depend on the quality and effective utilization of the information generated by our management information systems, including our ability to:
Management's Discussion & Analysis (MD&A)
New heading “KEY OPERATING METRIC”
Largest changes
“Credit facility. Our credit facility extends until March 2025 and is collateralized by our accounts receivable. As of December 31, 2024, the entire $50.0 million facility was available for borrowing. Our credit facility contains certain financial ratios and operational covenants and other restrictions (including restrictions on additional debt, guarantees, and other distributions, investments, and liens) with which we and all of our subsidiaries must comply. …”see in full comparison
Creditsee in full comparisonfacility.Facility. Our credit facilityextends until March 2025 and iscollateralized by our accountsreceivable.receivableAsexpiredof DecemberMarch 31,2024,2025.ourWeborrowingdidcapacitynotunderelecttheto extend or replace this credit facilitywasgivenupourtosignificant$50.0cash,million.cash equivalent, and short-term investment balances. Amounts outstanding under this facilitybearbore interest at the greatest of (i) the prime rate (7.50% atDecemberMarch 31,20242025), (ii) the federal funds effective rate plus 0.50% per annum, and (iii) the daily Secured Overnight Financing Rate, or SOFR, plus 1.00% per annum,provided that the rate shallbut at no timebeless than 1.00% per annum.In addition,While wehaveusedthe option to increase our borrowing capacity under thethis credit facilityupfrom time toan additional $30.0 million provided thattime, wemeet certain additional borrowing requirements and obtain the consent of the administrative agent. Our credit facility is subject to certain covenant requirements which are described below under “Factors Affecting Sources of Liquidity”. Wedid not have any borrowings outstandingunderimmediately prior to the expiration of the credit facilityasnorofat December 31, 2024.
Below is a summary of certain provisions of our creditsee in full comparisonfacilitiesfacility and other contractual obligations.For more information about the restrictive covenants in our debt instruments and inventory financing agreements, see “Factors Affecting Sources of Liquidity” below.For more information about our obligations, commitments, and contingencies, see our consolidated financial statements and the accompanying notes included in this annual report.
During the years ended December 31,see in full comparison20242025, 2024, andDecember 31,2023, we undertook actions to lower our cost structure. In connection with these initiatives, we incurredrestructuringseverance expenses and other charges of $6.0 million, $0.4millionmillion, and $2.7 million for the years ended December 31,20242025, 2024, andDecember 31,2023, respectively.TheseTherestructuringseverance expenses and other charges were primarily related toanvoluntary and involuntaryreductionreductions inourtheheadquarterCompany’sworkforceworkforce. Both the voluntary and involuntary reductions included cash severance and other related termination benefits.NoTheamountsmajorityrelatedoftoeach of these costs are expected to be paid within a year of termination and any unpaid balances are included in accruedexpenses and other liabilitiespayroll on the consolidated balance sheets asall such amounts have been paid asof December 31,2024. There were no restructuring related costs incurred for the year ended December 31, 2022.2025.
“Supplier Finance Programs. We have entered into agreements with financial institutions to facilitate the purchase of inventory from designated suppliers under certain terms and conditions to enhance liquidity. We do not incur any interest or other incremental expenses associated with these agreements as balances are paid when they are due. See Note 16, “Supplier Finance Programs” to the consolidated financial statements for additional information.”see in full comparison
Full comparison: every changed paragraph (42)
We are a Fortune 1000 Global Solutions Provider that simplifies the IT customer experience,IT, guiding the connection between people and technology. Our dedicated account managers partner with customers to design, deploy, and support cutting-edge IT environments using the latest hardware, software, and services. We provide a wide range of IT solutions, from the desktop to the cloud—including computer systems, data center solutions, security, AI, software and peripheral equipment, networking communications, and other products and accessories that we purchasedevelop internally and secure from manufacturers, distributors, and other suppliers. Our TSOTSSO and state-of-the-art TIDC, with ISO 9001:2015 SOC 2 Type 2 certified technical configuration lab,TIDC offer end-to-end services related to the design, configuration, and implementation of IT solutions. Our team also provides a comprehensive portfolio of managed services and professional services. These services are performed by our personnel and by third-party providers. Our GlobalServe offering ensures worldwide coverage for our multinational customers, delivering global procurement solutions through our network of in-country suppliers in over 150 countries.
The “Connection®” brand includes Connection Enterprise Solutions, Connection Business Solutions, and Connection Public Sector Solutions, which provide IT solutions and services to enterprise, SMBs, and public sector markets.
Financial results for each of our segments are included in the financial statements attached hereto. We generate sales through (i) outbound inside sales and field sales contacts by sales representatives focused on the business, educational, healthcare, retail, manufacturing, and government markets, (ii) our websites, and (iii) direct responses from customers responding to our advertising media. We offer a broad selection of over 460,000 products at competitive prices, including products from vendors like Apple, Cisco, Dell Inc., Hewlett-PackardHP Inc., Hewlett-Packard Enterprise, Intel, Lenovo, Microsoft Corporation, and VMware,VMware by Broadcom, and we partner with more than 2,5001,600 suppliers. We are able to leverage our state-of-the art logistic capabilities to rapidly ship product to customers.
As a value-added reseller in the IT supply chain, we do not manufacture IT hardware or software products. We are dependent on our suppliers—manufacturers and distributors that historically have only sold to resellers rather than directly to end users. However, certain manufacturers have, on multiple occasions, sold or attempted to sell directly to our customers, and in some cases, have restricted our ability to sell their products directly to certain customers, thereby attempting to and, in some cases successfully, eliminate our role. We believe that the success of these direct sales efforts by manufacturers will depend on their ability to meet our customers’ ongoing demands and provide solutions to meet their needs. We believe more of our customers are seeking out comprehensive and integrated IT solutions, rather than the ability to acquire specific IT products on a one-off basis. Our advantage is our ability to be product-neutral and provide a broader combination of products, services, and advice tailored to our customers’ individual needs. By providing customers with customized solutions from a variety of manufacturers, we believe we can mitigate the negative impact of continued direct sales initiatives from individual manufacturers. Through the formation of our TSO,TSSO, we are able to provide customers complete IT solutions, from identifying their needs, to designing, developing, and managing the integration of products and services to implement their IT projects. Such service offerings carry higher margins than traditional product sales. Additionally, the technical certifications of our service engineers permit us to offer higher-end, more complex products that generally carry higher gross margins. We expect these service offerings and technical certifications to continue to play a role in sales generation and gross margin improvements in this competitive environment.
KEY OPERATING METRIC
Gross Billings
We utilize key operating metrics to track and assess the performance of our business, including gross billings. Gross billings is the total dollar value of goods and services billed during the period, net of customer returns, credit memos, and any applicable sales or other taxes and includes agency fees, and freight. As certain transactions are recognized on a net basis, gross billings include amounts not recognized in net sales.
We use the gross billings operating metric for planning, forecasting, and evaluating the sales performance of our operating segments by providing insight into the total value of our business transactions. We believe that gross billings provides the same insight to investors.
The following table sets forth the gross billings for each of our operating segments and our consolidated entity (in millions):
The following table sets forth information derived from our statements of income expressed as a percentage of net sales for the periods indicated (dollars in millions):
Net sales of $2,802.1$2,872.7 million in 20242025 reflected aan decreaseincrease of $48.5$70.6 million compared to 2023,2024, which was driven by lowerhigher net sales for our Enterprise Solutions and Business Solutions segments as shown in the table on page 34 of this Annual Report on Form 10-K. The decreaseincrease in net sales was primarily driven by aan decreaseincrease in net sales of desktops of $53.5 million, as well as increase in net sales of advanced technology categories including net/com productssoftware and softwareservers/storage of $85.7$35.7 million and $44.1$15.3 million, respectively. These decreasesincreases were partially offset by increasesdecreases in net sales of notebooks/mobilitydisplays and desktopssound, net/com products, and accessories of $42.3$22.4 millionmillion, $8.6 million, and $31.3$3.6 million, respectively, as shown in Note 2, “Revenue” to the Consolidatedconsolidated Financialfinancial Statements.statements. Gross profit increased year-over-year by $8.1$19.5 million as shownillustrated in the table and the discussion beginning on page 34 of this Annual Report on Form 10-K, primarily due to improved margins in desktops in the current year.10-K. Gross margin increased year-over-year by 6020 basis points as shown in the above tabletable. The increase in gross margin was primarily due to improved invoice margins in servers/storage, net/com products, and notebooks/mobility primarily as a result of higher-margin deals in the current year, combined with an increase in the amount of software sales recognized on a net basis,basis combinedas withthese improvedsales marginsare recognized in desktops.the financial statements at 100% margin. SG&A expenses increased year-over-year both in dollars and as a percentage of net sales primarilyremained due to investments in resources to strengthen our sales, technical sales, and services capabilities combined withsubstantially the decreasesame in net sales.year-over-year. Operating income decreased year-over-year in dollars but remained consistent as a percentage of net sales primarilyremained due tosubstantially the increasesame in SG&A expenses.year-over-year.
RestructuringSeverance expenses and other charges
During the years ended December 31, 20242025, 2024, and December 31, 2023, we undertook actions to lower our cost structure. In connection with these initiatives, we incurred restructuringseverance expenses and other charges of $6.0 million, $0.4 millionmillion, and $2.7 million for the years ended December 31, 20242025, 2024, and December 31, 2023, respectively. TheseThe restructuringseverance expenses and other charges were primarily related to anvoluntary and involuntary reductionreductions in ourthe headquarterCompany’s workforceworkforce. Both the voluntary and involuntary reductions included cash severance and other related termination benefits. NoThe amountsmajority relatedof toeach of these costs are expected to be paid within a year of termination and any unpaid balances are included in accrued expenses and other liabilitiespayroll on the consolidated balance sheets as all such amounts have been paid as of December 31, 2024. There were no restructuring related costs incurred for the year ended December 31, 2022.2025.
Net sales decreasedincreased by 1.7%2.5% to $2,802.1$2,872.7 million in 2024 from $2,850.6 million in 2023,2025, as explained below:
Gross profit increased by 1.6%3.8% to $519.8$539.3 million in 2024, while gross margin increased by 60 basis points to 18.6% in 2024,2025, as explained below:
Gross margin increased by 20 basis points to 18.8% in 2025, as explained below:
SG&A expenseexpenses in 20242025 increased year-over-year both in dollars andbut remained substantially the same as a percentage of net sales. SG&A expenses attributable to our three operating segments and the remaining unallocated Headquarters/Other expenses are summarized below (dollars in millions):
RestructuringSeverance expenses and other charges for the year ended December 31, 20242025 were $0.4$6.0 million, compared to $2.7$0.4 million for the same period in the prior year. The restructuringseverance expenses and other charges were primarily related to expensesvoluntary incurred in connection with theand involuntary reductionreductions in our headquarterworkforce. workforceBoth the voluntary and involuntary reductions included cash severance and other related termination benefits.
Income from operations for the year ended December 31, 20242025 decreasedincreased to $97.1$99.3 million, compared to $103.2$97.1 million for the same period in the prior year, primarily due to increase in gross profit, partially offset by the increaseincreases in SG&A expenses explainedand severance expenses and other charges, as discussed above. Income from operations as a percentage of net sales remained substantially the same for the year ended December 31, 2024,2025, compared to the same period in the prior year.
Interest income, net for the year ended December 31, 20242025 increaseddecreased to $18.7$14.4 million, compared to $10.0$18.7 million for the same period in the prior year, primarily due to ana increasedecrease in interest income of $8.9$4.4 million as a result of higherlower realized interest rates in the current year combined with lower cash equivalent and investment balances andin interestthe ratescurrent on short-term investments.year.
Other income for the year ended December 31, 20242025 was $0.1 million as a result of a realized gain on sale of short-term investments, compared to $1.7 million for the same period in the prior year as a result of a legal settlement received.
Income taxes. Our provision for income taxes for the year ended December 31, 20242025 was $30.4$30.0 million, compared to $29.8$30.4 million for the same period in the prior year. The increasedecrease in our provision for income taxes was primarily due to the increasedecrease in interestincome income,before net,taxes, partially offset by thea decreasedecreased benefit in incomestock-based from operations.compensation. Our effective tax rate was 25.9% for the year-ended December 31, 2024, compared to 26.4% for the year ended December 31, 2023,2025, compared to 25.9% for the year ended December 31, 2024. The increase in our effective tax rate is primarily due to the releasedecreased ofbenefit thein valuationstock-based allowance on state net operating losses.compensation.
Net income increased by $3.8 million to $87.1 million for the year ended December 31, 2024,2025 fromdecreased $83.3to $83.7 million, compared to $87.1 million for the same period in the prior year, primarily due to the increasedecreases in interest income, net,net partiallyand offsetother by the decrease in income from operations,income, as explaineddiscussed above.
Our primary sources of liquidity are internally generated funds from operations,operations and short-term investments, and borrowings under our credit facility.investments. We have historically used and expect to use in the future those funds to meet our capital requirements, which consist primarily of working capital for operational needs, capital expenditures for computer equipment and software used in our business, repurchases of common stock for treasury, dividend payments, and as opportunities arise, possible acquisitions of new businesses.
We believe that funds generated from operations,operations togetherand withshort-term available capacity under our credit facility,investments will be sufficient to finance our working capital, capital expenditures, and other requirements for at least the next twelve calendar months and beyond such twelve calendar month period. Our investments in IT systems and infrastructure are designed to enable us to operate more efficiently and to provide our customers enhanced functionality.
We expect to meet our cash requirements for 2025 and beyond through a combination of cash on hand, short-term investments, and cash generated from operations, and borrowings under our credit facility, as follows:
Cash provided by operating activities is summarized as follows (in millions):
The decrease in net cash from operating activities of $108.4 million for the year ended December 31, 2025 was primarily attributable to changes in inventories and accounts receivable of $77.6 million and $31.9 million, respectively. The decrease in cash from operating activities attributable to inventories is primarily due to increased inventory purchases related to customer rollouts. The decrease in cash from operating activities attributable to accounts receivable is primarily driven by the timing of customer deliveries.
Cash provided by operating activities was $173.9 million for the year ended December 31, 2024, which resulted primarily from $87.1 million of net income, $18.4 million of total non-cash charges added back to net income (including $13.0 million of depreciation and amortization and $8.5 million of stock-based compensation expense added back to net income, and $4.2 million of amortization of discount on short-term investments removed from net income), a $36.5 million increase in accounts payable, and a $29.1 million decrease in inventory. The increase in accounts payable was primarily driven by the timing of payments. The decrease in inventory was primarily due to improvements in inventory management in the current year. Cash provided by operating activities for the year ended December 31, 2023 resulted primarily from net income of $83.3 million, $18.4 million of other non-cash charges added back to net income, including $12.7 million of depreciation and amortization and $7.0 million of stock-based compensation expense, an $84.5 million decrease in inventory, and a $31.1 million increase in accounts payable, partially offset by a decrease in accrued expenses and other liabilities of $11.8 million and an increase in prepaid expenses and other current assets of $8.5 million.
The cash conversion cycle decreasedincreased to 45 days for the quarter ended December 31, 2025, compared to 40 days for the quarter ended December 31, 2024, compared to 51 days for the quarter ended December 31, 2023, as evidenced in the above cash conversion table. The decreaseincrease in DSO is primarily due to anthe increase in netaccounts salesreceivable foras the quarter endedof December 31, 20242025 compared to the quarter ended December 31, 2023.2024. The decreaseincrease in DIO is consistentprimarily withdue to the decreaseincrease in inventory discussedas above.of December 31, 2025 compared to December 31, 2024. The increase in DPO is consistentprimarily withdue to the increase in accounts payable discussedas above.of December 31, 2025 compared to December 31, 2024.
Cash usedprovided inby investing activities for the year ended December 31, 20242025 consisted of $358.3$264.1 million of purchases of short-term U.S. Government treasury securities, $250.6$108.8 million of sales of U.S. Government treasury securities, $205.6 million of maturities of U.S. Government treasury securities, and $7.6$7.4 million of purchases of property and equipment. The property and equipment expenditures were primarily for computer equipment and capitalized internally-developed software in connection with investments in our IT infrastructure. Cash used in investing activities for the prior year consisted of $150.6$358.3 million of purchases of short-term U.S. Government treasury securitiessecurities, $250.6 million of maturities of U.S. Government treasury securities, and $9.6$7.6 million of purchases of property and equipment.
Cash used in financing activities for the year ended December 31, 20242025 consisted primarily of $0.7 million of aggregate borrowings and repayments under our credit facility, $76.3 million of treasury repurchases, $15.3 million of dividend payments, $1.2 million of issuances of stock under the 1997 Employee Stock Purchase Plan, and $3.0 million of payroll taxes on stock-based compensation through shares withheld. In the prior year period, financing activities consisted of $26.1 million of aggregate borrowings and repayments under our credit facility, $12.4 million of treasury repurchases, $10.5 million of dividend payments, $1.1 million of issuances of stock under the 1997 Employee Stock Purchase Plan, and $3.4 million of payroll taxes on stock-based compensation through shares withheld. In the prior year period, financing activities consisted of $88.2 million of aggregate borrowings and repayments under our credit facility, $5.4 million of treasury repurchases, $8.4 million of dividend payments, $1.1 million of issuances of stock under the 1997 Employee Stock Purchase Plan, and $3.0 million of payroll taxes on stock-based compensation through shares withheld.
Below is a summary of certain provisions of our credit facilitiesfacility and other contractual obligations. For more information about the restrictive covenants in our debt instruments and inventory financing agreements, see “Factors Affecting Sources of Liquidity” below. For more information about our obligations, commitments, and contingencies, see our consolidated financial statements and the accompanying notes included in this annual report.
Credit facility.Facility. Our credit facility extends until March 2025 and is collateralized by our accounts receivable.receivable Asexpired of DecemberMarch 31, 2024,2025. ourWe borrowingdid capacitynot underelect theto extend or replace this credit facility wasgiven upour tosignificant $50.0cash, million.cash equivalent, and short-term investment balances. Amounts outstanding under this facility bearbore interest at the greatest of (i) the prime rate (7.50% at DecemberMarch 31, 20242025), (ii) the federal funds effective rate plus 0.50% per annum, and (iii) the daily Secured Overnight Financing Rate, or SOFR, plus 1.00% per annum, provided that the rate shallbut at no time be less than 1.00% per annum. In addition,While we haveused the option to increase our borrowing capacity under thethis credit facility upfrom time to an additional $30.0 million provided thattime, we meet certain additional borrowing requirements and obtain the consent of the administrative agent. Our credit facility is subject to certain covenant requirements which are described below under “Factors Affecting Sources of Liquidity”. We did not have any borrowings outstanding underimmediately prior to the expiration of the credit facility asnor ofat December 31, 2024.
Cash receipts arewere automatically applied against any outstanding borrowings. Any excess cash on account maycould either remain on account to generate earned credits to offset up to 100% of cash management fees, or may be invested in short-term qualified investments. Borrowings under the line of credit arefacility were classified as current in our consolidated balance sheet. As of December 31, 2024, the entire $50.0 million facility was available for borrowing.sheets.
Supplier Finance Programs. We have entered into agreements with financial institutions to facilitate the purchase of inventory from designated suppliers under certain terms and conditions to enhance liquidity. We do not incur any interest or other incremental expenses associated with these agreements as balances are paid when they are due. See Note 16, “Supplier Finance Programs” to the consolidated financial statements for additional information.
Operating Leases. We lease facilitiesfacilities, including our corporate headquarters and a facility adjacent to our corporate headquarters, from a related party, which is a company affiliated with us through common ownership. The lease agreements of these two Merrimack, New Hampshire facilities have expired. We continue to occupy the facilities on a month-to-month basis under the terms of the prior written lease agreements. It is our principalintention stockholdersto andenter into a written, long-term lease for the facilities. We also lease facilities from third parties under non-cancelable operating leases. Certain leases require us to pay real estate taxes, insurance, and common area maintenance charges. See “Item 2. Properties” of this Annual Report on Form 10-K for additional information regarding our operating leases.
Credit Facility. Our credit facility collateralized by our accounts receivable expired March 31, 2025 and we elected not to renew or replace the credit facility given our significant cash, cash equivalent, and short-term investment balances.
Credit facility. Our credit facility extends until March 2025 and is collateralized by our accounts receivable. As of December 31, 2024, the entire $50.0 million facility was available for borrowing. Our credit facility contains certain financial ratios and operational covenants and other restrictions (including restrictions on additional debt, guarantees, and other distributions, investments, and liens) with which we and all of our subsidiaries must comply. Any failure to comply with these covenants would constitute a default and could prevent us from borrowing additional funds under this line of credit. This credit facility contains two financial tests:
Our bad debt expense was $1.9 million for each of the yearyears ended December 31, 20242025 was $1.9 million, compared to $1.8 million for the year endedand December 31, 2023.2024.
Inventories
We carry a variety of long-lived assets on our consolidated balance sheet,sheets, which are all currently classified as held for use. These include property and equipment, identifiable intangibles, an Internet domain name, which is an indefinite-lived intangible asset not subject to amortization, and goodwill. An impairment review is undertaken on (1) an annual basis for goodwill and an indefinite-lived intangible assets; and (2) on an event-driven basis for all long-lived assets when facts and circumstances suggest that cash flows from such assets may be diminished. We have historically reviewed the carrying value of all these assets based partly on our projections of cash flows. Any impairment charge that is recorded negatively impacts our earnings.
What changed in the latest 10-Q
Risk Factors
In addition to the other information set forth in this Quarterly Report on Form 10-Q, you should carefully consider Item 1A. “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025, which could materially affect our business, financial position, and results of operations. Risk factors which could cause actual results to differ materially from those suggested by forward-looking statements include but are not limited to those discussed or identified in this document, in our other public filings with the SEC, and those contained in Item 1A. “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025.
No wording changes found in this section.
Full comparison: every changed paragraph (0)
Management's Discussion & Analysis (MD&A)
New heading “Six Months Ended June 30, 2026 Compared to Six Months Ended June 30, 2025”
Largest changes
“Six Months Ended June 30, 2026 Compared to Six Months Ended June 30, 2025”see in full comparison
“Interest income, net for the six months ended June 30, 2026 decreased to $5.9 million, compared to $7.1 million for the six months ended June 30, 2025, primarily due to a decrease in interest income of $1.2 million. The decrease in interest income is primarily a result of lower cash equivalent balances in the current period combined with lower realized interest rates in the current period.”see in full comparison
Net sales ofsee in full comparison$721.9$854.0 million for thefirstsecond quarter of 2026 reflect an increase of$20.9$94.3 million, or3.0%12.4% compared to thefirstsecond quarter of 2025. The increase was primarily driven by increases in net sales ofother hardware/services,notebooks/mobility, software, displays and sound,software,accessories, net/com products, andaccessoriesother hardware/services of$8.0$77.7 million,$7.5$10.3 million,$4.6$9.1 million,$4.1$8.2 million,$3.9$6.3 million, and$0.9$2.5 million, respectively, as shown in the table in Note22, “RevenueRevenue,” in the Notes to our Unaudited Condensed Consolidated Financial Statements. These increases were partially offset by decreases in net sales of servers/storage and desktops of$5.1$13.0 million and$3.0$6.7 million, respectively. Gross profit for thefirstsecond quarter of 2026 increased year-over-year by$5.4$19.7 million, or4.3%,14.3%, to$132.7$157.5 million as illustrated in the table and the discussion beginning on page1922 of this Quarterly Report on Form 10-Q. Gross margin increased to 18.4% from18.2%18.1% a year ago. The increase in gross margin was primarily driven by improved invoice margins in accessories and other hardware/services primarily due to changes in customer mix, as well as an increase in the amount of software sales recognized on a net basis as these sales are recognized in the financial statements at 100% margin. SG&A expenses as a percentage of net sales decreased to15.2%13.4% compared to15.7%14.1% a year ago, primarily due to the increase in net sales as discussed above. Operating income as a percentage of net sales increased to2.8%5.0% compared to2.1%4.1% a year ago, primarily due to the increases in net sales and gross profit as discussed above.
Thesee in full comparisonincreasedecrease in net cash from operating activities of$66.7$23.3 million for thethreesix months endedMarchJune31,30, 2026 was primarily attributable to changes in accountspayablereceivable, accounts payable, and inventories of $53.9 million, $35.9 million, and $23.1 million, respectively. The change in cash from operating activities attributable to accounts receivable is primarily driven by the timing of$85.1 million and $20.8 million, respectively.collections. The change in cash from operating activities attributable to accounts payable is primarily due to the timing of payments. The change in cash from operating activities attributable toaccounts receivableinventories is primarilydrivenduebytotheantimingincreaseofincollections.inventory purchases related to customer rollouts and management’s decision to secure supply.
“Income from operations for the six months ended June 30, 2026 was $63.2 million, compared to $45.4 million for the six months ended June 30, 2025. Income from operations as a percentage of net sales increased to 4.0% for the six months ended June 30, 2026, compared to 3.1% for the prior year period. The increase in income from operations both in dollars and as a percentage of net sales is primarily due to the increases in net sales and gross profit as discussed above.”see in full comparison
Operating Leases. We lease facilities, including our corporate headquarters and a facility adjacent to our corporate headquarters, from a related party, which is a company affiliated with us through common ownership. The lease agreements of these two Merrimack, New Hampshire facilities have expired. We continue to occupy the facilities on a month-to-month basis under the terms of the prior written lease agreements. It is our intention to enter into a written, long-term lease for our corporate headquarters. We do not expect to occupy thesee in full comparisonfacilities.adjacent facility long term, and accordingly we do not intend to enter into a written, long-term lease for the adjacent facility. We also lease facilities from third parties under non-cancelable operating leases. Certain leases require us to pay real estate taxes, insurance, and common area maintenance charges. See “Item 2. Properties” in our Annual Report on Form 10-K for the year ended December 31, 2025 for additional information regarding our operating leases.
Full comparison: every changed paragraph (34)
Net sales of $721.9$854.0 million for the firstsecond quarter of 2026 reflect an increase of $20.9$94.3 million, or 3.0%12.4% compared to the firstsecond quarter of 2025. The increase was primarily driven by increases in net sales of other hardware/services, notebooks/mobility, software, displays and sound, software,accessories, net/com products, and accessoriesother hardware/services of $8.0$77.7 million, $7.5$10.3 million, $4.6$9.1 million, $4.1$8.2 million, $3.9$6.3 million, and $0.9$2.5 million, respectively, as shown in the table in Note 22, “RevenueRevenue,” in the Notes to our Unaudited Condensed Consolidated Financial Statements. These increases were partially offset by decreases in net sales of servers/storage and desktops of $5.1$13.0 million and $3.0$6.7 million, respectively. Gross profit for the firstsecond quarter of 2026 increased year-over-year by $5.4$19.7 million, or 4.3%,14.3%, to $132.7$157.5 million as illustrated in the table and the discussion beginning on page 1922 of this Quarterly Report on Form 10-Q. Gross margin increased to 18.4% from 18.2%18.1% a year ago. The increase in gross margin was primarily driven by improved invoice margins in accessories and other hardware/services primarily due to changes in customer mix, as well as an increase in the amount of software sales recognized on a net basis as these sales are recognized in the financial statements at 100% margin. SG&A expenses as a percentage of net sales decreased to 15.2%13.4% compared to 15.7%14.1% a year ago, primarily due to the increase in net sales as discussed above. Operating income as a percentage of net sales increased to 2.8%5.0% compared to 2.1%4.1% a year ago, primarily due to the increases in net sales and gross profit as discussed above.
DuringThere were no severance expenses incurred during the three months ended MarchJune 31,30, 2026 and 2025. During the six months ended June 30, 2026 and 2025, we undertook actions to lower our cost structure. In connection with these initiatives, we incurred severance expenses of $3.1 million and $2.9 million for the threesix months ended MarchJune 31,30, 2026 and 2025, respectively. The severance expenses were related to voluntary and involuntary reductions in our workforce. Both the voluntary and involuntary reductions included cash severance and other related termination benefits. The majority of each of these costs are expected to be paid within a year of the applicable termination and any unpaid balances are included in accrued payroll on the condensed consolidated balance sheets as of MarchJune 31,30, 2026.
In this section and elsewhere in this Quarterly Report on Form 10-Q we refer to changes in year-over-year results. Unless context otherwise requires, such references refer to changes between the three months ended MarchJune 31,30, 2026 and the three months ended MarchJune 31,30, 2025, and changes between the six months ended June 30, 2026 and the six months ended June 30, 2025.
Three Months Ended MarchJune 31,30, 2026 Compared to Three Months Ended MarchJune 31,30, 2025
Net sales increased for the firstsecond quarter of 2026 compared to the firstsecond quarter of 2025, as explained by the year-over-year changes discussed below:
Gross profit for the firstsecond quarter of 2026 increased year-over-year, as explained by the year-over-year changes discussed below:
Gross margin for the firstsecond quarter of 2026 increased year-over-year, as explained by the year-over-year changes discussed below:
Selling, general and administrative expenses for the firstsecond quarter of 2026 decreased bothincreased in dollars andbut decreased as a percentage of net sales compared to the firstsecond quarter of 2025. SG&A expenses attributable to our three segments and the remaining unallocated Headquarters/Other expenses are summarized in the table below (dollars in millions):
Severance expenses for the first quarter of 2026 were $3.1 million, compared to $2.9 million for the first quarter of 2025. The severance expenses were related to voluntary and involuntary reductions in our workforce to lower our cost structure and included cash severance and other related termination benefits.
Income from operations for the firstsecond quarter of 2026 was $20.2$43.0 million, compared to $14.5$30.9 million for the firstsecond quarter of 2025. Income from operations as a percentage of net sales increased to 2.8%5.0% for the firstsecond quarter of 2026, compared to 2.1%4.1% for the prior year quarter. The increase in income from operations both in dollars and as a percentage of net sales is primarily due to the increases in net sales and gross profit as discussed above.
Interest income, net for the firstsecond quarter of 2026 decreased to $3.4$2.5 million, compared to $3.9$3.2 million for the firstsecond quarter of 2025, primarily due to a decrease in interest income of $0.5$0.7 million. The decrease in interest income is primarily a result of lower cash equivalent balances in the current period combined with lower realized interest rates in the current period.
Income taxes. Our provision for income taxes for the firstsecond quarter of 2026 increased to $6.4$12.4 million, compared to $5.0$9.3 million for the firstsecond quarter of 2025. The increase in our provision for income taxes was primarily due to the increase in income before taxes. Our effective tax rate was 27.0%27.2% for the quarter ended MarchJune 31,30, 2026, compared to 27.1%27.3% for the quarter ended MarchJune 31,30, 2025.
Net income for the firstsecond quarter of 2026 increased to $17.2$33.2 million, compared to $13.5$24.8 million for the firstsecond quarter of 2025, primarily due to the increase in income from operations, partially offset by the decrease in interest income, net and the increase in our provision for income taxes, as discussed above.
Six Months Ended June 30, 2026 Compared to Six Months Ended June 30, 2025
Changes in net sales and gross profit by segment are shown in the following table (dollars in millions):
Net sales increased for the six months ended June 30, 2026 compared to the six months ended June 30, 2025, as explained by the year-over-year changes discussed below:
Gross profit for the six months ended June 30, 2026 increased year-over-year, as explained by the year-over-year changes discussed below:
Gross margin for the six months ended June 30, 2026 increased year-over-year, as explained by the year-over-year changes discussed below:
Selling, general and administrative expenses for the six months ended June 30, 2026 increased in dollars but decreased as a percentage of net sales compared to the six months ended June 30, 2025. SG&A expenses attributable to our three segments and the remaining unallocated Headquarters/Other expenses are summarized in the table below (dollars in millions):
Severance expenses for the six months ended June 30, 2026 were $3.1 million, compared to $2.9 million for the six months ended June 30, 2025. The severance expenses were related to voluntary and involuntary reductions in our workforce to lower our cost structure and included cash severance and other related termination benefits.
Income from operations for the six months ended June 30, 2026 was $63.2 million, compared to $45.4 million for the six months ended June 30, 2025. Income from operations as a percentage of net sales increased to 4.0% for the six months ended June 30, 2026, compared to 3.1% for the prior year period. The increase in income from operations both in dollars and as a percentage of net sales is primarily due to the increases in net sales and gross profit as discussed above.
Interest income, net for the six months ended June 30, 2026 decreased to $5.9 million, compared to $7.1 million for the six months ended June 30, 2025, primarily due to a decrease in interest income of $1.2 million. The decrease in interest income is primarily a result of lower cash equivalent balances in the current period combined with lower realized interest rates in the current period.
Income taxes. Our provision for income taxes for the six months ended June 30, 2026 increased to $18.7 million, compared to $14.3 million for the six months ended June 30, 2025. The increase in our provision for income taxes was primarily due to the increase in income before taxes. Our effective tax rate was 27.1% for the six months ended June 30, 2026, compared to 27.3% for the six months ended June 30, 2025.
Net income for the six months ended June 30, 2026 increased to $50.4 million, compared to $38.3 million for the six months ended June 30, 2025, primarily due to the increase in income from operations, partially offset by the decrease in interest income, net and the increase in our provision for income taxes, as discussed above.
On AprilJuly 29, 2026, we announced that our Board of Directors declared a quarterly cash dividend on our common stock of $0.20 per share. The dividend will be paid on MayAugust 29,28, 2026 to all stockholders of record as of the close of business on MayAugust 12,11, 2026. The declaration and payment of any future dividends is at the discretion of our Board of Directors and will depend upon our financial position, strategic plans, general business conditions and any other factors deemed relevant by our Board of Directors.
Cash flows from operating, investing and financing activities for the threesix months ended MarchJune 31,30, 2026 and 2025, as reflected in our Unaudited Condensed Consolidated Statements of Cash Flows included in Item 1 of this Quarterly Report on Form 10-Q, are summarized in the following table (in millions):
Cash provided by (used in) operating activities is summarized as follows (in millions):
The increasedecrease in net cash from operating activities of $66.7$23.3 million for the threesix months ended MarchJune 31,30, 2026 was primarily attributable to changes in accounts payablereceivable, accounts payable, and inventories of $53.9 million, $35.9 million, and $23.1 million, respectively. The change in cash from operating activities attributable to accounts receivable is primarily driven by the timing of $85.1 million and $20.8 million, respectively.collections. The change in cash from operating activities attributable to accounts payable is primarily due to the timing of payments. The change in cash from operating activities attributable to accounts receivableinventories is primarily drivendue byto thean timingincrease ofin collections.inventory purchases related to customer rollouts and management’s decision to secure supply.
The cash conversion cycle decreasedincreased to 4649 days at MarchJune 31,30, 2026, compared to 5344 days at MarchJune 31,30, 2025, as evidenced in the above cash conversion table. The increase in DSO is primarily due to the increase in trade receivables as of MarchJune 31,30, 2026 compared to MarchJune 31,30, 2025. The increase in DIO is primarily due to the increase in inventory as of MarchJune 31,30, 2026 compared to MarchJune 31,30, 2025. The increase in DPO is primarily due to the increase in accounts payable as of MarchJune 31,30, 2026 compared to MarchJune 31,30, 2025.
Cash (used in) provided by investing activities for the threesix months ended MarchJune 31,30, 2026 consisted of $54.3$105.7 million of purchases of U.S. Government treasury securities, $53.2$103.2 million of maturities of U.S. Government treasury securities, and $2.0$3.9 million of purchases of property and equipment. The property and equipment expenditures were primarily for computer equipment and capitalized internally developed software in connection with investments in our IT infrastructure. In the prior year period, investing activities consisted of $52.4 million of purchases of U.S. Government treasury securities, $108.8 million of sales of U.S. Government treasury securities, $50.0 million of maturities of U.S. Government treasury securities, and $1.7$3.3 million of purchases of property and equipment.
Cash used in financing activities for the threesix months ended MarchJune 31,30, 2026 consisted of $5.0$10.1 million of dividend payments, $2.5 million of treasury purchases, $0.7 million of excise tax payments on treasury purchases, $0.6 million of issuances of stock under the Employee Stock Purchase Plan, and $0.7$1.0 million of payments of payroll taxes on stock-based compensation through shares withheld. In the prior year period, financing activities consisted of $0.7 million of aggregate borrowings and repayments, $43.7$60.5 million of treasury purchases, $3.9$7.7 million of dividend payments, $0.6 million of issuances of stock under the Employee Stock Purchase Plan, and $0.5$0.9 million of payments of payroll taxes on stock-based compensation through shares withheld.
Supplier Finance Programs. We have entered into agreements with financial institutions to facilitate the purchase of inventory from designated suppliers under certain terms and conditions to enhance liquidity. We do not incur any interest or other incremental expenses associated with these agreements as balances are paid when they are due. See “Note 1010, “Supplier Finance ProgramsPrograms,” of our Unaudited Condensed Consolidated Financial Statements for additional information.
Operating Leases. We lease facilities, including our corporate headquarters and a facility adjacent to our corporate headquarters, from a related party, which is a company affiliated with us through common ownership. The lease agreements of these two Merrimack, New Hampshire facilities have expired. We continue to occupy the facilities on a month-to-month basis under the terms of the prior written lease agreements. It is our intention to enter into a written, long-term lease for our corporate headquarters. We do not expect to occupy the facilities.adjacent facility long term, and accordingly we do not intend to enter into a written, long-term lease for the adjacent facility. We also lease facilities from third parties under non-cancelable operating leases. Certain leases require us to pay real estate taxes, insurance, and common area maintenance charges. See “Item 2. Properties” in our Annual Report on Form 10-K for the year ended December 31, 2025 for additional information regarding our operating leases.
Certain leases require us to pay real estate taxes, insurance, and common area maintenance charges. See “Item 2. Properties” in our Annual Report on Form 10-K for the year ended December 31, 2025 for additional information regarding our operating leases.
CNXN insider buying and selling (Form 4)
Since 2026-04-11, insiders reported open-market purchases in 0 Form 4 filings and open-market sales in 13 filings (7 insiders, 21 trade dates, 204,668 shares, about $16.7M; 9 of these filings say the sales were made under a Rule 10b5-1 trading plan). Net open-market shares: -204,668 (purchases minus sales); net value about -$16.7M.Totals add up every open-market (code P and S) line in those filings, using the prices reported in the filings. Awards, option exercises, tax withholding and gifts are listed below but not counted.
| Trade date | Insider | Transaction | Shares | Price | Value |
|---|---|---|---|---|---|
| 2026-10-06 | Gallup Patricia |
Open-market sale |
6,174 | $92.07 | $568.4K |
| 2026-10-06 | Gallup Patricia |
Open-market sale |
56 | $92.95 | $5.2K |
| 2026-10-05 | Gallup Patricia |
Open-market sale |
5,570 | $92.42 | $514.8K |
| 2026-10-05 | Gallup Patricia |
Open-market sale |
1,572 | $93.06 | $146.3K |
| 2026-09-15 | David Hall Trust 2003 |
Open-market sale |
2,018 | $85.61 | $172.8K |
| 2026-09-15 | David Hall Trust 2003 |
Open-market sale |
5,124 | $85.01 | $435.6K |
| 2026-09-14 | David Hall Trust 2003 |
Open-market sale |
1,799 | $84.42 | $151.9K |
| 2026-09-14 | David Hall Trust 2003 |
Open-market sale |
3,551 | $85.62 | $304.0K |
| 2026-09-14 | David Hall Trust 2003 |
Open-market sale |
1,792 | $86.04 | $154.2K |
| 2026-09-02 | David Hall Trust 2003 |
Open-market sale |
2,684 | $80.88 | $217.1K |
| 2026-09-02 | David Hall Trust 2003 |
Open-market sale |
4,458 | $80.40 | $358.4K |
| 2026-09-01 | David Hall Trust 2003 |
Open-market sale |
2,270 | $79.39 | $180.2K |
| 2026-09-01 | David Hall Trust 2003 |
Open-market sale |
4,872 | $78.76 | $383.7K |
| 2026-09-01 | Gallup Patricia |
Option exercise | 500 | — | — |
| 2026-09-01 | Mcgrath Timothy J |
Option exercise | 10,000 | — | — |
| 2026-09-01 | Mcgrath Timothy J |
Shares withheld for tax | 3,935 | $80.07 | $315.1K |
| 2026-09-01 | Duckett Barbara |
Option exercise | 500 | — | — |
| 2026-09-01 | Beffa Negrini David |
Option exercise | 500 | — | — |
| 2026-09-01 | Ferguson Jack L |
Option exercise | 500 | — | — |
| 2026-08-18 | David Hall Trust 2003 |
Open-market sale |
3,220 | $78.83 | $253.8K |
| 2026-08-18 | David Hall Trust 2003 |
Open-market sale |
3,922 | $78.36 | $307.3K |
| 2026-08-17 | David Hall Trust 2003 |
Open-market sale |
1,358 | $79.61 | $108.1K |
| 2026-08-17 | David Hall Trust 2003 |
Open-market sale |
5,066 | $78.16 | $396.0K |
| 2026-08-17 | David Hall Trust 2003 |
Open-market sale |
718 | $80.21 | $57.6K |
| 2026-08-14 | Beffa Negrini David |
Open-market sale | 5,000 | $81.05 | $405.2K |
| 2026-08-05 | Pc Connection Inc |
Open-market sale |
3,383 | $84.09 | $284.5K |
| 2026-08-05 | Pc Connection Inc |
Open-market sale |
200 | $85.82 | $17.2K |
| 2026-08-05 | Pc Connection Inc |
Open-market sale |
3,559 | $84.77 | $301.7K |
| 2026-08-04 | Pc Connection Inc |
Open-market sale |
133 | $87.47 | $11.6K |
| 2026-08-04 | Pc Connection Inc |
Open-market sale |
3,041 | $87.01 | $264.6K |
| 2026-08-04 | Pc Connection Inc |
Open-market sale |
3,968 | $85.79 | $340.4K |
| 2026-08-04 | Mcgrath Timothy J |
Open-market sale | 12,479 | $86.20 | $1.1M |
| 2026-08-04 | Mcgrath Timothy J |
Open-market sale | 1,842 | $87.00 | $160.3K |
| 2026-08-03 | Mcgrath Timothy J |
Open-market sale | 12,630 | $86.23 | $1.1M |
| 2026-08-03 | Mcgrath Timothy J |
Open-market sale | 22,049 | $85.49 | $1.9M |
| 2026-08-03 | Mcgrath Timothy J |
Open-market sale | 1,000 | $84.17 | $84.2K |
| 2026-07-31 | Baker Thomas C |
Open-market sale | 19,394 | $83.17 | $1.6M |
| 2026-07-31 | Baker Thomas C |
Open-market sale | 606 | $83.89 | $50.8K |
| 2026-07-31 | Duckett Barbara |
Open-market sale | 2,000 | $83.86 | $167.7K |
| 2026-07-23 | Gallup Patricia |
Open-market sale |
6,575 | $80.52 | $529.4K |
| 2026-07-23 | Gallup Patricia |
Open-market sale |
567 | $81.15 | $46.0K |
| 2026-07-22 | Gallup Patricia |
Open-market sale |
1,485 | $81.21 | $120.6K |
| 2026-07-22 | Gallup Patricia |
Open-market sale |
1,990 | $80.59 | $160.4K |
| 2026-07-22 | Gallup Patricia |
Open-market sale |
3,667 | $79.28 | $290.7K |
| 2026-07-07 | Gallup Patricia |
Open-market sale |
7,142 | $74.11 | $529.3K |
| 2026-07-06 | Gallup Patricia |
Open-market sale |
5,897 | $73.00 | $430.5K |
| 2026-07-06 | Gallup Patricia |
Open-market sale |
1,245 | $72.17 | $89.9K |
| 2026-06-30 | Bothwick Jay E |
Option exercise | 1,250 | — | — |
| 2026-06-24 | Pc Connection Inc |
Open-market sale |
6,576 | $70.04 | $460.6K |
| 2026-06-24 | Pc Connection Inc |
Open-market sale |
566 | $70.52 | $39.9K |
| 2026-06-23 | Pc Connection Inc |
Open-market sale |
2,275 | $69.23 | $157.5K |
| 2026-06-23 | Pc Connection Inc |
Open-market sale |
4,867 | $69.96 | $340.5K |
| 2026-06-09 | Gallup Patricia |
Open-market sale |
3,692 | $71.63 | $264.5K |
| 2026-06-09 | Gallup Patricia |
Open-market sale |
3,692 | $72.20 | $266.6K |
| 2026-06-08 | Gallup Patricia |
Open-market sale |
6,379 | $72.05 | $459.6K |
| 2026-06-08 | Gallup Patricia |
Open-market sale |
545 | $72.61 | $39.6K |
Well-known investors holding CNXN (13F)
| Investor | Quarter | Shares | Reported value | % of their 13F | Change vs prior quarter |
|---|---|---|---|---|---|
| Two Sigma Investments | 2026-06-30 | 259,463 | $18.9M | 0.01% | Added 41% |
| AQR Capital Management (Cliff Asness) | 2026-06-30 | 114,996 | $8.4M | 0.0% | Reduced 1% |
| Millennium Management (Israel Englander) | 2026-06-30 | 72,717 | $5.3M | 0.0% | Reduced 16% |
| Renaissance Technologies | 2026-06-30 | 48,000 | $3.5M | 0.0% | Reduced 17% |
| D. E. Shaw & Co. | 2026-06-30 | 46,010 | $3.4M | 0.0% | Reduced 24% |
| Point72 Asset Management (Steve Cohen) | 2026-06-30 | 54,989 | $3.2M | — | Sold out |
| Citadel Advisors (Ken Griffin) | 2026-06-30 | 37,422 | $2.7M | 0.0% | Reduced 26% |