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Here are 1-3 brief analogies to describe PC Connection (CNXN):

• A smaller CDW: Like its larger and well-known competitor CDW, PC Connection is a direct marketer and reseller of IT products and solutions (hardware, software, and services) primarily to businesses, government, and educational institutions.
• The B2B version of Best Buy: Similar to how Best Buy sells a wide range of technology to consumers, PC Connection focuses on providing a comprehensive array of technology products and services, but exclusively to corporate, government, and educational clients.

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• IT Hardware Resale: Distribution of a wide range of computer hardware, including desktops, laptops, servers, networking equipment, and peripherals from leading manufacturers.
• IT Software Resale: Provision of various software solutions, operating systems, productivity applications, security software, and cloud-based software subscriptions.
• Professional Services: Consulting, design, implementation, and migration services for complex IT environments, covering areas like cloud, data centers, networking, and cybersecurity.
• Managed Services: Ongoing monitoring, maintenance, and management of IT infrastructure, security systems, and end-user devices to ensure optimal performance and reliability.
• Configuration & Deployment Services: Pre-sales services such as hardware configuration, software imaging, asset tagging, and logistics for the efficient rollout of IT equipment.

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PC Connection (CNXN) primarily sells information technology products and solutions to other companies and organizations, rather than directly to individuals.

Based on their public filings, including their annual 10-K reports, PC Connection has a highly diversified customer base. As a result, no single customer company accounts for more than 10% of their consolidated net sales. Therefore, there are no specific "major customer" companies that are individually named or required to be disclosed.

Instead, PC Connection serves various categories of businesses and institutions. Their primary customer categories include:

• Small-to-Medium Sized Businesses (SMBs)
• Mid-market and Enterprise organizations
• Public Sector (Government and Educational Institutions)

These categories represent the broad range of organizational customers that PC Connection serves across commercial and public markets.

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• Dell Technologies Inc. (DELL)
• HP Inc. (HPQ)
• Lenovo Group Limited (LNVGY)
• Microsoft Corporation (MSFT)
• Cisco Systems, Inc. (CSCO)
• Apple Inc. (AAPL)

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Timothy McGrath, President and Chief Executive Officer

Timothy McGrath became the President and Chief Executive Officer of PC Connection in August 2011, having previously served as President and Chief Operating Officer from 2010 to 2011. He joined PC Connection in 2005. Before his time at PC Connection, he was the Executive Vice President of Insight North America at Insight Enterprises, Inc. from 2002 to 2005. Prior to Insight, he was President of Comark Inc. from 1999 to 2002, a company that was subsequently acquired by Insight Enterprises, Inc. in April 2002 while he was its President. McGrath began his career at Hewlett Packard, where he worked as an area sales manager for the Eastern Region.

Thomas C. Baker, Senior Vice President, Chief Financial Officer, and Treasurer

Thomas C. Baker joined PC Connection as Senior Vice President, Chief Financial Officer, and Treasurer in March 2019. Before this role, he served as Corporate Vice President and Chief Financial Officer for the New Markets and Service Group at Applied Materials, Inc. starting in 2013. From 2006 to 2013, he was the Vice President of finance for Varian Semiconductor Equipment Associates and was instrumental in leading the financial integration following its acquisition by Applied Materials in 2011. Baker started his career as a public accountant at Price Waterhouse.

Patricia Gallup, Chairman of the Board and Chief Administrative Officer

Patricia Gallup co-founded PC Connection in 1982 with David Hall, starting the business with $8,000 in personal savings. She has been an executive officer since the company's inception in 1982 and served as Chief Executive Officer from 1990 to 2001, and again from September 2002 to August 2012. She has been crucial in guiding the company's strategic direction, overseeing its transformation from a direct mail-order supplier to a comprehensive IT solutions provider.

Brian Hicks, Senior Vice President, Product Management and Operations

Brian Hicks currently serves as the Senior Vice President of Product Management and Operations at Connection, a role he took on in November 2018, having previously been Senior Vice President of Operations since 2017. Prior to joining Connection, he held various senior management positions at Insight, including Vice President of Product Management and Vice President and General Manager, where he worked until 2016. Earlier in his career, he was the Western Region Sales Director at Motorola Computer Group from 1996, and a Director of Sales at NCR Corporation starting in 1988.

Jamal Khan, Chief Growth and Innovation Officer

Jamal Khan is the Chief Growth and Innovation Officer at Connection and also leads the CNXN Helix Center for Applied AI and Robotics. He brings over two decades of leadership experience in research, sales, marketing, and technology, including cybersecurity and artificial intelligence. Khan joined Connection following the acquisition of GlobalServe Inc., where he served as CEO. His background includes leadership roles at Instinet, VeriSign, and Merck Medco. Khan is also a co-inventor of six patents related to human-machine interface, data orchestration, and machine learning, and is actively involved as an investor and mentor in technology startups.

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1. Dependence on Supplier Relationships and Competitive Market Dynamics: PC Connection's business model as a value-added reseller heavily relies on its relationships with suppliers. Changes in terms, pricing, or product availability from these suppliers can adversely affect the company's financial performance. Furthermore, the IT solutions industry is highly competitive, with a significant threat coming from manufacturers who may choose to bypass resellers and sell directly to end-users, potentially impacting PC Connection's market share and profitability.
2. Macroeconomic Factors: The company is susceptible to various macroeconomic factors that can impact its customers' willingness to invest in IT products. These factors include disruptions in capital markets, changes in trade policy (such as the imposition of tariffs), economic slowdowns or recessions, rising inflation, and fluctuating interest rates.
3. General Competitive Market Dynamics and Need for Innovation: Beyond the threat of direct sales from manufacturers, the broader IT solutions industry is characterized by intense competition and rapidly evolving customer expectations. PC Connection must continuously innovate and adapt its offerings to maintain its market position and address the constant pressure from competitors.

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The accelerating shift of businesses from traditional on-premise hardware and perpetual software licenses to cloud-based Infrastructure as a Service (IaaS), Software as a Service (SaaS), and other subscription-based IT consumption models directly threatens PC Connection's core business model. As organizations increasingly rely on cloud providers for their infrastructure and applications, the demand for traditional hardware sales and associated license revenue, which historically formed a significant portion of PC Connection's business, diminishes. While PC Connection is adapting by offering cloud solutions and managed services, the rapid pace of this market transformation requires a fundamental pivot from a product-centric reseller model to a services-led, recurring revenue model, posing a significant challenge to maintain growth and profitability from its legacy operations.

The aggressive expansion and increasing sophistication of Amazon Business as a procurement platform poses a growing threat. Amazon Business's scale, competitive pricing, streamlined online purchasing experience, and expanding reach into enterprise and public sector procurement are directly challenging PC Connection's transactional sales of commodity IT hardware and software. As businesses increasingly leverage Amazon Business for their day-to-day IT needs, PC Connection faces pressure on pricing and the erosion of its customer base for straightforward product purchases.

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PC Connection (symbol: CNXN) operates as an information technology (IT) solutions provider, offering a wide range of products and services primarily to small and medium-sized businesses (SMBs), enterprises, government agencies, and educational institutions in the United States. Their main offerings include IT hardware, software, managed services, cloud solutions, and cybersecurity solutions.

The addressable markets for their main products and services in the U.S. region are sized as follows:

• IT Hardware: The U.S. IT hardware market was valued at approximately USD 300 billion in 2024.
• Software: The U.S. software market size was valued at USD 472.21 billion in 2024.
• Managed Services: The U.S. managed services market was estimated at USD 88.13 billion in 2024.
• Cloud Computing: The U.S. cloud computing market was valued at USD 306.46 billion in 2024.
• Cybersecurity: The U.S. cybersecurity market reached approximately USD 91.93 billion in 2024.
• Overall IT Services: The broader U.S. IT services market, which encompasses many of PC Connection's offerings including design, configuration, and implementation of IT solutions, was valued at USD 441.7 billion in 2024.

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1. Increased Adoption of AI-Enabled PCs and AI Readiness Initiatives: PC Connection is strategically investing in "AI readiness, technical sales and customer engagements" to position itself for "the shifting dynamics of how customers deploy, utilize, and consume technology." This includes a notable trend in PC refresh cycles, with approximately 25% of recently sold PCs being AI-enabled, indicating a significant future growth area as businesses upgrade their infrastructure to support AI capabilities.

2. Ongoing PC Refresh Cycles and Demand for Endpoint Devices: Customer-driven PC refresh initiatives are a consistent growth driver, particularly for notebooks, mobility devices, and desktops. The company experienced 17% revenue growth in this category in Q3 2024, and notebook/mobility and desktop sales increased by 21% year-over-year, accounting for 50% of net sales in Q1 2025. This trend is expected to continue as organizations transition to newer operating systems and seek enhanced productivity from updated hardware.

3. Data Center Modernization and Growth in Advanced Technologies: PC Connection is seeing strong demand as customers focus on data center refresh initiatives, server consolidation, and edge computing. This includes double-digit growth for datacenter modernization solutions, encompassing servers, storage, cloud, and software. Software sales specifically increased by 17% year-over-year in Q1 2025.

4. Expansion and Performance in Public Sector and Enterprise Segments: The company has demonstrated significant growth in its Public Sector Solutions business, with net sales increasing by 54.7% in Q1 2025, driven by strong demand from federal, state, and local government, and educational institutions. Additionally, the Enterprise Solutions segment has shown consistent growth, with net sales increasing by 9.1% in Q2 2025 and 7.4% in Q3 2024.

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Share Repurchases

• PC Connection increased its share repurchase authorization by $50.0 million in April 2025, bringing the aggregate authorized amount to $170.0 million, with $50.5 million remaining available. [cite: Connection (CNXN) Reports First Quarter 2025 Results - Business Wire, 5]
• The company repurchased $65.53 million of common stock for treasury shares during the nine months ended September 30, 2025.
• For the full year 2024, PC Connection repurchased approximately $12.63 million in common stock for treasury shares, including $4.9 million in the fourth quarter.

Share Issuance

• PC Connection issued $0.619 million (619 thousand) under its Employee Stock Purchase Plan during the nine months ended September 30, 2025.
• For the full year 2024, the company issued $1.108 million under its Employee Stock Purchase Plan. [cite: Connection (CNXN) Reports Fourth Quarter and Full Year 2024 Results - Investor Relations]
• Stockholders approved an amendment in 2025 to increase the number of shares that may be issued under the 2020 Plan from 1,252,500 to 1,652,500. [cite: Form 8-K/A for PC Connection INC filed 07/22/2025]

Outbound Investments

• As of October 2025, PC Connection is actively seeking "tuck-in acquisitions" to enhance its solutions capabilities. [cite: PC Connection Seeks Tuck-In Acquisitions - MarketScreener]

Capital Expenditures

• Capital expenditures for purchases of property and equipment were $5.201 million during the nine months ended September 30, 2025.
• For the full year 2023, capital expenditures for purchases of property and equipment amounted to $9.595 million.
• These capital expenditures are primarily focused on computer equipment and capitalized internally developed software to invest in IT infrastructure.