Filing Flows › PC Connection (CNXN) › Q1 2025
PC Connection (CNXN) Q1 2025 earnings results (first quarter 2025)
10-Q filed Apr 30, 2025
PC Connection (CNXN) reported revenue of $701M for the first quarter 2025 (Q1 2025), +11% from a year earlier and -1% from the quarter before. Operating margin was 2.1%, net earnings $13.5M (1.9% of revenue).
PC Connection, Q1 2025: revenue $701M (+11% year over year), operating margin 2.1%, net earnings $13.5M, operating cash flow −$52.4M. The chart follows the revenue to costs, profit and cash.
| Q1 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $701M | -1% | +11% |
| Gross profit | $127M | -2% | +8% |
| Operating profit | $14.5M | -36% | +8% |
| Net earnings | $13.5M | -35% | +2% |
| Operating cash flow | −$52.4M | — | — |
What changed
Revenue was $701.0M in Q1 2025, up 11% year over year and down 1% from the previous quarter. Notebooks/Mobility was the largest line at 37% of revenue. Notebooks/Mobility added $36.2M year over year (up 16%), 52% of the total change. Displays and Sound declined 17%.
Gross margin was 18.2%, down 0.5 points from a year earlier. Operating profit was $14.5M, a 2.1% margin (down 0.1 points year over year). Of the extra revenue versus a year earlier, 2% reached operating profit, below the 2% margin then. Operating expenses grew 8% against revenue growth of 11%. Net earnings were $13.5M, up 2% year over year. The effective tax rate was 27.1%. Non-operating items added $4.0M, 21% of pre-tax earnings, so the bottom line overstates operating performance.
Operating cash flow was −$52.4M. Non-cash charges added back $3.1M of depreciation and amortization and $2.2M of share-based compensation. Working capital and other items used $71.2M. Capital expenditures of $1.7M exceeded it, leaving free cash flow of −$54.1M.
Questions
What was PC Connection's revenue in the first quarter 2025?
PC Connection (CNXN) reported revenue of $701M for the first quarter 2025 (Q1 2025), +11% from a year earlier and -1% from the quarter before.
Was PC Connection profitable in the first quarter 2025?
Operating profit was $14.5M (2.1% of revenue) and net earnings $13.5M.
Source: PC Connection 10-Q on SEC EDGAR.